Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |
Document Type | 40-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Trading Symbol | MGA |
Entity Registrant Name | MAGNA INTERNATIONAL INC |
Entity Central Index Key | 749098 |
Current Fiscal Year End Date | -19 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Sales | $36,641 | $34,835 | $30,837 |
Costs and expenses | |||
Cost of goods sold | 31,623 | 30,287 | 27,019 |
Depreciation and amortization | 890 | 1,063 | 801 |
Selling, general and administrative | 1,707 | 1,616 | 1,510 |
Interest expense, net | 29 | 16 | 16 |
Equity income | -211 | -196 | -151 |
Other expense (income), net | 64 | 144 | -108 |
Income from operations before income taxes | 2,539 | 1,905 | 1,750 |
Income taxes | 659 | 360 | 324 |
Net income | 1,880 | 1,545 | 1,426 |
Net loss attributable to non-controlling interests | 2 | 16 | 7 |
Net income attributable to Magna International Inc. | $1,882 | $1,561 | $1,433 |
Earnings per Common Share: | |||
Basic | $8.81 | $6.85 | $6.17 |
Diluted | $8.69 | $6.76 | $6.09 |
Weighted average number of Common Shares outstanding during the year [in millions]: | |||
Basic | 213.6 | 227.9 | 232.4 |
Diluted | 216.6 | 230.8 | 235.2 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $1,880 | $1,545 | $1,426 |
Other comprehensive (loss) income, net of tax: | |||
Net unrealized (loss) gain on translation of net investment in foreign operations | -681 | -134 | 88 |
Net unrealized (loss) gain on cash flow hedges | -103 | -39 | 75 |
Reclassification of net loss (gain) on cash flow hedges to net income | 10 | -15 | -18 |
Reclassification of net loss on pensions to net income | 3 | 7 | 11 |
Pension and post-retirement benefits | -72 | 44 | -72 |
Net unrealized loss on available-for-sale investments | -5 | -4 | |
Other comprehensive (loss) income | -843 | -142 | 80 |
Comprehensive income | 1,037 | 1,403 | 1,506 |
Comprehensive loss attributable to non-controlling interests | 2 | 17 | 5 |
Comprehensive income attributable to Magna International Inc. | $1,039 | $1,420 | $1,511 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income | $1,880 | $1,545 | $1,426 |
Items not involving current cash flows | 1,157 | 1,149 | 708 |
Profit loss after adjustment of non cash items | 3,037 | 2,694 | 2,134 |
Changes in operating assets and liabilities | -245 | -127 | 72 |
Cash provided from operating activities | 2,792 | 2,567 | 2,206 |
INVESTMENT ACTIVITIES | |||
Fixed asset additions | -1,586 | -1,169 | -1,274 |
Purchase of subsidiaries | -23 | -9 | -525 |
Increase in investments and other assets | -175 | -192 | -122 |
Proceeds from disposition | 167 | 163 | 106 |
Cash used for investment activities | -1,617 | -1,207 | -1,815 |
FINANCING ACTIVITIES | |||
Issues of debt | 860 | 151 | 348 |
Increase (decrease) in bank indebtedness | 1 | -18 | 42 |
Repayments of debt | -189 | -173 | -309 |
Issues of Common Shares | 49 | 63 | 14 |
Settlement of stock options | -23 | -19 | |
Repurchase of Common Shares | -1,783 | -1,020 | -40 |
Contribution to subsidiaries by non-controlling interests | 4 | ||
Dividends paid | -316 | -284 | -252 |
Cash used for financing activities | -1,378 | -1,300 | -216 |
Effect of exchange rate changes on cash and cash equivalents | -98 | -28 | 22 |
Net (decrease) increase in cash and cash equivalents during the year | -301 | 32 | 197 |
Cash and cash equivalents, beginning of year | 1,554 | 1,522 | 1,325 |
Cash and cash equivalents, end of year | $1,253 | $1,554 | $1,522 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $1,253 | $1,554 |
Accounts receivable | 5,635 | 5,246 |
Inventories | 2,757 | 2,637 |
Income taxes receivable | 16 | |
Deferred tax assets | 186 | 275 |
Prepaid expenses and other | 160 | 211 |
Total current assets | 10,007 | 9,923 |
Investments | 419 | 391 |
Fixed assets, net | 5,664 | 5,441 |
Goodwill | 1,350 | 1,440 |
Deferred tax assets | 147 | 120 |
Other assets | 552 | 675 |
Consolidated total assets | 18,139 | 17,990 |
Current liabilities | ||
Bank indebtedness | 33 | 41 |
Accounts payable | 5,105 | 4,781 |
Accrued salaries and wages | 730 | 704 |
Other accrued liabilities | 1,538 | 1,538 |
Income taxes payable | 6 | |
Deferred tax liabilities | 21 | 9 |
Long-term debt due within one year | 184 | 230 |
Total current liability | 7,611 | 7,309 |
Long-term debt | 811 | 102 |
Long-term employee benefit liabilities | 580 | 532 |
Other long-term liabilities | 292 | 208 |
Deferred tax liabilities | 172 | 200 |
Total liability | 9,466 | 8,351 |
Shareholders' equity | ||
Common Shares [issued: 205,162,635; 2013 - 221,151,704] | 3,979 | 4,230 |
Contributed surplus | 83 | 69 |
Retained earnings | 5,155 | 5,011 |
Accumulated other comprehensive (loss) income | -558 | 313 |
Stockholders equity attributable to Magna International Inc | 8,659 | 9,623 |
Non-controlling interests | 14 | 16 |
Total stockholder's equity | 8,673 | 9,639 |
Total liability and stockholders' equity | $18,139 | $17,990 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 205,162,635 | 221,151,704 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Shares [Member] | Contributed Surplus [Member] | Retained Earnings [Member] | AOCI [Member] | Non-controlling Interests [Member] | |
In Millions, except Share data | |||||||
Beginning Balance at Dec. 31, 2011 | $8,202 | $4,373 | $63 | $3,317 | $422 | [1] | $27 |
Beginning Balance, shares at Dec. 31, 2011 | 233,300,000 | ||||||
Net income | 1,426 | 1,433 | -7 | ||||
Other comprehensive income (loss) | 80 | 78 | [1] | 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 | 5 | -5 | |||||
Release of restricted stock units | 5 | -5 | |||||
Repurchase and cancellation under normal course issuer bid | -42 | -18 | -20 | -4 | [1] | ||
Repurchase and cancellation under normal 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 | [1] | 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] | -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 | 6 | -6 | |||||
Release of restricted stock units | 9 | -9 | |||||
Repurchase and cancellation under normal course issuer bid | -1,020 | -271 | -707 | -42 | [1] | ||
Repurchase and cancellation under normal 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 | [1] | 16 |
Ending Balance, shares at Dec. 31, 2013 | 221,200,000 | ||||||
Net income | 1,880 | 1,882 | -2 | ||||
Other comprehensive income (loss) | -843 | -843 | [1] | ||||
Shares issued on exercise of stock options | 51 | 63 | -12 | ||||
Shares issued on exercise of stock options, shares | 1,324,580 | 1,300,000 | |||||
Release of restricted stock | 5 | -5 | |||||
Release of restricted stock units | 14 | -14 | |||||
Repurchase and cancellation under normal course issuer bid | -1,783 | -342 | -1,413 | -28 | [1] | ||
Repurchase and cancellation under normal course issuer bid, shares | -17,400,000 | ||||||
Stock-based compensation expense | 38 | 38 | |||||
Reclassification of liability | 7 | 7 | |||||
Dividends paid | -316 | 9 | -325 | ||||
Dividends paid, shares | 100,000 | ||||||
Ending Balance at Dec. 31, 2014 | $8,673 | $3,979 | $83 | $5,155 | ($558) | [1] | $14 |
Ending Balance, shares at Dec. 31, 2014 | 205,200,000 | ||||||
[1] | AOCI is Accumulated Other Comprehensive Income. |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid per share | $1.52 | $1.28 | $1.10 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. SIGNIFICANT ACCOUNTING POLICIES |
Magna International Inc. [collectively “Magna” or the “Company”] is a global automotive supplier whose product capabilities include producing 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 accounting principles generally accepted in the United States [“GAAP”]. | |
Principles of consolidation | |
The consolidated financial statements include the accounts of Magna and its controlled subsidiaries, some of which have a non-controlling interests. | |
Financial instruments | |
The Company classifies all of its financial assets and financial liabilities as 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 and other, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive 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 and include customer relationship intangibles and patents and licences, 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 definite-lived intangible assets for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of the fixed and definite-lived intangible assets is generally determined using estimated discounted future cash flows. | |
Goodwill | |
Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent writedowns for impairment. Goodwill is reviewed for impairment on December 31 of each year. 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 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. | |
The Company monitors warranty activity on an ongoing basis and adjusts reserve estimates when it is probable that future warranty costs will be different than those estimates. | |
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 other 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 consolidated 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 foreign operations that use the local currency as the functional currency, the change in fair value of available-for-sale investments, net of taxes, the 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 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, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | 2. ACCOUNTING STANDARDS |
Future Accounting Standards | |
Discontinued Operations | |
In April 2014, the FASB issued Accounting Standards Update [“ASU”] No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has [or will have] a major effect on an entity’s operations and financial results. ASU 2014-08 is effective for the Company in the first quarter of fiscal 2015. The adoption of this ASU is not expected to have a significant impact on the Company’s consolidated financial statements. | |
Revenue Recognition | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2017 using either of two methods: [i] retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or [ii] retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements. |
Other_Expense_Income_Net
Other Expense (Income), Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 significant plant closures or consolidations; 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: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
North America [a] | |||||||||||||
Impairment of long-lived assets | $ | 18 | $ | 23 | $ | 2 | |||||||
Re-measurement gain of STT | — | — | (35 | ) | |||||||||
18 | 23 | (33 | ) | ||||||||||
Europe [b] | |||||||||||||
Restructuring charges | 46 | 89 | 55 | ||||||||||
Impairment of long-lived assets | — | — | 23 | ||||||||||
46 | 89 | 78 | |||||||||||
Rest of World [c] | |||||||||||||
Impairment of long-lived assets | — | 10 | — | ||||||||||
Impairment of goodwill | — | 22 | — | ||||||||||
— | 32 | — | |||||||||||
Corporate [d] | |||||||||||||
Re-measurement gain of E-Car | — | — | (153 | ) | |||||||||
— | — | (153 | ) | ||||||||||
$ | 64 | $ | 144 | $ | (108 | ) | |||||||
[a] | North America | ||||||||||||
For the year ended December 31, 2014 | |||||||||||||
In conjunction with its annual business planning cycle, during the fourth quarter of 2014, the Company recorded long-lived asset impairment charges of $18 million [$12 million after tax] in North America related to fixed assets at an interior systems facility in the United States. | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
During 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 required that Magna re-measure its pre-existing investment in STT at fair value and recognize any gain or loss 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]. | |||||||||||||
[b] | Europe | ||||||||||||
For the year ended December 31, 2014 | |||||||||||||
During 2014, the Company recorded net restructuring charges of $46 million [$41 million after tax] in Europe at its exterior and interior systems operations. | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
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. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
During 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. | |||||||||||||
[c] | Rest of World | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
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 required that Magna re-measure its pre-existing investment in E-Car at fair value and recognize any gain or loss 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]. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 4. EARNINGS PER SHARE | ||||||||||||
Earnings per share are computed as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,882 | $ | 1,561 | $ | 1,433 | |||||||
Weighted average number of Common Shares outstanding during the year | 213.6 | 227.9 | 232.4 | ||||||||||
Basic earnings per Common Share | $ | 8.81 | $ | 6.85 | $ | 6.17 | |||||||
Diluted earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,882 | $ | 1,561 | $ | 1,433 | |||||||
Weighted average number of Common Shares outstanding during the year | 213.6 | 227.9 | 232.4 | ||||||||||
Adjustments | |||||||||||||
Stock options and restricted stock [a] | 3 | 2.9 | 2.8 | ||||||||||
216.6 | 230.8 | 235.2 | |||||||||||
Diluted earnings per Common Share | $ | 8.69 | $ | 6.76 | $ | 6.09 | |||||||
[a] | Diluted earnings per Common Share exclude 0.1 million [2013 – 0.1 million; 2012 – 2.3 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, 2014 | |||||||||||||
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: | ||||||||||||
2014 | 2013 | ||||||||||||
Bank term deposits, bankers’ acceptances and government paper | $ | 1,058 | $ | 1,331 | |||||||||
Cash | 195 | 223 | |||||||||||
$ | 1,253 | $ | 1,554 | ||||||||||
[b] | Items not involving current cash flows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization | $ | 890 | $ | 1,063 | $ | 801 | |||||||
Amortization of other assets included in cost of goods sold | 148 | 138 | 113 | ||||||||||
Deferred income taxes [note 11] | 94 | (100 | ) | (46 | ) | ||||||||
Other non-cash charges | 36 | 23 | 8 | ||||||||||
Impairment charges [note 3] | 18 | 55 | 25 | ||||||||||
Non-cash portion of Other expense, net [note 3] | — | — | (188 | ) | |||||||||
Equity income in excess of dividends received | (29 | ) | (30 | ) | (5 | ) | |||||||
$ | 1,157 | $ | 1,149 | $ | 708 | ||||||||
[c] | Changes in operating assets and liabilities: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accounts receivable | $ | (767 | ) | $ | (584 | ) | $ | (46 | ) | ||||
Inventories | (343 | ) | (141 | ) | (315 | ) | |||||||
Prepaid expenses and other | 5 | (56 | ) | 36 | |||||||||
Accounts payable | 677 | 325 | 247 | ||||||||||
Accrued salaries and wages | 82 | 87 | 37 | ||||||||||
Other accrued liabilities | 79 | 298 | 97 | ||||||||||
Income taxes payable | 22 | (56 | ) | 16 | |||||||||
$ | (245 | ) | $ | (127 | ) | $ | 72 | ||||||
Business_Acquisitions
Business Acquisitions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Business Acquisitions | 6. BUSINESS ACQUISITIONS | ||||||||||||
Acquisitions in the year ended December 31, 2014 | |||||||||||||
In October 2014, the Company acquired Techform Group of Companies, an automotive supplier of hinges, door locking rods and other closure products, which has operations in Canada, the United States and China, for cash consideration of $23 million. | |||||||||||||
The net effect of this acquisition on the Company’s 2014 consolidated balance sheet were increases in fixed assets of $21 million, goodwill of $3 million, other assets of $4 million, long-term debt of $4 million and deferred tax liabilities of $1 million. | |||||||||||||
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. | |||||||||||||
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 and 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. | |||||||||||||
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 | |||||||||||||
Preliminary | 2013 | Final | |||||||||||
Allocation | Adjustments | Allocation | |||||||||||
Non-cash working capital | $ | (129 | ) | $ | (47 | ) | $ | (176 | ) | ||||
Investments | 3 | (3 | ) | — | |||||||||
Fixed assets | 501 | (36 | ) | 465 | |||||||||
Goodwill | 289 | (2 | ) | 287 | |||||||||
Other assets | 94 | 99 | 193 | ||||||||||
Deferred tax assets | — | 5 | 5 | ||||||||||
Purchase intangibles | 215 | — | 215 | ||||||||||
Long-term employee benefit liabilities | (49 | ) | 1 | (48 | ) | ||||||||
Long-term debt | (25 | ) | (2 | ) | (27 | ) | |||||||
Other long-term liabilities | (35 | ) | — | (35 | ) | ||||||||
Deferred tax liabilities | (68 | ) | (15 | ) | (83 | ) | |||||||
Non-controlling interests | (11 | ) | — | (11 | ) | ||||||||
Fair value of net assets (excluding cash) | $ | 785 | $ | — | $ | 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. | |||||||||||||
Pro forma impact [unaudited] | |||||||||||||
If the acquisitions completed during 2014 and 2013 occurred on January 1, 2013, the Company’s unaudited pro forma consolidated sales for the year ended December 31, 2014 would have been $36.7 billion [2013—$34.9 billion] and the unaudited pro forma consolidated net income would have been $1.9 billion [2013—$1.6 billion]. | |||||||||||||
These acquisitions are not material to the consolidated financial statements individually and in the aggregate. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 7. INVENTORIES | ||||||||
Inventories consist of: | |||||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 914 | $ | 947 | |||||
Work-in-process | 241 | 273 | |||||||
Finished goods | 362 | 339 | |||||||
Tooling and engineering | 1,240 | 1,078 | |||||||
$ | 2,757 | $ | 2,637 | ||||||
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, 2014 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||
Investments | 8. INVESTMENTS | ||||||||||||
[a] | At December 31, 2014, the Company held Canadian third party ABCP with a face value of Cdn$107 million [2013—Cdn$107 million]. The following is a continuity of the Company’s investment in ABCP: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 92 | $ | 90 | $ | 82 | |||||||
Valuation adjustment [i] | 3 | 8 | 15 | ||||||||||
Cash receipts | — | — | (9 | ) | |||||||||
Foreign exchange and other | (7 | ) | (6 | ) | 2 | ||||||||
$ | 88 | $ | 92 | $ | 90 | ||||||||
[i] | The carrying value of this investment was based on a valuation technique estimating the fair value from the perspective of a market participant. The valuation adjustment is recorded in selling, general and administrative expense. | ||||||||||||
[b] | The Company’s net income includes the proportionate share of net income or loss of its equity method investees, including the Company’s 76% interest in an entity subject to shared control. 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 | |||||||||||||
2014 | 2013 | ||||||||||||
Current assets | $ | 479 | $ | 373 | |||||||||
Long-term assets | $ | 289 | $ | 82 | |||||||||
Current liabilities | $ | 364 | $ | 167 | |||||||||
Long-term liabilities | $ | 124 | $ | 76 | |||||||||
Statements of Income | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Sales | $ | 1,732 | $ | 1,013 | $ | 967 | |||||||
Cost of goods sold, expenses and income taxes | 1,521 | 839 | 814 | ||||||||||
Net income | $ | 211 | $ | 174 | $ | 153 | |||||||
Sales to equity method investees were approximately $135 million, $144 million and $171 million in 2014, 2013 and 2012, respectively. |
Fixed_Assets
Fixed Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Fixed Assets | 9. FIXED ASSETS | ||||||||
Fixed assets consist of: | |||||||||
2014 | 2013 | ||||||||
Cost | |||||||||
Land | $ | 267 | $ | 236 | |||||
Buildings | 1,718 | 1,592 | |||||||
Machinery and equipment | 11,643 | 11,510 | |||||||
13,628 | 13,338 | ||||||||
Accumulated depreciation | |||||||||
Buildings | (605 | ) | (579 | ) | |||||
Machinery and equipment | (7,359 | ) | (7,318 | ) | |||||
$ | 5,664 | $ | 5,441 | ||||||
Included in the cost of fixed assets are construction in progress expenditures of $843 million [2013 - $762 million] that have not been depreciated. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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, 2012 | $ | 701 | $ | 611 | $ | 74 | $ | 87 | $ | 1,473 | |||||||||||
Acquisitions [note 6] | (24 | ) | 22 | 3 | — | 1 | |||||||||||||||
Impairments [note 3] | — | — | — | (22 | ) | (22 | ) | ||||||||||||||
Reallocation between reporting segments [i] | — | — | 51 | (51 | ) | — | |||||||||||||||
