Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Trading Symbol | MGA |
Entity Registrant Name | MAGNA INTERNATIONAL INC |
Entity Central Index Key | 749,098 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 382,552,522 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Sales | $ 36,445 | $ 32,134 |
Costs and expenses | ||
Cost of goods sold | 31,123 | 27,559 |
Depreciation and amortization | 1,056 | 802 |
Selling, general and administrative | 1,601 | 1,448 |
Interest expense, net | 88 | 44 |
Equity income | (233) | (204) |
Other expense (income), net | 30 | (166) |
Income from continuing operations before income taxes | 2,780 | 2,651 |
Income taxes | 706 | 711 |
Net income from continuing operations | 2,074 | 1,940 |
Income from discontinued operations, net of tax | 67 | |
Net income | 2,074 | 2,007 |
(Income) loss from continuing operations attributable to non-controlling interests | (43) | 6 |
Net income attributable to Magna International Inc. | $ 2,031 | $ 2,013 |
Basic Earnings per Common Share: | ||
Continuing operations | $ 5.19 | $ 4.78 |
Discontinued operations | 0.16 | |
Attributable to Magna International Inc. | 5.19 | 4.94 |
Diluted Earnings per Common Share: | ||
Continuing operations | 5.16 | 4.72 |
Discontinued operations | 0.16 | |
Attributable to Magna International Inc. | $ 5.16 | $ 4.88 |
Weighted average number of Common Shares outstanding during the year [in millions]: | ||
Basic | 391 | 407.5 |
Diluted | 393.2 | 412.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,074 | $ 2,007 |
Other comprehensive loss, net of tax: | ||
Net unrealized loss on translation of net investment in foreign operations | (134) | (800) |
Net unrealized gain (loss) on cash flow hedges | 1 | (244) |
Reclassification of net loss on cash flow hedges to net income | 126 | 95 |
Reclassification of net loss on investments to net income | 1 | 3 |
Reclassification of net loss on pensions to net income | 9 | 7 |
Pension and post-retirement benefits | (29) | 14 |
Other comprehensive loss | (26) | (925) |
Comprehensive income | 2,048 | 1,082 |
Comprehensive (income) loss attributable to non-controlling interests | (18) | 8 |
Comprehensive income attributable to Magna International Inc. | $ 2,030 | $ 1,090 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 974 | $ 2,863 |
Accounts receivable | 6,165 | 5,439 |
Inventories | 2,804 | 2,564 |
Prepaid expenses and other | 220 | 278 |
Total current assets | 10,163 | 11,144 |
Investments | 1,850 | 399 |
Fixed assets, net | 7,022 | 5,948 |
Intangible assets, net | 621 | 169 |
Goodwill | 1,923 | 1,344 |
Deferred tax assets | 268 | 271 |
Other assets | 719 | 412 |
Consolidated total assets | 22,566 | 19,687 |
Current liabilities | ||
Short-term borrowings | 623 | 25 |
Accounts payable | 5,430 | 4,746 |
Accrued salaries and wages | 768 | 660 |
Other accrued liabilities | 1,639 | 1,512 |
Income taxes payable | 96 | 122 |
Long-term debt due within one year | 139 | 211 |
Total current liability | 8,695 | 7,276 |
Long-term debt | 2,394 | 2,327 |
Long-term employee benefit liabilities | 667 | 504 |
Other long-term liabilities | 298 | 331 |
Deferred tax liabilities | 293 | 132 |
Total liability | 12,347 | 10,570 |
Shareholders' equity | ||
Common Shares [issued: 382,252,522; 2015 - 402,264,201] | 3,796 | 3,942 |
Contributed surplus | 105 | 107 |
Retained earnings | 7,318 | 6,387 |
Accumulated other comprehensive loss | (1,451) | (1,470) |
Stockholders equity attributable to Magna International Inc | 9,768 | 8,966 |
Non-controlling interests | 451 | 151 |
Total stockholder's equity | 10,219 | 9,117 |
Total liability and stockholders' equity | $ 22,566 | $ 19,687 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 382,252,522 | 402,264,201 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net income from continuing operations | $ 2,074 | $ 1,940 |
Items not involving current cash flows | 1,231 | 736 |
Profit loss after adjustment of non cash items | 3,305 | 2,676 |
Changes in operating assets and liabilities | 81 | (344) |
Cash provided from operating activities | 3,386 | 2,332 |
INVESTMENT ACTIVITIES | ||
Fixed asset additions | (1,807) | (1,591) |
Purchase of subsidiaries | (1,930) | (222) |
Increase in investments and other assets | (478) | (221) |
Increase in restricted cash deposits | (194) | |
Proceeds from disposition | 138 | 61 |
Proceeds on disposal of facilities | 221 | |
Sale of Interiors | 520 | |
Cash used in discontinued operations | (56) | |
Cash used for investment activities | (4,271) | (1,288) |
FINANCING ACTIVITIES | ||
Issues of debt | 282 | 1,608 |
Increase in short-term borrowings | 386 | 25 |
Repayments of debt | (417) | (99) |
Issues of Common Shares on exercise of stock options | 33 | 35 |
Repurchase of Common Shares | (913) | (515) |
Contributions to subsidiaries by non-controlling interests | (1) | 41 |
Dividends paid to non-controlling interests | (5) | |
Dividends paid | (385) | (354) |
Cash (used for) provided from financing activities | (1,020) | 741 |
Effect of exchange rate changes on cash and cash equivalents | 16 | (171) |
Net (decrease) increase in cash and cash equivalents during the year | (1,889) | 1,614 |
Cash and cash equivalents, beginning of year | 2,863 | 1,249 |
Cash and cash equivalents, end of year | $ 974 | $ 2,863 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Shares [Member] | Contributed Surplus [Member] | Retained Earnings [Member] | AOCL [Member] | [1] | Noncontrolling Interest [Member] |
Beginning Balance at Dec. 31, 2014 | $ 8,673 | $ 3,979 | $ 83 | $ 5,155 | $ (558) | $ 14 | |
Beginning Balance, shares at Dec. 31, 2014 | 410.3 | ||||||
Net income | 2,007 | 2,013 | (6) | ||||
Other comprehensive loss | (925) | (923) | (2) | ||||
Shares issued on exercise of stock options | 35 | $ 45 | (10) | ||||
Shares issued on exercise of stock options, shares | 2.4 | ||||||
Release of stock and stock units | $ 17 | (17) | |||||
Release of stock and stock units, shares | 0.5 | ||||||
Repurchase and cancellation under normal course issuer bids [note 20] | (515) | $ (108) | (418) | 11 | |||
Repurchase and cancellation under normal course issuer bid, shares | (11.1) | ||||||
Contribution by non-controlling interests [note 7] | 46 | 17 | 29 | ||||
Purchase of non-controlling interests [note 7] | (2) | (2) | |||||
Acquisitions [note 7] | 116 | 116 | |||||
Stock-based compensation expense | 36 | 36 | |||||
Dividends paid | (354) | $ 9 | (363) | ||||
Dividends paid, shares | 0.2 | ||||||
Ending Balance at Dec. 31, 2015 | 9,117 | $ 3,942 | 107 | 6,387 | (1,470) | 151 | |
Ending Balance, shares at Dec. 31, 2015 | 402.3 | ||||||
Net income | 2,074 | 2,031 | 43 | ||||
Other comprehensive loss | (26) | (1) | (25) | ||||
Shares issued on exercise of stock options | 33 | $ 47 | (14) | ||||
Shares issued on exercise of stock options, shares | 2.1 | ||||||
Release of stock and stock units | $ 25 | (25) | |||||
Release of stock and stock units, shares | 0.4 | ||||||
Repurchase and cancellation under normal course issuer bids [note 20] | (913) | $ (222) | (711) | 20 | |||
Repurchase and cancellation under normal course issuer bid, shares | (22.6) | ||||||
Contribution by non-controlling interests [note 7] | (1) | (1) | |||||
Acquisitions [note 7] | 288 | 288 | |||||
Stock-based compensation expense | 37 | 37 | |||||
Dividends paid to non-controlling interests | (5) | (5) | |||||
Dividends paid | (385) | $ 4 | (389) | ||||
Dividends paid, shares | 0.1 | ||||||
Ending Balance at Dec. 31, 2016 | $ 10,219 | $ 3,796 | $ 105 | $ 7,318 | $ (1,451) | $ 451 | |
Ending Balance, shares at Dec. 31, 2016 | 382.3 | ||||||
[1] | AOCL is Accumulated Other Comprehensive Loss. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share | $ 1 | $ 0.88 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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, exterior, seating, powertrain, electronic, active driver assistance, 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 subsidiaries in which Magna has a controlling financial interest or is the primary beneficiary. Magna accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and records its proportionate share of income or losses in Equity income in the Consolidated Statements of Income. The Company presents non-controlling Financial instruments The Company classifies all of its financial assets and financial liabilities as trading, held-to-maturity available-for-sale Held-for-trading Held-to-maturity Available-for-sale 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 first-in, first-out Outsourced tooling inventories are valued at the lower of subcontracted costs and market. 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 Definite-lived intangible assets, which have arisen principally through acquisitions and include customer relationship intangibles and patents and licences. These definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives which range from 4 to 15 years. The Company assesses fixed and 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 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 write-downs for impairment. Goodwill is reviewed for impairment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. Goodwill impairment is assessed based on a comparison of the fair value of a reporting unit to the underlying carrying value of the reporting unit’s net assets, including goodwill. When the carrying amount of the reporting unit exceeds its fair value, 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 [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 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 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 powertrain and 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 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. Revenue from 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 Percentage-of-completion 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, given that Magna is acting as principal with respect to purchased components and systems, the selling price to the customer includes the costs of such inputs. 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 are recorded on such foreign undistributed earnings and translation adjustments when it becomes apparent that such earnings will be distributed in the foreseeable future and the Company will incur further significant tax on remittance. Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not more-likely-than-not 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 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. Discontinued operations The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting only occurs when the disposal of a component or a group of components of the Company represents a strategic shift that will have a major impact on the Company’s operations and financial results. In the third quarter of 2015, the Company sold substantially all of its interiors operations. Accordingly, for the year ended December 31, 2015 the operating results and operating cash flows for the disposed interiors operations are presented as discontinued operations separate from the Company’s continuing operations. Financial information related to the interiors operations has been excluded from both continuing operations and segment results in the consolidated financial statements. Refer to Note 3 Discontinued Operations for further information regarding the Company’s discontinued operations. 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, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Standards | 2. ACCOUNTING STANDARDS Accounting Changes Pension and other Post Retirement Benefit Plans At December 31, 2016, the Company changed the method used to estimate the service and interest components of net periodic benefit cost for pension and other postretirement benefits for plans that utilize a yield curve approach. This change compared to the previous method will result in different service and interest components of net periodic benefit cost (credit) in future periods. Historically, the Company estimated these service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The Company elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not affect the measurement of the total benefit obligations or annual net periodic benefit cost (credit) as the change in the service and interest costs is completely offset in the net actuarial (gain) loss reported. The change in the service and interest costs was not significant. The Company has accounted for this change as a change in accounting estimate. Simplifying the Presentation of Debt Issuance Costs In the first quarter of 2016, the Company adopted Accounting Standards Update No. 2015-03 835-30): Simplifying Future Accounting Standards Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, 2014-09)”, 2014-09 2014-09 2014-09; 2014-09 2014-09. 2014-09 2014-09 Leases In February 2016, the FASB issued ASU No. 2016-02, 2016-02)”, right-of-use 2016-02 2016-02 Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, 2016-18), 2016-18 2016-18 Income Taxes In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory Goodwill In January 2017, the FASB issued new guidance, ASU No. 2017-4, Simplifying the test for Goodwill Impairment |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. DISCONTINUED OPERATIONS On August 31, 2015, the Company sold substantially all of its interiors operations [“the interiors operations”]. The Company recognized a gain on the divestiture within income from discontinued operations as follows: Proceeds on disposal, net of transaction costs $ 549 Net assets disposed 438 Pre-tax 111 Income taxes 66 Gain on divestiture, net of tax $ 45 There were no amounts related to the interiors operations classified as discontinued operations for the year ended December 31, 2016. The following table summarizes the results of the interiors operations classified as discontinued operations for the year ended December 31, 2015: 2015 Sales $ 1,737 Costs and expenses Cost of goods sold 1,635 Depreciation and amortization 13 Selling, general and administrative 58 Equity income (11 ) Income from discontinued operations before income taxes and gain on divestiture 42 Income taxes 20 Income from discontinued operations before gain on divestiture 22 Gain on divestiture of discontinued operations, net of tax 45 Income from discontinued operations, net of tax $ 67 The interiors operations were previously included within all of the Company’s reporting segments except for Rest of World. |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | 4. 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 on-going 2016 2015 North America [a] Gain on disposal of Bestop $ — $ (136 ) Pension settlement 13 — 13 (136 ) Europe [b] Restructuring charges 17 27 Gain on disposal of battery pack business — (57 ) 17 (30 ) $ 30 $ (166 ) [a] North America For the year ended December 31, 2016 During the fourth quarter of 2016, the Company offered a limited lump-sum non-cash For the year ended December 31, 2015 During 2015, the Company entered into a joint venture arrangement for the manufacture and sale of roof and other accessories for the Jeep market to original equipment manufacturers as well as aftermarket customers. The Company contributed two manufacturing facilities and received a 49% interest in the newly formed joint venture and cash proceeds of $118 million. Total consideration was valued at $160 million and as a result the Company recognized a gain of $136 million [$80 million after tax]. The Company accounts for its ownership as an equity investment since Magna has significant influence through its voting rights, but does not control the joint venture. [b] Europe For the year ended December 31, 2016 During 2016, the Company recorded net restructuring charges of $17 million [$17 million after tax] in Germany at a powertrain systems facility. For the year ended December 31, 2015 During 2015, the Company recorded net restructuring charges of $27 million [$27 million after tax] primarily in Germany at its exterior systems and roof systems operations. During 2015, the Company sold its battery pack business to Samsung SDI for gross proceeds of approximately $120 million, resulting in a gain of $57 million [$42 million after tax]. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 5. EARNINGS PER SHARE Earnings per share are computed as follows: 2016 2015 Income available to Common shareholders: Net income from continuing operations $ 2,074 $ 1,940 (Income) loss from continuing operations attributable to non-controlling (43 ) 6 Net income attributable to Magna International Inc. from continuing operations 2,031 1,946 Income from discontinued operations, net of tax — 67 Net income attributable to Magna International Inc. $ 2,031 $ 2,013 Weighted average shares outstanding: Basic 391.0 407.5 Adjustments Stock options and restricted stock [a] 2.2 5.2 Diluted 393.2 412.7 [a] Diluted earnings per Common Share exclude 3.4 million [2015 – 0.9 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. Earnings per Common Share: 2016 2015 Basic: Continuing operations $ 5.19 $ 4.78 Discontinued operations — 0.16 Attributable to Magna International Inc. $ 5.19 $ 4.94 Diluted: Continuing operations $ 5.16 $ 4.72 Discontinued operations — 0.16 Attributable to Magna International Inc. $ 5.16 $ 4.88 The dilutive effect of participating securities using the two-class |