Foreign exchange and other | (21 | ) | 22 | 1 | (14 | ) | (12 | ) | |||||||||||||
Balance, December 31, 2013 | 656 | 655 | 129 | — | 1,440 | ||||||||||||||||
Acquisitions [note 6] | 3 | — | — | — | 3 | ||||||||||||||||
Foreign exchange and other | (24 | ) | (67 | ) | (2 | ) | — | (93 | ) | ||||||||||||
Balance, December 31, 2014 | $ | 635 | $ | 588 | $ | 127 | $ | — | $ | 1,350 | |||||||||||
[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, 2014 | |||||||||||||
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: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Canadian statutory income tax rate | 26.5 | % | 26.5 | % | 26.5 | % | |||||||
Manufacturing and processing profits deduction | (0.4 | ) | (0.4 | ) | (0.7 | ) | |||||||
Foreign rate differentials | (0.1 | ) | (1.5 | ) | (1.5 | ) | |||||||
Losses not benefited | 1.3 | 5.3 | 5.8 | ||||||||||
Utilization of losses previously not benefited | (0.3 | ) | (1.0 | ) | (0.3 | ) | |||||||
Earnings of equity accounted investees | (1.1 | ) | (1.1 | ) | (1.2 | ) | |||||||
Tax on repatriation of foreign earnings | 0.6 | 1.4 | — | ||||||||||
Valuation allowance on deferred tax assets [i] | (0.1 | ) | (1.1 | ) | (5.0 | ) | |||||||
Austrian tax reform [ii] | 1.3 | — | — | ||||||||||
Mexican flat tax [iii] | — | (1.9 | ) | — | |||||||||
Research and development tax credits [iv] | (1.6 | ) | (4.3 | ) | (2.3 | ) | |||||||
Reserve for uncertain tax positions | (1.7 | ) | (2.3 | ) | (1.0 | ) | |||||||
Re-measurement gains [note 3] | — | — | (1.1 | ) | |||||||||
Others | 1.6 | (0.7 | ) | (0.7 | ) | ||||||||
Effective income tax rate | 26 | % | 18.9 | % | 18.5 | % | |||||||
[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. Based on these criteria, the Company released a portion of its valuation allowances pertaining to its operations in Europe, Mexico and China. These were partially offset by a valuation allowance set up against all of its deferred tax assets in Brazil. The net effect of all these valuation allowance adjustments was $4 million, $21 million and $89 million in 2014, 2013 and 2012, respectively. | ||||||||||||
[ii] | During 2014, the Austrian government enacted legislation abolishing the utilization of foreign losses, where the foreign subsidiary is not a member of the European Union. Furthermore, any foreign losses previously used by Austrian entities arising in those non European Union subsidiaries are subject to recapture in Austria. As a consequence of this change, the Company recorded a charge to income tax expense of $32 million [“Austrian tax reform”]. | ||||||||||||
[iii] | 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. | ||||||||||||
[iv] | For the year ended December 31, 2013, research and development tax credits included a tax benefit of $36 million in connection with a settlement 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: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Canadian | $ | 838 | $ | 653 | $ | 944 | |||||||
Foreign | 1,701 | 1,252 | 806 | ||||||||||
$ | 2,539 | $ | 1,905 | $ | 1,750 | ||||||||
[c] | The details of the income tax provision are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Canadian | $ | 200 | $ | 159 | $ | 170 | |||||||
Foreign | 365 | 301 | 200 | ||||||||||
565 | 460 | 370 | |||||||||||
Deferred | |||||||||||||
Canadian | 1 | (29 | ) | (6 | ) | ||||||||
Foreign | 93 | (71 | ) | (40 | ) | ||||||||
94 | (100 | ) | (46 | ) | |||||||||
$ | 659 | $ | 360 | $ | 324 | ||||||||
[d] | Deferred income taxes have been provided on temporary differences, which consist of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax depreciation greater (less) than book depreciation | $ | 41 | $ | (23 | ) | $ | 13 | ||||||
Book amortization (in excess of) less than tax amortization | (24 | ) | (57 | ) | 16 | ||||||||
Liabilities currently not deductible for tax | 18 | (48 | ) | (29 | ) | ||||||||
Net tax losses utilized (benefited) | 27 | 50 | (11 | ) | |||||||||
Change in valuation allowance on deferred tax assets | (3 | ) | (21 | ) | (89 | ) | |||||||
Austrian tax reform | 32 | — | — | ||||||||||
Net tax credits utilized | 10 | 2 | 53 | ||||||||||
Others | (7 | ) | (3 | ) | 1 | ||||||||
$ | 94 | $ | (100 | ) | $ | (46 | ) | ||||||
[e] | Deferred tax assets and liabilities consist of the following temporary differences: | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Tax benefit of loss carryforwards | $ | 712 | $ | 610 | |||||||||
Liabilities currently not deductible for tax | 238 | 342 | |||||||||||
Tax credit carryforwards | 25 | 34 | |||||||||||
Unrealized loss on cash flow hedges and retirement liabilities | 120 | 39 | |||||||||||
Others | 11 | 11 | |||||||||||
1,106 | 1,036 | ||||||||||||
Valuation allowance against tax benefit of loss carryforwards | (663 | ) | (528 | ) | |||||||||
Other valuation allowance | (79 | ) | (111 | ) | |||||||||
364 | 397 | ||||||||||||
Liabilities | |||||||||||||
Tax depreciation in excess of book depreciation | 208 | 170 | |||||||||||
Other assets book value in excess of tax value | — | 15 | |||||||||||
Tax on undistributed foreign earnings | 7 | 5 | |||||||||||
Unrealized gain on cash flow hedges and retirement liabilities | 9 | 21 | |||||||||||
224 | 211 | ||||||||||||
Net deferred tax assets | $ | 140 | $ | 186 | |||||||||
The net deferred tax assets are presented on the consolidated balance sheet in the following categories: | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets | $ | 186 | $ | 275 | |||||||||
Current deferred tax liabilities | (21 | ) | (9 | ) | |||||||||
Long-term deferred tax assets | 147 | 120 | |||||||||||
Long-term deferred tax liabilities | (172 | ) | (200 | ) | |||||||||
$ | 140 | $ | 186 | ||||||||||
[f] | The company has provided for deferred income taxes for the estimated tax cost of distributable earnings of its subsidiaries. Deferred income taxes have not been provided on approximately $3.99 billion of undistributed earnings of certain foreign subsidiaries, as the Company has concluded that such earnings should not give rise to additional tax liabilities upon repatriation or are indefinitely reinvested. A determination of the amount of the unrecognized tax liability relating to the remittance of such undistributed earnings is not practicable. | ||||||||||||
[g] | Income taxes paid in cash [net of refunds] were $547 million for the year ended December 31, 2014 [2013—$507 million; 2012—$347 million]. | ||||||||||||
[h] | As of December 31, 2014, the Company had domestic and foreign operating loss carryforwards of $2.27 billion and tax credit carryforwards of $25 million. Approximately $1.61 billion of the operating losses can be carried forward indefinitely. The remaining operating losses and tax credit carryforwards expire between 2015 and 2034. | ||||||||||||
[i] | As at December 31, 2014, 2013 and 2012, the Company’s gross unrecognized tax benefits were $202 million, $238 million and $279 million, respectively [excluding interest and penalties], of which $177 million, $219 million and $240 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: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 238 | $ | 279 | $ | 252 | |||||||
Increase based on tax positions related to current year | 21 | 35 | 68 | ||||||||||
Decrease based on tax positions of prior years | (23 | ) | (44 | ) | (31 | ) | |||||||
Settlements | (8 | ) | (24 | ) | (10 | ) | |||||||
Statute expirations | (10 | ) | (7 | ) | (5 | ) | |||||||
Foreign currency translation | (16 | ) | (1 | ) | 5 | ||||||||
$ | 202 | $ | 238 | $ | 279 | ||||||||
The Company recognizes interest and penalties with respect to unrecognized tax benefits as income tax expense. As at December 31, 2014, 2013 and 2012, the Company had recorded interest and penalties on the unrecognized tax benefits of $24 million, $42 million and $49 million, respectively, which reflects recoveries/(expenses) related to changes in its reserves for interest and penalties of $18 million, $7 million and ($7 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 $38 million, of which $35 million, if recognized, would affect its effective tax rate. | |||||||||||||
The Company considers its significant tax jurisdictions to include Canada, the United States, Austria, Germany and Mexico. With few exceptions, the Company remains subject to income tax examination in Germany for years after 2007, in Austria and Mexico for years after 2008, and in Canada and the U.S. federal jurisdiction for years after 2010. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Other Assets | 12. OTHER ASSETS | ||||||||
Other assets consist of: | |||||||||
2014 | 2013 | ||||||||
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement | $ | 259 | $ | 291 | |||||
Customer relationship intangibles [note 6] | 108 | 143 | |||||||
Long-term receivables [note 21[c]] | 87 | 111 | |||||||
Patents and licenses, net | 36 | 44 | |||||||
Pension overfunded status [note 16[a]] | 13 | 26 | |||||||
Unrealized gain on cash flow hedges [note 21] | 8 | 20 | |||||||
Other, net | 41 | 40 | |||||||
$ | 552 | $ | 675 | ||||||
Employee_Equity_and_Profit_Par
Employee Equity and Profit Participation Program | 12 Months Ended |
Dec. 31, 2014 | |
Other Liabilities Disclosure [Abstract] | |
Employee Equity and Profit Participation Program | 13. EMPLOYEE EQUITY AND PROFIT PARTICIPATION PROGRAM |
During the year ended December 31, 2014, 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 $63 million [2013—$39 million; 2012—$18 million] from the Company to facilitate the purchase of Common Shares. At December 31, 2014, the trust’s indebtedness to Magna was $63 million [2013—$39 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, 2014 | |||||||||||||
Guarantees [Abstract] | |||||||||||||
Warranty | 14. WARRANTY | ||||||||||||
The following is a continuity of the Company’s warranty accruals: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 91 | $ | 94 | $ | 76 | |||||||
Expense, net | 47 | 40 | 43 | ||||||||||
Settlements | (40 | ) | (46 | ) | (46 | ) | |||||||
Acquisitions [note 6] | — | 1 | 17 | ||||||||||
Foreign exchange and other | (10 | ) | 2 | 4 | |||||||||
$ | 88 | $ | 91 | $ | 94 | ||||||||
Debt_and_Commitments
Debt and Commitments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | ||||||||||||
2014 | 2013 | ||||||||||||
Senior Notes at interest rate of 3.625% [note 15[c]] | $ | 750 | $ | — | |||||||||
Bank term debt at a weighted average interest rate of approximately 8.2% [2013 – 6.3%], denominated primarily in Chinese renminbi and Brazilian real | 173 | 239 | |||||||||||
Government loans at a weighted average interest rate of approximately 5.5% [2013 – 5.9%], denominated primarily in euros and Brazilian real | 19 | 26 | |||||||||||
Other | 53 | 67 | |||||||||||
995 | 332 | ||||||||||||
Less due within one year | 184 | 230 | |||||||||||
$ | 811 | $ | 102 | ||||||||||
[b] | Future principal repayments on long-term debt are estimated to be as follows: | ||||||||||||
2015 | $ | 184 | |||||||||||
2016 | 25 | ||||||||||||
2017 | 12 | ||||||||||||
2018 | 16 | ||||||||||||
2019 | 2 | ||||||||||||
Thereafter | 756 | ||||||||||||
$ | 995 | ||||||||||||
[c] | On June 16, 2014, the Company issued $750 million of 3.625% fixed-rate Senior Notes which mature on June 15, 2024. The Senior Notes are senior unsecured obligations, interest is payable on June 15 and December 15 of each year, and do not include any financial covenants. The Company may redeem the Senior Notes in whole or in part at any time, and from time to time, at specified redemption prices determined in accordance with the terms of the indenture governing the Senior Notes. | ||||||||||||
[d] | On May 16, 2014, the Company’s $2.25 billion revolving credit facility maturing June 20, 2018 was extended to June 20, 2019. The facility 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. | ||||||||||||
[e] | Interest expense, net includes: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest expense | |||||||||||||
Current | $ | 26 | $ | 26 | $ | 27 | |||||||
Long-term | 21 | 8 | 7 | ||||||||||
47 | 34 | 34 | |||||||||||
Interest income | (18 | ) | (18 | ) | (18 | ) | |||||||
Interest expense, net | $ | 29 | $ | 16 | $ | 16 | |||||||
[f] | Interest paid in cash was $45 million for the year ended December 31, 2014 [2013—$32 million; 2012 - $32 million]. | ||||||||||||
[g] | At December 31, 2014, the Company had commitments under operating leases requiring annual rental payments as follows: | ||||||||||||
Total | |||||||||||||
2015 | $ | 306 | |||||||||||
2016 | 273 | ||||||||||||
2017 | 237 | ||||||||||||
2018 | 188 | ||||||||||||
2019 | 168 | ||||||||||||
Thereafter | 382 | ||||||||||||
$ | 1,554 | ||||||||||||
For the year ended December 31, 2014, operating lease expense was $344 million [2013—$363 million; 2012—$325 million]. | |||||||||||||
[h] | The Company had agreements with its founder and certain affiliated entities for the provision of business development, consulting and other business services which ended on December 31, 2014. The cost of these agreements was measured at the exchange amount. The aggregate amount expensed under these agreements with respect to the year ended December 31, 2014 was $57 million [2013—$52 million; 2012—$47 million]. |
LongTerm_Employee_Benefit_Liab
Long-Term Employee Benefit Liabilities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||
Long-Term Employee Benefit Liabilities | 16. LONG-TERM EMPLOYEE BENEFIT LIABILITIES | ||||||||||||||||
Long-term employee benefit liabilities consist of: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Defined benefit pension plans and other [a] | $ | 203 | $ | 149 | $ | 212 | |||||||||||
Termination and long service arrangements [b] | 330 | 343 | 304 | ||||||||||||||
Retirement medical benefits plans [c] | 39 | 34 | 39 | ||||||||||||||
Other long-term employee benefits | 8 | 6 | 5 | ||||||||||||||
Long-term employee benefit obligations | $ | 580 | $ | 532 | $ | 560 | |||||||||||
[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: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Discount rate | 3.7 | % | 4.7 | % | 4.1 | % | |||||||||||
Rate of compensation increase | 2.7 | % | 2.9 | % | 2.8 | % | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Discount rate | 4.7 | % | 4.1 | % | 4.7 | % | |||||||||||
Rate of compensation increase | 2.8 | % | 2.8 | % | 2.8 | % | |||||||||||
Expected return on plan assets | 6 | % | 6.5 | % | 7 | % | |||||||||||
Information about the Company’s defined benefit pension plans is as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 454 | $ | 502 | $ | 388 | |||||||||||
Current service cost | 13 | 13 | 11 | ||||||||||||||
Interest cost | 20 | 19 | 18 | ||||||||||||||
Actuarial losses (gains) and changes in actuarial assumptions | 93 | (56 | ) | 50 | |||||||||||||
Benefits paid | (16 | ) | (18 | ) | (18 | ) | |||||||||||
Acquisition | — | — | 47 | ||||||||||||||
Foreign exchange | (24 | ) | (6 | ) | 6 | ||||||||||||
End of year | 540 | 454 | 502 | ||||||||||||||
Plan assets at fair value [i] | |||||||||||||||||
Beginning of year | 328 | 288 | 259 | ||||||||||||||
Return on plan assets | 25 | 38 | 26 | ||||||||||||||
Employer contributions | 24 | 30 | 19 | ||||||||||||||
Benefits paid | (16 | ) | (18 | ) | (19 | ) | |||||||||||
Foreign exchange | (14 | ) | (10 | ) | 3 | ||||||||||||
End of year | 347 | 328 | 288 | ||||||||||||||
Ending funded status | $ | 193 | $ | 126 | $ | 214 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Non-current asset [note 12] | $ | (13 | ) | $ | (26 | ) | $ | — | |||||||||
Current liability | 3 | 3 | 2 | ||||||||||||||
Non-current liability | 203 | 149 | 212 | ||||||||||||||
Net amount | $ | 193 | $ | 126 | $ | 214 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (147 | ) | $ | (61 | ) | $ | (141 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 13 | $ | 13 | $ | 11 | |||||||||||
Interest cost | 20 | 19 | 18 | ||||||||||||||
Return on plan assets | (19 | ) | (19 | ) | (19 | ) | |||||||||||
Actuarial losses | 1 | 5 | 3 | ||||||||||||||
Net periodic benefit cost | $ | 15 | $ | 18 | $ | 13 | |||||||||||
[i] | The asset allocation of the Company’s defined benefit pension plans at December 31, 2014 and 2013, and the target allocation for 2015 is as follows: | ||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Equity securities | 55-75 | % | 58 | % | 58 | % | |||||||||||
Fixed income securities | 25-45 | % | 41 | % | 41 | % | |||||||||||
Cash and cash equivalents | 0-15 | % | 1 | % | 1 | % | |||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||
Substantially all of the plan assets’ fair value has been determined using significant observable inputs (level 2) from indirect market prices on regulated financial exchanges. | |||||||||||||||||
The expected rate of return on plan assets was determined by considering the Company’s current investment mix, the historic performance of these investment categories and expected future performance of these investment categories. | |||||||||||||||||
[b] | Termination and long 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: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 3 | % | 3.9 | % | 4.2 | % | |||||||||||
Rate of compensation increase | 2.7 | % | 3.9 | % | 3.9 | % | |||||||||||
Information about the Company’s termination and long service arrangements is as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 354 | $ | 314 | $ | 252 | |||||||||||
Current service cost | 20 | 24 | 16 | ||||||||||||||
Interest cost | 12 | 13 | 13 | ||||||||||||||
Actuarial losses and changes in actuarial assumptions | 15 | 12 | 41 | ||||||||||||||
Benefits paid | (18 | ) | (21 | ) | (13 | ) | |||||||||||
Acquisition | — | — | 2 | ||||||||||||||
Curtailment | — | — | (4 | ) | |||||||||||||
Foreign exchange | (43 | ) | 12 | 7 | |||||||||||||
Ending funded status | $ | 340 | $ | 354 | $ | 314 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 10 | $ | 11 | $ | 10 | |||||||||||
Non-current liability | 330 | 343 | 304 | ||||||||||||||
Net amount | $ | 340 | $ | 354 | $ | 314 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (81 | ) | $ | (82 | ) | $ | (74 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 20 | $ | 24 | $ | 16 | |||||||||||
Interest cost | 12 | 13 | 13 | ||||||||||||||
Actuarial losses | 16 | 4 | 12 | ||||||||||||||
Net periodic benefit cost | $ | 48 | $ | 41 | $ | 41 | |||||||||||
[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: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Retirement medical benefit obligations | 3.7 | % | 4.5 | % | 3.6 | % | |||||||||||
Net periodic benefit cost | 4.5 | % | 3.6 | % | 4.2 | % | |||||||||||
Health care cost inflation | 7 | % | 7.7 | % | 8 | % | |||||||||||
Information about the Company’s retirement medical benefits plans are as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 36 | $ | 41 | $ | 39 | |||||||||||
Interest cost | 2 | 2 | 2 | ||||||||||||||
Actuarial losses (gains) and changes in actuarial assumptions | 5 | (4 | ) | 3 | |||||||||||||
Benefits paid | (2 | ) | (2 | ) | (3 | ) | |||||||||||
Foreign exchange | — | (1 | ) | — | |||||||||||||
Ending funded status | $ | 41 | $ | 36 | $ | 41 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Non-current liability | 39 | 34 | 39 | ||||||||||||||
Net amount | $ | 41 | $ | 36 | $ | 41 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized past service costs | $ | 2 | $ | 2 | $ | 3 | |||||||||||
Unrecognized actuarial gains | 4 | 10 | 8 | ||||||||||||||
Total accumulated other comprehensive income | $ | 6 | $ | 12 | $ | 11 | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Interest cost | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Actuarial gains | (1 | ) | (2 | ) | (1 | ) | |||||||||||
Past service cost amortization | (1 | ) | (1 | ) | — | ||||||||||||
Net periodic benefit cost | $ | — | $ | (1 | ) | $ | 1 | ||||||||||
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—2015 | $ | 20 | $ | 9 | $ | 2 | $ | 31 | |||||||||
Expected benefit payments: | |||||||||||||||||
2015 | $ | 16 | $ | 9 | $ | 2 | $ | 27 | |||||||||
2016 | 17 | 9 | 2 | 28 | |||||||||||||
2017 | 17 | 10 | 2 | 29 | |||||||||||||
2018 | 18 | 11 | 3 | 32 | |||||||||||||
2019 | 19 | 14 | 2 | 35 | |||||||||||||
Thereafter | 113 | 96 | 12 | 221 | |||||||||||||
$ | 200 | $ | 149 | $ | 23 | $ | 372 | ||||||||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Long-Term Liabilities | 17. OTHER LONG-TERM LIABILITIES | ||||||||
Other long-term liabilities consist of: | |||||||||
2014 | 2013 | ||||||||