Details of Cash From Operating
Details of Cash From Operating Activities | 12 Months Ended |
Dec. 31, 2016 | |
Additional Cash Flow Elements, Operating Activities [Abstract] | |
Details of Cash From Operating Activities | 6. DETAILS OF CASH FROM OPERATING ACTIVITIES [a] Cash and cash equivalents consist of: 2016 2015 Bank term deposits, bankers’ acceptances and government paper $ 498 $ 2,572 Cash 476 291 $ 974 $ 2,863 [b] Items not involving current cash flows: 2016 2015 Depreciation and amortization $ 1,056 $ 802 Amortization of other assets included in cost of goods sold 135 110 Other non-cash 27 44 Deferred income taxes [note 12] 22 (7 ) Equity income in excess of dividends received (9 ) (20 ) Non-cash [note 4] — (193 ) $ 1,231 $ 736 [c] Changes in operating assets and liabilities: 2016 2015 Accounts receivable $ (446 ) $ (410 ) Inventories (159 ) (241 ) Prepaid expenses and other 189 13 Accounts payable 562 139 Accrued salaries and wages 94 43 Other accrued liabilities (145 ) 72 Income taxes payable (14 ) 40 $ 81 $ (344 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 7. ACQUISITIONS Acquisitions in the year ended December 31, 2016 On January 4, 2016, the Company completed the acquisition of 100% of the common shares and voting interests of the Getrag Group of Companies [“Getrag”]. Getrag is a global supplier of automotive transmission systems, including manual, automated-manual, dual clutch, hybrid and other advanced systems. The purchase price was approximately $1.9 billion [net of $136 million cash acquired]. The acquired business has sales primarily to BMW, Audi, Jiangling Motors, Ford, Volvo and Dongfeng. The acquisition of Getrag was accounted for as a business combination. The following table summarizes the amounts recognized for assets acquired and liabilities assumed: Preliminary Measurement Final Cash $ 136 $ — $ 136 Non-cash (466 ) 71 (395 ) Investments 1,719 (222 ) 1,497 Fixed assets 468 (23 ) 445 Goodwill 430 160 590 Other assets 60 (36 ) 24 Intangibles 218 154 372 Deferred tax assets 43 (9 ) 34 Long-term employee benefit liabilities (125 ) (12 ) (137 ) Long-term debt (116 ) (1 ) (117 ) Other long-term liabilities (9 ) (43 ) (52 ) Deferred tax liabilities (137 ) 18 (119 ) Non-controlling (303 ) 16 (287 ) Consideration paid 1,918 73 1,991 Less: Cash acquired (136 ) — (136 ) Net cash outflow $ 1,782 $ 73 $ 1,855 The measurement period adjustments primarily reflect: [i] changes in the estimated fair value of the acquired equity method investments; [ii] changes in the estimated fair value of the acquired patents and customer relationship intangibles; and [iii] a working capital adjustment due to an increase in the total fair value of consideration transferred. This resulted in a net adjustment to goodwill of $160 million. The measurement period adjustments did not result from intervening events subsequent to the acquisition date and did not have a material impact on the Company’s earnings in any period. The final allocation of the consideration transferred to the assets acquired and liabilities assumed has been completed. The investments amount includes the following equity investments that were acquired as part of the business combination: Ownership Investment Getrag Ford Transmission GmbH [“GFT”] 50.0 % $ 340 Getrag (Jiangxi) Transmission Co., Ltd [“GJT”] [i] 50.0 % $ 1,077 Dongfeng Getrag Transmission Co. Ltd [“DGT”] 50.0 % $ 80 [i] GJT is 66.7% owned by one of the Company’s consolidated subsidiaries which has a 25% non-controlling As a result, the investment balance was derived using 66.7% of the fair value. The Company accounts for the investments under the equity method since it has the ability to exercise significant influence but does not hold a controlling financial interest. Recognized goodwill is attributable to the assembled workforce, expected synergies and other intangible assets that do not qualify for separate recognition. All of the goodwill recognized was assigned to the Company’s European segment. Intangible assets consist primarily of amounts recognized for the fair value of customer relationship intangibles and patents. These amortizable intangible assets are being amortized on a straight-line basis over a 15 year estimated useful life. Sales and net income for the acquired Getrag entities for the year ended December 31, 2016 were $2.0 billion and $45 million, respectively. The following table provides consolidated supplemental pro forma information as if the acquisition of Getrag had occurred on January 1, 2015. December 31, 2015 Sales $ 34,150 Net income attributable to Magna International Inc. $ 1,992 The unaudited pro forma financial results do not include any anticipated synergies or other expected benefits of the acquisition. This information is presented for informational purposes only and is not indicative of future operating results. Other During the fourth quarter of 2016, the Company acquired 100% of the equity interest in the BÖCO Group of Companies [“BÖCO”]. BÖCO is an automotive supplier of latches, hinges and strikers, with sales primarily to the BMW Group, Daimler and Audi. During the second quarter of 2016, the Company acquired 100% of the equity interest in Telemotive AG, an engineering service provider in the field of automotive electronics. The acquired business has sales primarily to BMW, Volkswagen and Daimler. These entities have been included in our consolidated results of operations since their respective acquisition dates. Pro forma results of operations during the current period have not been presented because the effects of these acquisitions, individually and in aggregate, were not material to the Company’s consolidated results of operations. Acquisitions in the year ended December 31, 2015 On December 10, 2015, the Company entered into a partnership agreement in China [the “Xingqiaorui Partnership”] with Chongqing Xingqiaorui. Under the terms of the arrangement, Xingqiaorui transferred a 53% controlling interest in its three China manufacturing facilities and cash consideration of $36 million. In exchange, the Company transferred a 47% non-controlling On November 30, 2015, the Company acquired a 100% interest in Stadco Automotive Ltd. [“Stadco”] for total cash consideration of $115 million. Stadco, based in the United Kingdom, is a supplier of steel and aluminum stampings as well as vehicle assemblies primarily to Jaguar and Land Rover. The final allocation of the consideration transferred to the assets acquired and liabilities assumed for both the Xingqiaorui Partnership and Stadco has been completed. As a result of additional information obtained, changes to the preliminary fair values of certain property, plant and equipment, definite-lived intangible assets and contingent tax liabilities, from the amounts disclosed as of December 31, 2015 were recorded during the three months ended December 31, 2016, resulting in a net adjustment to goodwill of $14 million. These adjustments did not have a material impact on the Company’s earnings in any period. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. INVENTORIES Inventories consist of: 2016 2015 Raw materials and supplies $ 1,007 $ 843 Work-in-process 264 246 Finished goods 327 311 Tooling and engineering 1,206 1,164 $ 2,804 $ 2,564 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 in Affiliated Compa
Investments in Affiliated Companies | 12 Months Ended |
Dec. 31, 2016 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Investments in Affiliated Companies | 9. INVESTMENTS IN AFFILIATED COMPANIES The Company uses the equity method of accounting for its investments in entities over which it does not have control, but is able to exercise significant influence over operating and financial policies. The ownership percentages and carrying value of the Company’s principal equity method investments at December 31 were as follows [in million, except percentages]: 2016 2015 Litens Automotive Partnership [“Litens”] [i] 76.7 % $ 173 $ 138 Getrag (Jiangxi) Transmission Co., Ltd 50.0 % $ 1,015 — Getrag Ford Transmission GmbH 50.0 % $ 325 — Dongfeng Getrag Transmission Co. Ltd [ii] 50.0 % $ 79 — [i] Litens - The Company accounts for its investment in Litens under the equity method of accounting as a result of significant participating rights that prevent control. [ii] DGT – DGT is a variable interest entity [“VIE”] and depends on the Company and the Dongfeng Motor Group Company for any additional cash needs. The Company cannot make key operating decisions considered to be most significant to the VIE, and is therefore not considered to be the primary beneficiary. Our known maximum exposure to loss approximated the carrying value of our investment balance as at December 31, 2016. A summary of the total financial results, as reported by the Company’s equity method investees, in the aggregate, at December 31 was as follows: Summarized Balance Sheets 2016 2015 Current assets $ 2,478 $ 905 Non-current $ 4,450 $ 756 Current liabilities $ 2,329 $ 806 Long-term liabilities $ 1,268 $ 335 Summarized Income Statements 2016 2015 Sales $ 5,009 $ 3,168 Cost of goods sold, expenses and income taxes 4,668 2,886 Net income $ 341 $ 282 No impairment charges were recorded for the years ended December 31, 2016 and 2015. Sales to equity method investees were approximately $214 million and $98 million in 2016 and 2015 respectively. Variable Interest Entities The Company has determined that two of its investees acquired as part of the Getrag acquisition are variable interest entities, in which the Company is the primary beneficiary and has the power to direct the activities that are considered most significant to the entities. As a result, the assets, liabilities, and results of operations of these variable interest entity are included in the Company’s Consolidated Financial Statements. The Company’s maximum exposure to any potential losses associated with these affiliated companies is limited to its investment, and was $187 million at December 31, 2016. The carrying amounts and classification of assets and liabilities included in the Company’s consolidated balance sheet related to the consolidated VIEs are as follows: 2016 Current assets $ 256 Noncurrent assets 221 Total assets $ 477 Current liabilities $ 288 Noncurrent liabilities 2 Total liabilities $ 290 Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 10. FIXED ASSETS Fixed assets consist of: 2016 2015 Cost Land $ 254 $ 259 Buildings 1,942 1,659 Machinery and equipment 12,349 11,016 14,545 12,934 Accumulated depreciation Buildings (652 ) (590 ) Machinery and equipment (6,871 ) (6,396 ) $ 7,022 $ 5,948 Included in the cost of fixed assets are construction in progress expenditures of $1.0 billion [2015 - $1.3 billion] |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 11. GOODWILL The following is a continuity of the Company’s goodwill by segment: North Europe Asia Total Balance, December 31, 2014 $ 633 $ 577 $ 127 $ 1,337 Acquisitions [note 7] — 13 107 120 Foreign exchange and other (43 ) (65 ) (5 ) (113 ) Balance, December 31, 2015 590 525 229 1,344 Acquisitions [note 7] — 620 (5 ) 615 Foreign exchange and other 5 (29 ) (12 ) (36 ) Balance, December 31, 2016 $ 595 $ 1,116 $ 212 $ 1,923 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. 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: 2016 2015 Canadian statutory income tax rate 26.5 % 26.5 % Manufacturing and processing profits deduction (0.3 ) (0.4 ) Foreign rate differentials (0.2 ) 0.8 Losses not benefited 0.8 1.1 Utilization of losses previously not benefited (0.2 ) (0.1 ) Earnings of equity accounted investees (1.2 ) (0.8 ) Tax on repatriation of foreign earnings 0.7 2.1 Valuation allowance on deferred tax assets [i] (0.4 ) — Write off of investment [ii] — (1.4 ) Research and development tax credits (1.5 ) (1.3 ) Reserve for uncertain tax positions 0.2 (0.3 ) Non-deductible 1.3 1.0 Others (0.3 ) (0.4 ) Effective income tax rate 25.4 % 26.8 % [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” pre-tax [ii] During 2015, the Company recorded a benefit related to the write-off [iii] Non-deductible re-measurement [b] The details of income before income taxes by jurisdiction are as follows: 2016 2015 Canadian $ 617 $ 590 Foreign 2,163 2,061 $ 2,780 $ 2,651 [c] The details of the income tax provision are as follows: 2016 2015 Current Canadian $ 127 $ 140 Foreign 559 578 686 718 Deferred Canadian 16 14 Foreign 4 (21 ) 20 (7 ) $ 706 $ 711 [d] Deferred income taxes have been provided on temporary differences, which consist of the following: 2016 2015 Tax depreciation greater than book depreciation $ 58 $ 12 Book amortization (in excess of) less than tax amortization (41 ) 7 Liabilities currently not deductible for tax 48 — Net tax losses benefited (31 ) (13 ) Change in valuation allowance on deferred tax assets (12 ) (1 ) Tax on undistributed foreign earnings 8 3 Others ( 10 ) (15 ) $ 20 $ (7 ) [e] Deferred tax assets and liabilities consist of the following temporary differences: 2016 2015 Assets Tax benefit of loss carryforwards $ 715 $ 614 Liabilities currently not deductible for tax 106 211 Tax credit carryforwards 22 24 Unrealized loss on cash flow hedges and retirement liabilities 134 154 Other assets tax value in excess of book values 36 11 Others 21 5 1,034 1,019 Valuation allowance against tax benefit of loss carryforwards (615 ) (562 ) Other valuation allowance (66 ) (50 ) 353 407 Liabilities Tax depreciation in excess of book depreciation 277 249 Tax on undistributed foreign earnings 98 10 Unrealized gain on cash flow hedges and retirement liabilities 3 9 378 268 Net deferred tax (liabilities) assets $ (25 ) $ 139 The net deferred tax (liabilities) assets are presented on the consolidated balance sheet in the following categories: 2016 2015 Long-term deferred tax assets $ 268 $ 271 Long-term deferred tax liabilities (293 ) (132 ) $ (25 ) $ 139 [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 $4.46 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 $707 million for the year ended December 31, 2016 [2015 - $647 million]. [h] As of December 31, 2016, the Company had domestic and foreign operating loss carryforwards of $2.29 billion and tax credit carryforwards of $22 million. Approximately $1.65 billion of the operating losses can be carried forward indefinitely. The remaining operating losses and tax credit carryforwards expire between 2017 and 2036. [i] As at December 31, 2016 and 2015, the Company’s gross unrecognized tax benefits were $220 and $221 million, respectively [excluding interest and penalties], of which $201 and $158 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: 2016 2015 Balance, beginning of year $ 221 $ 202 Increase based on tax positions related to current year 21 17 (Decrease) increase based on tax positions of prior years (52 ) 53 Increase related to acquisitions 44 — Settlements (2 ) (15 ) Statute expirations (8 ) (20 ) Foreign currency translation (4 ) (16 ) $ 220 $ 221 The Company recognizes interest and penalties with respect to unrecognized tax benefits as income tax expense. As at December 31, 2016 and 2015, the Company had recorded interest and penalties on the unrecognized tax benefits of $35 and $21 million, respectively, which reflects expenses related to changes in its reserves for interest and penalties of $14 and $3 million, respectively. The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign tax authorities. During the next twelve months, it is reasonably possible that, as a result of audit settlements, the conclusion of current examinations and the expiration of the statute of limitations in several jurisdictions, the Company may decrease the amount of its gross unrecognized tax benefits [including interest and penalties] by approximately $62 million, of which $52 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 for years after 2008, Mexico for years after 2010, and in Canada and the U.S. federal jurisdiction for years after 2012. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | 13. INTANGIBLE ASSETS Intangible assets were as follows: Estimated weighted 2016 2015 Cost Customer relationship intangibles [note 7] 12 $ 392 $ 134 Computer software 4 316 278 Patent and licenses 15 278 39 986 451 Accumulated depreciation Customer relationship intangibles [note 7] (96 ) (53 ) Computer software (242 ) (221 ) Patent and licenses (27 ) (8 ) $ 621 $ 169 The Company recorded approximately $100 million and $48 million of amortization expense related to definite-lived intangible assets for the years ended December 31, 2016 and 2015, respectively. The Company currently estimates annual amortization expense to be $90 million for 2017, $82 million for 2018, $66 million for 2019, $47 million for 2020 and $44 million for 2021. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 14. OTHER ASSETS Other assets consist of: 2016 2015 Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement $ 420 $ 276 Long-term receivables [note 22[c]] 229 87 Pension overfunded status [note 18[a]] 21 17 Unrealized gain on cash flow hedges [note 22] 6 5 Other, net 43 27 $ 719 $ 412 |
Employee Equity and Profit Part
Employee Equity and Profit Participation Program | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Employee Equity and Profit Participation Program | 15. EMPLOYEE EQUITY AND PROFIT PARTICIPATION PROGRAM During the year ended December 31, 2016, 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 $10 million [2015 - $55 million] from the Company to facilitate the purchase of Common Shares. At December 31, 2016, the trust’s indebtedness to Magna was $10 million [2015 - $5 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, 2016 | |
Product Warranties Disclosures [Abstract] | |
Warranty | 16. WARRANTY The following is a continuity of the Company’s warranty accruals: 2016 2015 Balance, beginning of year $ 59 $ 80 Expense, net 101 26 Settlements (59 ) (53 ) Acquisitions [i] 174 — Foreign exchange and other (5 ) 6 $ 270 $ 59 [i] $127 million of the acquisition balance relates to a pre-acquisition [note 7] |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 17. DEBT Short-term borrowings The Company’s short-term borrowings consist of the following: 2016 2015 Bank indebtedness [i] $ 8 $ 25 Commercial paper [ii] 615 — $ 623 $ 25 [i] In the third quarter of 2016, the Company entered into an agreement for a credit facility that is drawn in euros. The Company is required to secure any amounts drawn on the facility with a USD cash deposit of 105% of the outstanding euro balance. As of December 31, 2016, the gross amount outstanding under the credit facility was $185 million [€175 million]. The credit agreement includes a netting arrangement with the bank that provides for the legal right of setoff. Accordingly, as at December 31, 2016, this liability balance was offset against the related restricted cash deposit of $194 million. The remaining net cash deposit of $9 million was included in the prepaid expenses and other balance, and is restricted under the terms of the loan. [ii] During 2016, the Company established a U.S. commercial paper program [the “U.S. Program”] and a euro-commercial paper program [the “euro-Program”]. Under the U.S. Program, the Company may issue U.S. commercial paper notes [the “U.S. notes”] up to a maximum aggregate amount of U.S. $500 million. The U.S. Program is supported by the Company’s existing global credit facility. The proceeds from the issuance of the U.S. notes are being used for general corporate purposes. As at December 31, 2016, $295 million of U.S notes were outstanding, with a weighted-average interest rate of 1.04%, and maturities generally less than three months. Under the euro-Program, the Company may issue euro-commercial paper notes [the “euro notes”] up to a maximum aggregate amount of €500 million or its equivalent in alternative currencies. The euro notes issued are being guaranteed by the Company’s existing global credit facility. The proceeds from the issuance of the euro notes are being used for general corporate purposes. As of December 31, 2016, $320 million [€304 million] of euro notes were outstanding, with a negative weighted-average interest rate of 0.07%, and maturities generally less than three months. Long-term borrowings [a] The Company’s long-term debt, which is substantially uncollateralized, consists of the following: 2016 2015 Senior Notes [note 17 [c]] $750 million Senior Notes due 2024 at 3.625% $ 746 $ 745 $650 million Senior Notes due 2025 at 4.150% 643 643 €550 million Senior Notes due 2023 at 1.900% 576 592 Cdn$425 million Senior Notes due 2022 at 3.100% 315 305 Bank term debt at a weighted average interest rate of approximately 7.3% [2015 – 8.1%], denominated primarily in Indian rupee, Chinese renminbi, euro and Brazilian real 117 202 Government loans at a weighted average interest rate of approximately 2.53% [2015 – 3.7%], denominated primarily in euro, Canadian dollar and Brazilian real 92 9 Other 44 42 2,533 2,538 Less due within one year 139 211 $ 2,394 $ 2,327 [b] Future principal repayments on long-term debt are estimated to be as follows: 2017 $ 139 2018 39 2019 26 2020 22 2021 20 Thereafter 2,287 $ 2,533 [c] All of the Senior Notes pay a fixed rate of interest semi-annually except for the €550 million Senior Notes which pay a fixed rate of interest annually. The Senior Notes are unsecured obligations and do not include any financial covenants. The Company may redeem the Senior Notes in whole or in part at any time, at specified redemption prices determined in accordance with the terms of each of the respective indentures governing the Senior Notes. All of the Senior Notes were issued for general corporate purposes. [d] The Company’s $2.75 billion revolving credit facility matures on June 22, 2021. The facility includes a $200 million Asian tranche, a $100 million Mexican tranche and a tranche for Canada, U.S. and Europe, which is fully transferable between jurisdictions and can be drawn in U.S. dollars, Canadian dollars or euros. [e] Interest expense, net includes: 2016 2015 Interest expense Current $ 22 $ 20 Long-term 78 38 100 58 Interest income (12 ) (14 ) Interest expense, net $ 88 $ 44 [f] Interest paid in cash was $99 million for the year ended December 31, 2016 [2015 - $54 million]. [g] At December 31, 2016, the Company had commitments under operating leases requiring annual rental payments as follows: Total 2017 $ 277 2018 237 2019 208 2020 183 2021 164 Thereafter 586 $ 1,655 For the year ended December 31, 2016, operating lease expense was $314 million [2015 - $285 million]. |
Long-Term Employee Benefit Liab
Long-Term Employee Benefit Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Long-Term Employee Benefit Liabilities | 18. LONG-TERM EMPLOYEE BENEFIT LIABILITIES Long-term employee benefit liabilities consist of: 2016 2015 Defined benefit pension plans and other [a] $ 313 $ 181 Termination and long service arrangements [b] 319 287 Retirement medical benefits plans [c] 29 30 Other long-term employee benefits 6 6 Long-term employee benefit obligations $ 667 $ 504 [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: 2016 2015 Projected benefit obligation Discount rate 3.1 % 3.8 % Rate of compensation increase 2.3 % 2.5 % Net periodic benefit cost Discount rate 3.2 % 3.7 % Rate of compensation increase 2.4 % 2.7 % Expected return on plan assets 5.8 % 5.9 % Information about the Company’s defined benefit pension plans is as follows: 2016 2015 Projected benefit obligation Beginning of year $ 493 $ 536 Current service cost 14 12 Interest cost 21 18 Actuarial losses (gains) and changes in actuarial assumptions 28 (18 ) Benefits paid (22 ) (18 ) Benefits paid – settlements [i] (32 ) — Acquisition 129 1 Gain on settlement (5 ) — Foreign exchange (2 ) (38 ) End of year 624 493 Plan assets at fair value [ii] Beginning of year 326 347 Return on plan assets 22 7 Employer contributions 19 19 Benefits paid (17 ) (18 ) Benefits paid – settlements [i] (32 ) — Acquisition 8 — Foreign exchange 4 (29 ) End of year 330 326 Ending funded status $ 294 $ 167 Amounts recorded in the consolidated balance sheet Non-current [note 14] $ (21 ) $ (17 ) Current liability 2 3 Non-current 313 181 Net amount $ 294 $ 167 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (144 ) $ (138 ) Net periodic benefit cost Current service cost $ 14 $ 12 Interest cost 21 18 Return on plan assets (20 ) (20 ) Benefits paid – settlements [i] 13 — Actuarial losses 3 4 Net periodic benefit cost $ 31 $ 14 [i] During the fourth quarter of 2016, the Company offered a limited lump-sum lump-sum lump-sum ’ non-cash [note 4] [ii] The asset allocation of the Company’s defined benefit pension plans at December 31, 2016 and the target allocation for 2017 is as follows: 2017 2016 Equity securities 55-75 % 61 % Fixed income securities 25-45 % 39 % Cash and cash equivalents 0-15 % 0 % 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: 2016 2015 Discount rate 2.9 % 3.1 % Rate of compensation increase 2.7 % 2.8 % Information about the Company’s termination and long service arrangements is as follows: 2016 2015 Projected benefit obligation Beginning of year $ 295 $ 323 Current service cost 20 15 Interest cost 8 8 Actuarial losses and changes in actuarial assumptions 15 2 Benefits paid (11 ) (12 ) Acquisition 16 — Divestiture — (4 ) Foreign exchange (16 ) (37 ) Ending funded status $ 327 $ 295 Amounts recorded in the consolidated balance sheet Current liability $ 8 $ 8 Non-current 319 287 Net amount $ 327 $ 295 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (84 ) $ (69 ) Net periodic benefit cost Current service cost $ 20 $ 15 Interest cost 8 8 Actuarial losses 1 18 Net periodic benefit cost $ 29 $ 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: 2016 2015 Retirement medical benefit obligations 3.8 % 3.9 % Net periodic benefit cost 3.9 % 3.7 % Health care cost inflation 7.0 % 6.5 % Information about the Company’s retirement medical benefits plans are as follows: 2016 2015 Projected benefit obligation Beginning of year $ 32 $ 41 Interest cost 1 1 Actuarial gains and changes in actuarial assumptions (1 ) (7 ) Benefits paid (1 ) (2 ) Foreign exchange — (1 ) Ending funded status $ 31 $ 32 Amounts recorded in the consolidated balance sheet Current liability $ 2 $ 2 Non-current 29 30 Net amount $ 31 $ 32 Amounts recorded in accumulated other comprehensive income Unrecognized past service costs $ 1 $ 1 Unrecognized actuarial gains 11 11 Total accumulated other comprehensive income $ 12 $ 12 Net periodic benefit cost Interest cost $ 1 $ 2 Past service cost amortization (1 ) (1 ) Net periodic benefit cost $ — $ 1 The effect of a one-percentage [d] Future benefit payments Defined Termination Retirement Total Expected employer contributions - 2017 $ 24 $ 8 $ 2 $ 34 Expected benefit payments: 2017 $ 21 $ 8 $ 2 $ 31 2018 21 9 2 32 2019 21 11 2 34 2020 23 13 2 38 2021 23 15 2 40 Thereafter 133 91 9 233 $ 242 $ 147 $ 19 $ 408 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 19. OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of: 2016 2015 Long-term portion of fair value of hedges [note 22] $ 61 $ 152 Long-term portion of income taxes payable 181 131 Asset retirement obligation 28 26 Long-term lease inducements 16 19 Deferred revenue 12 3 $ 298 $ 331 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Stock | 20. CAPITAL STOCK [a] At December 31, 2016, 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, 2016, 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 38 million Magna Common Shares [the “2016 Bid”], representing approximately 10% of the Company’s public float of Common Shares. The Bid commenced on November 15, 2016 and will terminate no later than November 17, 2017. Previously, the Company had Normal Course Issuer Bids in place for the 12 month periods beginning in November 2015 and 2014. The following is a summary of the Normal Course Issuer Bids [number of shares in the table below are expressed in whole numbers]: 2016 2015 Maximum Shares purchased Cash amount Shares Cash 2014 Bid 40,000,000 — $ — 8,166,514 $ 388 2015 Bid 40,000,000 20,313,194 818 2,585,970 113 2016 Bid 38,000,000 2,021,824 86 — — 22,335,018 $ 904 10,752,484 $ 501 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 [c] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at March 9, 2017 were exercised or converted: Common Shares 382,269,005 Stock options 9,258,413 391,527,418 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 21. ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a continuity schedule of accumulated other comprehensive loss: 2016 2015 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of year $ (1,042 ) $ (255 ) Net unrealized loss (109 ) (798 ) Repurchase of shares under normal course issuer bids [note 20] 20 11 Balance, end of year (1,131 ) (1,042 ) Accumulated net unrealized loss on cash flow hedges [b] Balance, beginning of year (262 ) (113 ) Net unrealized gain (loss) 1 (244 ) Reclassification of net loss to net income [a] 126 95 Balance, end of year (135 ) (262 ) Accumulated net unrealized loss on other long-term liabilities [b] Balance, beginning of year (165 ) (186 ) Net unrealized (loss) gain (29 ) 14 Reclassification of net loss to net income [a] 9 7 Balance, end of year (185 ) (165 ) Accumulated net unrealized loss on available-for-sale Balance, beginning of year (1 ) (4 ) Net unrealized loss — 3 Reclassification of net loss to net income [a] 1 — Balance, end of year — (1 ) Total accumulated other comprehensive loss [c] $ (1,451 ) $ (1,470 ) [a] The effects on net income of amounts reclassified from AOCL, with presentation location, were as follows: 2016 2015 Cash flow hedges Sales $ (87 ) $ (86 ) Cost of sales (87 ) (45 ) Interest — (3 ) Income tax 48 39 Net of tax (126 ) (95 ) Other long-term liabilities Cost of sales 1 (9 ) Income tax — 2 Net of tax 1 (7 ) Total loss reclassified to net income $ (125 ) $ (102 ) [b] The amount of income tax benefit that has been allocated to each component of other comprehensive loss is as follows: 2016 2015 Accumulated net unrealized loss on cash flow hedges Balance, beginning of year $ 97 $ 44 Net unrealized loss 4 92 Reclassification of net loss to net income (48 ) (39 ) Balance, end of year 53 97 Accumulated net unrealized loss on other long-term liabilities Balance, beginning of year 31 36 Net unrealized loss (gain) 3 (3 ) Reclassification of net loss to net income (4 ) (2 ) Balance, end of year 30 31 Total income tax benefit $ 83 $ 128 [c] The amount of other comprehensive loss that is expected to be reclassified to net income during 2017 is $130 million. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 22. FINANCIAL INSTRUMENTS [a] Foreign exchange contracts At December 31, 2016, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows: For Canadian dollars For U.S. dollars Buy (Sell) U.S. Weighted Euro Weighted Peso Weighted 2017 122 1.32036 23 1.45496 3,500 0.05995 2017 (885 ) 0.79352 (15 ) 0.68983 — — 2018 1 1.30509 1 1.44050 1,819 0.05194 2018 (597 ) 0.78550 (2 ) 0.68689 — — 2019 — — — — 564 0.04335 2019 (338 ) 0.78407 — — — — 2020 (126 ) 0.76519 — — — — 2021 (8 ) 0.76001 — — — — (1,831 ) 7 5,883 For euros Buy (Sell) U.S. Weighted GBP Weighted Czech Weighted 2017 115 0.90038 5 1.18435 4,084 0.03722 2017 (112 ) 1.19637 (28 ) 0.84126 — — 2018 43 0.87976 1 1.17412 2,389 0.03766 2018 (53 ) 1.16833 (17 ) 0.80446 — — 2019 24 0.86787 — — 1,167 0.03777 2019 (24 ) 1.15362 (9 ) 0.80790 — — 2020 5 0.86156 — — 165 0.03802 2020 (2 ) 1.17400 (5 ) 0.87553 — — (4 ) (53 ) 7,805 Based on forward foreign exchange rates as at December 31, 2016 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 $18 million and $195 million, respectively [note 21] 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: 2016 2015 Trading Cash and cash equivalents $ 974 $ 2,863 Investment in ABCP 60 73 Equity investments — 4 $ 1,034 $ 2,940 Held-to-maturity Severance investments $ 3 $ 3 Loans and receivables Accounts receivable $ 6,165 $ 5,439 Long-term receivables included in other assets [note 14] 229 87 $ 6,394 $ 5,526 Other financial liabilities Bank indebtedness $ 8 $ 25 Commercial paper 615 — Long-term debt (including portion due within one year) 2,533 2,538 Accounts payable 5,430 4,746 $ 8,586 $ 7,309 Derivatives designated as effective hedges, measured at fair value Foreign currency contracts Prepaid expenses and other $ 12 $ 27 Other assets 6 4 Other accrued liabilities (134 ) (191 ) Other long-term liabilities (61 ) (152 ) $ (177 ) $ (312 ) [c] Derivatives designated as effective hedges, measured at fair value The Company presents derivatives that are designated as effective hedges at gross fair values in the consolidated balance sheets. However, master netting and other similar arrangements allow net settlements under certain conditions. The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the consolidated balance sheets and the unrecognized impacts of master netting arrangements: Gross amounts Gross amounts Net December 31, 2016 Assets $ 18 $ 17 $ 1 Liabilities $ (195 ) $ (17 ) $ (178 ) December 31, 2015 Assets $ 31 $ 30 $ 1 Liabilities $ (343 ) $ (30 ) $ (313 ) [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, 2016, the Company held Canadian third party ABCP with a face value of Cdn$81 million [2015 – Cdn$107 million]. The investment had a carrying value of Cdn$81 million [December 31, 2015 - Cdn $101 million]. At December 31, 2016, the fair value of the ABCP was Cdn$81 million based on its maturity value in January 2017. Commercial Paper Due to the short period to maturity of the commercial paper, the carrying value as presented in the consolidated balance sheet is a reasonable estimate of its fair value. Term debt The Company’s term debt includes $139 million due within one year. Due to the short period to maturity of this debt, the carrying value as presented in the consolidated balance sheet is a reasonable estimate of its fair value. Senior Notes The fair value of our Senior Notes are classified as Level 1 when we use quoted prices in active markets and Level 2 when the quoted prices are from less active markets or when other observable inputs are used to determine fair value. At December 31, 2016, the net book value of the Company’s Senior Notes was $2.30 billion and the estimated fair value was $2.36 billion, determined primarily using active market prices. [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 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 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, 2016, sales to the Company’s six largest customers represented 82% [2015 - 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 22[a]] [g] Interest rate risk The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and current liabilities. In particular, the amount of interest income earned on cash and cash equivalents is impacted more by investment decisions made and the demands to have available cash on hand, than by movements in interest rates over a given period. In addition, the Company is not exposed to interest rate risk on its term debt and Senior Notes as the interest rates on these instruments are fixed. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 23. 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. In February 2016, a consent order was granted allowing the Plaintiffs to file a fresh statement of claim which includes an additional remedy and reduces certain aggravated and punitive damages claimed [the “Main Action”]. The fresh 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 [the “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; • inducement by the Company of a breach of the Licence Agreement by TRW; • 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, among other things, damages of approximately Cdn$2.56 billion in the Main Action. Document production, completion of undertakings and examinations for discovery are substantially complete, although limited additional examinations for discovery are expected to occur. In April 2016, the Company filed a new claim against Centoco Holdings Limited and KS Centoco Ltd. seeking an order under the Ontario Business Corporations Act wind-up “Wind-Up Wind-Up Both actions will be tried together at a trial scheduled to commence on October 30, 2017. The claims and damages in the Centoco Counterclaim substantially duplicate those described in the Main Action and, as a result, the Company believes that there is no incremental liability due to the Centoco Counterclaim. The Company also believes it has valid defences to the claims made by Centoco Holdings Limited and KS Centoco Ltd. in both actions and therefore intends to continue to vigorously defend these two cases. Due to the nature of the claims made and potential damages alleged by Centoco Holdings Limited and KS Centoco Ltd., the Company is unable to predict the final outcome of these claims. [b] 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. At this time, management is unable to predict the duration or outcome of the Brazilian investigation, 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 previously 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 such review, a regulatory investigation or otherwise, Magna could be subject to fines, penalties, restitution settlements and civil, administrative or criminal legal proceedings and other consequences, including reputational damage. [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 16] |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segmented Information | 24. SEGMENTED INFORMATION [a] Magna is a global automotive supplier which has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, vision, closure and roof systems. Magna also has electronic and software capabilities across many of these areas. 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. 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 is calculated by taking net income from continuing operations and adding back 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] The following tables show certain information with respect to segment disclosures: 2016 Total External Depreciation amortization Adjusted Goodwill Fixed Fixed North America Canada $ 6,784 $ 6,214 $ 201 $ 721 United States 10,226 9,857 400 1,573 Mexico 5,121 4,586 309 999 Eliminations (1,387 ) — — — North America 20,744 20,657 $ 486 $ 2,061 $ 595 910 3,293 Europe Western Europe (excluding Great Britain) 10,537 10,159 578 1,912 Great Britain 658 656 24 127 Eastern Europe 2,285 2,000 136 545 Eliminations (400 ) — — — Europe 13,080 12,815 431 543 1,116 738 2,584 Asia 2,674 2,502 103 266 212 97 679 Rest of World 465 464 13 (17 ) — 11 62 Corporate and Other (518 ) 7 23 45 — 51 404 Total reportable segments $ 36,445 $ 36,445 $ 1,056 $ 2,898 $ 1,923 $ 1,807 $ 7,022 Current assets 10,163 Investments, intangible assets, goodwill, deferred tax assets and other assets 5,381 Consolidated total assets $ 22,566 2015 Total External Depreciation Adjusted Goodwill Fixed Fixed North America Canada $ 6,329 $ 5,856 $ 242 $ 645 United States 9,603 9,183 421 1,422 Mexico 4,261 3,869 233 755 Eliminations (1,178 ) — — — North America 19,015 18,908 $ 411 $ 1,934 $ 590 896 2,822 Europe Western Europe (excluding Great Britain) 8,936 8,635 357 1,263 Great Britain 404 404 26 145 Eastern Europe 2,110 1,873 112 471 Eliminations (327 ) — — — Europe 11,123 10,912 276 451 525 495 1,879 Asia 1,981 1,846 77 149 229 121 811 Rest of World 461 461 17 (25 ) — 15 51 Corporate and Other (446 ) 7 21 20 — 64 385 Total reportable segments $ 32,134 $ 32,134 $ 802 $ 2,529 $ 1,344 $ 1,591 $ 5,948 Current assets 11,144 Investments, intangible assets, goodwill, deferred tax assets, and other assets 2,595 Consolidated total assets $ 19,687 [i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. [ii] The following table reconciles Net income from continuing operations to Adjusted EBIT: 2016 2015 Net Income from continuing operations $ 2,074 $ 1,940 Add (deduct): Interest expense, net 88 44 Other expense (income), net 30 (166 ) Income taxes 706 711 Adjusted EBIT $ 2,898 $ 2,529 [b] The following table aggregates external revenues by customer as follows: 2016 2015 General Motors $ 7,207 $ 6,424 Ford Motor Company 5,667 4,923 Fiat / Chrysler Group 5,349 5,094 Daimler AG 4,294 3,779 BMW 3,786 3,300 Volkswagen 3,758 3,301 Other 6,384 5,313 $ 36,445 $ 32,134 [c] The following table summarizes external revenues generated by automotive products and services: 2016 2015 Body systems and chassis systems $ 9,157 $ 7,790 Powertrain systems 6,489 4,755 Exterior systems 5,272 5,155 Seating systems 5,079 4,497 Tooling, engineering and other 3,078 2,700 Vision and electronic systems 2,768 2,583 Closure systems 2,412 2,297 Complete vehicle assembly 2,190 2,357 $ 36,445 $ 32,134 |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The Consolidated Financial Statements include the accounts of Magna and its subsidiaries in which Magna has a controlling financial interest or is the primary beneficiary. Magna accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and records its proportionate share of income or losses in Equity income in the Consolidated Statements of Income. The Company presents non-controlling |
Financial instruments | Financial instruments The Company classifies all of its financial assets and financial liabilities as trading, held-to-maturity available-for-sale Held-for-trading Held-to-maturity Available-for-sale |
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 first-in, first-out Outsourced tooling inventories are valued at the lower of subcontracted costs and market. |
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 Definite-lived intangible assets, which have arisen principally through acquisitions and include customer relationship intangibles and patents and licences. These definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives which range from 4 to 15 years. The Company assesses fixed and 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 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 write-downs for impairment. Goodwill is reviewed for impairment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. Goodwill impairment is assessed based on a comparison of the fair value of a reporting unit to the underlying carrying value of the reporting unit’s net assets, including goodwill. When the carrying amount of the reporting unit exceeds its fair value, 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 [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 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 |
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 powertrain and 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 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. Revenue from 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 Percentage-of-completion 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, given that Magna is acting as principal with respect to purchased components and systems, the selling price to the customer includes the costs of such inputs. |
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 are recorded on such foreign undistributed earnings and translation adjustments when it becomes apparent that such earnings will be distributed in the foreseeable future and the Company will incur further significant tax on remittance. Recognition of uncertain tax positions is dependent on whether it is more-likely-than-not more-likely-than-not |
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 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. |
Discontinued operations | Discontinued operations The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting only occurs when the disposal of a component or a group of components of the Company represents a strategic shift that will have a major impact on the Company’s operations and financial results. In the third quarter of 2015, the Company sold substantially all of its interiors operations. Accordingly, for the year ended December 31, 2015 the operating results and operating cash flows for the disposed interiors operations are presented as discontinued operations separate from the Company’s continuing operations. Financial information related to the interiors operations has been excluded from both continuing operations and segment results in the consolidated financial statements. Refer to Note 3 Discontinued Operations for further information regarding the Company’s discontinued operations. |
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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Gain on Divestiture within Income from Discontinued Operations | The Company recognized a gain on the divestiture within income from discontinued operations as follows: Proceeds on disposal, net of transaction costs $ 549 Net assets disposed 438 Pre-tax 111 Income taxes 66 Gain on divestiture, net of tax $ 45 |
Reconciliation of Major Classes of Line Items Constituting Income (Loss) from Discontinued Operations, Net of Tax as Presented in Statements of Income | The following table summarizes the results of the interiors operations classified as discontinued operations for the year ended December 31, 2015: 2015 Sales $ 1,737 Costs and expenses Cost of goods sold 1,635 Depreciation and amortization 13 Selling, general and administrative 58 Equity income (11 ) Income from discontinued operations before income taxes and gain on divestiture 42 Income taxes 20 Income from discontinued operations before gain on divestiture 22 Gain on divestiture of discontinued operations, net of tax 45 Income from discontinued operations, net of tax $ 67 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Other expense (income), net consists of: 2016 2015 North America [a] Gain on disposal of Bestop $ — $ (136 ) Pension settlement 13 — 13 (136 ) Europe [b] Restructuring charges 17 27 Gain on disposal of battery pack business — (57 ) 17 (30 ) $ 30 $ (166 ) [a] North America For the year ended December 31, 2016 During the fourth quarter of 2016, the Company offered a limited lump-sum non-cash For the year ended December 31, 2015 During 2015, the Company entered into a joint venture arrangement for the manufacture and sale of roof and other accessories for the Jeep market to original equipment manufacturers as well as aftermarket customers. The Company contributed two manufacturing facilities and received a 49% interest in the newly formed joint venture and cash proceeds of $118 million. Total consideration was valued at $160 million and as a result the Company recognized a gain of $136 million [$80 million after tax]. The Company accounts for its ownership as an equity investment since Magna has significant influence through its voting rights, but does not control the joint venture. [b] Europe For the year ended December 31, 2016 During 2016, the Company recorded net restructuring charges of $17 million [$17 million after tax] in Germany at a powertrain systems facility. For the year ended December 31, 2015 During 2015, the Company recorded net restructuring charges of $27 million [$27 million after tax] primarily in Germany at its exterior systems and roof systems operations. During 2015, the Company sold its battery pack business to Samsung SDI for gross proceeds of approximately $120 million, resulting in a gain of $57 million [$42 million after tax]. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Earnings per share are computed as follows: 2016 2015 Income available to Common shareholders: Net income from continuing operations $ 2,074 $ 1,940 (Income) loss from continuing operations attributable to non-controlling (43 ) 6 Net income attributable to Magna International Inc. from continuing operations 2,031 1,946 Income from discontinued operations, net of tax — 67 Net income attributable to Magna International Inc. $ 2,031 $ 2,013 Weighted average shares outstanding: Basic 391.0 407.5 Adjustments Stock options and restricted stock [a] 2.2 5.2 Diluted 393.2 412.7 [a] Diluted earnings per Common Share exclude 3.4 million [2015 – 0.9 million] Common Shares issuable under the Company’s Incentive Stock Option Plan because these options were not “in-the-money”. |
Schedule of Earnings Per Common Share | Earnings per Common Share: 2016 2015 Basic: Continuing operations $ 5.19 $ 4.78 Discontinued operations — 0.16 Attributable to Magna International Inc. $ 5.19 $ 4.94 Diluted: Continuing operations $ 5.16 $ 4.72 Discontinued operations — 0.16 Attributable to Magna International Inc. $ 5.16 $ 4.88 |
Details of Cash From Operatin37
Details of Cash From Operating Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Additional Cash Flow Elements, Operating Activities [Abstract] | |
Components of Cash and Cash Equivalents | [a] Cash and cash equivalents consist of: 2016 2015 Bank term deposits, bankers’ acceptances and government paper $ 498 $ 2,572 Cash 476 291 $ 974 $ 2,863 |
Details of Items Not Involving Current Cash Flows | [b] Items not involving current cash flows: 2016 2015 Depreciation and amortization $ 1,056 $ 802 Amortization of other assets included in cost of goods sold 135 110 Other non-cash 27 44 Deferred income taxes [note 12] 22 (7 ) Equity income in excess of dividends received (9 ) (20 ) Non-cash [note 4] — (193 ) $ 1,231 $ 736 |
Changes in Operating Assets and Liabilities | [c] Changes in operating assets and liabilities: 2016 2015 Accounts receivable $ (446 ) $ (410 ) Inventories (159 ) (241 ) Prepaid expenses and other 189 13 Accounts payable 562 139 Accrued salaries and wages 94 43 Other accrued liabilities (145 ) 72 Income taxes payable (14 ) 40 $ 81 $ (344 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Amounts Recognized for Assets and Liabilities Acquired | The following table summarizes the amounts recognized for assets acquired and liabilities assumed: Preliminary Measurement Final Cash $ 136 $ — $ 136 Non-cash (466 ) 71 (395 ) Investments 1,719 (222 ) 1,497 Fixed assets 468 (23 ) 445 Goodwill 430 160 590 Other assets 60 (36 ) 24 Intangibles 218 154 372 Deferred tax assets 43 (9 ) 34 Long-term employee benefit liabilities (125 ) (12 ) (137 ) Long-term debt (116 ) (1 ) (117 ) Other long-term liabilities (9 ) (43 ) (52 ) Deferred tax liabilities (137 ) 18 (119 ) Non-controlling (303 ) 16 (287 ) Consideration paid 1,918 73 1,991 Less: Cash acquired (136 ) — (136 ) Net cash outflow $ 1,782 $ 73 $ 1,855 |
Equity Investments Acquired as Part of Business Combination | The investments amount includes the following equity investments that were acquired as part of the business combination: Ownership Investment Getrag Ford Transmission GmbH [“GFT”] 50.0 % $ 340 Getrag (Jiangxi) Transmission Co., Ltd [“GJT”] [i] 50.0 % $ 1,077 Dongfeng Getrag Transmission Co. Ltd [“DGT”] 50.0 % $ 80 [i] GJT is 66.7% owned by one of the Company’s consolidated subsidiaries which has a 25% non-controlling As a result, the investment balance was derived using 66.7% of the fair value. |
Consolidated Supplemental Pro Forma Information | The following table provides consolidated supplemental pro forma information as if the acquisition of Getrag had occurred on January 1, 2015. December 31, 2015 Sales $ 34,150 Net income attributable to Magna International Inc. $ 1,992 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of: 2016 2015 Raw materials and supplies $ 1,007 $ 843 Work-in-process 264 246 Finished goods 327 311 Tooling and engineering 1,206 1,164 $ 2,804 $ 2,564 |
Investments in Affiliated Com40
Investments in Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Total financial Results of Equity Method Investees | A summary of the total financial results, as reported by the Company’s equity method investees, in the aggregate, at December 31 was as follows: Summarized Balance Sheets 2016 2015 Current assets $ 2,478 $ 905 Non-current $ 4,450 $ 756 Current liabilities $ 2,329 $ 806 Long-term liabilities $ 1,268 $ 335 Summarized Income Statements 2016 2015 Sales $ 5,009 $ 3,168 Cost of goods sold, expenses and income taxes 4,668 2,886 Net income $ 341 $ 282 |