Long-term portion of income taxes payable | $ | 144 | $ | 133 | |||||
Long-term portion of fair value of hedges [note 21] | 82 | 28 | |||||||
Asset retirement obligation | 37 | 40 | |||||||
Long-term lease inducements | 24 | — | |||||||
Deferred revenue | 5 | 7 | |||||||
$ | 292 | $ | 208 | ||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based 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, 2014 was 6,793,030 [2013 – 7,516,831]. 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, 2011 | 6,867,367 | Cdn$ | 31.54 | 2,066,700 | |||||||||||||
Granted | 1,389,000 | 48.22 | — | ||||||||||||||
Exercised [i] | (1,525,159 | ) | 28.46 | (1,525,159 | ) | ||||||||||||
Cancelled | (107,966 | ) | 53.14 | (58,967 | ) | ||||||||||||
Vested | — | — | 2,745,000 | ||||||||||||||
Outstanding at December 31, 2012 | 6,623,242 | Cdn$ | 35.39 | 3,227,574 | |||||||||||||
Granted | 1,060,000 | 57.02 | — | ||||||||||||||
Exercised [i] | (2,805,969 | ) | 31.99 | (2,805,969 | ) | ||||||||||||
Cancelled | (119,165 | ) | 51.46 | (31,667 | ) | ||||||||||||
Vested | — | — | 2,457,171 | ||||||||||||||
Outstanding at December 31, 2013 | 4,758,108 | Cdn$ | 41.82 | 2,847,109 | |||||||||||||
Granted | 751,300 | 106.71 | — | ||||||||||||||
Exercised | (1,324,580 | ) | 39.83 | (1,324,580 | ) | ||||||||||||
Cancelled | (27,499 | ) | 60.46 | (6,000 | ) | ||||||||||||
Vested | — | — | 790,715 | ||||||||||||||
Outstanding at December 31, 2014 | 4,157,329 | Cdn$ | 54.05 | 2,307,244 | |||||||||||||
The total intrinsic value of options exercised during 2014 was $85 million [2013—$56 million; 2012—$6 million]. | |||||||||||||||||
[i] | During 2013, 849,999 [2012 – 1,100,001] options were exercised on a cashless basis in accordance with the applicable stock option plans. On exercise, cash payments totalling $23 million [2012—$19 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, 2014, 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 | 350,341 | 1.2 | 350,341 | ||||||||||||||
$25 to $30 | 925,000 | 2.2 | 925,000 | ||||||||||||||
$35 to $40 | 10,000 | 2.4 | 10,000 | ||||||||||||||
$45 to $50 | 917,364 | 4.2 | 489,225 | ||||||||||||||
$50 to $55 | 315,498 | 3 | 315,498 | ||||||||||||||
$55 to $60 | 891,826 | 5.2 | 217,180 | ||||||||||||||
Over $100 | 747,300 | 6.2 | — | ||||||||||||||
4,157,329 | 2,307,244 | ||||||||||||||||
Weighted average exercise price | Cdn$ | 54.05 | Cdn$ | 37.21 | |||||||||||||
Weighted average life remaining [years] | 3.95 | 2.83 | |||||||||||||||
Aggregate intrinsic value at December 31, 2014 | $ | 255 | $ | 175 | |||||||||||||
The weighted average assumptions used in measuring the fair value of stock options granted are as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.6 | % | 1.32 | % | 2.23 | % | |||||||||||
Expected dividend yield | 2 | % | 2 | % | 2 | % | |||||||||||
Expected volatility | 29 | % | 34 | % | 43 | % | |||||||||||
Expected time until exercise | 4.5 years | 4.5 years | 4.5 years | ||||||||||||||
Weighted average fair value of options granted in year [Cdn$] | $ | 22.94 | $ | 14.02 | $ | 15.37 | |||||||||||
[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, 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 | |||||||||||||||
Release of restricted stock | (143,152 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2014 | 587,324 | $ | 20 | ||||||||||||||
[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. Effective January 1, 2014, the DSUs will be settled upon an Independent Director’s retirement from the Board by delivering Magna Common Shares equal to the whole DSUs credited to the Independent Director. Previously, the DSUs were settled in cash. Accordingly, effective January 1, 2014, the DSUs are accounted for through equity. | |||||||||||||||||
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 | Equity | |||||||||||||||
RSUs | RSUs | classified | |||||||||||||||
DSUs | |||||||||||||||||
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 | |||||||||||||
Granted | 181,526 | 9,025 | 22,136 | 212,687 | |||||||||||||
Dividend equivalents | 839 | 566 | 2,047 | 3,452 | |||||||||||||
Forfeitures | — | (410 | ) | — | (410 | ) | |||||||||||
Redeemed | (321,580 | ) | (16,274 | ) | — | (337,854 | ) | ||||||||||
Outstanding at December 31, 2014 | 492,639 | 23,026 | 151,630 | 667,295 | |||||||||||||
[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: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Incentive Stock Option Plan | $ | 15 | $ | 15 | $ | 19 | |||||||||||
Long-term retention | 4 | 4 | 5 | ||||||||||||||
Restricted stock unit | 21 | 16 | 14 | ||||||||||||||
40 | 35 | 38 | |||||||||||||||
Fair value adjustment for liability classified DSUs | — | 5 | 4 | ||||||||||||||
Total stock-based compensation expense | $ | 40 | $ | 40 | $ | 42 | |||||||||||
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||
Capital Stock | 19. CAPITAL STOCK | ||||||||||||||||||||||||||||
[a] | At December 31, 2014, the Company’s authorized, issued and outstanding capital stock are as follows: | ||||||||||||||||||||||||||||
Preference shares—issuable in series - | |||||||||||||||||||||||||||||
The Company’s authorized capital stock includes 99,760,000 preference shares, issuable in series. None of these shares are currently issued or outstanding. | |||||||||||||||||||||||||||||
Common Shares - | |||||||||||||||||||||||||||||
Common Shares without par value [unlimited amount authorized] have the following attributes: | |||||||||||||||||||||||||||||
[i] | Each share is entitled to one vote per share at all meetings of shareholders. | ||||||||||||||||||||||||||||
[ii] | Each share shall participate equally as to dividends. | ||||||||||||||||||||||||||||
[b] | On November 10, 2014, 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 20,000,000 Magna Common Shares [the “2014 Bid”], representing 9.7% of the Company’s public float of Common Shares. The Bid commenced on November 13, 2014 and will terminate no later than November 12, 2015. | ||||||||||||||||||||||||||||
Previously, the Company had Normal Course Issuer Bids in place for the 12 month periods beginning in November 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
The following is a summary of the Normal Course Issuer Bids [number of shares in the table below are expressed in whole numbers]: | |||||||||||||||||||||||||||||
Maximum | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
number | Shares | Cash | Shares | Cash | Shares | Cash | |||||||||||||||||||||||
of shares | purchased | amount | purchased | amount | purchased | amount | |||||||||||||||||||||||
2011 Bid | 12,000,000 | — | $ | — | — | $ | — | 467,630 | $ | 21 | |||||||||||||||||||
2012 Bid | 12,000,000 | — | — | 11,572,598 | 814 | 427,402 | 19 | ||||||||||||||||||||||
2013 Bid | 20,000,000 | 15,135,714 | 1,525 | 2,509,723 | 199 | — | — | ||||||||||||||||||||||
2014 Bid | 20,000,000 | 2,399,188 | 241 | — | — | — | — | ||||||||||||||||||||||
17,534,902 | $ | 1,766 | 14,082,321 | $ | 1,013 | 895,032 | $ | 40 | |||||||||||||||||||||
Certain purchases 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 5, 2015 were exercised or converted: | ||||||||||||||||||||||||||||
Common Shares | 205,179,261 | ||||||||||||||||||||||||||||
Stock options [note 18] | 4,898,935 | ||||||||||||||||||||||||||||
210,078,196 | |||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive (Loss) Income | 20. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||
The following is a continuity schedule of accumulated other comprehensive (loss) income: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accumulated net unrealized (loss) gain on translation of net investment in foreign operations | |||||||||||||
Balance, beginning of year | $ | 454 | $ | 629 | $ | 547 | |||||||
Net unrealized (loss) gain | (681 | ) | (133 | ) | 86 | ||||||||
Repurchase of shares under normal course issuer bids [note 19] | (28 | ) | (42 | ) | (4 | ) | |||||||
Balance, end of year | (255 | ) | 454 | 629 | |||||||||
Accumulated net unrealized (loss) gain on cash flow hedges [b] | |||||||||||||
Balance, beginning of year | (20 | ) | 34 | (23 | ) | ||||||||
Net unrealized (loss) gain | (103 | ) | (39 | ) | 75 | ||||||||
Reclassification of net loss (gain) to net income [a] | 10 | (15 | ) | (18 | ) | ||||||||
Balance, end of year | (113 | ) | (20 | ) | 34 | ||||||||
Accumulated net unrealized loss on other long-term liabilities [b] | |||||||||||||
Balance, beginning of year | (117 | ) | (168 | ) | (107 | ) | |||||||
Net unrealized (loss) gain | (72 | ) | 44 | (72 | ) | ||||||||
Reclassification of net loss to net income [a] | 3 | 7 | 11 | ||||||||||
Balance, end of year | (186 | ) | (117 | ) | (168 | ) | |||||||
Accumulated net unrealized (loss) gain on available-for-sale investments | |||||||||||||
Balance, beginning of year | (4 | ) | 1 | 5 | |||||||||
Net unrealized loss | — | (5 | ) | (4 | ) | ||||||||
Balance, end of year | (4 | ) | (4 | ) | 1 | ||||||||
Total accumulated other comprehensive (loss) income [c] | $ | (558 | ) | $ | 313 | $ | 496 | ||||||
[a] | The effects on net income of amounts reclassified from AOCI, with presentation location, were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flow hedges | |||||||||||||
Sales | $ | (28 | ) | $ | 3 | $ | 24 | ||||||
Cost of sales | 17 | 18 | (1 | ) | |||||||||
Income tax | 1 | (6 | ) | (5 | ) | ||||||||
Net of tax | (10 | ) | 15 | 18 | |||||||||
Other long-term liabilities | |||||||||||||
Cost of sales | (4 | ) | (8 | ) | (14 | ) | |||||||
Income tax | 1 | 1 | 3 | ||||||||||
Net of tax | (3 | ) | (7 | ) | (11 | ) | |||||||
Total (loss) gain reclassified to net income | $ | (13 | ) | $ | 8 | $ | 7 | ||||||
[b] | The amount of income tax benefit that has been allocated to each component of other comprehensive income is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accumulated net unrealized (loss) gain on cash flow hedges | |||||||||||||
Balance, beginning of year | $ | 4 | $ | (13 | ) | $ | 12 | ||||||
Net unrealized loss (gain) | 41 | 11 | (30 | ) | |||||||||
Reclassification of net (loss) gain to net income | (1 | ) | 6 | 5 | |||||||||
Balance, end of year | 44 | 4 | (13 | ) | |||||||||
Accumulated net unrealized loss on other long-term liabilities | |||||||||||||
Balance, beginning of year | 14 | 36 | 24 | ||||||||||
Net unrealized loss (gain) | 23 | (21 | ) | 15 | |||||||||
Reclassification of net loss to net income | (1 | ) | (1 | ) | (3 | ) | |||||||
Balance, end of year | 36 | 14 | 36 | ||||||||||
Total income tax benefit | $ | 80 | $ | 18 | $ | 23 | |||||||
[c] | The amount of other comprehensive loss that is expected to be reclassified to net income during 2015 is $55 million [net of income tax of $21 million]. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||
Financial Instruments | 21. FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
[a] | Foreign exchange contracts | ||||||||||||||||||||||||
At December 31, 2014, 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 | U.S. | Weighted | Euro | Weighted | Peso | Weighted | |||||||||||||||||||
(Sell) | dollar | average | amount | average | amount | average | |||||||||||||||||||
amount | rate | rate | rate | ||||||||||||||||||||||
2015 | 235 | 1.10195 | 42 | 1.47805 | 4,390 | 0.07221 | |||||||||||||||||||
2015 | (617 | ) | 0.92552 | (15 | ) | 0.69344 | (123 | ) | 13.47236 | ||||||||||||||||
2016 | 30 | 1.07317 | 23 | 1.48303 | 2,766 | 0.07135 | |||||||||||||||||||
2016 | (370 | ) | 0.91253 | — | — | — | — | ||||||||||||||||||
2017 | 2 | 1.0997 | — | — | 911 | 0.06884 | |||||||||||||||||||
2017 | (226 | ) | 0.89597 | — | — | — | — | ||||||||||||||||||
2018 | (76 | ) | 0.87961 | — | — | — | — | ||||||||||||||||||
2019 | (39 | ) | 0.87043 | — | — | — | — | ||||||||||||||||||
(1,061 | ) | 50 | 7,944 | ||||||||||||||||||||||
For euros | |||||||||||||||||||||||||
Buy | U.S. | Weighted | GBP | Weighted | Czech | Weighted | |||||||||||||||||||
(Sell) | dollar | average | amount | average | koruna | average | |||||||||||||||||||
amount | rate | rate | amount | rate | |||||||||||||||||||||
2015 | 85 | 0.76616 | 13 | 1.1917 | 2,571 | 0.038 | |||||||||||||||||||
2015 | (152 | ) | 1.3112 | (15 | ) | 0.85706 | — | — | |||||||||||||||||
2016 | 24 | 0.76905 | — | — | 1,609 | 0.03698 | |||||||||||||||||||
2016 | (81 | ) | 1.30607 | (13 | ) | 0.80758 | — | — | |||||||||||||||||
2017 | 3 | 0.78725 | — | — | 755 | 0.03656 | |||||||||||||||||||
2017 | (43 | ) | 1.33328 | (9 | ) | 0.81324 | — | — | |||||||||||||||||
2018 | (12 | ) | 1.3103 | (1 | ) | 0.8193 | — | — | |||||||||||||||||
(176 | ) | (25 | ) | 4,935 | |||||||||||||||||||||
Based on forward foreign exchange rates as at December 31, 2014 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 $30 million and $174 million, respectively [note 20]. | |||||||||||||||||||||||||
The Company does not enter into foreign exchange forward contracts for speculative purposes. | |||||||||||||||||||||||||
[b] | Financial assets and liabilities | ||||||||||||||||||||||||
The Company’s financial assets and liabilities consist of the following: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,253 | $ | 1,554 | |||||||||||||||||||||
Investment in ABCP [note 8] | 88 | 92 | |||||||||||||||||||||||
$ | 1,341 | $ | 1,646 | ||||||||||||||||||||||
Held-to-maturity investments | |||||||||||||||||||||||||
Severance investments | $ | 4 | $ | 5 | |||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||
Equity investments | $ | 5 | $ | 4 | |||||||||||||||||||||
Loans and receivables | |||||||||||||||||||||||||
Accounts receivable | $ | 5,635 | $ | 5,246 | |||||||||||||||||||||
Long-term receivables included in other assets [note 12] | 87 | 111 | |||||||||||||||||||||||
$ | 5,722 | $ | 5,357 | ||||||||||||||||||||||
Other financial liabilities | |||||||||||||||||||||||||
Bank indebtedness | $ | 33 | $ | 41 | |||||||||||||||||||||
Long-term debt (including portion due within one year) | 995 | 332 | |||||||||||||||||||||||
Accounts payable | 5,105 | 4,781 | |||||||||||||||||||||||
$ | 6,133 | $ | 5,154 | ||||||||||||||||||||||
Derivatives designated as effective hedges, measured at fair value | |||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||
Prepaid expenses and other | $ | 22 | $ | 42 | |||||||||||||||||||||
Other assets | 8 | 20 | |||||||||||||||||||||||
Other accrued liabilities | (93 | ) | (37 | ) | |||||||||||||||||||||
Other long-term liabilities | (82 | ) | (28 | ) | |||||||||||||||||||||
(145 | ) | (3 | ) | ||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Other accrued liabilities | (1 | ) | (1 | ) | |||||||||||||||||||||
$ | (146 | ) | $ | (4 | ) | ||||||||||||||||||||
[c] | Derivatives designated as effective hedges, measured at fair value | ||||||||||||||||||||||||
The Company presents derivatives that are designated as effective hedges at gross fair values in the consolidated balance sheets. However, master netting and other similar arrangements allow net settlements under certain conditions. The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the consolidated balance sheets and the unrecognized impacts of master netting arrangements: | |||||||||||||||||||||||||
Gross | Gross | Net | |||||||||||||||||||||||
amounts | amounts | amounts | |||||||||||||||||||||||
presented | not offset | ||||||||||||||||||||||||
in consolidated | in consolidated | ||||||||||||||||||||||||
balance sheets | balance sheets | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Assets | $ | 30 | $ | 28 | $ | 2 | |||||||||||||||||||
Liabilities | $ | (174 | ) | $ | (28 | ) | $ | (146 | ) | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Assets | $ | 62 | $ | 42 | $ | 20 | |||||||||||||||||||
Liabilities | $ | (65 | ) | $ | (42 | ) | $ | (23 | ) | ||||||||||||||||
[d] | Fair value | ||||||||||||||||||||||||
The Company determined the estimated fair values of its financial instruments based on valuation methodologies it believes are appropriate; however, considerable judgment is required to develop these estimates. Accordingly, these estimated fair values are not necessarily indicative of the amounts the Company could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of financial instruments are described below: | |||||||||||||||||||||||||
Cash and cash equivalents, accounts receivable, 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, 2014, the Company held Canadian third party ABCP with a face value of Cdn$107 million [2013—Cdn$107 million]. The carrying value and estimated fair value of this investment was Cdn$102 million [2013—Cdn$99 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, 2014, the Company held available-for-sale investments in publicly traded companies. At December 31, 2014, the carrying value and fair value of these investments was $5 million [2013—$4 million], which was based on the closing share prices of these investments. | |||||||||||||||||||||||||
Term debt | |||||||||||||||||||||||||
The Company’s term debt includes $184 million due within one year. Due to the short period to maturity of this debt, the carrying value as presented in the consolidated balance sheet is a reasonable estimate of its fair value. | |||||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||
At December 31, 2014, the total estimated fair value of the Senior Notes was approximately $755 million, determined primarily using active market prices, categorized as Level 1 inputs within the GAAP’s fair value hierarchy. | |||||||||||||||||||||||||
[e] | 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 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, 2014, 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. | |||||||||||||||||||||||||
[f] | Currency risk | ||||||||||||||||||||||||
The Company is exposed to fluctuations in foreign exchange rates when manufacturing facilities have committed to the delivery of products for which the selling price has been quoted in currencies other than the facilities’ functional currency, and when materials and equipment are purchased in currencies other than the facilities’ functional currency. In an effort to manage this net foreign exchange exposure, the Company employs hedging programs, primarily through the use of foreign exchange forward contracts [note 21[a]]. | |||||||||||||||||||||||||
As at December 31, 2014, the net foreign exchange exposure, after considering the impact of foreign exchange contracts, was not significant. | |||||||||||||||||||||||||
[g] | Interest rate risk | ||||||||||||||||||||||||
The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and current liabilities. In particular, the amount of interest income earned on cash and cash equivalents is impacted more by investment decisions made and the demands to have available cash on hand, than by movements in interest rates over a given period. | |||||||||||||||||||||||||
In addition, the Company is not exposed to interest rate risk on its term debt and Senior Notes as the interest rates on these instruments are fixed. |
Contingencies
Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Contingencies | 22. CONTINGENCIES | |||
From time to time, the Company may become involved in regulatory proceedings, or become liable for legal, contractual and other claims by various parties, including customers, suppliers, former employees, class action plaintiffs and others. On an ongoing basis, the Company attempts to assess the likelihood of any adverse judgments or outcomes to these proceedings or claims, together with potential ranges of probable costs and losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. | ||||
[a] | In 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 2016, 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] | In September 2013, representatives of the Bundeskartellamt, the German Federal 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 automotive textile coverings and components, particularly trunk linings. | |||
In September 2014, the Conselho Administrativo de Defesa Economica, Brazil’s Federal competition authority, attended at one of the Company’s operating divisions in Brazil to obtain information in connection with an ongoing antitrust investigation relating to suppliers of automotive door latches and related products. | ||||
Proceedings of this nature can often continue for several years. Where wrongful conduct is found, the relevant antitrust authority can, depending on the jurisdiction, initiate administrative or criminal legal proceedings and impose administrative or criminal fines or penalties taking into account several mitigating and aggravating factors. In the case of the German Federal Cartel Office, administrative fines are tied to the level of affected sales and the consolidated sales of the group of companies to which the offending entity belongs. At this time, management is unable to predict the duration or outcome of the German and Brazilian investigations, including whether any operating divisions of the Company will be found liable for any violation of law or the extent or magnitude of any liability, if found to be liable. | ||||
The Company’s policy is to comply with all applicable laws, including antitrust and competition laws. The Company has initiated a global review focused on antitrust risk led by a team of external counsel. If any antitrust violation is found as a result of the above-referenced investigations or otherwise, Magna could be subject to fines, penalties and civil, administrative or criminal legal proceedings that could have a material adverse effect on Magna’s profitability in the year in which any such fine or penalty is imposed or the outcome of any such proceeding is determined. Additionally, Magna could be subject to other consequences, including reputational damage, which could have a material adverse effect on the Company. | ||||
[c] | 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, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segmented Information | 23. SEGMENTED INFORMATION | ||||||||||||||||||||||||||||
[a] | Magna is a global automotive supplier whose product capabilities include producing 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, 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. | |||||||||||||||||||||||||||||
The following tables show certain information with respect to segment disclosures: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT [iii] | asset | assets, | ||||||||||||||||||||||||
amortization | additions | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 6,799 | $ | 6,324 | $ | 204 | $ | 638 | |||||||||||||||||||||
United States | 9,780 | 9,252 | 351 | 1,260 | |||||||||||||||||||||||||
Mexico | 4,357 | 4,027 | 160 | 655 | |||||||||||||||||||||||||
Eliminations | (1,224 | ) | — | — | — | ||||||||||||||||||||||||
North America | 19,712 | 19,603 | $ | 421 | $ | 1,992 | $ | 635 | 715 | 2,553 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 11,775 | 11,487 | 375 | 1,359 | |||||||||||||||||||||||||
Great Britain | 783 | 781 | 51 | 98 | |||||||||||||||||||||||||
Eastern Europe | 2,580 | 2,226 | 91 | 555 | |||||||||||||||||||||||||
Eliminations | (432 | ) | — | — | — | ||||||||||||||||||||||||
Europe | 14,706 | 14,494 | 357 | 434 | 588 | 517 | 2,012 | ||||||||||||||||||||||
Asia | 1,983 | 1,837 | 71 | 162 | 127 | 141 | 650 | ||||||||||||||||||||||
Rest of World | 695 | 694 | 17 | (35 | ) | — | 8 | 82 | |||||||||||||||||||||
Corporate and Other [i] | (455 | ) | 13 | 24 | 79 | — | 206 | 367 | |||||||||||||||||||||
Total reportable segments | $ | 36,641 | $ | 36,641 | $ | 890 | $ | 2,632 | $ | 1,350 | $ | 1,587 | $ | 5,664 | |||||||||||||||
Current assets | 10,007 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,468 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 18,139 | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT [iii] | asset | assets, net | ||||||||||||||||||||||||
amortization | additions | ||||||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | ) | — | 20 | 102 | |||||||||||||||||||||
Corporate and Other [i] | (410 | ) | 23 | 26 | 36 | — | 30 | 226 | |||||||||||||||||||||
Total reportable segments | $ | 34,835 | $ | 34,835 | $ | 1,063 | $ | 2,065 | $ | 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 [iii] | asset | assets, net | ||||||||||||||||||||||||
amortization | additions | ||||||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | — | — | 11 | 249 | |||||||||||||||||||||
Total reportable segments | $ | 30,837 | $ | 30,837 | $ | 801 | $ | 1,658 | $ | 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 | |||||||||||||||||||||||||||
[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. | ||||||||||||||||||||||||||||
[iii] | The following table reconciles Adjusted EBIT to Income from operations before income taxes: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Adjusted EBIT | $ | 2,632 | $ | 2,065 | $ | 1,658 | |||||||||||||||||||||||
Other (expense) income, net | (64 | ) | (144 | ) | 108 | ||||||||||||||||||||||||
Interest expense, net | (29 | ) | (16 | ) | (16 | ) | |||||||||||||||||||||||
Income from operations before income taxes | $ | 2,539 | $ | 1,905 | $ | 1,750 | |||||||||||||||||||||||
[b] | The following table aggregates external revenues by customer as follows: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
General Motors | $ | 6,734 | $ | 6,394 | $ | 5,704 | |||||||||||||||||||||||
Fiat / Chrysler Group | 5,897 | 5,137 | 4,637 | ||||||||||||||||||||||||||
Ford Motor Company | 4,714 | 4,450 | 3,848 | ||||||||||||||||||||||||||
BMW | 4,649 | 4,882 | 4,100 | ||||||||||||||||||||||||||
Daimler AG | 4,262 | 3,949 | 3,367 | ||||||||||||||||||||||||||
Volkswagen | 4,144 | 4,047 | 3,835 | ||||||||||||||||||||||||||
Other | 6,241 | 5,976 | 5,346 | ||||||||||||||||||||||||||
$ | 36,641 | $ | 34,835 | $ | 30,837 | ||||||||||||||||||||||||
[c] | The following table summarizes external revenues generated by automotive products and services: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Exterior and interior systems | $ | 12,840 | $ | 12,308 | $ | 11,673 | |||||||||||||||||||||||
Body systems and chassis systems | 8,079 | 7,874 | 7,123 | ||||||||||||||||||||||||||
Powertrain systems | 4,954 | 4,634 | 3,825 | ||||||||||||||||||||||||||
Complete vehicle assembly | 3,067 | 3,062 | 2,561 | ||||||||||||||||||||||||||
Tooling, engineering and other | 2,971 | 2,823 | 2,317 | ||||||||||||||||||||||||||
Vision and electronic systems | 2,644 | 2,193 | 2,132 | ||||||||||||||||||||||||||
Closure systems | 2,086 | 1,941 | 1,206 | ||||||||||||||||||||||||||
$ | 36,641 | $ | 34,835 | $ | 30,837 | ||||||||||||||||||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | 24. SUBSEQUENT EVENT |
Stock Split | |
On February 24, 2015, the Board of Directors approved a two-for-one stock split, to be implemented by way of a stock dividend, whereby shareholders of the Company will receive an additional Common Share for each Common Share held. The stock dividend will be payable on March 25, 2015, to shareholders of record at the close of business on March 11, 2015. All equity-based compensation plans or arrangements and normal course issuer bid will be adjusted to reflect the issuance of additional Common Shares due to the declaration of the stock split. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation |
The consolidated financial statements include the accounts of Magna and its controlled subsidiaries, some of which have a non-controlling interests. | |
Financial instruments | Financial instruments |
The Company classifies all of its financial assets and financial liabilities as 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 and other, other assets, other accrued liabilities or other long-term liabilities. To the extent that cash flow hedges are effective, the change in their fair value is recorded in other comprehensive income; any ineffective portion is recorded in net income. Amounts accumulated in other comprehensive 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 and include customer relationship intangibles and patents and licences, 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 definite-lived intangible assets for recoverability whenever indicators of impairment exist. If the carrying value of the asset exceeds the estimated undiscounted cash flows from the use of the asset, then an impairment loss is recognized to write the asset down to fair value. The fair value of the fixed and definite-lived intangible assets is generally determined using estimated discounted future cash flows. | |
Goodwill | Goodwill |
Goodwill represents the excess of the cost of an acquired enterprise over the fair value of the identifiable assets acquired and liabilities assumed less any subsequent writedowns for impairment. Goodwill is reviewed for impairment on December 31 of each year. 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 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. | |
The Company monitors warranty activity on an ongoing basis and adjusts reserve estimates when it is probable that future warranty costs will be different than those estimates. | |
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 other 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 consolidated 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 foreign operations that use the local currency as the functional currency, the change in fair value of available-for-sale investments, net of taxes, the 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 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, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Expense (Income), Net | Other expense (income), net consists of: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
North America [a] | |||||||||||||
Impairment of long-lived assets | $ | 18 | $ | 23 | $ | 2 | |||||||
Re-measurement gain of STT | — | — | (35 | ) | |||||||||
18 | 23 | (33 | ) | ||||||||||
Europe [b] | |||||||||||||
Restructuring charges | 46 | 89 | 55 | ||||||||||
Impairment of long-lived assets | — | — | 23 | ||||||||||
46 | 89 | 78 | |||||||||||
Rest of World [c] | |||||||||||||
Impairment of long-lived assets | — | 10 | — | ||||||||||
Impairment of goodwill | — | 22 | — | ||||||||||
— | 32 | — | |||||||||||
Corporate [d] | |||||||||||||
Re-measurement gain of E-Car | — | — | (153 | ) | |||||||||
— | — | (153 | ) | ||||||||||
$ | 64 | $ | 144 | $ | (108 | ) | |||||||
[a] | North America | ||||||||||||
For the year ended December 31, 2014 | |||||||||||||
In conjunction with its annual business planning cycle, during the fourth quarter of 2014, the Company recorded long-lived asset impairment charges of $18 million [$12 million after tax] in North America related to fixed assets at an interior systems facility in the United States. | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
During 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 required that Magna re-measure its pre-existing investment in STT at fair value and recognize any gain or loss 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]. | |||||||||||||
[b] | Europe | ||||||||||||
For the year ended December 31, 2014 | |||||||||||||
During 2014, the Company recorded net restructuring charges of $46 million [$41 million after tax] in Europe at its exterior and interior systems operations. | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
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. | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
During 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. | |||||||||||||
[c] | Rest of World | ||||||||||||
For the year ended December 31, 2013 | |||||||||||||
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 required that Magna re-measure its pre-existing investment in E-Car at fair value and recognize any gain or loss 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]. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Earnings Per Share | Earnings per share are computed as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,882 | $ | 1,561 | $ | 1,433 | |||||||
Weighted average number of Common Shares outstanding during the year | 213.6 | 227.9 | 232.4 | ||||||||||
Basic earnings per Common Share | $ | 8.81 | $ | 6.85 | $ | 6.17 | |||||||
Diluted earnings per Common Share: | |||||||||||||
Net income attributable to Magna International Inc. | $ | 1,882 | $ | 1,561 | $ | 1,433 | |||||||
Weighted average number of Common Shares outstanding during the year | 213.6 | 227.9 | 232.4 | ||||||||||
Adjustments | |||||||||||||
Stock options and restricted stock [a] | 3 | 2.9 | 2.8 | ||||||||||
216.6 | 230.8 | 235.2 | |||||||||||
Diluted earnings per Common Share | $ | 8.69 | $ | 6.76 | $ | 6.09 | |||||||
[a] | Diluted earnings per Common Share exclude 0.1 million [2013 – 0.1 million; 2012 – 2.3 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, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Components of Cash and Cash Equivalents | [a] | Cash and cash equivalents consist of: | |||||||||||
2014 | 2013 | ||||||||||||
Bank term deposits, bankers’ acceptances and government paper | $ | 1,058 | $ | 1,331 | |||||||||
Cash | 195 | 223 | |||||||||||
$ | 1,253 | $ | 1,554 | ||||||||||
Details of Items Not Involving Current Cash Flows | [b] | Items not involving current cash flows: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization | $ | 890 | $ | 1,063 | $ | 801 | |||||||
Amortization of other assets included in cost of goods sold | 148 | 138 | 113 | ||||||||||
Deferred income taxes [note 11] | 94 | (100 | ) | (46 | ) | ||||||||
Other non-cash charges | 36 | 23 | 8 | ||||||||||
Impairment charges [note 3] | 18 | 55 | 25 | ||||||||||
Non-cash portion of Other expense, net [note 3] | — | — | (188 | ) | |||||||||
Equity income in excess of dividends received | (29 | ) | (30 | ) | (5 | ) | |||||||
$ | 1,157 | $ | 1,149 | $ | 708 | ||||||||
Changes in Operating Assets and Liabilities | [c] | Changes in operating assets and liabilities: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Accounts receivable | $ | (767 | ) | $ | (584 | ) | $ | (46 | ) | ||||
Inventories | (343 | ) | (141 | ) | (315 | ) | |||||||
Prepaid expenses and other | 5 | (56 | ) | 36 | |||||||||
Accounts payable | 677 | 325 | 247 | ||||||||||
Accrued salaries and wages | 82 | 87 | 37 | ||||||||||
Other accrued liabilities | 79 | 298 | 97 | ||||||||||
Income taxes payable | 22 | (56 | ) | 16 | |||||||||
$ | (245 | ) | $ | (127 | ) | $ | 72 | ||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 | |||||||||||||
Preliminary | 2013 | Final | |||||||||||
Allocation | Adjustments | Allocation | |||||||||||
Non-cash working capital | $ | (129 | ) | $ | (47 | ) | $ | (176 | ) | ||||
Investments | 3 | (3 | ) | — | |||||||||
Fixed assets | 501 | (36 | ) | 465 | |||||||||
Goodwill | 289 | (2 | ) | 287 | |||||||||
Other assets | 94 | 99 | 193 | ||||||||||
Deferred tax assets | — | 5 | 5 | ||||||||||
Purchase intangibles | 215 | — | 215 | ||||||||||
Long-term employee benefit liabilities | (49 | ) | 1 | (48 | ) | ||||||||
Long-term debt | (25 | ) | (2 | ) | (27 | ) | |||||||
Other long-term liabilities | (35 | ) | — | (35 | ) | ||||||||
Deferred tax liabilities | (68 | ) | (15 | ) | (83 | ) | |||||||
Non-controlling interests | (11 | ) | — | (11 | ) | ||||||||
Fair value of net assets (excluding cash) | $ | 785 | $ | — | $ | 785 | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consist of: | ||||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 914 | $ | 947 | |||||
Work-in-process | 241 | 273 | |||||||
Finished goods | 362 | 339 | |||||||
Tooling and engineering | 1,240 | 1,078 | |||||||
$ | 2,757 | $ | 2,637 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, including the Company’s 76% interest in an entity subject to shared control. 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 | |||||||||||||
2014 | 2013 | ||||||||||||
Current assets | $ | 479 | $ | 373 | |||||||||
Long-term assets | $ | 289 | $ | 82 | |||||||||
Current liabilities | $ | 364 | $ | 167 | |||||||||
Long-term liabilities | $ | 124 | $ | 76 | |||||||||
Statements of Income | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Sales | $ | 1,732 | $ | 1,013 | $ | 967 | |||||||
Cost of goods sold, expenses and income taxes | 1,521 | 839 | 814 | ||||||||||
Net income | $ | 211 | $ | 174 | $ | 153 | |||||||
ABCP [Member] | |||||||||||||
Company's Investment in ABCP | The following is a continuity of the Company’s investment in ABCP: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 92 | $ | 90 | $ | 82 | |||||||
Valuation adjustment [i] | 3 | 8 | 15 | ||||||||||
Cash receipts | — | — | (9 | ) | |||||||||
Foreign exchange and other | (7 | ) | (6 | ) | 2 | ||||||||
$ | 88 | $ | 92 | $ | 90 | ||||||||
[i] | The carrying value of this investment was based on a valuation technique estimating the fair value from the perspective of a market participant. The valuation adjustment is recorded in selling, general and administrative expense. |
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of Fixed Assets | Fixed assets consist of: | ||||||||
2014 | 2013 | ||||||||
Cost | |||||||||
Land | $ | 267 | $ | 236 | |||||
Buildings | 1,718 | 1,592 | |||||||
Machinery and equipment | 11,643 | 11,510 | |||||||
13,628 | 13,338 | ||||||||
Accumulated depreciation | |||||||||
Buildings | (605 | ) | (579 | ) | |||||
Machinery and equipment | (7,359 | ) | (7,318 | ) | |||||
$ | 5,664 | $ | 5,441 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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, 2012 | $ | 701 | $ | 611 | $ | 74 | $ | 87 | $ | 1,473 | |||||||||||
Acquisitions [note 6] | (24 | ) | 22 | 3 | — | 1 | |||||||||||||||
Impairments [note 3] | — | — | — | (22 | ) | (22 | ) | ||||||||||||||
Reallocation between reporting segments [i] | — | — | 51 | (51 | ) | — | |||||||||||||||
Foreign exchange and other | (21 | ) | 22 | 1 | (14 | ) | (12 | ) | |||||||||||||
Balance, December 31, 2013 | 656 | 655 | 129 | — | 1,440 | ||||||||||||||||
Acquisitions [note 6] | 3 | — | — | — | 3 | ||||||||||||||||
Foreign exchange and other | (24 | ) | (67 | ) | (2 | ) | — | (93 | ) | ||||||||||||
Balance, December 31, 2014 | $ | 635 | $ | 588 | $ | 127 | $ | — | $ | 1,350 | |||||||||||
[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, 2014 | |||||||||||||
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: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Canadian statutory income tax rate | 26.5 | % | 26.5 | % | 26.5 | % | |||||||
Manufacturing and processing profits deduction | (0.4 | ) | (0.4 | ) | (0.7 | ) | |||||||
Foreign rate differentials | (0.1 | ) | (1.5 | ) | (1.5 | ) | |||||||
Losses not benefited | 1.3 | 5.3 | 5.8 | ||||||||||
Utilization of losses previously not benefited | (0.3 | ) | (1.0 | ) | (0.3 | ) | |||||||
Earnings of equity accounted investees | (1.1 | ) | (1.1 | ) | (1.2 | ) | |||||||
Tax on repatriation of foreign earnings | 0.6 | 1.4 | — | ||||||||||
Valuation allowance on deferred tax assets [i] | (0.1 | ) | (1.1 | ) | (5.0 | ) | |||||||
Austrian tax reform [ii] | 1.3 | — | — | ||||||||||
Mexican flat tax [iii] | — | (1.9 | ) | — | |||||||||
Research and development tax credits [iv] | (1.6 | ) | (4.3 | ) | (2.3 | ) | |||||||
Reserve for uncertain tax positions | (1.7 | ) | (2.3 | ) | (1.0 | ) | |||||||
Re-measurement gains [note 3] | — | — | (1.1 | ) | |||||||||
Others | 1.6 | (0.7 | ) | (0.7 | ) | ||||||||
Effective income tax rate | 26 | % | 18.9 | % | 18.5 | % | |||||||
[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. Based on these criteria, the Company released a portion of its valuation allowances pertaining to its operations in Europe, Mexico and China. These were partially offset by a valuation allowance set up against all of its deferred tax assets in Brazil. The net effect of all these valuation allowance adjustments was $4 million, $21 million and $89 million in 2014, 2013 and 2012, respectively. | ||||||||||||
[ii] | During 2014, the Austrian government enacted legislation abolishing the utilization of foreign losses, where the foreign subsidiary is not a member of the European Union. Furthermore, any foreign losses previously used by Austrian entities arising in those non European Union subsidiaries are subject to recapture in Austria. As a consequence of this change, the Company recorded a charge to income tax expense of $32 million [“Austrian tax reform”]. | ||||||||||||
[iii] | 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. | ||||||||||||
[iv] | For the year ended December 31, 2013, research and development tax credits included a tax benefit of $36 million in connection with a settlement 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: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Canadian | $ | 838 | $ | 653 | $ | 944 | |||||||
Foreign | 1,701 | 1,252 | 806 | ||||||||||
$ | 2,539 | $ | 1,905 | $ | 1,750 | ||||||||
Details of Income Tax Provision | [c] | The details of the income tax provision are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Canadian | $ | 200 | $ | 159 | $ | 170 | |||||||
Foreign | 365 | 301 | 200 | ||||||||||