Carrying Amounts and Classification of Assets and Liabilities Included in Consolidated Balance Sheet Related to Consolidated VIE | The carrying amounts and classification of assets and liabilities included in the Company’s consolidated balance sheet related to the consolidated VIEs are as follows: 2016 Current assets $ 256 Noncurrent assets 221 Total assets $ 477 Current liabilities $ 288 Noncurrent liabilities 2 Total liabilities $ 290 |
Equity Method Investments [Member] | |
Ownership Percentages and Carrying Value Principal Equity Method Investments | The ownership percentages and carrying value of the Company’s principal equity method investments at December 31 were as follows [in million, except percentages]: 2016 2015 Litens Automotive Partnership [“Litens”] [i] 76.7 % $ 173 $ 138 Getrag (Jiangxi) Transmission Co., Ltd 50.0 % $ 1,015 — Getrag Ford Transmission GmbH 50.0 % $ 325 — Dongfeng Getrag Transmission Co. Ltd [ii] 50.0 % $ 79 — [i] Litens - The Company accounts for its investment in Litens under the equity method of accounting as a result of significant participating rights that prevent control. [ii] DGT – DGT is a variable interest entity [“VIE”] and depends on the Company and the Dongfeng Motor Group Company for any additional cash needs. The Company cannot make key operating decisions considered to be most significant to the VIE, and is therefore not considered to be the primary beneficiary. Our known maximum exposure to loss approximated the carrying value of our investment balance as at December 31, 2016. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Fixed Assets | Fixed assets consist of: 2016 2015 Cost Land $ 254 $ 259 Buildings 1,942 1,659 Machinery and equipment 12,349 11,016 14,545 12,934 Accumulated depreciation Buildings (652 ) (590 ) Machinery and equipment (6,871 ) (6,396 ) $ 7,022 $ 5,948 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The following is a continuity of the Company’s goodwill by segment: North Europe Asia Total Balance, December 31, 2014 $ 633 $ 577 $ 127 $ 1,337 Acquisitions [note 7] — 13 107 120 Foreign exchange and other (43 ) (65 ) (5 ) (113 ) Balance, December 31, 2015 590 525 229 1,344 Acquisitions [note 7] — 620 (5 ) 615 Foreign exchange and other 5 (29 ) (12 ) (36 ) Balance, December 31, 2016 $ 595 $ 1,116 $ 212 $ 1,923 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 Canadian statutory income tax rate 26.5 % 26.5 % Manufacturing and processing profits deduction (0.3 ) (0.4 ) Foreign rate differentials (0.2 ) 0.8 Losses not benefited 0.8 1.1 Utilization of losses previously not benefited (0.2 ) (0.1 ) Earnings of equity accounted investees (1.2 ) (0.8 ) Tax on repatriation of foreign earnings 0.7 2.1 Valuation allowance on deferred tax assets [i] (0.4 ) — Write off of investment [ii] — (1.4 ) Research and development tax credits (1.5 ) (1.3 ) Reserve for uncertain tax positions 0.2 (0.3 ) Non-deductible 1.3 1.0 Others (0.3 ) (0.4 ) Effective income tax rate 25.4 % 26.8 % [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” pre-tax [ii] During 2015, the Company recorded a benefit related to the write-off [iii] Non-deductible re-measurement |
Details of Income before Income Taxes by Jurisdiction | [b] The details of income before income taxes by jurisdiction are as follows: 2016 2015 Canadian $ 617 $ 590 Foreign 2,163 2,061 $ 2,780 $ 2,651 |
Details of Income Tax Provision | [c] The details of the income tax provision are as follows: 2016 2015 Current Canadian $ 127 $ 140 Foreign 559 578 686 718 Deferred Canadian 16 14 Foreign 4 (21 ) 20 (7 ) $ 706 $ 711 |
Summary of Deferred Income Taxes Provided on Temporary Differences | [d] Deferred income taxes have been provided on temporary differences, which consist of the following: 2016 2015 Tax depreciation greater than book depreciation $ 58 $ 12 Book amortization (in excess of) less than tax amortization (41 ) 7 Liabilities currently not deductible for tax 48 — Net tax losses benefited (31 ) (13 ) Change in valuation allowance on deferred tax assets (12 ) (1 ) Tax on undistributed foreign earnings 8 3 Others ( 10 ) (15 ) $ 20 $ (7 ) |
Summary of Deferred Tax Assets and Liabilities | [e] Deferred tax assets and liabilities consist of the following temporary differences: 2016 2015 Assets Tax benefit of loss carryforwards $ 715 $ 614 Liabilities currently not deductible for tax 106 211 Tax credit carryforwards 22 24 Unrealized loss on cash flow hedges and retirement liabilities 134 154 Other assets tax value in excess of book values 36 11 Others 21 5 1,034 1,019 Valuation allowance against tax benefit of loss carryforwards (615 ) (562 ) Other valuation allowance (66 ) (50 ) 353 407 Liabilities Tax depreciation in excess of book depreciation 277 249 Tax on undistributed foreign earnings 98 10 Unrealized gain on cash flow hedges and retirement liabilities 3 9 378 268 Net deferred tax (liabilities) assets $ (25 ) $ 139 |
Net Deferred Tax (Liabilities) Assets Presented on Consolidated Balance Sheet | The net deferred tax (liabilities) assets are presented on the consolidated balance sheet in the following categories: 2016 2015 Long-term deferred tax assets $ 268 $ 271 Long-term deferred tax liabilities (293 ) (132 ) $ (25 ) $ 139 |
Summary of Changes in Gross Unrecognized Tax Benefits | [i] As at December 31, 2016 and 2015, the Company’s gross unrecognized tax benefits were $220 and $221 million, respectively [excluding interest and penalties], of which $201 and $158 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: 2016 2015 Balance, beginning of year $ 221 $ 202 Increase based on tax positions related to current year 21 17 (Decrease) increase based on tax positions of prior years (52 ) 53 Increase related to acquisitions 44 — Settlements (2 ) (15 ) Statute expirations (8 ) (20 ) Foreign currency translation (4 ) (16 ) $ 220 $ 221 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible assets were as follows: Estimated weighted 2016 2015 Cost Customer relationship intangibles [note 7] 12 $ 392 $ 134 Computer software 4 316 278 Patent and licenses 15 278 39 986 451 Accumulated depreciation Customer relationship intangibles [note 7] (96 ) (53 ) Computer software (242 ) (221 ) Patent and licenses (27 ) (8 ) $ 621 $ 169 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | Other assets consist of: 2016 2015 Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement $ 420 $ 276 Long-term receivables [note 22[c]] 229 87 Pension overfunded status [note 18[a]] 21 17 Unrealized gain on cash flow hedges [note 22] 6 5 Other, net 43 27 $ 719 $ 412 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Company's Warranty Accruals | The following is a continuity of the Company’s warranty accruals: 2016 2015 Balance, beginning of year $ 59 $ 80 Expense, net 101 26 Settlements (59 ) (53 ) Acquisitions [i] 174 — Foreign exchange and other (5 ) 6 $ 270 $ 59 [i] $127 million of the acquisition balance relates to a pre-acquisition [note 7] |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short Term Borrowings | The Company’s short-term borrowings consist of the following: 2016 2015 Bank indebtedness [i] $ 8 $ 25 Commercial paper [ii] 615 — $ 623 $ 25 [i] In the third quarter of 2016, the Company entered into an agreement for a credit facility that is drawn in euros. The Company is required to secure any amounts drawn on the facility with a USD cash deposit of 105% of the outstanding euro balance. As of December 31, 2016, the gross amount outstanding under the credit facility was $185 million [€175 million]. The credit agreement includes a netting arrangement with the bank that provides for the legal right of setoff. Accordingly, as at December 31, 2016, this liability balance was offset against the related restricted cash deposit of $194 million. The remaining net cash deposit of $9 million was included in the prepaid expenses and other balance, and is restricted under the terms of the loan. [ii] During 2016, the Company established a U.S. commercial paper program [the “U.S. Program”] and a euro-commercial paper program [the “euro-Program”]. Under the U.S. Program, the Company may issue U.S. commercial paper notes [the “U.S. notes”] up to a maximum aggregate amount of U.S. $500 million. The U.S. Program is supported by the Company’s existing global credit facility. The proceeds from the issuance of the U.S. notes are being used for general corporate purposes. As at December 31, 2016, $295 million of U.S notes were outstanding, with a weighted-average interest rate of 1.04%, and maturities generally less than three months. Under the euro-Program, the Company may issue euro-commercial paper notes [the “euro notes”] up to a maximum aggregate amount of €500 million or its equivalent in alternative currencies. The euro notes issued are being guaranteed by the Company’s existing global credit facility. The proceeds from the issuance of the euro notes are being used for general corporate purposes. As of December 31, 2016, $320 million [€304 million] of euro notes were outstanding, with a negative weighted-average interest rate of 0.07%, and maturities generally less than three months. |
Schedule of Company's Long-Term Debt | [a] The Company’s long-term debt, which is substantially uncollateralized, consists of the following: 2016 2015 Senior Notes [note 17 [c]] $750 million Senior Notes due 2024 at 3.625% $ 746 $ 745 $650 million Senior Notes due 2025 at 4.150% 643 643 €550 million Senior Notes due 2023 at 1.900% 576 592 Cdn$425 million Senior Notes due 2022 at 3.100% 315 305 Bank term debt at a weighted average interest rate of approximately 7.3% [2015 – 8.1%], denominated primarily in Indian rupee, Chinese renminbi, euro and Brazilian real 117 202 Government loans at a weighted average interest rate of approximately 2.53% [2015 – 3.7%], denominated primarily in euro, Canadian dollar and Brazilian real 92 9 Other 44 42 2,533 2,538 Less due within one year 139 211 $ 2,394 $ 2,327 |
Schedule of Future Principal Repayments on Long-Term Debt | [b] Future principal repayments on long-term debt are estimated to be as follows: 2017 $ 139 2018 39 2019 26 2020 22 2021 20 Thereafter 2,287 $ 2,533 |
Interest Expense, Net | [e] Interest expense, net includes: 2016 2015 Interest expense Current $ 22 $ 20 Long-term 78 38 100 58 Interest income (12 ) (14 ) Interest expense, net $ 88 $ 44 |
Company's Commitments under Operating Leases and Requiring Annual Rental Payments | [g] At December 31, 2016, the Company had commitments under operating leases requiring annual rental payments as follows: Total 2017 $ 277 2018 237 2019 208 2020 183 2021 164 Thereafter 586 $ 1,655 |
Long-Term Employee Benefit Li48
Long-Term Employee Benefit Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Employee Benefit Liabilities | Long-term employee benefit liabilities consist of: 2016 2015 Defined benefit pension plans and other [a] $ 313 $ 181 Termination and long service arrangements [b] 319 287 Retirement medical benefits plans [c] 29 30 Other long-term employee benefits 6 6 Long-term employee benefit obligations $ 667 $ 504 |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s defined benefit pension plans is as follows: 2016 2015 Projected benefit obligation Beginning of year $ 493 $ 536 Current service cost 14 12 Interest cost 21 18 Actuarial losses (gains) and changes in actuarial assumptions 28 (18 ) Benefits paid (22 ) (18 ) Benefits paid – settlements [i] (32 ) — Acquisition 129 1 Gain on settlement (5 ) — Foreign exchange (2 ) (38 ) End of year 624 493 Plan assets at fair value [ii] Beginning of year 326 347 Return on plan assets 22 7 Employer contributions 19 19 Benefits paid (17 ) (18 ) Benefits paid – settlements [i] (32 ) — Acquisition 8 — Foreign exchange 4 (29 ) End of year 330 326 Ending funded status $ 294 $ 167 Amounts recorded in the consolidated balance sheet Non-current [note 14] $ (21 ) $ (17 ) Current liability 2 3 Non-current 313 181 Net amount $ 294 $ 167 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (144 ) $ (138 ) Net periodic benefit cost Current service cost $ 14 $ 12 Interest cost 21 18 Return on plan assets (20 ) (20 ) Benefits paid – settlements [i] 13 — Actuarial losses 3 4 Net periodic benefit cost $ 31 $ 14 [i] During the fourth quarter of 2016, the Company offered a limited lump-sum lump-sum lump-sum ’ non-cash [note 4] [ii] The asset allocation of the Company’s defined benefit pension plans at December 31, 2016 and the target allocation for 2017 is as follows: 2017 2016 Equity securities 55-75 % 61 % Fixed income securities 25-45 % 39 % Cash and cash equivalents 0-15 % 0 % 100 % 100 % |
Future Benefit Payments | [d] Future benefit payments Defined Termination Retirement Total Expected employer contributions - 2017 $ 24 $ 8 $ 2 $ 34 Expected benefit payments: 2017 $ 21 $ 8 $ 2 $ 31 2018 21 9 2 32 2019 21 11 2 34 2020 23 13 2 38 2021 23 15 2 40 Thereafter 133 91 9 233 $ 242 $ 147 $ 19 $ 408 |
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: 2016 2015 Projected benefit obligation Discount rate 3.1 % 3.8 % Rate of compensation increase 2.3 % 2.5 % Net periodic benefit cost Discount rate 3.2 % 3.7 % Rate of compensation increase 2.4 % 2.7 % Expected return on plan assets 5.8 % 5.9 % |
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: 2016 2015 Discount rate 2.9 % 3.1 % Rate of compensation increase 2.7 % 2.8 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s termination and long service arrangements is as follows: 2016 2015 Projected benefit obligation Beginning of year $ 295 $ 323 Current service cost 20 15 Interest cost 8 8 Actuarial losses and changes in actuarial assumptions 15 2 Benefits paid (11 ) (12 ) Acquisition 16 — Divestiture — (4 ) Foreign exchange (16 ) (37 ) Ending funded status $ 327 $ 295 Amounts recorded in the consolidated balance sheet Current liability $ 8 $ 8 Non-current 319 287 Net amount $ 327 $ 295 Amounts recorded in accumulated other comprehensive income Unrecognized actuarial losses $ (84 ) $ (69 ) Net periodic benefit cost Current service cost $ 20 $ 15 Interest cost 8 8 Actuarial losses 1 18 Net periodic benefit cost $ 29 $ 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: 2016 2015 Retirement medical benefit obligations 3.8 % 3.9 % Net periodic benefit cost 3.9 % 3.7 % Health care cost inflation 7.0 % 6.5 % |
Schedule of Company's Defined Benefit Pension Plans | Information about the Company’s retirement medical benefits plans are as follows: 2016 2015 Projected benefit obligation Beginning of year $ 32 $ 41 Interest cost 1 1 Actuarial gains and changes in actuarial assumptions (1 ) (7 ) Benefits paid (1 ) (2 ) Foreign exchange — (1 ) Ending funded status $ 31 $ 32 Amounts recorded in the consolidated balance sheet Current liability $ 2 $ 2 Non-current 29 30 Net amount $ 31 $ 32 Amounts recorded in accumulated other comprehensive income Unrecognized past service costs $ 1 $ 1 Unrecognized actuarial gains 11 11 Total accumulated other comprehensive income $ 12 $ 12 Net periodic benefit cost Interest cost $ 1 $ 2 Past service cost amortization (1 ) (1 ) Net periodic benefit cost $ — $ 1 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Particulars of Other Long-Term Liabilities | Other long-term liabilities consist of: 2016 2015 Long-term portion of fair value of hedges [note 22] $ 61 $ 152 Long-term portion of income taxes payable 181 131 Asset retirement obligation 28 26 Long-term lease inducements 16 19 Deferred revenue 12 3 $ 298 $ 331 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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]: 2016 2015 Maximum Shares purchased Cash amount Shares Cash 2014 Bid 40,000,000 — $ — 8,166,514 $ 388 2015 Bid 40,000,000 20,313,194 818 2,585,970 113 2016 Bid 38,000,000 2,021,824 86 — — 22,335,018 $ 904 10,752,484 $ 501 |
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 9, 2017 were exercised or converted: Common Shares 382,269,005 Stock options 9,258,413 391,527,418 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following is a continuity schedule of accumulated other comprehensive loss: 2016 2015 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of year $ (1,042 ) $ (255 ) Net unrealized loss (109 ) (798 ) Repurchase of shares under normal course issuer bids [note 20] 20 11 Balance, end of year (1,131 ) (1,042 ) Accumulated net unrealized loss on cash flow hedges [b] Balance, beginning of year (262 ) (113 ) Net unrealized gain (loss) 1 (244 ) Reclassification of net loss to net income [a] 126 95 Balance, end of year (135 ) (262 ) Accumulated net unrealized loss on other long-term liabilities [b] Balance, beginning of year (165 ) (186 ) Net unrealized (loss) gain (29 ) 14 Reclassification of net loss to net income [a] 9 7 Balance, end of year (185 ) (165 ) Accumulated net unrealized loss on available-for-sale Balance, beginning of year (1 ) (4 ) Net unrealized loss — 3 Reclassification of net loss to net income [a] 1 — Balance, end of year — (1 ) Total accumulated other comprehensive loss [c] $ (1,451 ) $ (1,470 ) |
Schedule of Net Income Amounts Reclassified from AOCL | [a] The effects on net income of amounts reclassified from AOCL, with presentation location, were as follows: 2016 2015 Cash flow hedges Sales $ (87 ) $ (86 ) Cost of sales (87 ) (45 ) Interest — (3 ) Income tax 48 39 Net of tax (126 ) (95 ) Other long-term liabilities Cost of sales 1 (9 ) Income tax — 2 Net of tax 1 (7 ) Total loss reclassified to net income $ (125 ) $ (102 ) |