565 | 460 | 370 | |||||||||||
Deferred | |||||||||||||
Canadian | 1 | (29 | ) | (6 | ) | ||||||||
Foreign | 93 | (71 | ) | (40 | ) | ||||||||
94 | (100 | ) | (46 | ) | |||||||||
$ | 659 | $ | 360 | $ | 324 | ||||||||
Summary of Deferred Income Taxes Provided on Temporary Differences | [d] | Deferred income taxes have been provided on temporary differences, which consist of the following: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax depreciation greater (less) than book depreciation | $ | 41 | $ | (23 | ) | $ | 13 | ||||||
Book amortization (in excess of) less than tax amortization | (24 | ) | (57 | ) | 16 | ||||||||
Liabilities currently not deductible for tax | 18 | (48 | ) | (29 | ) | ||||||||
Net tax losses utilized (benefited) | 27 | 50 | (11 | ) | |||||||||
Change in valuation allowance on deferred tax assets | (3 | ) | (21 | ) | (89 | ) | |||||||
Austrian tax reform | 32 | — | — | ||||||||||
Net tax credits utilized | 10 | 2 | 53 | ||||||||||
Others | (7 | ) | (3 | ) | 1 | ||||||||
$ | 94 | $ | (100 | ) | $ | (46 | ) | ||||||
Summary of Deferred Tax Assets and Liabilities | [e] | Deferred tax assets and liabilities consist of the following temporary differences: | |||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Tax benefit of loss carryforwards | $ | 712 | $ | 610 | |||||||||
Liabilities currently not deductible for tax | 238 | 342 | |||||||||||
Tax credit carryforwards | 25 | 34 | |||||||||||
Unrealized loss on cash flow hedges and retirement liabilities | 120 | 39 | |||||||||||
Others | 11 | 11 | |||||||||||
1,106 | 1,036 | ||||||||||||
Valuation allowance against tax benefit of loss carryforwards | (663 | ) | (528 | ) | |||||||||
Other valuation allowance | (79 | ) | (111 | ) | |||||||||
364 | 397 | ||||||||||||
Liabilities | |||||||||||||
Tax depreciation in excess of book depreciation | 208 | 170 | |||||||||||
Other assets book value in excess of tax value | — | 15 | |||||||||||
Tax on undistributed foreign earnings | 7 | 5 | |||||||||||
Unrealized gain on cash flow hedges and retirement liabilities | 9 | 21 | |||||||||||
224 | 211 | ||||||||||||
Net deferred tax assets | $ | 140 | $ | 186 | |||||||||
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: | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets | $ | 186 | $ | 275 | |||||||||
Current deferred tax liabilities | (21 | ) | (9 | ) | |||||||||
Long-term deferred tax assets | 147 | 120 | |||||||||||
Long-term deferred tax liabilities | (172 | ) | (200 | ) | |||||||||
$ | 140 | $ | 186 | ||||||||||
Summary of Changes in Gross Unrecognized Tax Benefits | A summary of the changes in gross unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 238 | $ | 279 | $ | 252 | |||||||
Increase based on tax positions related to current year | 21 | 35 | 68 | ||||||||||
Decrease based on tax positions of prior years | (23 | ) | (44 | ) | (31 | ) | |||||||
Settlements | (8 | ) | (24 | ) | (10 | ) | |||||||
Statute expirations | (10 | ) | (7 | ) | (5 | ) | |||||||
Foreign currency translation | (16 | ) | (1 | ) | 5 | ||||||||
$ | 202 | $ | 238 | $ | 279 |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Summary of Other Assets | Other assets consist of: | ||||||||
2014 | 2013 | ||||||||
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement | $ | 259 | $ | 291 | |||||
Customer relationship intangibles [note 6] | 108 | 143 | |||||||
Long-term receivables [note 21[c]] | 87 | 111 | |||||||
Patents and licenses, net | 36 | 44 | |||||||
Pension overfunded status [note 16[a]] | 13 | 26 | |||||||
Unrealized gain on cash flow hedges [note 21] | 8 | 20 | |||||||
Other, net | 41 | 40 | |||||||
$ | 552 | $ | 675 | ||||||
Warranty_Tables
Warranty (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Guarantees [Abstract] | |||||||||||||
Schedule of Company's Warranty Accruals | The following is a continuity of the Company’s warranty accruals: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 91 | $ | 94 | $ | 76 | |||||||
Expense, net | 47 | 40 | 43 | ||||||||||
Settlements | (40 | ) | (46 | ) | (46 | ) | |||||||
Acquisitions [note 6] | — | 1 | 17 | ||||||||||
Foreign exchange and other | (10 | ) | 2 | 4 | |||||||||
$ | 88 | $ | 91 | $ | 94 | ||||||||
Debt_and_Commitments_Tables
Debt and Commitments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | |||||||||||
2014 | 2013 | ||||||||||||
Senior Notes at interest rate of 3.625% [note 15[c]] | $ | 750 | $ | — | |||||||||
Bank term debt at a weighted average interest rate of approximately 8.2% [2013 – 6.3%], denominated primarily in Chinese renminbi and Brazilian real | 173 | 239 | |||||||||||
Government loans at a weighted average interest rate of approximately 5.5% [2013 – 5.9%], denominated primarily in euros and Brazilian real | 19 | 26 | |||||||||||
Other | 53 | 67 | |||||||||||
995 | 332 | ||||||||||||
Less due within one year | 184 | 230 | |||||||||||
$ | 811 | $ | 102 | ||||||||||
Schedule of Future Principal Repayments on Long-Term Debt | [b] | Future principal repayments on long-term debt are estimated to be as follows: | |||||||||||
2015 | $ | 184 | |||||||||||
2016 | 25 | ||||||||||||
2017 | 12 | ||||||||||||
2018 | 16 | ||||||||||||
2019 | 2 | ||||||||||||
Thereafter | 756 | ||||||||||||
$ | 995 | ||||||||||||
Interest Expense, Net | [e] | Interest expense, net includes: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest expense | |||||||||||||
Current | $ | 26 | $ | 26 | $ | 27 | |||||||
Long-term | 21 | 8 | 7 | ||||||||||
47 | 34 | 34 | |||||||||||
Interest income | (18 | ) | (18 | ) | (18 | ) | |||||||
Interest expense, net | $ | 29 | $ | 16 | $ | 16 | |||||||
Company's Commitments under Operating Leases and Requiring Annual Rental Payments | [g] | At December 31, 2014, the Company had commitments under operating leases requiring annual rental payments as follows: | |||||||||||
Total | |||||||||||||
2015 | $ | 306 | |||||||||||
2016 | 273 | ||||||||||||
2017 | 237 | ||||||||||||
2018 | 188 | ||||||||||||
2019 | 168 | ||||||||||||
Thereafter | 382 | ||||||||||||
$ | 1,554 | ||||||||||||
LongTerm_Employee_Benefit_Liab1
Long-Term Employee Benefit Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Long-Term Employee Benefit Liabilities | Long-term employee benefit liabilities consist of: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Defined benefit pension plans and other [a] | $ | 203 | $ | 149 | $ | 212 | |||||||||||
Termination and long service arrangements [b] | 330 | 343 | 304 | ||||||||||||||
Retirement medical benefits plans [c] | 39 | 34 | 39 | ||||||||||||||
Other long-term employee benefits | 8 | 6 | 5 | ||||||||||||||
Long-term employee benefit obligations | $ | 580 | $ | 532 | $ | 560 | |||||||||||
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s defined benefit pension plans is as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 454 | $ | 502 | $ | 388 | |||||||||||
Current service cost | 13 | 13 | 11 | ||||||||||||||
Interest cost | 20 | 19 | 18 | ||||||||||||||
Actuarial losses (gains) and changes in actuarial assumptions | 93 | (56 | ) | 50 | |||||||||||||
Benefits paid | (16 | ) | (18 | ) | (18 | ) | |||||||||||
Acquisition | — | — | 47 | ||||||||||||||
Foreign exchange | (24 | ) | (6 | ) | 6 | ||||||||||||
End of year | 540 | 454 | 502 | ||||||||||||||
Plan assets at fair value [i] | |||||||||||||||||
Beginning of year | 328 | 288 | 259 | ||||||||||||||
Return on plan assets | 25 | 38 | 26 | ||||||||||||||
Employer contributions | 24 | 30 | 19 | ||||||||||||||
Benefits paid | (16 | ) | (18 | ) | (19 | ) | |||||||||||
Foreign exchange | (14 | ) | (10 | ) | 3 | ||||||||||||
End of year | 347 | 328 | 288 | ||||||||||||||
Ending funded status | $ | 193 | $ | 126 | $ | 214 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Non-current asset [note 12] | $ | (13 | ) | $ | (26 | ) | $ | — | |||||||||
Current liability | 3 | 3 | 2 | ||||||||||||||
Non-current liability | 203 | 149 | 212 | ||||||||||||||
Net amount | $ | 193 | $ | 126 | $ | 214 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (147 | ) | $ | (61 | ) | $ | (141 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 13 | $ | 13 | $ | 11 | |||||||||||
Interest cost | 20 | 19 | 18 | ||||||||||||||
Return on plan assets | (19 | ) | (19 | ) | (19 | ) | |||||||||||
Actuarial losses | 1 | 5 | 3 | ||||||||||||||
Net periodic benefit cost | $ | 15 | $ | 18 | $ | 13 | |||||||||||
[i] | The asset allocation of the Company’s defined benefit pension plans at December 31, 2014 and 2013, and the target allocation for 2015 is as follows: | ||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Equity securities | 55-75 | % | 58 | % | 58 | % | |||||||||||
Fixed income securities | 25-45 | % | 41 | % | 41 | % | |||||||||||
Cash and cash equivalents | 0-15 | % | 1 | % | 1 | % | |||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||
Future Benefit Payments | [d] | Future benefit payments | |||||||||||||||
Defined | Termination | Retirement | Total | ||||||||||||||
benefit | and long | medical | |||||||||||||||
pension plans | service | benefits plans | |||||||||||||||
arrangements | |||||||||||||||||
Expected employer contributions—2015 | $ | 20 | $ | 9 | $ | 2 | $ | 31 | |||||||||
Expected benefit payments: | |||||||||||||||||
2015 | $ | 16 | $ | 9 | $ | 2 | $ | 27 | |||||||||
2016 | 17 | 9 | 2 | 28 | |||||||||||||
2017 | 17 | 10 | 2 | 29 | |||||||||||||
2018 | 18 | 11 | 3 | 32 | |||||||||||||
2019 | 19 | 14 | 2 | 35 | |||||||||||||
Thereafter | 113 | 96 | 12 | 221 | |||||||||||||
$ | 200 | $ | 149 | $ | 23 | $ | 372 | ||||||||||
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: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Discount rate | 3.7 | % | 4.7 | % | 4.1 | % | |||||||||||
Rate of compensation increase | 2.7 | % | 2.9 | % | 2.8 | % | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Discount rate | 4.7 | % | 4.1 | % | 4.7 | % | |||||||||||
Rate of compensation increase | 2.8 | % | 2.8 | % | 2.8 | % | |||||||||||
Expected return on plan assets | 6 | % | 6.5 | % | 7 | % | |||||||||||
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: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 3 | % | 3.9 | % | 4.2 | % | |||||||||||
Rate of compensation increase | 2.7 | % | 3.9 | % | 3.9 | % | |||||||||||
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s termination and long service arrangements is as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 354 | $ | 314 | $ | 252 | |||||||||||
Current service cost | 20 | 24 | 16 | ||||||||||||||
Interest cost | 12 | 13 | 13 | ||||||||||||||
Actuarial losses and changes in actuarial assumptions | 15 | 12 | 41 | ||||||||||||||
Benefits paid | (18 | ) | (21 | ) | (13 | ) | |||||||||||
Acquisition | — | — | 2 | ||||||||||||||
Curtailment | — | — | (4 | ) | |||||||||||||
Foreign exchange | (43 | ) | 12 | 7 | |||||||||||||
Ending funded status | $ | 340 | $ | 354 | $ | 314 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 10 | $ | 11 | $ | 10 | |||||||||||
Non-current liability | 330 | 343 | 304 | ||||||||||||||
Net amount | $ | 340 | $ | 354 | $ | 314 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized actuarial losses | $ | (81 | ) | $ | (82 | ) | $ | (74 | ) | ||||||||
Net periodic benefit cost | |||||||||||||||||
Current service cost | $ | 20 | $ | 24 | $ | 16 | |||||||||||
Interest cost | 12 | 13 | 13 | ||||||||||||||
Actuarial losses | 16 | 4 | 12 | ||||||||||||||
Net periodic benefit cost | $ | 48 | $ | 41 | $ | 41 | |||||||||||
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: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Retirement medical benefit obligations | 3.7 | % | 4.5 | % | 3.6 | % | |||||||||||
Net periodic benefit cost | 4.5 | % | 3.6 | % | 4.2 | % | |||||||||||
Health care cost inflation | 7 | % | 7.7 | % | 8 | % | |||||||||||
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s retirement medical benefits plans are as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | |||||||||||||||||
Beginning of year | $ | 36 | $ | 41 | $ | 39 | |||||||||||
Interest cost | 2 | 2 | 2 | ||||||||||||||
Actuarial losses (gains) and changes in actuarial assumptions | 5 | (4 | ) | 3 | |||||||||||||
Benefits paid | (2 | ) | (2 | ) | (3 | ) | |||||||||||
Foreign exchange | — | (1 | ) | — | |||||||||||||
Ending funded status | $ | 41 | $ | 36 | $ | 41 | |||||||||||
Amounts recorded in the consolidated balance sheet | |||||||||||||||||
Current liability | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Non-current liability | 39 | 34 | 39 | ||||||||||||||
Net amount | $ | 41 | $ | 36 | $ | 41 | |||||||||||
Amounts recorded in accumulated other comprehensive income | |||||||||||||||||
Unrecognized past service costs | $ | 2 | $ | 2 | $ | 3 | |||||||||||
Unrecognized actuarial gains | 4 | 10 | 8 | ||||||||||||||
Total accumulated other comprehensive income | $ | 6 | $ | 12 | $ | 11 | |||||||||||
Net periodic benefit cost | |||||||||||||||||
Interest cost | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Actuarial gains | (1 | ) | (2 | ) | (1 | ) | |||||||||||
Past service cost amortization | (1 | ) | (1 | ) | — | ||||||||||||
Net periodic benefit cost | $ | — | $ | (1 | ) | $ | 1 | ||||||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Particulars of Other Long-Term Liabilities | Other long-term liabilities consist of: | ||||||||
2014 | 2013 | ||||||||
Long-term portion of income taxes payable | $ | 144 | $ | 133 | |||||
Long-term portion of fair value of hedges [note 21] | 82 | 28 | |||||||
Asset retirement obligation | 37 | 40 | |||||||
Long-term lease inducements | 24 | — | |||||||
Deferred revenue | 5 | 7 | |||||||
$ | 292 | $ | 208 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based 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, 2011 | 6,867,367 | Cdn$ | 31.54 | 2,066,700 | |||||||||||||
Granted | 1,389,000 | 48.22 | — | ||||||||||||||
Exercised [i] | (1,525,159 | ) | 28.46 | (1,525,159 | ) | ||||||||||||
Cancelled | (107,966 | ) | 53.14 | (58,967 | ) | ||||||||||||
Vested | — | — | 2,745,000 | ||||||||||||||
Outstanding at December 31, 2012 | 6,623,242 | Cdn$ | 35.39 | 3,227,574 | |||||||||||||
Granted | 1,060,000 | 57.02 | — | ||||||||||||||
Exercised [i] | (2,805,969 | ) | 31.99 | (2,805,969 | ) | ||||||||||||
Cancelled | (119,165 | ) | 51.46 | (31,667 | ) | ||||||||||||
Vested | — | — | 2,457,171 | ||||||||||||||
Outstanding at December 31, 2013 | 4,758,108 | Cdn$ | 41.82 | 2,847,109 | |||||||||||||
Granted | 751,300 | 106.71 | — | ||||||||||||||
Exercised | (1,324,580 | ) | 39.83 | (1,324,580 | ) | ||||||||||||
Cancelled | (27,499 | ) | 60.46 | (6,000 | ) | ||||||||||||
Vested | — | — | 790,715 | ||||||||||||||
Outstanding at December 31, 2014 | 4,157,329 | Cdn$ | 54.05 | 2,307,244 | |||||||||||||
The total intrinsic value of options exercised during 2014 was $85 million [2013—$56 million; 2012—$6 million]. | |||||||||||||||||
[i] | During 2013, 849,999 [2012 – 1,100,001] options were exercised on a cashless basis in accordance with the applicable stock option plans. On exercise, cash payments totalling $23 million [2012—$19 million] were made to the stock option holders. | ||||||||||||||||
Summary of Characteristics of Options Outstanding | At December 31, 2014, 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 | 350,341 | 1.2 | 350,341 | ||||||||||||||
$25 to $30 | 925,000 | 2.2 | 925,000 | ||||||||||||||
$35 to $40 | 10,000 | 2.4 | 10,000 | ||||||||||||||
$45 to $50 | 917,364 | 4.2 | 489,225 | ||||||||||||||
$50 to $55 | 315,498 | 3 | 315,498 | ||||||||||||||
$55 to $60 | 891,826 | 5.2 | 217,180 | ||||||||||||||
Over $100 | 747,300 | 6.2 | — | ||||||||||||||
4,157,329 | 2,307,244 | ||||||||||||||||
Weighted average exercise price | Cdn$ | 54.05 | Cdn$ | 37.21 | |||||||||||||
Weighted average life remaining [years] | 3.95 | 2.83 | |||||||||||||||
Aggregate intrinsic value at December 31, 2014 | $ | 255 | $ | 175 | |||||||||||||
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: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.6 | % | 1.32 | % | 2.23 | % | |||||||||||
Expected dividend yield | 2 | % | 2 | % | 2 | % | |||||||||||
Expected volatility | 29 | % | 34 | % | 43 | % | |||||||||||
Expected time until exercise | 4.5 years | 4.5 years | 4.5 years | ||||||||||||||
Weighted average fair value of options granted in year [Cdn$] | $ | 22.94 | $ | 14.02 | $ | 15.37 | |||||||||||
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, 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 | |||||||||||||||
Release of restricted stock | (143,152 | ) | (5 | ) | |||||||||||||
Awarded and not released, December 31, 2014 | 587,324 | $ | 20 | ||||||||||||||
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 | Equity | |||||||||||||||
RSUs | RSUs | classified | |||||||||||||||
DSUs | |||||||||||||||||
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 | |||||||||||||
Granted | 181,526 | 9,025 | 22,136 | 212,687 | |||||||||||||
Dividend equivalents | 839 | 566 | 2,047 | 3,452 | |||||||||||||
Forfeitures | — | (410 | ) | — | (410 | ) | |||||||||||
Redeemed | (321,580 | ) | (16,274 | ) | — | (337,854 | ) | ||||||||||
Outstanding at December 31, 2014 | 492,639 | 23,026 | 151,630 | 667,295 | |||||||||||||
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: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Incentive Stock Option Plan | $ | 15 | $ | 15 | $ | 19 | |||||||||||
Long-term retention | 4 | 4 | 5 | ||||||||||||||
Restricted stock unit | 21 | 16 | 14 | ||||||||||||||
40 | 35 | 38 | |||||||||||||||
Fair value adjustment for liability classified DSUs | — | 5 | 4 | ||||||||||||||
Total stock-based compensation expense | $ | 40 | $ | 40 | $ | 42 | |||||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
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 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
number | Shares | Cash | Shares | Cash | Shares | Cash | |||||||||||||||||||||||
of shares | purchased | amount | purchased | amount | purchased | amount | |||||||||||||||||||||||
2011 Bid | 12,000,000 | — | $ | — | — | $ | — | 467,630 | $ | 21 | |||||||||||||||||||
2012 Bid | 12,000,000 | — | — | 11,572,598 | 814 | 427,402 | 19 | ||||||||||||||||||||||
2013 Bid | 20,000,000 | 15,135,714 | 1,525 | 2,509,723 | 199 | — | — | ||||||||||||||||||||||
2014 Bid | 20,000,000 | 2,399,188 | 241 | — | — | — | — | ||||||||||||||||||||||
17,534,902 | $ | 1,766 | 14,082,321 | $ | 1,013 | 895,032 | $ | 40 | |||||||||||||||||||||
Maximum Number of Shares Outstanding Exercised or Converted | [c] | The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 5, 2015 were exercised or converted: | |||||||||||||||||||||||||||
Common Shares | 205,179,261 | ||||||||||||||||||||||||||||
Stock options [note 18] | 4,898,935 | ||||||||||||||||||||||||||||
210,078,196 | |||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive (loss) Income | The following is a continuity schedule of accumulated other comprehensive (loss) income: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accumulated net unrealized (loss) gain on translation of net investment in foreign operations | |||||||||||||
Balance, beginning of year | $ | 454 | $ | 629 | $ | 547 | |||||||
Net unrealized (loss) gain | (681 | ) | (133 | ) | 86 | ||||||||
Repurchase of shares under normal course issuer bids [note 19] | (28 | ) | (42 | ) | (4 | ) | |||||||
Balance, end of year | (255 | ) | 454 | 629 | |||||||||
Accumulated net unrealized (loss) gain on cash flow hedges [b] | |||||||||||||
Balance, beginning of year | (20 | ) | 34 | (23 | ) | ||||||||
Net unrealized (loss) gain | (103 | ) | (39 | ) | 75 | ||||||||
Reclassification of net loss (gain) to net income [a] | 10 | (15 | ) | (18 | ) | ||||||||
Balance, end of year | (113 | ) | (20 | ) | 34 | ||||||||
Accumulated net unrealized loss on other long-term liabilities [b] | |||||||||||||
Balance, beginning of year | (117 | ) | (168 | ) | (107 | ) | |||||||
Net unrealized (loss) gain | (72 | ) | 44 | (72 | ) | ||||||||
Reclassification of net loss to net income [a] | 3 | 7 | 11 | ||||||||||
Balance, end of year | (186 | ) | (117 | ) | (168 | ) | |||||||
Accumulated net unrealized (loss) gain on available-for-sale investments | |||||||||||||
Balance, beginning of year | (4 | ) | 1 | 5 | |||||||||
Net unrealized loss | — | (5 | ) | (4 | ) | ||||||||
Balance, end of year | (4 | ) | (4 | ) | 1 | ||||||||
Total accumulated other comprehensive (loss) income [c] | $ | (558 | ) | $ | 313 | $ | 496 | ||||||
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: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flow hedges | |||||||||||||