Summary of Income Tax Benefit to Component of Other Comprehensive Loss | [b] The amount of income tax benefit that has been allocated to each component of other comprehensive loss is as follows: 2016 2015 Accumulated net unrealized loss on cash flow hedges Balance, beginning of year $ 97 $ 44 Net unrealized loss 4 92 Reclassification of net loss to net income (48 ) (39 ) Balance, end of year 53 97 Accumulated net unrealized loss on other long-term liabilities Balance, beginning of year 31 36 Net unrealized loss (gain) 3 (3 ) Reclassification of net loss to net income (4 ) (2 ) Balance, end of year 30 31 Total income tax benefit $ 83 $ 128 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies | At December 31, 2016, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows: For Canadian dollars For U.S. dollars Buy (Sell) U.S. Weighted Euro Weighted Peso Weighted 2017 122 1.32036 23 1.45496 3,500 0.05995 2017 (885 ) 0.79352 (15 ) 0.68983 — — 2018 1 1.30509 1 1.44050 1,819 0.05194 2018 (597 ) 0.78550 (2 ) 0.68689 — — 2019 — — — — 564 0.04335 2019 (338 ) 0.78407 — — — — 2020 (126 ) 0.76519 — — — — 2021 (8 ) 0.76001 — — — — (1,831 ) 7 5,883 For euros Buy (Sell) U.S. Weighted GBP Weighted Czech Weighted 2017 115 0.90038 5 1.18435 4,084 0.03722 2017 (112 ) 1.19637 (28 ) 0.84126 — — 2018 43 0.87976 1 1.17412 2,389 0.03766 2018 (53 ) 1.16833 (17 ) 0.80446 — — 2019 24 0.86787 — — 1,167 0.03777 2019 (24 ) 1.15362 (9 ) 0.80790 — — 2020 5 0.86156 — — 165 0.03802 2020 (2 ) 1.17400 (5 ) 0.87553 — — (4 ) (53 ) 7,805 |
Schedule of Company's Financial Assets and Liabilities | The Company’s financial assets and liabilities consist of the following: 2016 2015 Trading Cash and cash equivalents $ 974 $ 2,863 Investment in ABCP 60 73 Equity investments — 4 $ 1,034 $ 2,940 Held-to-maturity Severance investments $ 3 $ 3 Loans and receivables Accounts receivable $ 6,165 $ 5,439 Long-term receivables included in other assets [note 14] 229 87 $ 6,394 $ 5,526 Other financial liabilities Bank indebtedness $ 8 $ 25 Commercial paper 615 — Long-term debt (including portion due within one year) 2,533 2,538 Accounts payable 5,430 4,746 $ 8,586 $ 7,309 Derivatives designated as effective hedges, measured at fair value Foreign currency contracts Prepaid expenses and other $ 12 $ 27 Other assets 6 4 Other accrued liabilities (134 ) (191 ) Other long-term liabilities (61 ) (152 ) $ (177 ) $ (312 ) |
Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements | The following table shows the Company’s derivative foreign currency contracts at gross fair value as reflected in the consolidated balance sheets and the unrecognized impacts of master netting arrangements: Gross amounts Gross amounts Net December 31, 2016 Assets $ 18 $ 17 $ 1 Liabilities $ (195 ) $ (17 ) $ (178 ) December 31, 2015 Assets $ 31 $ 30 $ 1 Liabilities $ (343 ) $ (30 ) $ (313 ) |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Information with Respect to Segment | The following tables show certain information with respect to segment disclosures: 2016 Total External Depreciation amortization Adjusted Goodwill Fixed Fixed North America Canada $ 6,784 $ 6,214 $ 201 $ 721 United States 10,226 9,857 400 1,573 Mexico 5,121 4,586 309 999 Eliminations (1,387 ) — — — North America 20,744 20,657 $ 486 $ 2,061 $ 595 910 3,293 Europe Western Europe (excluding Great Britain) 10,537 10,159 578 1,912 Great Britain 658 656 24 127 Eastern Europe 2,285 2,000 136 545 Eliminations (400 ) — — — Europe 13,080 12,815 431 543 1,116 738 2,584 Asia 2,674 2,502 103 266 212 97 679 Rest of World 465 464 13 (17 ) — 11 62 Corporate and Other (518 ) 7 23 45 — 51 404 Total reportable segments $ 36,445 $ 36,445 $ 1,056 $ 2,898 $ 1,923 $ 1,807 $ 7,022 Current assets 10,163 Investments, intangible assets, goodwill, deferred tax assets and other assets 5,381 Consolidated total assets $ 22,566 2015 Total External Depreciation Adjusted Goodwill Fixed Fixed North America Canada $ 6,329 $ 5,856 $ 242 $ 645 United States 9,603 9,183 421 1,422 Mexico 4,261 3,869 233 755 Eliminations (1,178 ) — — — North America 19,015 18,908 $ 411 $ 1,934 $ 590 896 2,822 Europe Western Europe (excluding Great Britain) 8,936 8,635 357 1,263 Great Britain 404 404 26 145 Eastern Europe 2,110 1,873 112 471 Eliminations (327 ) — — — Europe 11,123 10,912 276 451 525 495 1,879 Asia 1,981 1,846 77 149 229 121 811 Rest of World 461 461 17 (25 ) — 15 51 Corporate and Other (446 ) 7 21 20 — 64 385 Total reportable segments $ 32,134 $ 32,134 $ 802 $ 2,529 $ 1,344 $ 1,591 $ 5,948 Current assets 11,144 Investments, intangible assets, goodwill, deferred tax assets, and other assets 2,595 Consolidated total assets $ 19,687 [i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments. [ii] The following table reconciles Net income from continuing operations to Adjusted EBIT: 2016 2015 Net Income from continuing operations $ 2,074 $ 1,940 Add (deduct): Interest expense, net 88 44 Other expense (income), net 30 (166 ) Income taxes 706 711 Adjusted EBIT $ 2,898 $ 2,529 |
Schedule of Aggregates External Revenues by Customer | [b] The following table aggregates external revenues by customer as follows: 2016 2015 General Motors $ 7,207 $ 6,424 Ford Motor Company 5,667 4,923 Fiat / Chrysler Group 5,349 5,094 Daimler AG 4,294 3,779 BMW 3,786 3,300 Volkswagen 3,758 3,301 Other 6,384 5,313 $ 36,445 $ 32,134 |
Summary of External Revenues by Automotive Products and Services | [c] The following table summarizes external revenues generated by automotive products and services: 2016 2015 Body systems and chassis systems $ 9,157 $ 7,790 Powertrain systems 6,489 4,755 Exterior systems 5,272 5,155 Seating systems 5,079 4,497 Tooling, engineering and other 3,078 2,700 Vision and electronic systems 2,768 2,583 Closure systems 2,412 2,297 Complete vehicle assembly 2,190 2,357 $ 36,445 $ 32,134 |
Significant Accounting Polici54
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |
Changes in assumptions and experience gains and losses | Greater than 10% |
Period of benefit obligation in current liabilities | Next twelve months |
Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Amortizable intangible assets, estimated useful life | 4 years |
Minimum [Member] | Building [Member] | |
Significant Accounting Policies [Line Items] | |
Annual rates of depreciation on fixed assets | 2.50% |
Minimum [Member] | General Purpose Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Annual rates of depreciation on fixed assets | 7.00% |
Minimum [Member] | Special Purpose Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Annual rates of depreciation on fixed assets | 10.00% |
Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Amortizable intangible assets, estimated useful life | 15 years |
Maximum [Member] | Building [Member] | |
Significant Accounting Policies [Line Items] | |
Annual rates of depreciation on fixed assets | 5.00% |
Maximum [Member] | General Purpose Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Annual rates of depreciation on fixed assets | 10.00% |
Maximum [Member] | Special Purpose Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Annual rates of depreciation on fixed assets | 33.00% |
Accounting Standards - Addition
Accounting Standards - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 719 | $ 412 |
Long-term debt | $ 2,394 | 2,327 |
Accounting Standards Update No. 2015-03 | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | (19) | |
Long-term debt | $ (19) |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Gain on Divestiture within Income from Discontinued Operations (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Aug. 31, 2015 | Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Proceeds on disposal, net of transaction costs | $ 549 | |
Net assets disposed | 438 | |
Pre-tax gain on divestiture | 111 | |
Income taxes | 66 | |
Gain on divestiture, net of tax | $ 45 | $ 45 |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Major Classes of Line Items Constituting Income (Loss) from Discontinued Operations, Net of Tax as Presented in Statements of Income (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Aug. 31, 2015 | Dec. 31, 2015 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||
Sales | $ 1,737 | |
Costs and expenses | ||
Cost of goods sold | 1,635 | |
Depreciation and amortization | 13 | |
Selling, general and administrative | 58 | |
Equity income | (11) | |
Income from discontinued operations before income taxes and gain on divestiture | 42 | |
Income taxes | 20 | |
Income from discontinued operations before gain on divestiture | 22 | |
Gain on divestiture of discontinued operations, net of tax | $ 45 | 45 |
Income from discontinued operations, net of tax | $ 67 |
Other Expense (Income), Net - O
Other Expense (Income), Net - Other Expense (Income), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Other Expense (Income), Net [Line Items] | |||
Other expense (income), net | $ 30 | $ (166) | |
North America [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Gain on disposal | (136) | ||
Pension settlement | $ 13 | 13 | |
Other expense (income), net | 13 | (136) | |
Europe [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Gain on disposal | (57) | ||
Other expense (income), net | 17 | (30) | |
Restructuring charges | $ 17 | $ 27 |
Other Expense (Income), Net -59
Other Expense (Income), Net - Other Expense (Income), Net (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Facility | |
North America [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Pension settlement | $ 13 | $ 13 | |
Pension settlement, after tax | $ 9 | 9 | |
Number of facilities contributed to joint venture | Facility | 2 | ||
Percentage interest in joint venture | 49.00% | ||
Cash proceeds of joint venture | $ 118 | ||
Consideration paid | 160 | ||
Gain on disposal | 136 | ||
Gain from joint venture arrangement, after tax | 80 | ||
Europe [Member] | |||
Components of Other Expense (Income), Net [Line Items] | |||
Gain on disposal | 57 | ||
Restructuring charges | 17 | 27 | |
Restructuring charges, after tax | $ 17 | 27 | |
Proceeds from sale of battery pack business | 120 | ||
Gain on disposal of battery pack business, after tax | $ 42 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income from continuing operations | $ 2,074 | $ 1,940 |
(Income) loss from continuing operations attributable to non-controlling interests | (43) | 6 |
Net income attributable to Magna International Inc. from continuing operations | 2,031 | 1,946 |
Income from discontinued operations, net of tax | 67 | |
Net income attributable to Magna International Inc. | $ 2,031 | $ 2,013 |
Basic | 391 | 407.5 |
Stock options and restricted stock | 2.2 | 5.2 |
Diluted | 393.2 | 412.7 |
Earnings Per Share - Computat61
Earnings Per Share - Computation of Earnings Per Share (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Excluded Common Shares issuable under Company's Incentive Stock Option Plan | 3.4 | 0.9 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Common Share (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Continuing operations | $ 5.19 | $ 4.78 |
Discontinued operations | 0.16 | |
Attributable to Magna International Inc. | 5.19 | 4.94 |
Continuing operations | 5.16 | 4.72 |
Discontinued operations | 0.16 | |
Attributable to Magna International Inc. | $ 5.16 | $ 4.88 |
Details of Cash From Operatin63
Details of Cash From Operating Activities - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | |||
Bank term deposits, bankers' acceptances and government paper | $ 498 | $ 2,572 | |
Cash | 476 | 291 | |
Cash and cash equivalents | $ 974 | $ 2,863 | $ 1,249 |
Details of Cash From Operatin64
Details of Cash From Operating Activities - Details of Items Not Involving Current Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
Depreciation and amortization | $ 1,056 | $ 802 |
Amortization of other assets included in cost of goods sold | 135 | 110 |
Other non-cash charges | 27 | 44 |
Deferred income taxes | 22 | (7) |
Equity income in excess of dividends received | (9) | (20) |
Non-cash portion of Other (income) expense, net | (193) | |
Items not involving current cash flows | $ 1,231 | $ 736 |
Details of Cash From Operatin65
Details of Cash From Operating Activities - Changes in Operating Assets and Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
Accounts receivable | $ (446) | $ (410) |
Inventories | (159) | (241) |
Prepaid expenses and other | 189 | 13 |
Accounts payable | 562 | 139 |
Accrued salaries and wages | 94 | 43 |
Other accrued liabilities | (145) | 72 |
Income taxes payable | (14) | 40 |
Changes in operating assets and liabilities | $ 81 | $ (344) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Jan. 04, 2016 | Dec. 10, 2015USD ($)Facility | Nov. 30, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||||||||
Net cash outflow | $ 1,930 | $ 222 | ||||||
Net adjustment to goodwill | 615 | $ 120 | ||||||
Stadco Automotive Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest acquired | 100.00% | |||||||
Cash paid | $ 115 | |||||||
Getrag Group Of Companies [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||
Net cash outflow | $ 1,855 | |||||||
Cash acquired in business acquisition | 136 | |||||||
Goodwill | $ 590 | 590 | 590 | |||||
Amortizable intangible assets, estimated useful life | 15 years | |||||||
Sales from acquired company | 2,000 | |||||||
Net income from acquired company | 45 | |||||||
Getrag Group Of Companies [Member] | Measurement Period adjustments [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net cash outflow | 73 | |||||||
Goodwill | $ 160 | $ 160 | $ 160 | |||||
BOCO Group of Companies [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | 100.00% | 100.00% | |||||
Telemotive AG [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||
Xingqiaorui Partnership and Stadco [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net adjustment to goodwill | $ 14 | |||||||
Xingqiaorui Partnership [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of voting interests acquired | 53.00% | |||||||
Number of manufacturing facilities in China | Facility | 3 | |||||||
Cash paid | $ 36 | |||||||
Percentage of noncontrolling equity interest in Xingqiaorui | 47.00% | |||||||
Cash consideration paid | $ 130 |
Acquisitions - Summary of Amoun
Acquisitions - Summary of Amounts Recognized for Assets and Liabilities Acquired (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Net cash outflow | $ 1,930 | $ 222 | ||
Getrag Group Of Companies [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 136 | 136 | ||
Non-cash working capital | (395) | (395) | ||
Investments | 1,497 | 1,497 | ||
Fixed assets | 445 | 445 | ||
Goodwill | 590 | 590 | ||
Other assets | 24 | 24 | ||
Intangibles | 372 | 372 | ||
Deferred tax assets | 34 | 34 | ||
Long-term employee benefit liabilities | (137) | (137) | ||
Long-term debt | (117) | (117) | ||
Other long-term liabilities | (52) | (52) | ||
Deferred tax liabilities | (119) | (119) | ||
Non-controlling interest | (287) | (287) | ||
Consideration paid | 1,991 | |||
Less: Cash acquired | (136) | |||
Net cash outflow | 1,855 | |||
Getrag Group Of Companies [Member] | Preliminary amounts recognized [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 136 | |||
Non-cash working capital | (466) | |||
Investments | 1,719 | |||
Fixed assets | 468 | |||
Goodwill | 430 | |||
Other assets | 60 | |||
Intangibles | 218 | |||
Deferred tax assets | 43 | |||
Long-term employee benefit liabilities | (125) | |||
Long-term debt | (116) | |||
Other long-term liabilities | (9) | |||
Deferred tax liabilities | (137) | |||
Non-controlling interest | (303) | |||
Consideration paid | 1,918 | |||
Less: Cash acquired | (136) | |||
Net cash outflow | $ 1,782 | |||
Getrag Group Of Companies [Member] | Measurement Period adjustments [Member] | ||||
Business Acquisition [Line Items] | ||||
Non-cash working capital | 71 | 71 | ||
Investments | (222) | (222) | ||
Fixed assets | (23) | (23) | ||
Goodwill | 160 | 160 | ||
Other assets | (36) | (36) | ||
Intangibles | 154 | 154 | ||
Deferred tax assets | (9) | (9) | ||
Long-term employee benefit liabilities | (12) | (12) | ||
Long-term debt | (1) | (1) | ||
Other long-term liabilities | (43) | (43) | ||
Deferred tax liabilities | 18 | 18 | ||
Non-controlling interest | 16 | $ 16 | ||
Consideration paid | 73 | |||
Net cash outflow | $ 73 |
Equity Investments Acquired as
Equity Investments Acquired as Part of Business Combination (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Getrag Ford Transmission GmbH ["GFT"] [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50.00% |
Investment balance | $ 340 |
Getrag (Jiangxi) Transmission Co., Ltd [GJT] [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50.00% |
Investment balance | $ 1,077 |
Dongfeng Getrag Transmission Co. Ltd ["DGT"] [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50.00% |
Investment balance | $ 80 |
Equity Investments Acquired a69
Equity Investments Acquired as Part of Business Combination (Parenthetical) (Detail) | Dec. 31, 2016 |
Getrag (Jiangxi) Transmission Co., Ltd [GJT] [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership interest | 66.70% |
Consolidated subsidiary [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of non-controlling interest | 25.00% |
Consolidated Supplemental Pro F
Consolidated Supplemental Pro Forma Information (Detail) - Getrag Group Of Companies [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |
Sales | $ 34,150 |
Net income attributable to Magna International Inc. | $ 1,992 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 1,007 | $ 843 |
Work-in-process | 264 | 246 |
Finished goods | 327 | 311 |
Tooling and engineering | 1,206 | 1,164 |
Inventory, net, total | $ 2,804 | $ 2,564 |
Ownership Percentages and Carry
Ownership Percentages and Carrying Value Principal Equity Method Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Litens Automotive Partnership [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 76.70% | |
Carrying value of equity method investments | $ 173 | $ 138 |
Getrag (Jiangxi) Transmission Co., Ltd [GJT] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value of equity method investments | $ 1,015 | |
Getrag Ford Transmission GmbH ["GFT"] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value of equity method investments | $ 325 | |
Dongfeng Getrag Transmission Co. Ltd ["DGT"] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value of equity method investments | $ 79 |
Investments - Company's Combine
Investments - Company's Combined Proportionate Share of Major Components of Financial Statements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 2,478 | $ 905 |
Non-current assets | 4,450 | 756 |
Current liabilities | 2,329 | 806 |
Long-term liabilities | 1,268 | 335 |
Sales | 5,009 | 3,168 |
Cost of goods sold, expenses and income taxes | 4,668 | 2,886 |
Net income | $ 341 | $ 282 |
Investments in Affiliated Com74
Investments in Affiliated Companies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)Business-Combination | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Impairment charges for equity method investments | $ 0 | $ 0 |
Sales to equity method investees | 214 | $ 98 |
Variable interest entities, maximum exposure to any potential losses | $ 187 | |
Getrag Group Of Companies [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of investees, determined as variable interest entities | Business-Combination | 2 |
Carrying Amounts and Classifica
Carrying Amounts and Classification of Assets and Liabilities Included in Consolidated Balance Sheet Related to Consolidated VIE (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Current assets | $ 256 |
Noncurrent assets | 221 |
Total assets | 477 |
Current liabilities | 288 |
Noncurrent liabilities | 2 |
Total liabilities | $ 290 |
Fixed Assets - Components of Fi
Fixed Assets - Components of Fixed Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 14,545 | $ 12,934 |
Property plant and equipment, net | 7,022 | 5,948 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 254 | 259 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,942 | 1,659 |
Accumulated depreciation | (652) | (590) |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 12,349 | 11,016 |
Accumulated depreciation | $ (6,871) | $ (6,396) |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Billions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Construction in progress expenditures | $ 1 | $ 1.3 |
Goodwill - Goodwill by Segment
Goodwill - Goodwill by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Beginning balance | $ 1,344 | $ 1,337 |
Acquisitions | 615 | 120 |
Foreign exchange and other | (36) | (113) |
Goodwill, Ending balance | 1,923 | 1,344 |
North America [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 590 | 633 |
Foreign exchange and other | 5 | (43) |
Goodwill, Ending balance | 595 | 590 |
Europe [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 525 | 577 |
Acquisitions | 620 | 13 |
Foreign exchange and other | (29) | (65) |
Goodwill, Ending balance | 1,116 | 525 |
Asia [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning balance | 229 | 127 |
Acquisitions | (5) | 107 |
Foreign exchange and other | (12) | (5) |
Goodwill, Ending balance | $ 212 | $ 229 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Manufacturing and processing profits deduction | (0.30%) | (0.40%) |
Foreign rate differentials | (0.20%) | 0.80% |
Losses not benefited | 0.80% | 1.10% |
Utilization of losses previously not benefited | (0.20%) | (0.10%) |
Earnings of equity accounted investees | (1.20%) | (0.80%) |
Tax on repatriation of foreign earnings | 0.70% | 2.10% |
Valuation allowance on deferred tax assets | (0.40%) | |
Write off of investment | (1.40%) | |
Research and development tax credits | (1.50%) | (1.30%) |
Reserve for uncertain tax positions | 0.20% | (0.30%) |
Non-deductible foreign exchange losses | 1.30% | 1.00% |
Others | (0.30%) | (0.40%) |
Effective income tax rate | 25.40% | 26.80% |
Income Taxes - Details of Incom
Income Taxes - Details of Income before Income Taxes by Jurisdiction (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ 617 | $ 590 |
Foreign | 2,163 | 2,061 |
Income before income taxes, Total | $ 2,780 | $ 2,651 |
Income Taxes - Details of Inc81
Income Taxes - Details of Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ 127 | $ 140 |
Foreign | 559 | 578 |
Current income tax, Total | 686 | 718 |
Canadian | 16 | 14 |
Foreign | 4 | (21) |
Deferred income tax, Total | 20 | (7) |
Income tax provision, Total | $ 706 | $ 711 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Taxes Provided on Temporary Differences (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Tax depreciation greater than book depreciation | $ 58 | $ 12 |
Book amortization (in excess of) less than tax amortization | (41) | 7 |
Liabilities currently not deductible for tax | 48 | |
Net tax losses benefited | (31) | (13) |
Change in valuation allowance on deferred tax assets | (12) | (1) |
Tax on undistributed foreign earnings | 8 | 3 |
Others | (10) | (15) |
Deferred income tax, Total | $ 20 | $ (7) |
Income Taxes - Summary of Def83
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Tax benefit of loss carryforwards | $ 715 | $ 614 |
Liabilities currently not deductible for tax | 106 | 211 |
Tax credit carryforwards | 22 | 24 |
Unrealized loss on cash flow hedges and retirement liabilities | 134 | 154 |
Other assets tax value in excess of book values | 36 | 11 |
Others | 21 | 5 |
Deferred tax assets, Gross, Total | 1,034 | 1,019 |
Valuation allowance against tax benefit of loss carryforwards | (615) | (562) |
Other valuation allowance | (66) | (50) |
Deferred tax assets, Net, Total | 353 | 407 |
Tax depreciation in excess of book depreciation | 277 | 249 |
Tax on undistributed foreign earnings | 98 | 10 |
Unrealized gain on cash flow hedges and retirement liabilities | 3 | 9 |
Deferred tax liabilities, Total | 378 | 268 |
Net deferred tax (liabilities) | $ (25) | |
Net deferred tax assets | $ 139 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax (Liabilities) Assets Presented on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Long-term deferred tax assets | $ 268 | $ 271 |
Long-term deferred tax liabilities | (293) | (132) |
Net deferred tax (liabilities) | $ (25) | |
Net deferred tax assets | $ 139 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Undistributed earnings of certain foreign subsidiaries | $ 4,460 | ||
Income taxes paid, net | 707 | $ 647 | |
Income tax loss carryforwards | 2,290 | ||
Tax credit carryforwards | 22 | ||
Total losses | 1,650 | ||
Gross unrecognized tax benefits | 220 | 221 | $ 202 |
Recognized tax benefits | 201 | 158 | |
Interest and penalties on the unrecognized tax benefits | 35 | 21 | |
Recoveries/(expenses) related to changes in reserves for interest and penalties | 14 | $ 3 | |
Decrease in gross unrecognized tax benefits | 62 | ||
Decrease in recognized tax benefits | $ 52 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Expiry date of losses | 2,017 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Expiry date of losses | 2,036 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 221 | $ 202 |
Increase based on tax positions related to current year | 21 | 17 |
(Decrease) increase based on tax positions of prior years | (52) | 53 |
Increase related to acquisitions | 44 | |
Settlements | (2) | (15) |
Statute expirations | (8) | (20) |
Foreign currency translation | (4) | (16) |
Balance, ending of year | $ 220 | $ 221 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, cost | $ 986 | $ 451 |
Intangible assets, net | $ 621 | 169 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 12 years | |
Intangible Assets, cost | $ 392 | 134 |
Intangible Assets, accumulated depreciation | $ (96) | (53) |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 4 years | |
Intangible Assets, cost | $ 316 | 278 |
Intangible Assets, accumulated depreciation | $ (242) | (221) |
Patent And License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated weighted average useful life in years | 15 years | |
Intangible Assets, cost | $ 278 | 39 |
Intangible Assets, accumulated depreciation | $ (27) | $ (8) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Definite-lived intangible assets, amortization expense | $ 100 | $ 48 |
Estimates annual amortization expense, 2017 | 90 | |
Estimates annual amortization expense, 2018 | 82 | |
Estimates annual amortization expense, 2019 | 66 | |
Estimates annual amortization expense, 2020 | 47 | |
Estimates annual amortization expense, 2021 | $ 44 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Preproduction costs related to long-term supply agreements with contractual guarantee for reimbursement | $ 420 | $ 276 |
Long-term receivables | 229 | 87 |
Pension overfunded status | 21 | 17 |
Unrealized gain on cash flow hedges | 6 | 5 |
Other, net | 43 | 27 |
Total other assets | $ 719 | $ 412 |
Employee Equity and Profit Pa90
Employee Equity and Profit Participation Program - Additional Information (Detail) - Trust for Benefit of Employees [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount borrowed from company to purchase common shares maximum | $ 10,000,000 | $ 55,000,000 |
Amount included in accounts receivable | $ 10,000,000 | $ 5,000,000 |
Warranty - Schedule of Company'
Warranty - Schedule of Company's Warranty Accruals (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of year | $ 59 | $ 80 |
Expense, net | 101 | 26 |
Settlements | (59) | (53) |
Acquisitions | 174 | |
Foreign exchange and other | (5) | 6 |
Balance, end of year | $ 270 | $ 59 |
Warranty - Schedule of Compan92
Warranty - Schedule of Company's Warranty Accruals (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Product Warranty Liability [Line Items] | |
Acquisition balance relates to a pre-acquisition settlement agreement | $ 174 |
Pre-acquisition Settlement Agreement for Specific Performance [Member] | |
Product Warranty Liability [Line Items] | |
Acquisition balance relates to a pre-acquisition settlement agreement | $ 127 |
Debt - Short Term Borrowings (D
Debt - Short Term Borrowings (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Short term borrowings | $ 623 | $ 25 |
Bank Indebtedness [Member] | ||
Short-term Debt [Line Items] | ||
Short term borrowings | 8 | $ 25 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Short term borrowings | $ 615 |
Debt - Short Term Borrowings (P
Debt - Short Term Borrowings (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | |
Short-term Debt [Line Items] | |||
Increase in restricted cash deposits | $ 194,000,000 | ||
Maximum borrowing capacity | 2,750,000,000 | ||
Short-term borrowings | $ 623,000,000 | $ 25,000,000 | |
Bank Indebtedness [Member] | |||
Short-term Debt [Line Items] | |||
Covenant percentage USD cash deposit to outstanding euro balance | 105.00% | ||
Gross amount outstanding under the credit facility | $ 185,000,000 | € 175,000,000 | |
Increase in restricted cash deposits | 194,000,000 | ||
Short-term borrowings | 8,000,000 | $ 25,000,000 | |
U.S. Commercial Paper Notes [Member] | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Short-term borrowings | $ 295,000,000 | ||
Weighted-average interest rate on notes outstanding | 1.04% | 1.04% | |
Debt maturity period | Maturities generally less than three months. | ||
Euro-Commercial Paper Notes [Member] | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | € | € 500,000,000 | ||
Short-term borrowings | $ 320,000,000 | € 304,000,000 | |
Weighted-average interest rate on notes outstanding | (0.07%) | (0.07%) | |
Debt maturity period | Maturities generally less than three months. | ||
Debt issuance description | Under the euro-Program, the Company may issue euro-commercial paper notes [the "euro notes"] up to a maximum aggregate amount of €500 million or its equivalent in alternative currencies. | ||
Prepaid Expenses and Other [Member] | Bank Indebtedness [Member] | |||
Short-term Debt [Line Items] | |||
Net cash deposit | $ 9,000,000 |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,533 | $ 2,538 |
Less due within one year | 139 | 211 |
Total long term non current debt | 2,394 | 2,327 |
Three Point Six Two Five Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 746 | 745 |
Four Point One Five Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 643 | 643 |
One Point Nine Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 576 | 592 |
Three Point One Zero Zero Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 315 | 305 |
Bank Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 117 | 202 |
Government Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 92 | 9 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 44 | $ 42 |
Debt - Schedule of Company's 96
Debt - Schedule of Company's Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | Dec. 31, 2016EUR (€) | Dec. 31, 2015 | |
Three Point Six Two Five Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | $ 750,000,000 | |||
Senior Notes, due year | 2,024 | |||
Interest rate | 3.625% | 3.625% | 3.625% | |
Four Point One Five Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | $ 650,000,000 | |||
Senior Notes, due year | 2,025 | |||
Interest rate | 4.15% | 4.15% | 4.15% | |
One Point Nine Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | € | € 550,000,000 | |||
Senior Notes, due year | 2,023 | |||
Interest rate | 1.90% | 1.90% | 1.90% | |
Three Point One Zero Zero Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, face amount | CAD | CAD 425,000,000 | |||
Senior Notes, due year | 2,022 | |||
Interest rate | 3.10% | 3.10% | 3.10% | |
Bank Term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of bank term debt | 7.30% | 7.30% | 7.30% | 8.10% |
Government Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of bank term debt | 2.53% | 2.53% | 2.53% | 3.70% |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Repayments on Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 139 | |
2,018 | 39 | |
2,019 | 26 | |
2,020 | 22 | |
2,021 | 20 | |
Thereafter | 2,287 | |
Total long-term debt | $ 2,533 | $ 2,538 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016EUR (€) | |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit facility | $ 2,750,000,000 | ||
Revolving credit facility maturity date | Jun. 22, 2021 | ||
Interest paid in cash | $ 99,000,000 | $ 54,000,000 | |
Operating lease expense | 314,000,000 | $ 285,000,000 | |
One Point Nine Zero Zero Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, face amount | € | € 550,000,000 | ||
Asian Tranche [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility fully transferable amount | 200,000,000 | ||
Mexican Tranche [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility fully transferable amount | $ 100,000,000 |
Debt - Interest Expense, Net (D
Debt - Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expense | ||
Current | $ 22 | $ 20 |
Long-term | 78 | 38 |
Interest Expense, Total | 100 | 58 |
Interest income | (12) | (14) |
Interest expense, net | $ 88 | $ 44 |
Debt - Company's Commitments un
Debt - Company's Commitments under Operating Leases Requiring Annual Rental Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 277 |
2,018 | 237 |
2,019 | 208 |
2,020 | 183 |
2,021 | 164 |
Thereafter | 586 |
Operating Leases, Future Minimum Payments Due, Total | $ 1,655 |
Long-Term Employee Benefit L101
Long-Term Employee Benefit Liabilities - Long-Term Employee Benefit Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Defined benefit pension plans and other | $ 313 | $ 181 |
Termination and long service arrangements | 319 | 287 |
Retirement medical benefits plans | 29 | 30 |
Other long-term employee benefits | 6 | 6 |
Long-term employee benefit obligations | $ 667 | $ 504 |
Long-Term Employee Benefit L102
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, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.10% | 3.80% |
Rate of compensation increase | 2.30% | 2.50% |
Net periodic benefit cost Discount rate | 3.20% | 3.70% |
Rate of compensation increase | 2.40% | 2.70% |
Expected return on plan assets | 5.80% | 5.90% |
Long-Term Employee Benefit L103
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | $ (21) | $ (17) |
Non-current liability | 667 | 504 |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 493 | 536 |
Current service cost | 14 | 12 |
Interest cost | 21 | 18 |
Actuarial losses (gains) and changes in actuarial assumptions | 28 | (18) |
Benefits paid | (22) | (18) |
Benefits paid - settlements | (32) | |
Acquisition | 129 | 1 |
Gain on settlement | (5) | |
Foreign exchange | (2) | (38) |
End of year | 624 | 493 |
Beginning of year | 326 | 347 |
Return on plan assets | 22 | 7 |
Employer contributions | 19 | 19 |
Benefits paid | (17) | (18) |