Sales | $ | (28 | ) | $ | 3 | $ | 24 | ||||||
Cost of sales | 17 | 18 | (1 | ) | |||||||||
Income tax | 1 | (6 | ) | (5 | ) | ||||||||
Net of tax | (10 | ) | 15 | 18 | |||||||||
Other long-term liabilities | |||||||||||||
Cost of sales | (4 | ) | (8 | ) | (14 | ) | |||||||
Income tax | 1 | 1 | 3 | ||||||||||
Net of tax | (3 | ) | (7 | ) | (11 | ) | |||||||
Total (loss) gain reclassified to net income | $ | (13 | ) | $ | 8 | $ | 7 | ||||||
Summary of Income Tax Benefit to Component of Other Comprehensive Income | [b] | The amount of income tax benefit that has been allocated to each component of other comprehensive income is as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Accumulated net unrealized (loss) gain on cash flow hedges | |||||||||||||
Balance, beginning of year | $ | 4 | $ | (13 | ) | $ | 12 | ||||||
Net unrealized loss (gain) | 41 | 11 | (30 | ) | |||||||||
Reclassification of net (loss) gain to net income | (1 | ) | 6 | 5 | |||||||||
Balance, end of year | 44 | 4 | (13 | ) | |||||||||
Accumulated net unrealized loss on other long-term liabilities | |||||||||||||
Balance, beginning of year | 14 | 36 | 24 | ||||||||||
Net unrealized loss (gain) | 23 | (21 | ) | 15 | |||||||||
Reclassification of net loss to net income | (1 | ) | (1 | ) | (3 | ) | |||||||
Balance, end of year | 36 | 14 | 36 | ||||||||||
Total income tax benefit | $ | 80 | $ | 18 | $ | 23 | |||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||
Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies | At December 31, 2014, 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 | U.S. | Weighted | Euro | Weighted | Peso | Weighted | |||||||||||||||||||
(Sell) | dollar | average | amount | average | amount | average | |||||||||||||||||||
amount | rate | rate | rate | ||||||||||||||||||||||
2015 | 235 | 1.10195 | 42 | 1.47805 | 4,390 | 0.07221 | |||||||||||||||||||
2015 | (617 | ) | 0.92552 | (15 | ) | 0.69344 | (123 | ) | 13.47236 | ||||||||||||||||
2016 | 30 | 1.07317 | 23 | 1.48303 | 2,766 | 0.07135 | |||||||||||||||||||
2016 | (370 | ) | 0.91253 | — | — | — | — | ||||||||||||||||||
2017 | 2 | 1.0997 | — | — | 911 | 0.06884 | |||||||||||||||||||
2017 | (226 | ) | 0.89597 | — | — | — | — | ||||||||||||||||||
2018 | (76 | ) | 0.87961 | — | — | — | — | ||||||||||||||||||
2019 | (39 | ) | 0.87043 | — | — | — | — | ||||||||||||||||||
(1,061 | ) | 50 | 7,944 | ||||||||||||||||||||||
For euros | |||||||||||||||||||||||||
Buy | U.S. | Weighted | GBP | Weighted | Czech | Weighted | |||||||||||||||||||
(Sell) | dollar | average | amount | average | koruna | average | |||||||||||||||||||
amount | rate | rate | amount | rate | |||||||||||||||||||||
2015 | 85 | 0.76616 | 13 | 1.1917 | 2,571 | 0.038 | |||||||||||||||||||
2015 | (152 | ) | 1.3112 | (15 | ) | 0.85706 | — | — | |||||||||||||||||
2016 | 24 | 0.76905 | — | — | 1,609 | 0.03698 | |||||||||||||||||||
2016 | (81 | ) | 1.30607 | (13 | ) | 0.80758 | — | — | |||||||||||||||||
2017 | 3 | 0.78725 | — | — | 755 | 0.03656 | |||||||||||||||||||
2017 | (43 | ) | 1.33328 | (9 | ) | 0.81324 | — | — | |||||||||||||||||
2018 | (12 | ) | 1.3103 | (1 | ) | 0.8193 | — | — | |||||||||||||||||
(176 | ) | (25 | ) | 4,935 | |||||||||||||||||||||
Schedule of Company's Financial Assets and Liabilities | The Company’s financial assets and liabilities consist of the following: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,253 | $ | 1,554 | |||||||||||||||||||||
Investment in ABCP [note 8] | 88 | 92 | |||||||||||||||||||||||
$ | 1,341 | $ | 1,646 | ||||||||||||||||||||||
Held-to-maturity investments | |||||||||||||||||||||||||
Severance investments | $ | 4 | $ | 5 | |||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||
Equity investments | $ | 5 | $ | 4 | |||||||||||||||||||||
Loans and receivables | |||||||||||||||||||||||||
Accounts receivable | $ | 5,635 | $ | 5,246 | |||||||||||||||||||||
Long-term receivables included in other assets [note 12] | 87 | 111 | |||||||||||||||||||||||
$ | 5,722 | $ | 5,357 | ||||||||||||||||||||||
Other financial liabilities | |||||||||||||||||||||||||
Bank indebtedness | $ | 33 | $ | 41 | |||||||||||||||||||||
Long-term debt (including portion due within one year) | 995 | 332 | |||||||||||||||||||||||
Accounts payable | 5,105 | 4,781 | |||||||||||||||||||||||
$ | 6,133 | $ | 5,154 | ||||||||||||||||||||||
Derivatives designated as effective hedges, measured at fair value | |||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||
Prepaid expenses and other | $ | 22 | $ | 42 | |||||||||||||||||||||
Other assets | 8 | 20 | |||||||||||||||||||||||
Other accrued liabilities | (93 | ) | (37 | ) | |||||||||||||||||||||
Other long-term liabilities | (82 | ) | (28 | ) | |||||||||||||||||||||
(145 | ) | (3 | ) | ||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
Other accrued liabilities | (1 | ) | (1 | ) | |||||||||||||||||||||
$ | (146 | ) | $ | (4 | ) | ||||||||||||||||||||
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 | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Assets | $ | 30 | $ | 28 | $ | 2 | |||||||||||||||||||
Liabilities | $ | (174 | ) | $ | (28 | ) | $ | (146 | ) | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Assets | $ | 62 | $ | 42 | $ | 20 | |||||||||||||||||||
Liabilities | $ | (65 | ) | $ | (42 | ) | $ | (23 | ) |
Segmented_Information_Tables
Segmented Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of Information with Respect to Segment | The following tables show certain information with respect to segment disclosures: | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT [iii] | asset | assets, | ||||||||||||||||||||||||
amortization | additions | net | |||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||
Canada | $ | 6,799 | $ | 6,324 | $ | 204 | $ | 638 | |||||||||||||||||||||
United States | 9,780 | 9,252 | 351 | 1,260 | |||||||||||||||||||||||||
Mexico | 4,357 | 4,027 | 160 | 655 | |||||||||||||||||||||||||
Eliminations | (1,224 | ) | — | — | — | ||||||||||||||||||||||||
North America | 19,712 | 19,603 | $ | 421 | $ | 1,992 | $ | 635 | 715 | 2,553 | |||||||||||||||||||
Europe | |||||||||||||||||||||||||||||
Western Europe (excluding Great Britain) | 11,775 | 11,487 | 375 | 1,359 | |||||||||||||||||||||||||
Great Britain | 783 | 781 | 51 | 98 | |||||||||||||||||||||||||
Eastern Europe | 2,580 | 2,226 | 91 | 555 | |||||||||||||||||||||||||
Eliminations | (432 | ) | — | — | — | ||||||||||||||||||||||||
Europe | 14,706 | 14,494 | 357 | 434 | 588 | 517 | 2,012 | ||||||||||||||||||||||
Asia | 1,983 | 1,837 | 71 | 162 | 127 | 141 | 650 | ||||||||||||||||||||||
Rest of World | 695 | 694 | 17 | (35 | ) | — | 8 | 82 | |||||||||||||||||||||
Corporate and Other [i] | (455 | ) | 13 | 24 | 79 | — | 206 | 367 | |||||||||||||||||||||
Total reportable segments | $ | 36,641 | $ | 36,641 | $ | 890 | $ | 2,632 | $ | 1,350 | $ | 1,587 | $ | 5,664 | |||||||||||||||
Current assets | 10,007 | ||||||||||||||||||||||||||||
Investments, goodwill, deferred tax assets and other assets | 2,468 | ||||||||||||||||||||||||||||
Consolidated total assets | $ | 18,139 | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Total | External | Depreciation | Adjusted | Goodwill | Fixed | Fixed | |||||||||||||||||||||||
sales | sales | and | EBIT [iii] | asset | assets, net | ||||||||||||||||||||||||
amortization | additions | ||||||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | ) | — | 20 | 102 | |||||||||||||||||||||
Corporate and Other [i] | (410 | ) | 23 | 26 | 36 | — | 30 | 226 | |||||||||||||||||||||
Total reportable segments | $ | 34,835 | $ | 34,835 | $ | 1,063 | $ | 2,065 | $ | 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 [iii] | asset | assets, net | ||||||||||||||||||||||||
amortization | additions | ||||||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
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 | — | — | 11 | 249 | |||||||||||||||||||||
Total reportable segments | $ | 30,837 | $ | 30,837 | $ | 801 | $ | 1,658 | $ | 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 | |||||||||||||||||||||||||||
[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. | ||||||||||||||||||||||||||||
[iii] | The following table reconciles Adjusted EBIT to Income from operations before income taxes: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Adjusted EBIT | $ | 2,632 | $ | 2,065 | $ | 1,658 | |||||||||||||||||||||||
Other (expense) income, net | (64 | ) | (144 | ) | 108 | ||||||||||||||||||||||||
Interest expense, net | (29 | ) | (16 | ) | (16 | ) | |||||||||||||||||||||||
Income from operations before income taxes | $ | 2,539 | $ | 1,905 | $ | 1,750 | |||||||||||||||||||||||
Schedule of Aggregates External Revenues by Customer | [b] | The following table aggregates external revenues by customer as follows: | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
General Motors | $ | 6,734 | $ | 6,394 | $ | 5,704 | |||||||||||||||||||||||
Fiat / Chrysler Group | 5,897 | 5,137 | 4,637 | ||||||||||||||||||||||||||
Ford Motor Company | 4,714 | 4,450 | 3,848 | ||||||||||||||||||||||||||
BMW | 4,649 | 4,882 | 4,100 | ||||||||||||||||||||||||||
Daimler AG | 4,262 | 3,949 | 3,367 | ||||||||||||||||||||||||||
Volkswagen | 4,144 | 4,047 | 3,835 | ||||||||||||||||||||||||||
Other | 6,241 | 5,976 | 5,346 | ||||||||||||||||||||||||||
$ | 36,641 | $ | 34,835 | $ | 30,837 | ||||||||||||||||||||||||
Summary of External Revenues by Automotive Products and Services | [c] | The following table summarizes external revenues generated by automotive products and services: | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Exterior and interior systems | $ | 12,840 | $ | 12,308 | $ | 11,673 | |||||||||||||||||||||||
Body systems and chassis systems | 8,079 | 7,874 | 7,123 | ||||||||||||||||||||||||||
Powertrain systems | 4,954 | 4,634 | 3,825 | ||||||||||||||||||||||||||
Complete vehicle assembly | 3,067 | 3,062 | 2,561 | ||||||||||||||||||||||||||
Tooling, engineering and other | 2,971 | 2,823 | 2,317 | ||||||||||||||||||||||||||
Vision and electronic systems | 2,644 | 2,193 | 2,132 | ||||||||||||||||||||||||||
Closure systems | 2,086 | 1,941 | 1,206 | ||||||||||||||||||||||||||
$ | 36,641 | $ | 34,835 | $ | 30,837 | ||||||||||||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | |
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 $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Component of Operating Other Cost and Expense [Abstract] | ||||
Impairment of goodwill | $22 | |||
Other expense (income), net | 64 | 144 | -108 | |
North America [Member] | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Impairment of long-lived assets | 18 | 23 | 2 | |
Re-measurement gain | -35 | |||
Other expense (income), net | 18 | 23 | -33 | |
Europe [Member] | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Restructuring charges | 46 | 89 | 55 | |
Impairment of long-lived assets | 23 | 23 | ||
Other expense (income), net | 46 | 89 | 78 | |
Rest of World [Member] | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Impairment of long-lived assets | 10 | |||
Impairment of goodwill | 22 | |||
Other expense (income), net | 32 | |||
Corporate [Member] | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Re-measurement gain | -153 | |||
Other expense (income), net | ($153) |
Other_Expense_Income_Net_Other1
Other Expense (Income), Net - Other Expense (Income), Net (Parenthetical) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2014 | Oct. 26, 2012 | Dec. 31, 2012 |
Component of Operating Other Cost and Expense [Abstract] | ||||||
Impairment of goodwill | $22 | |||||
STT Technologies Inc. [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Company acquired | 50.00% | |||||
E-Car [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Company acquired | 27.00% | |||||
Corporate [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Estimated fair value | 205 | |||||
Non-cash gain | 153 | |||||
Non-cash gain after tax | 125 | |||||
Corporate [Member] | E-Car [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Company acquired | 27.00% | |||||
Cash acquired consideration | 75 | |||||
Percentage of non-controlling interest in an equity accounted investment | 73.00% | |||||
North America [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Long-lived asset impairment charges | 23 | 2 | 18 | |||
Long-lived asset impairment charges, after tax | 11 | 1 | 12 | |||
Non-cash gain | 35 | |||||
North America [Member] | STT Technologies Inc. [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Company acquired | 50.00% | |||||
Cash consideration | 55 | |||||
Estimated fair value | 55 | |||||
Non-cash gain | 35 | |||||
Non-cash gain after tax | 35 | |||||
Europe [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Long-lived asset impairment charges | 23 | 23 | ||||
Long-lived asset impairment charges, after tax | 22 | |||||
Restructuring charges | 89 | 55 | 46 | |||
Restructuring charges, after tax | 64 | 53 | 41 | |||
Rest of World [Member] | ||||||
Component of Operating Other Cost and Expense [Abstract] | ||||||
Long-lived asset impairment charges | 10 | |||||
Long-lived asset impairment charges, after tax | 10 | |||||
Impairment of goodwill | 22 | |||||
Impairment of goodwill, after tax | $22 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Net income attributable to Magna International Inc. | $1,882 | $1,561 | $1,433 |
Weighted average number of Common Shares outstanding during the year | 213.6 | 227.9 | 232.4 |
Basic earnings per Common Share | $8.81 | $6.85 | $6.17 |
Stock options and restricted stock | 3 | 2.9 | 2.8 |
Diluted | 216.6 | 230.8 | 235.2 |
Diluted earnings per Common Share | $8.69 | $6.76 | $6.09 |
Earnings_Per_Share_Computation1
Earnings Per Share - Computation of Earnings Per Share (Parenthetical) (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Excluded Common Shares issuable under Company's Incentive Stock Option Plan | 0.1 | 0.1 | 2.3 |
Details_of_Consolidated_Statem2
Details of Consolidated Statements of Cash Flows - Components of Cash and Cash Equivalents (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Cash and Cash Equivalents [Abstract] | ||||
Bank term deposits, bankers' acceptances and government paper | $1,058 | $1,331 | ||
Cash | 195 | 223 | ||
Cash and cash equivalents | $1,253 | $1,554 | $1,522 | $1,325 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | |||
Depreciation and amortization | $890 | $1,063 | $801 |
Amortization of other assets included in cost of goods sold | 148 | 138 | 113 |
Deferred income taxes | 94 | -100 | -46 |
Other non-cash charges | 36 | 23 | 8 |
Impairment charges | 18 | 55 | 25 |
Non-cash portion of Other expense, net | -188 | ||
Equity income in excess of dividends received | -29 | -30 | -5 |
Items not involving current cash flows | $1,157 | $1,149 | $708 |
Details_of_Consolidated_Statem4
Details of Consolidated Statements of Cash Flows - Changes in Operating Assets and Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | |||
Accounts receivable | ($767) | ($584) | ($46) |
Inventories | -343 | -141 | -315 |
Prepaid expenses and other | 5 | -56 | 36 |
Accounts payable | 677 | 325 | 247 |
Accrued salaries and wages | 82 | 87 | 37 |
Other accrued liabilities | 79 | 298 | 97 |
Income taxes payable | 22 | -56 | 16 |
Changes in operating assets and liabilities | ($245) | ($127) | $72 |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Nov. 30, 2013 | Oct. 31, 2014 | Oct. 26, 2012 | |
Business Acquisition [Line Items] | |||||||
Increase in fixed assets | $21,000,000 | $5,000,000 | |||||
Increase in goodwill | 3,000,000 | 3,000,000 | |||||
Increase in other assets | 4,000,000 | 2,000,000 | |||||
Long-term debt | 4,000,000 | ||||||
Deferred tax liabilities | 1,000,000 | ||||||
Other long-term liabilities | 2,000,000 | ||||||
Reduction of non-controlling interest | 1,000,000 | ||||||
Net cash outflow | 23,000,000 | 9,000,000 | 525,000,000 | ||||
Company's pro forma consolidated sales | 36,700,000,000 | 34,900,000,000 | |||||
Proforma consolidated income | 1,900,000,000 | 1,600,000,000 | |||||
E-Car [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Interest acquired | 27.00% | ||||||
Net cash outflow | 56,000,000 | ||||||
Cash acquired | 19,000,000 | ||||||
Textile Competence Centre Kft [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid | 9,000,000 | ||||||
Interest acquired | 49.00% | ||||||
STT Technologies Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Interest acquired | 50.00% | ||||||
Techform Group Of Companies [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid | $23,000,000 | ||||||
Acquisition date | 2014-10 |
Business_Acquisitions_Net_Effe
Business Acquisitions - Net Effect of Acquisitions on Consolidation Balance and Adjustments to Preliminary Purchase Price Allocations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Fixed assets | $21 | $5 | |
Other assets | 4 | 2 | |
Long-term debt | -4 | ||
Other long-term liabilities | -2 | ||
Deferred tax liabilities | -1 | ||
2012 Preliminary Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Non-cash working capital | -129 | ||
Investments | 3 | ||
Fixed assets | 501 | ||
Goodwill | 289 | ||
Other assets | 94 | ||
Purchase intangibles | 215 | ||
Long-term employee benefit liabilities | -49 | ||
Long-term debt | -25 | ||
Other long-term liabilities | -35 | ||
Deferred tax liabilities | -68 | ||
Non-controlling interests | -11 | ||
Fair value of net assets (excluding cash) | 785 | ||
2013 Adjustments [Member] | |||
Business Acquisition [Line Items] | |||
Non-cash working capital | -47 | ||
Investments | -3 | ||
Fixed assets | -36 | ||
Goodwill | -2 | ||
Other assets | 99 | ||
Deferred tax assets | 5 | ||
Long-term employee benefit liabilities | 1 | ||
Long-term debt | -2 | ||
Deferred tax liabilities | -15 | ||
Final Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Non-cash working capital | -176 | ||
Fixed assets | 465 | ||
Goodwill | 287 | ||
Other assets | 193 | ||
Deferred tax assets | 5 | ||
Purchase intangibles | 215 | ||
Long-term employee benefit liabilities | -48 | ||
Long-term debt | -27 | ||
Other long-term liabilities | -35 | ||
Deferred tax liabilities | -83 | ||
Non-controlling interests | -11 | ||
Fair value of net assets (excluding cash) | $785 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $914 | $947 |
Work-in-process | 241 | 273 |
Finished goods | 362 | 339 |
Tooling and engineering | 1,240 | 1,078 |
Inventory, net, total | $2,757 | $2,637 |
Investments_Additional_Informa
Investments - Additional Information (Detail) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | ABCP [Member] | ABCP [Member] | |
CAD | CAD | ||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in ABCP | 107 | 107 | |||
Percentage of interest in an entity subject to shared control | 76.00% | ||||
Sales to equity method investees | $135 | $144 | $171 |
Investments_Companys_Investmen
Investments - Company's Investment in ABCP (Detail) (ABCP [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ABCP [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Balance, beginning of year | $92 | $90 | $82 |
Valuation adjustment | 3 | 8 | 15 |
Cash receipts | -9 | ||
Foreign exchange and other | -7 | -6 | 2 |
Balance, end of year | $88 | $92 | $90 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Current assets | $479 | $373 | |
Long-term assets | 289 | 82 | |
Current liabilities | 364 | 167 | |
Long-term liabilities | 124 | 76 | |
Sales | 1,732 | 1,013 | 967 |
Cost of goods sold, expenses and income taxes | 1,521 | 839 | 814 |
Net income | $211 | $174 | $153 |
Fixed_Assets_Components_of_Fix
Fixed Assets - Components of Fixed Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $13,628 | $13,338 |
Property plant and equipment, net | 5,664 | 5,441 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 267 | 236 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,718 | 1,592 |
Accumulated depreciation | -605 | -579 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 11,643 | 11,510 |
Accumulated depreciation | ($7,359) | ($7,318) |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property Plant and Equipment Useful Life and Values [Abstract] | ||
Construction in progress expenditures | $843 | $762 |
Goodwill_Goodwill_by_Segment_D
Goodwill - Goodwill by Segment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, Beginning balance | $1,440 | $1,473 |
Acquisitions | 3 | 1 |
Impairments | -22 | |
Foreign exchange and other | -93 | -12 |
Goodwill, Ending balance | 1,350 | 1,440 |
North America [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 656 | 701 |
Acquisitions | 3 | -24 |
Foreign exchange and other | -24 | -21 |
Goodwill, Ending balance | 635 | 656 |
Europe [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 655 | 611 |
Acquisitions | 22 | |
Foreign exchange and other | -67 | 22 |
Goodwill, Ending balance | 588 | 655 |
Asia [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 129 | 74 |
Acquisitions | 3 | |
Reallocation between reporting segments | 51 | |
Foreign exchange and other | -2 | 1 |
Goodwill, Ending balance | 127 | 129 |
Rest of World [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 87 | |
Impairments | -22 | |
Reallocation between reporting segments | -51 | |
Foreign exchange and other | ($14) |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Canadian statutory income tax rate | 26.50% | 26.50% | 26.50% |
Manufacturing and processing profits deduction | -0.40% | -0.40% | -0.70% |
Foreign rate differentials | -0.10% | -1.50% | -1.50% |
Losses not benefited | 1.30% | 5.30% | 5.80% |
Utilization of losses previously not benefited | -0.30% | -1.00% | -0.30% |
Earnings of equity accounted investees | -1.10% | -1.10% | -1.20% |
Tax on repatriation of foreign earnings | 0.60% | 1.40% | |
Valuation allowance on deferred tax assets | -0.10% | -1.10% | -5.00% |
Austrian tax reform | 1.30% | ||
Mexican flat tax | -1.90% | ||
Research and development tax credits | -1.60% | -4.30% | -2.30% |
Reserve for uncertain tax positions | -1.70% | -2.30% | -1.00% |
Re-measurement gains | -1.10% | ||
Others | 1.60% | -0.70% | -0.70% |
Effective income tax rate | 26.00% | 18.90% | 18.50% |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ||||
Valuation allowance released | $4 | $21 | $89 | |
Charges recorded in income tax expenses related to Austrian tax reform | 32 | |||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Canadian | $838 | $653 | $944 |
Foreign | 1,701 | 1,252 | 806 |
Income before income taxes, Total | $2,539 | $1,905 | $1,750 |
Income_Taxes_Details_of_Income1
Income Taxes - Details of Income Tax Provision (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Canadian | $200 | $159 | $170 |
Foreign | 365 | 301 | 200 |
Current income tax, Total | 565 | 460 | 370 |
Canadian | 1 | -29 | -6 |
Foreign | 93 | -71 | -40 |
Deferred income tax, Total | 94 | -100 | -46 |
Income tax provision, Total | $659 | $360 | $324 |
Income_Taxes_Summary_of_Deferr
Income Taxes - Summary of Deferred Income Taxes Provided on Temporary Differences (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax depreciation greater (less) than book depreciation | $41 | ($23) | $13 |
Book amortization (in excess of) less than tax amortization | -24 | -57 | 16 |
Liabilities currently not deductible for tax | 18 | -48 | -29 |
Net tax losses utilized (benefited) | 27 | 50 | -11 |
Change in valuation allowance on deferred tax assets | -3 | -21 | -89 |
Austrian tax reform | 32 | ||
Net tax credits utilized | 10 | 2 | 53 |
Others | -7 | -3 | 1 |
Deferred income tax, Total | $94 | ($100) | ($46) |
Income_Taxes_Summary_of_Deferr1
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Tax benefit of loss carryforwards | $712 | $610 |
Liabilities currently not deductible for tax | 238 | 342 |
Tax credit carryforwards | 25 | 34 |
Unrealized loss on cash flow hedges and retirement liabilities | 120 | 39 |
Others | 11 | 11 |
Deferred tax assets, Gross, Total | 1,106 | 1,036 |
Valuation allowance against tax benefit of loss carryforwards | -663 | -528 |
Other valuation allowance | -79 | -111 |
Deferred tax assets, Net, Total | 364 | 397 |
Tax depreciation in excess of book depreciation | 208 | 170 |
Other assets book value in excess of tax value | 15 | |
Tax on undistributed foreign earnings | 7 | 5 |
Unrealized gain on cash flow hedges and retirement liabilities | 9 | 21 |
Deferred tax liabilities, Total | 224 | 211 |
Net deferred tax assets | $140 | $186 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets Presented on Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $186 | $275 |
Current deferred tax liabilities | -21 | -9 |
Long-term deferred tax assets | 147 | 120 |
Long-term deferred tax liabilities | -172 | -200 |
Net deferred tax assets | $140 | $186 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ||||
Undistributed earnings of certain foreign subsidiaries | $3,990,000,000 | |||
Income taxes paid, net | 547,000,000 | 507,000,000 | 347,000,000 | |
Income tax loss carryforwards | 2,270,000,000 | |||
Losses on acquisition | 25,000,000 | |||
Total losses | 1,610,000,000 | |||
Expiry date of losses | Between 2015 and 2034 | |||
Gross unrecognized tax benefits | 202,000,000 | 238,000,000 | 279,000,000 | 252,000,000 |
Recognized tax benefits | 177,000,000 | 219,000,000 | 240,000,000 | |
Interest and penalties on the unrecognized tax benefits | 24,000,000 | 42,000,000 | 49,000,000 | |
Recoveries/(expenses) related to changes in reserves for interest and penalties | 18,000,000 | 7,000,000 | -7,000,000 | |
Decrease in gross unrecognized tax benefits | 38,000,000 | |||
Decrease in recognized tax benefits | $35,000,000 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $238 | $279 | $252 |
Increase based on tax positions related to current year | 21 | 35 | 68 |
Decrease based on tax positions of prior years | -23 | -44 | -31 |
Settlements | -8 | -24 | -10 |
Statute expirations | -10 | -7 | -5 |
Foreign currency translation | -16 | -1 | 5 |
Balance, ending of year | $202 | $238 | $279 |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $259 | $291 |
Customer relationship intangibles | 108 | 143 |
Long-term receivables | 87 | 111 |
Patents and licenses, net | 36 | 44 |
Pension overfunded status | 13 | 26 |
Unrealized gain on cash flow hedges | 8 | 20 |
Other, net | 41 | 40 |
Total other assets | $552 | $675 |
Employee_Equity_and_Profit_Par1
Employee Equity and Profit Participation Program - Additional Information (Detail) (Trust for Benefit of Employees [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $63 | $39 | $18 |
Amount included in accounts receivable | $63 | $39 |
Warranty_Schedule_of_Companys_
Warranty - Schedule of Company's Warranty Accruals (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Guarantees [Abstract] | |||
Balance, beginning of year | $91 | $94 | $76 |
Expense, net | 47 | 40 | 43 |
Settlements | -40 | -46 | -46 |
Acquisitions [note 6] | 1 | 17 | |
Foreign exchange and other | -10 | 2 | 4 |
Balance, end of year | $88 | $91 | $94 |
Debt_and_Commitments_Schedule_
Debt and Commitments - Schedule of Company's Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $995 | $332 |
Less due within one year | 184 | 230 |
Total long term non current debt | 811 | 102 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 750 | |
Bank Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 173 | 239 |
Government Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 19 | 26 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $53 | $67 |
Debt_and_Commitments_Schedule_1
Debt and Commitments - Schedule of Company's Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate stated percentage | 3.63% | |
Bank Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of bank term debt | 8.20% | 6.30% |
Government Loans [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of bank term debt | 5.50% | 5.90% |
Debt_and_Commitments_Schedule_2
Debt and Commitments - Schedule of Future Principal Repayments on Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $184 | |
2016 | 25 | |
2017 | 12 | |
2018 | 16 | |
2019 | 2 | |
Thereafter | 756 | |
Total long-term debt | $995 | $332 |
Debt_and_Commitments_Additiona
Debt and Commitments - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
16-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 16, 2014 | |
Debt Instrument [Line Items] | |||||
Borrowings under revolving credit facility | $2,250,000,000 | ||||
Revolving credit facility maturity date | 20-Jun-18 | ||||
Revolving credit facility extended maturity date | 6/20/19 | ||||
Interest paid in cash | 45,000,000 | 32,000,000 | 32,000,000 | ||
Operating lease expense | 344,000,000 | 363,000,000 | 325,000,000 | ||
Founder and Affiliated Entity [Member] | |||||
Debt Instrument [Line Items] | |||||
Business development, consulting, other business services agreement expenses | 57,000,000 | 52,000,000 | 47,000,000 | ||
3.625% Fixed-Rate Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance date | 16-Jun-14 | ||||
Debt issued amount | 750,000,000 | ||||
Interest rate | 3.63% | ||||
Debt maturity date | 15-Jun-24 | ||||
Interest payment terms | Interest is payable on June 15 and December 15 of each year | ||||
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 Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest expense | |||
Current | $26 | $26 | $27 |
Long-term | 21 | 8 | 7 |
Interest Expense, Total | 47 | 34 | 34 |
Interest income | -18 | -18 | -18 |
Interest expense, net | $29 | $16 | $16 |
Debt_and_Commitments_Companys_
Debt and Commitments - Company's Commitments under Operating Leases Requiring Annual Rental Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Leases [Abstract] | |
2015 | $306 |
2016 | 273 |
2017 | 237 |
2018 | 188 |
2019 | 168 |
Thereafter | 382 |
Total | $1,554 |
LongTerm_Employee_Benefit_Liab2
Long-Term Employee Benefit Liabilities - Long-Term Employee Benefit Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Defined benefit pension plans and other | $203 | $149 | $212 |
Termination and long service arrangements | 330 | 343 | 304 |
Retirement medical benefits plans | 39 | 34 | 39 |
Other long-term employee benefits | 8 | 6 | 5 |
Long-term employee benefit obligations | $580 | $532 | $560 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 4.70% | 4.10% |
Rate of compensation increase | 2.70% | 2.90% | 2.80% |
Discount rate | 4.70% | 4.10% | 4.70% |
Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Expected return on plan assets | 6.00% | 6.50% | 7.00% |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current asset | ($13) | ($26) | |
Non-current liability | 580 | 532 | 560 |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning of year | 454 | 502 | 388 |
Current service cost | 13 | 13 | 11 |
Interest cost | 20 | 19 | 18 |
Actuarial losses (gains) and changes in actuarial assumptions | 93 | -56 | 50 |
Benefits paid | -16 | -18 | -18 |
Acquisition | 47 | ||
Foreign exchange | -24 | -6 | 6 |
End of year | 540 | 454 | 502 |
Beginning of year | 328 | 288 | 259 |
Return on plan assets | 25 | 38 | 26 |
Employer contributions | 24 | 30 | 19 |
Benefits paid | -16 | -18 | -19 |
Foreign exchange | -14 | -10 | 3 |
End of year | 347 | 328 | 288 |
Ending funded status | 193 | 126 | 214 |
Non-current asset | -13 | -26 | |
Current liability | 3 | 3 | 2 |
Non-current liability | 203 | 149 | 212 |
Net amount | 193 | 126 | 214 |
Unrecognized actuarial losses | -147 | -61 | -141 |
Current service cost | 13 | 13 | 11 |
Interest cost | 20 | 19 | 18 |
Return on plan assets | -19 | -19 | -19 |
Actuarial losses | 1 | 5 | 3 |
Net periodic benefit cost | $15 | $18 | $13 |
LongTerm_Employee_Benefit_Liab5
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Parenthetical) (Detail) (Pension Plan, Defined Benefit [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Equity securities | 58.00% | 58.00% | |
Fixed income securities | 41.00% | 41.00% | |
Cash and cash equivalents | 1.00% | 1.00% | |
Total | 100.00% | 100.00% | |
Subsequent Event [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 100.00% | ||
Minimum [Member] | Subsequent Event [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Equity securities | 55.00% | ||
Fixed income securities | 25.00% | ||
Cash and cash equivalents | 0.00% | ||
Maximum [Member] | Subsequent Event [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Equity securities | 75.00% | ||
Fixed income securities | 45.00% | ||
Cash and cash equivalents | 15.00% |
LongTerm_Employee_Benefit_Liab6
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Termination and Long Service Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.00% | 3.90% | 4.20% |
Rate of compensation increase | 2.70% | 3.90% | 3.90% |
LongTerm_Employee_Benefit_Liab7
Long-Term Employee Benefit Liabilities - Company's Termination and Long Service Arrangements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term employee benefit liabilities | $580 | $532 | $560 |
Termination and Long Service Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning of year | 354 | 314 | 252 |
Current service cost | 20 | 24 | 16 |
Interest cost | 12 | 13 | 13 |
Actuarial losses and changes in actuarial assumptions | 15 | 12 | 41 |
Benefits paid | -18 | -21 | -13 |
Acquisition | 2 | ||
Curtailment | -4 | ||
Foreign exchange | -43 | 12 | 7 |
Ending funded status | 340 | 354 | 314 |
Current liability | 10 | 11 | 10 |
Long-term employee benefit liabilities | 330 | 343 | 304 |
Net amount | 340 | 354 | 314 |
Unrecognized actuarial losses | -81 | -82 | -74 |
Current service cost | 20 | 24 | 16 |
Interest cost | 12 | 13 | 13 |
Actuarial losses | 16 | 4 | 12 |
Net periodic benefit cost | $48 | $41 | $41 |
LongTerm_Employee_Benefit_Liab8
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Retirement Medical Benefits Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement medical benefit obligations | 3.70% | 4.50% | 3.60% |
Net periodic benefit cost | 4.50% | 3.60% | 4.20% |
Health care cost inflation | 7.00% | 7.70% | 8.00% |
LongTerm_Employee_Benefit_Liab9
Long-Term Employee Benefit Liabilities - Company's Retirement Medical Benefits Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Non-current liability | $580 | $532 | $560 |
Retirement Medical Benefits Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning of year | 36 | 41 | 39 |
Interest cost | 2 | 2 | 2 |
Actuarial losses (gains) and changes in actuarial assumptions | 5 | -4 | 3 |
Benefits paid | -2 | -2 | -3 |
Foreign exchange | -1 | ||
Ending funded status | 41 | 36 | 41 |
Current liability | 2 | 2 | 2 |
Non-current liability | 39 | 34 | 39 |
Net amount | 41 | 36 | 41 |
Unrecognized past service costs | 2 | 2 | 3 |
Unrecognized actuarial gains | 4 | 10 | 8 |
Total accumulated other comprehensive income | 6 | 12 | 11 |
Interest cost | 2 | 2 | 2 |
Actuarial gains | -1 | -2 | -1 |
Past service cost amortization | -1 | -1 | |
Net periodic benefit cost | ($1) | $1 |
Recovered_Sheet1
Long-Term Employee Benefit Liabilities - Future Benefit Payments (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2015 | $31 |
2015 | 27 |
2016 | 28 |
2017 | 29 |
2018 | 32 |
2019 | 35 |
Thereafter | 221 |
Total | 372 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2015 | 20 |
2015 | 16 |
2016 | 17 |
2017 | 17 |
2018 | 18 |
2019 | 19 |
Thereafter | 113 |
Total | 200 |
Termination and Long Service Arrangements [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2015 | 9 |
2015 | 9 |
2016 | 9 |
2017 | 10 |
2018 | 11 |
2019 | 14 |
Thereafter | 96 |
Total | 149 |
Retirement Medical Benefits Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2015 | 2 |
2015 | 2 |
2016 | 2 |
2017 | 2 |
2018 | 3 |
2019 | 2 |
Thereafter | 12 |
Total | $23 |
Other_LongTerm_Liabilities_Par
Other Long-Term Liabilities - Particulars of Other Long-Term Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Long-term portion of income taxes payable | $144 | $133 |
Long-term portion of fair value of hedges | 82 | 28 |
Asset retirement obligation | 37 | 40 |
Long-term lease inducements | 24 | |
Deferred revenue | 5 | 7 |
Total | $292 | $208 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Incentive_Stock_Option_Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of incentive stock option plans | 2 | |
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 1987 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of granted option | 7 years | |
Stock Option Plan 2009 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares, issued under the option plan | 16,000,000 | |
Number of shares available to be granted | 6,793,030 | 7,516,831 |
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. |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Options Outstanding (Detail) (CAD) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of options outstanding, Beginning balance | 4,758,108 | 6,623,242 | 6,867,367 |
Number of options, Granted | 751,300 | 1,060,000 | 1,389,000 |
Number of options, Exercised | -1,324,580 | -2,805,969 | -1,525,159 |
Number of options, Cancelled | -27,499 | -119,165 | -107,966 |
Number of options, Vested | 0 | 0 | 0 |
Number of options outstanding, Ending balance | 4,157,329 | 4,758,108 | 6,623,242 |
Weighted average exercise price outstanding, Beginning balance | 41.82 | 35.39 | 31.54 |
Weighted average exercise price, Granted | 106.71 | 57.02 | 48.22 |
Weighted average exercise price, Exercised | 39.83 | 31.99 | 28.46 |
Weighted average exercise price, Cancelled | 60.46 | 51.46 | 53.14 |
Weighted average exercise price, Vested | 0 | 0 | 0 |
Weighted average exercise price outstanding, Ending balance | 54.05 | 41.82 | 35.39 |
Number of options exercisable outstanding, Beginning balance | 2,847,109 | 3,227,574 | 2,066,700 |
Number of options exercisable, Exercised | -1,324,580 | -2,805,969 | -1,525,159 |
Number of options exercisable, Cancelled | -6,000 | -31,667 | -58,967 |
Number of options exercisable, Vested | 790,715 | 2,457,171 | 2,745,000 |
Number of options exercisable outstanding, Ending balance | 2,307,244 | 2,847,109 | 3,227,574 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $85 | $56 | $6 |
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 | |
Cash payments made on cashless exercise of stock options | $23 | $19 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Characteristics of Options Outstanding (Detail) | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | CAD | Range One [Member] | Range Two [Member] | Range Three [Member] | Range Four [Member] | Range Five [Member] | Range Six [Member] | Range Seven [Member] | Range Seven [Member] | |
USD ($) | USD ($) | 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 | $55 | ||||
Exercise price range upper limit | $20 | $30 | $40 | $50 | $55 | $60 | $100 | |||
Number of options | 4,157,329 | 4,157,329 | 350,341 | 925,000 | 10,000 | 917,364 | 315,498 | 891,826 | 747,300 | |
Remaining contractual life [years] | 3 years 11 months 12 days | 3 years 11 months 12 days | 1 year 2 months 12 days | 2 years 2 months 12 days | 2 years 4 months 24 days | 4 years 2 months 12 days | 3 years | 5 years 2 months 12 days | 6 years 2 months 12 days | |
Number of options exercisable | 2,307,244 | 2,307,244 | 350,341 | 925,000 | 10,000 | 489,225 | 315,498 | 217,180 | ||
Aggregate intrinsic value | $255 | |||||||||
Weighted average exercise price of options | 54.05 | |||||||||
Weighted average life remaining [years] | 2 years 9 months 29 days | 2 years 9 months 29 days | ||||||||
Weighted average exercise price | 37.21 | |||||||||
Aggregate intrinsic value of options exercisable | $175 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Stock Options Granted and Compensation Expenses (Detail) (CAD) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.60% | 1.32% | 2.23% |
Expected dividend yield | 2.00% | 2.00% | 2.00% |
Expected volatility | 29.00% | 34.00% | 43.00% |
Expected time until exercise | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Weighted average fair value of options granted in year [Cdn$] | 22.94 | 14.02 | 15.37 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares, Awarded and not released, Beginning balance | 730,476 | 882,988 | 1,026,304 |
Number of shares, Release of restricted stock | -143,152 | -152,512 | -143,316 |
Number of shares, Awarded and not released, Ending balance | 587,324 | 730,476 | 882,988 |
Stated value, Awarded and not released, Beginning balance | $25 | $30 | $35 |
Stated value, Release of restricted stock | -5 | -5 | -5 |
Stated value, Awarded and not released, Ending balance | $20 | $25 | $30 |
StockBased_Compensation_Schedu3
Stock-Based Compensation - Schedule of Restricted Stock Unit Programs Outstanding (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Classified RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding, Beginning Balance | 631,854 | 605,430 | 367,726 |
Granted | 181,526 | 224,841 | 320,131 |
Dividend equivalents | 839 | 1,262 | 1,895 |
Redeemed | -321,580 | -199,679 | -84,322 |
Number of options outstanding, Ending Balance | 492,639 | 631,854 | 605,430 |
Liability Classified RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding, Beginning Balance | 30,119 | 20,099 | 29,806 |
Granted | 9,025 | 13,825 | 15,364 |
Dividend equivalents | 566 | 624 | 1,133 |
Forfeitures | -410 | ||
Redeemed | -16,274 | -4,429 | -26,204 |
Number of options outstanding, Ending Balance | 23,026 | 30,119 | 20,099 |
Liability/Equity Classified DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding, Beginning Balance | 127,447 | 206,923 | 198,446 |
Granted | 22,136 | 30,716 | 37,456 |
Dividend equivalents | 2,047 | 2,815 | 5,145 |
Redeemed | -113,007 | -34,124 | |
Number of options outstanding, Ending Balance | 151,630 | 127,447 | 206,923 |
Release of Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding, Beginning Balance | 789,420 | 832,452 | 595,978 |
Granted | 212,687 | 269,382 | 372,951 |
Dividend equivalents | 3,452 | 4,701 | 8,173 |
Forfeitures | -410 | ||
Redeemed | -337,854 | -317,115 | -144,650 |
Number of options outstanding, Ending Balance | 667,295 | 789,420 | 832,452 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Incentive Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $40 | $40 | $42 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 40 | 35 | 38 |
Selling, General and Administrative Expenses [Member] | Incentive Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 15 | 15 | 19 |
Selling, General and Administrative Expenses [Member] | Long-term Retention [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 4 | 4 | 5 |
Selling, General and Administrative Expenses [Member] | Restricted Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 21 | 16 | 14 |
Selling, General and Administrative Expenses [Member] | Fair Value Adjustment for Liability Classified DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $5 | $4 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) | 0 Months Ended | 12 Months Ended |
Nov. 10, 2014 | Dec. 31, 2014 | |
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 | 20,000,000 | |
Percentage of issued and outstanding common shares | 9.70% | |
Commencement date of Bid | 13-Nov-14 | |
Termination date of Bid | 12-Nov-15 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Share Repurchase Programs [Line Items] | |||
Shares purchased | 17,534,902 | 14,082,321 | 895,032 |
Cash amount | $1,766 | $1,013 | $40 |
2011 Bid [Member] | |||
Schedule Of Share Repurchase Programs [Line Items] | |||
Maximum number of shares | 12,000,000 | ||
Shares purchased | 467,630 | ||
Cash amount | 21 | ||
2012 Bid [Member] | |||
Schedule Of Share Repurchase Programs [Line Items] | |||
Maximum number of shares | 12,000,000 | ||
Shares purchased | 11,572,598 | 427,402 | |
Cash amount | 814 | 19 | |
2013 Bid [Member] | |||
Schedule Of Share Repurchase Programs [Line Items] | |||
Maximum number of shares | 20,000,000 | ||
Shares purchased | 15,135,714 | 2,509,723 | |
Cash amount | 1,525 | 199 | |
2014 Bid [Member] | |||
Schedule Of Share Repurchase Programs [Line Items] | |||
Maximum number of shares | 20,000,000 | ||
Shares purchased | 2,399,188 | ||
Cash amount | $241 |
Capital_Stock_Maximum_Number_o
Capital Stock - Maximum Number of Shares Outstanding Exercised or Converted (Detail) (Convertible Common Stock [Member], March 5, 2015 [Member]) | Dec. 31, 2014 |
Convertible Common Stock [Member] | March 5, 2015 [Member] | |
Class of Stock [Line Items] | |
Common Shares | 205,179,261 |
Stock options | 4,898,935 |
Total number of shares outstanding | 210,078,196 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive (loss) Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive (loss) income | ($558) | $313 | $496 |
Balance, beginning of year | 313 | 496 | |
Net unrealized (loss) gain | -103 | -39 | 75 |
Net unrealized loss | -5 | -4 | |
Balance, end of year | -558 | 313 | 496 |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive (loss) income | -255 | 454 | 629 |
Balance, beginning of year | 454 | 629 | 547 |
Net unrealized (loss) gain | -681 | -133 | 86 |
Repurchase of shares under normal course issuer bids [note 19] | -28 | -42 | -4 |
Balance, end of year | -255 | 454 | 629 |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive (loss) income | -113 | -20 | 34 |
Balance, beginning of year | -20 | 34 | -23 |
Net unrealized (loss) gain | -103 | -39 | 75 |
Reclassification of net loss (gain) to net income | 10 | -15 | -18 |
Balance, end of year | -113 | -20 | 34 |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive (loss) income | -186 | -117 | -168 |
Balance, beginning of year | -117 | -168 | -107 |
Net unrealized (loss) gain | -72 | 44 | -72 |
Reclassification of net loss (gain) to net income | 3 | 7 | 11 |
Balance, end of year | -186 | -117 | -168 |
Accumulated Net Unrealized Investment (Loss) Gain [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive (loss) income | -4 | -4 | 1 |
Balance, beginning of year | -4 | 1 | 5 |
Net unrealized loss | -5 | -4 | |
Balance, end of year | ($4) | ($4) | $1 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive (Loss) Income - Schedule of Net Income Amounts Reclassified from AOCI (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Sales | $36,641 | $34,835 | $30,837 |
Cost of sales | -31,623 | -30,287 | -27,019 |
Income tax | -659 | -360 | -324 |
Net of tax | 10 | -15 | -18 |
Net of tax | 3 | 7 | 11 |
Other comprehensive (loss) income | -843 | -142 | 80 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive (loss) income | -13 | 8 | 7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Sales | -28 | 3 | 24 |
Cost of sales | 17 | 18 | -1 |
Income tax | 1 | -6 | -5 |
Net of tax | -10 | 15 | 18 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Long Term Liabilities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | -4 | -8 | -14 |
Income tax | 1 | 1 | 3 |
Net of tax | ($3) | ($7) | ($11) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive (Loss) Income - Summary of Income Tax Benefit to Component of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Balance, beginning of year | $4 | ($13) | $12 |
Net unrealized loss (gain) | 41 | 11 | -30 |
Reclassification of net (loss) gain to net income | -1 | 6 | 5 |
Balance, end of year | 44 | 4 | -13 |
Balance, beginning of year | 14 | 36 | 24 |
Net unrealized loss (gain) | 23 | -21 | 15 |
Reclassification of net loss to net income | -1 | -1 | -3 |
Balance, end of year | 36 | 14 | 36 |
Total income tax benefit | $80 | $18 | $23 |
Accumulated_Other_Comprehensiv5
Accumulated Other Comprehensive (Loss) Income - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Equity [Abstract] | |
Amount of other comprehensive income is expected to be reclassified to net income during 2014 | $55 |
Amount of other comprehensive income net of income tax during 2014 | $21 |
Financial_Instruments_Foreign_
Financial Instruments - Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies (Detail) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
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] | 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] |
USD ($) | EUR (€) | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2018 [Member] | 2018 [Member] | 2019 [Member] | 2019 [Member] | MXN | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | USD ($) | CZK | GBP (£) | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2017 [Member] | 2018 [Member] | 2018 [Member] | 2018 [Member] | 2018 [Member] | |
U S Dollar [Member] | Euro [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | Euro [Member] | Long [Member] | Long [Member] | Short [Member] | U S Dollar [Member] | Long [Member] | Short [Member] | U S Dollar [Member] | Long [Member] | U S Dollar [Member] | Short [Member] | Mexican Peso [Member] | Long [Member] | Short [Member] | Mexican Peso [Member] | Long [Member] | Mexican Peso [Member] | Long [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Long [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Czech Koruna [Member] | Long [Member] | Long [Member] | Short [Member] | Short [Member] | U S Dollar [Member] | British Pound [Member] | Short [Member] | Short [Member] | |||||||
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | MXN | MXN | MXN | MXN | USD ($) | CZK | GBP (£) | USD ($) | GBP (£) | USD ($) | CZK | USD ($) | GBP (£) | USD ($) | CZK | USD ($) | GBP (£) | USD ($) | GBP (£) | ||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.10195 | 1.47805 | 1.07317 | 1.48303 | 1.0997 | 0.87961 | 0.07221 | 0.07135 | 0.06884 | 0.76616 | 1.1917 | 0.038 | 0.76905 | 0.03698 | 0.78725 | 0.03656 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contract, Sales Exchange Rate | 0.92552 | 0.69344 | 0.91253 | 0.89597 | 0.87043 | 13.47236 | 1.3112 | 0.85706 | 1.30607 | 0.80758 | 1.33328 | 0.81324 | 1.3103 | 0.8193 | |||||||||||||||||||||||||||||||||||||||||||
Notional amount of foreign currency derivatives | ($1,061) | € 50 | $235 | € 42 | ($617) | -€ 15 | $30 | € 23 | ($370) | $2 | ($226) | ($76) | ($39) | 7,944 | 4,390 | -123 | 2,766 | 911 | ($176) | 4,935 | £ (25) | $85 | 2,571 | £ 13 | ($152) | £ (15) | $24 | 1,609 | ($81) | £ (13) | $3 | 755 | ($43) | £ (9) | ($12) | £ (1) |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Forward Contracts [Member] | |
Senior Notes [Member] | CAD | CAD | Customer | Customer Concentration Risk [Member] | USD ($) | |||
USD ($) | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign exchange forward contracts, gain recognized in other comprehensive income | $30 | |||||||
Foreign exchange forward contracts, loss recognized in other comprehensive income | 174 | |||||||
Face value of investments | 107 | 107 | ||||||
Trading Securities | 1,341 | 1,646 | 102 | 99 | ||||
Fair value of investments carrying value | 5 | 4 | ||||||
Long-term debt due within one year | 184 | 230 | ||||||
Debt instrument maturity period | 1 year | |||||||
Estimated fair value of notes payable | $755 | |||||||
Percentage of sales to six largest customers | 83.00% | |||||||
Number of largest customers | 6 |
Financial_Instruments_Schedule
Financial Instruments - Schedule of Company's Financial Assets and Liabilities (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Trading | ||
Trading Securities | $1,341 | $1,646 |
Held-to-maturity investments | ||
Severance investments | 4 | 5 |
Available-for-sale investments | ||
Equity investments | 5 | 4 |
Loans and receivables | ||
Accounts receivable | 5,635 | 5,246 |
Long-term receivables included in other assets [note 12] | 87 | 111 |
Total | 5,722 | 5,357 |
Other financial liabilities | ||
Bank indebtedness | 33 | 41 |
Long-term debt (including portion due within one year) | 995 | 332 |
Accounts payable | 5,105 | 4,781 |
Total | 6,133 | 5,154 |
Derivatives designated as effective hedges, measured at fair value, Assets | 30 | 62 |
Derivatives designated as effective hedges, measured at fair value, Total | -146 | -4 |
Derivatives designated as effective hedges, measured at fair value, Liabilities | -174 | -65 |
Foreign Exchange Contract [Member] | ||
Other financial liabilities | ||
Derivatives designated as effective hedges, measured at fair value, Total | -145 | -3 |
Prepaid Expenses and Other [Member] | Foreign Exchange Contract [Member] | ||
Other financial liabilities | ||
Derivatives designated as effective hedges, measured at fair value, Assets | 22 | 42 |
Other Assets [Member] | Foreign Exchange Contract [Member] | ||
Other financial liabilities | ||
Derivatives designated as effective hedges, measured at fair value, Assets | 8 | 20 |
Other Accrued Liabilities [Member] | Foreign Exchange Contract [Member] | ||
Other financial liabilities | ||
Derivatives designated as effective hedges, measured at fair value, Liabilities | -93 | -37 |
Other Accrued Liabilities [Member] | Commodity Contract [Member] | ||
Other financial liabilities | ||
Derivatives designated as effective hedges, measured at fair value, Liabilities | -1 | -1 |
Other Noncurrent Liabilities [Member] | Foreign Exchange Contract [Member] | ||
Other financial liabilities | ||
Derivatives designated as effective hedges, measured at fair value, Liabilities | -82 | -28 |
Cash and Cash Equivalents [Member] | ||
Trading | ||
Trading Securities | 1,253 | 1,554 |
Asset-backed Securities [Member] | ||
Trading | ||
Trading Securities | $88 | $92 |
Financial_Instruments_Derivati
Financial Instruments - Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting [Abstract] | ||
Assets, Gross amounts presented in consolidated balance sheets | $30 | $62 |
Assets, Gross amounts not offset in consolidated balance sheets | 28 | 42 |
Assets, Net amounts | 2 | 20 |
Liabilities, Gross amounts presented in Consolidated Balance Sheets | -174 | -65 |
Liabilities, Gross amounts not offset in Consolidated Balance Sheets | -28 | -42 |
Liabilities, Net Amounts | ($146) | ($23) |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (CAD) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2014 |
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) | Dec. 31, 2014 |
Markets | |
Segment Reporting [Abstract] | |
Number of primary markets | 2 |
Segmented_Information_Schedule
Segmented Information - Schedule of Information with Respect to Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total sales | $36,641 | $34,835 | $30,837 |
Depreciation and amortization | 890 | 1,063 | 801 |
Adjusted EBIT | 2,632 | 2,065 | 1,658 |
Goodwill | 1,350 | 1,440 | 1,473 |
Fixed assets, net | 5,664 | 5,441 | |
Current assets | 10,007 | 9,923 | 9,135 |
Investments, goodwill, deferred tax assets and other assets | 2,468 | 2,626 | 2,701 |
Consolidated total assets | 18,139 | 17,990 | 17,109 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 36,641 | 34,835 | 30,837 |
External sales | 36,641 | 34,835 | 30,837 |
Depreciation and amortization | 890 | 1,063 | 801 |
Adjusted EBIT | 2,632 | 2,065 | 1,658 |
Goodwill | 1,350 | 1,440 | 1,473 |
Fixed asset additions | 1,587 | 1,170 | 1,274 |
Fixed assets, net | 5,664 | 5,441 | 5,273 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 635 | 656 | 701 |
North America [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 19,712 | 17,954 | 16,335 |
External sales | 19,603 | 17,859 | 16,241 |
Depreciation and amortization | 421 | 598 | 432 |
Adjusted EBIT | 1,992 | 1,645 | 1,521 |
Goodwill | 635 | 656 | 701 |
Fixed asset additions | 715 | 645 | 615 |
Fixed assets, net | 2,553 | 2,347 | 2,206 |
North America [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | -1,224 | -1,182 | -1,046 |
North America [Member] | Canada [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 6,799 | 6,734 | 6,343 |
External sales | 6,324 | 6,223 | 5,907 |
Fixed asset additions | 204 | 167 | 158 |
Fixed assets, net | 638 | 601 | 660 |
North America [Member] | United States [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 9,780 | 8,409 | 7,518 |
External sales | 9,252 | 7,938 | 7,053 |
Fixed asset additions | 351 | 349 | 294 |
Fixed assets, net | 1,260 | 1,135 | 973 |
North America [Member] | Mexico [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 4,357 | 3,993 | 3,520 |
External sales | 4,027 | 3,698 | 3,281 |
Fixed asset additions | 160 | 129 | 163 |
Fixed assets, net | 655 | 611 | 573 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 588 | 655 | 611 |
Europe [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 14,706 | 14,718 | 12,709 |
External sales | 14,494 | 14,525 | 12,563 |
Depreciation and amortization | 357 | 355 | 283 |
Adjusted EBIT | 434 | 375 | 165 |
Goodwill | 588 | 655 | 611 |
Fixed asset additions | 517 | 361 | 378 |
Fixed assets, net | 2,012 | 2,169 | 2,132 |
Europe [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | -432 | -387 | -188 |
Europe [Member] | Western Europe Excluding Great Britain [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 11,775 | 11,813 | 10,089 |
External sales | 11,487 | 11,544 | 9,927 |
Fixed asset additions | 375 | 225 | 246 |
Fixed assets, net | 1,359 | 1,463 | 1,490 |
Europe [Member] | Great Britain [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 783 | 975 | 961 |
External sales | 781 | 968 | 952 |
Fixed asset additions | 51 | 24 | 15 |
Fixed assets, net | 98 | 70 | 58 |
Europe [Member] | Eastern Europe [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 2,580 | 2,317 | 1,847 |
External sales | 2,226 | 2,013 | 1,684 |
Fixed asset additions | 91 | 112 | 117 |
Fixed assets, net | 555 | 636 | 584 |
Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 127 | 129 | 74 |
Asia [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,983 | 1,684 | 1,289 |
External sales | 1,837 | 1,539 | 1,188 |
Depreciation and amortization | 71 | 64 | 42 |
Adjusted EBIT | 162 | 85 | 49 |
Goodwill | 127 | 129 | 74 |
Fixed asset additions | 141 | 114 | 214 |
Fixed assets, net | 650 | 597 | 558 |
Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 87 | ||
Rest of World [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 695 | 889 | 822 |
External sales | 694 | 889 | 822 |
Depreciation and amortization | 17 | 20 | 17 |
Adjusted EBIT | -35 | -76 | -77 |
Goodwill | 87 | ||
Fixed asset additions | 8 | 20 | 56 |
Fixed assets, net | 82 | 102 | 128 |
Corporate and Other [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | -455 | -410 | -318 |
External sales | 13 | 23 | 23 |
Depreciation and amortization | 24 | 26 | 27 |
Adjusted EBIT | 79 | 36 | |
Fixed asset additions | 206 | 30 | 11 |
Fixed assets, net | $367 | $226 | $249 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Equity loss | $211 | $196 | $151 |
Adjusted EBIT | 2,632 | 2,065 | 1,658 |
Other (expense) income, net | -64 | -144 | 108 |
Interest expense, net | -29 | -16 | -16 |
Income from operations before income taxes | 2,539 | 1,905 | 1,750 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBIT | 2,632 | 2,065 | 1,658 |
Operating Segments [Member] | Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBIT | 79 | 36 | |
Operating Segments [Member] | Corporate and Other [Member] | E-Car [Member] | |||
Segment Reporting Information [Line Items] | |||
Equity loss | $35 |
Segmented_Information_Schedule2
Segmented Information - Schedule of Aggregates External Revenues by Customer (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | |||
Revenue from external customers | $36,641 | $34,835 | $30,837 |
General Motors [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | 6,734 | 6,394 | 5,704 |
Fiat or Chrysler Group [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | 5,897 | 5,137 | 4,637 |
Ford Motor Company [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | 4,714 | 4,450 | 3,848 |
BMW [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | 4,649 | 4,882 | 4,100 |
Daimler AG [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | 4,262 | 3,949 | 3,367 |
Volkswagen [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | 4,144 | 4,047 | 3,835 |
Other Customers [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from external customers | $6,241 | $5,976 | $5,346 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $36,641 | $34,835 | $30,837 |
Exterior and Interior Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 12,840 | 12,308 | 11,673 |
Body Systems and Chassis Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 8,079 | 7,874 | 7,123 |
Powertrain Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 4,954 | 4,634 | 3,825 |
Complete Vehicle Assembly [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 3,067 | 3,062 | 2,561 |
Tooling, Engineering and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 2,971 | 2,823 | 2,317 |
Vision and Electronic Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 2,644 | 2,193 | 2,132 |
Closure Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $2,086 | $1,941 | $1,206 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Feb. 24, 2015 | |
Subsequent Event [Line Items] | ||
Stock split description | On February 24, 2015, the Board of Directors approved a two-for-one stock split, to be implemented by way of a stock dividend, whereby shareholders of the Company will receive an additional Common Share for each Common Share held. The stock dividend will be payable on March 25, 2015, to shareholders of record at the close of business on March 11, 2015. All equity-based compensation plans or arrangements and normal course issuer bid will be adjusted to reflect the issuance of additional Common Shares due to the declaration of the stock split. | |
Stock dividend will be payable date | 25-Mar-15 | |
Stock dividend record date | 11-Mar-15 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Stock split conversion ratio | 2 |