Benefits paid - settlements | (32) | |
Acquisition | 8 | |
Foreign exchange | 4 | (29) |
End of year | 330 | 326 |
Ending funded status | 294 | 167 |
Non-current asset | (21) | (17) |
Current liability | 2 | 3 |
Non-current liability | 313 | 181 |
Net amount | 294 | 167 |
Unrecognized actuarial losses | (144) | (138) |
Current service cost | 14 | 12 |
Interest cost | 21 | 18 |
Return on plan assets | (20) | (20) |
Benefits paid - settlements | 13 | |
Actuarial losses | 3 | 4 |
Net periodic benefit cost | $ 31 | $ 14 |
Long-Term Employee Benefit L104
Long-Term Employee Benefit Liabilities - Schedule of Company's Defined Benefit Pension Plans (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit pension, non cash settlement | $ 13 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit pension plan assets, settlement | $ 32 |
Target allocation in 2017 | 100.00% |
Asset allocation of defined benefit pension plans | 100.00% |
Equity Investments [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2017, minimum | 55.00% |
Target allocation in 2017, maximum | 75.00% |
Asset allocation of defined benefit pension plans | 61.00% |
Fixed Income Securities [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2017, minimum | 25.00% |
Target allocation in 2017, maximum | 45.00% |
Asset allocation of defined benefit pension plans | 39.00% |
Cash and Cash Equivalents [Member] | Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation in 2017, minimum | 0.00% |
Target allocation in 2017, maximum | 15.00% |
Asset allocation of defined benefit pension plans | 0.00% |
Long-Term Employee Benefit L105
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, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.90% | 3.10% |
Rate of compensation increase | 2.70% | 2.80% |
Long-Term Employee Benefit L106
Long-Term Employee Benefit Liabilities - Company's Termination and Long Service Arrangements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ 667 | $ 504 |
Termination and Long Service Arrangements [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 295 | 323 |
Current service cost | 20 | 15 |
Interest cost | 8 | 8 |
Actuarial losses and changes in actuarial assumptions | 15 | 2 |
Benefits paid | (11) | (12) |
Acquisition | 16 | |
Divestiture | (4) | |
Foreign exchange | (16) | (37) |
Ending funded status | 327 | 295 |
Current liability | 8 | 8 |
Non-current liability | 319 | 287 |
Net amount | 327 | 295 |
Unrecognized actuarial losses | (84) | (69) |
Current service cost | 20 | 15 |
Interest cost | 8 | 8 |
Actuarial losses | 1 | 18 |
Net periodic benefit cost | $ 29 | $ 41 |
Long-Term Employee Benefit L107
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, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement medical benefit obligations | 3.80% | 3.90% |
Net periodic benefit cost | 3.90% | 3.70% |
Health care cost inflation | 7.00% | 6.50% |
Long-Term Employee Benefit L108
Long-Term Employee Benefit Liabilities - Company's Retirement Medical Benefits Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ 667 | $ 504 |
Retirement Medical Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning of year | 32 | 41 |
Interest cost | 1 | 1 |
Actuarial losses (gains) and changes in actuarial assumptions | (1) | (7) |
Benefits paid | (1) | (2) |
Foreign exchange | (1) | |
Ending funded status | 31 | 32 |
Current liability | 2 | 2 |
Non-current liability | 29 | 30 |
Net amount | 31 | 32 |
Unrecognized past service costs | 1 | 1 |
Unrecognized actuarial gains | 11 | 11 |
Total amounts included in accumulated other comprehensive loss | 12 | 12 |
Past service cost amortization | (1) | (1) |
Net periodic benefit cost | 1 | |
Retirement Medical Benefits Plans [Member] | Net Periodic Benefit Costs [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1 | $ 2 |
Long-Term Employee Benefit L109
Long-Term Employee Benefit Liabilities - Future Benefit Payments (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2017 | $ 34 |
2,017 | 31 |
2,018 | 32 |
2,019 | 34 |
2,020 | 38 |
2,021 | 40 |
Thereafter | 233 |
Total | 408 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2017 | 24 |
2,017 | 21 |
2,018 | 21 |
2,019 | 21 |
2,020 | 23 |
2,021 | 23 |
Thereafter | 133 |
Total | 242 |
Termination and Long Service Arrangements [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2017 | 8 |
2,017 | 8 |
2,018 | 9 |
2,019 | 11 |
2,020 | 13 |
2,021 | 15 |
Thereafter | 91 |
Total | 147 |
Retirement Medical Benefits Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions - 2017 | 2 |
2,017 | 2 |
2,018 | 2 |
2,019 | 2 |
2,020 | 2 |
2,021 | 2 |
Thereafter | 9 |
Total | $ 19 |
Other Long-Term Liabilities - P
Other Long-Term Liabilities - Particulars of Other Long-Term Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Long-term portion of fair value of hedges | $ 61 | $ 152 |
Long-term portion of income taxes payable | 181 | 131 |
Asset retirement obligation | 28 | 26 |
Long-term lease inducements | 16 | 19 |
Deferred revenue | 12 | 3 |
Total | $ 298 | $ 331 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Nov. 10, 2016shares | Dec. 31, 2016Voteshares |
Equity [Abstract] | ||
Preference shares included in authorized capital stock | 99,760,000 | |
Shares issued or outstanding | 0 | |
Number of votes per share | Vote | 1 | |
Number of common stock shares to be purchased under the Bid | 38,000,000 | |
Percentage of issued and outstanding common shares | 10.00% | |
Commencement date of Bid | Nov. 15, 2016 | |
Termination date of Bid | Nov. 17, 2017 |
Capital Stock - Summary of Norm
Capital Stock - Summary of Normal Course Issuer Bids (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Share Repurchase Programs [Line Items] | ||
Shares purchased | 22,335,018 | 10,752,484 |
Cash amount | $ 904 | $ 501 |
2014 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Maximum number of shares | 40,000,000 | |
Shares purchased | 8,166,514 | |
Cash amount | $ 388 | |
2015 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Maximum number of shares | 40,000,000 | |
Shares purchased | 20,313,194 | 2,585,970 |
Cash amount | $ 818 | $ 113 |
2016 Bid [Member] | ||
Schedule Of Share Repurchase Programs [Line Items] | ||
Maximum number of shares | 38,000,000 | |
Shares purchased | 2,021,824 | |
Cash amount | $ 86 |
Capital Stock - Maximum Number
Capital Stock - Maximum Number of Shares Outstanding Exercised or Converted (Detail) - Convertible Common Stock [Member] - Scenario, Forecast [Member] - Subsequent Event [Member] | Mar. 09, 2017shares |
Class of Stock [Line Items] | |
Common Shares | 382,269,005 |
Stock options | 9,258,413 |
Total number of shares outstanding | 391,527,418 |
Accumulated Other Comprehens114
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 9,117 | $ 8,673 | |
Net unrealized gain (loss) | 1 | (244) | |
Ending Balance | 10,219 | 9,117 | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,042) | (255) | |
Net unrealized gain (loss) | (109) | (798) | |
Repurchase of shares under normal course issuer bids [note 20] | 20 | 11 | |
Ending Balance | (1,131) | (1,042) | |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (262) | (113) | |
Net unrealized gain (loss) | 1 | (244) | |
Reclassification of net loss to net income | 126 | 95 | |
Ending Balance | (135) | (262) | |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (165) | (186) | |
Net unrealized gain (loss) | (29) | 14 | |
Reclassification of net loss to net income | 9 | 7 | |
Ending Balance | (185) | (165) | |
Accumulated Net Unrealized Loss on Available-for-Sale investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1) | (4) | |
Net unrealized gain (loss) | 3 | ||
Reclassification of net loss to net income | 1 | ||
Ending Balance | (1) | ||
AOCL [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | [1] | (1,470) | (558) |
Ending Balance | [1] | $ (1,451) | $ (1,470) |
[1] | AOCL is Accumulated Other Comprehensive Loss. |
Accumulated Other Comprehens115
Accumulated Other Comprehensive Loss - Schedule of Net Income Amounts Reclassified from AOCL (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Sales | $ (36,445) | $ (32,134) |
Cost of sales | 31,123 | 27,559 |
Interest | 88 | 44 |
Income tax | 706 | 711 |
Net of tax | (2,031) | (2,013) |
Total loss reclassified to net income | (125) | (102) |
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 | (87) | (86) |
Cost of sales | (87) | (45) |
Interest | (3) | |
Income tax | 48 | 39 |
Net of tax | (126) | (95) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | 1 | (9) |
Income tax | 2 | |
Net of tax | $ 1 | $ (7) |
Accumulated Other Comprehens116
Accumulated Other Comprehensive Loss - Summary of Income Tax Benefit to Component of Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total income tax benefit | $ 128 | $ 128 |
Balance, beginning of year | 128 | |
Balance, end of year | 83 | 128 |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total income tax benefit | 97 | 44 |
Balance, beginning of year | 97 | 44 |
Net unrealized loss (gain) | 4 | 92 |
Reclassification of net loss to net income | (48) | (39) |
Balance, end of year | 53 | 97 |
Accumulated Net Unrealized Loss On Other Long Term Liabilities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total income tax benefit | 31 | 36 |
Balance, beginning of year | 31 | 36 |
Net unrealized loss (gain) | 3 | (3) |
Reclassification of net loss to net income | (4) | (2) |
Balance, end of year | $ 30 | $ 31 |
Accumulated Other Comprehens117
Accumulated Other Comprehensive Loss - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Scenario, Forecast [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Amount of comprehensive loss that is expected to be reclassified to net income | $ 130 |
Financial Instruments - Foreign
Financial Instruments - Foreign Exchange Forward Contracts Representing Commitments to Buy and Sell Various Foreign Currencies (Detail) - 12 months ended Dec. 31, 2016 | USD ($) | EUR (€) | MXN | GBP (£) | CZK |
Euro Member Countries, Euro | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (4,000,000) | £ (53,000,000) | CZK 7,805,000,000 | ||
Euro Member Countries, Euro | 2017 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.90038 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 1.19637 | ||||
Euro Member Countries, Euro | 2017 [Member] | British Pound [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.18435 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 0.84126 | ||||
Euro Member Countries, Euro | 2017 [Member] | Czech Koruna [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03722 | ||||
Euro Member Countries, Euro | 2017 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 115,000,000 | 5,000,000 | 4,084,000,000 | ||
Euro Member Countries, Euro | 2017 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (112,000,000) | (28,000,000) | |||
Euro Member Countries, Euro | 2018 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.87976 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 1.16833 | ||||
Euro Member Countries, Euro | 2018 [Member] | British Pound [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.17412 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 0.80446 | ||||
Euro Member Countries, Euro | 2018 [Member] | Czech Koruna [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03766 | ||||
Euro Member Countries, Euro | 2018 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 43,000,000 | 1,000,000 | 2,389,000,000 | ||
Euro Member Countries, Euro | 2018 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (53,000,000) | (17,000,000) | |||
Euro Member Countries, Euro | 2019 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.86787 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 1.15362 | ||||
Euro Member Countries, Euro | 2019 [Member] | British Pound [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Sales Exchange Rate | 0.80790 | ||||
Euro Member Countries, Euro | 2019 [Member] | Czech Koruna [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03777 | ||||
Euro Member Countries, Euro | 2019 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 24,000,000 | 1,167,000,000 | |||
Euro Member Countries, Euro | 2019 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (24,000,000) | (9,000,000) | |||
Euro Member Countries, Euro | 2020 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.86156 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 1.17400 | ||||
Euro Member Countries, Euro | 2020 [Member] | British Pound [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Sales Exchange Rate | 0.87553 | ||||
Euro Member Countries, Euro | 2020 [Member] | Czech Koruna [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.03802 | ||||
Euro Member Countries, Euro | 2020 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 5,000,000 | CZK 165,000,000 | |||
Euro Member Countries, Euro | 2020 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | (2,000,000) | £ (5,000,000) | |||
Canada, Dollars | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (1,831,000,000) | € 7,000,000 | |||
Canada, Dollars | 2017 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.32036 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 0.79352 | ||||
Canada, Dollars | 2017 [Member] | Euro [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.45496 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 0.68983 | ||||
Canada, Dollars | 2017 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 122,000,000 | 23,000,000 | |||
Canada, Dollars | 2017 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (885,000,000) | (15,000,000) | |||
Canada, Dollars | 2018 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.30509 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 0.78550 | ||||
Canada, Dollars | 2018 [Member] | Euro [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 1.44050 | ||||
Foreign exchange forward contract, Sales Exchange Rate | 0.68689 | ||||
Canada, Dollars | 2018 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 1,000,000 | 1,000,000 | |||
Canada, Dollars | 2018 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ (597,000,000) | € (2,000,000) | |||
Canada, Dollars | 2019 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Sales Exchange Rate | 0.78407 | ||||
Canada, Dollars | 2019 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ | $ (338,000,000) | ||||
Canada, Dollars | 2020 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Sales Exchange Rate | 0.76519 | ||||
Canada, Dollars | 2020 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ | $ (126,000,000) | ||||
Canada, Dollars | 2021 [Member] | US Dollar [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Sales Exchange Rate | 0.76001 | ||||
Canada, Dollars | 2021 [Member] | Short [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | $ | $ (8,000,000) | ||||
United States of America, Dollars | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | MXN 5,883,000,000 | ||||
United States of America, Dollars | 2017 [Member] | Mexican Peso [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.05995 | ||||
United States of America, Dollars | 2017 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | 3,500,000,000 | ||||
United States of America, Dollars | 2018 [Member] | Mexican Peso [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.05194 | ||||
United States of America, Dollars | 2018 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | 1,819,000,000 | ||||
United States of America, Dollars | 2019 [Member] | Mexican Peso [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange forward contract, Purchases Exchange Rate | 0.04335 | ||||
United States of America, Dollars | 2019 [Member] | Long [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of foreign currency derivatives | MXN 564,000,000 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) CAD in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($) | Dec. 31, 2016CAD | Dec. 31, 2015CAD | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Trading securities | $ 1,034 | $ 2,940 | ||
Long-term debt due within one year | $ 139 | $ 211 | ||
Debt instrument maturity period | 1 year | |||
Book value of senior notes | $ 2,300 | |||
Sales Revenue, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Number of largest customers | Customer | 6 | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Percentage of sales to six largest customers | 82.00% | 83.00% | ||
Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Estimated fair value of notes payable | $ 2,360 | |||
Asset-backed Securities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Face value of investments | CAD | CAD 81 | CAD 107 | ||
Asset-backed Securities [Member] | Reported Value Measurement [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Trading securities | CAD | 81 | CAD 101 | ||
Asset-backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Trading securities | CAD | CAD 81 | |||
Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forward contracts, gain recognized in other comprehensive loss | 18 | |||
Foreign exchange forward contracts, loss recognized in other comprehensive loss | $ 195 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trading | |||
Cash and cash equivalents | $ 974 | $ 2,863 | $ 1,249 |
Investment in ABCP | 60 | 73 | |
Equity investments | 4 | ||
Trading Securities | 1,034 | 2,940 | |
Held-to-maturity investments | |||
Severance investments | 3 | 3 | |
Loans and receivables | |||
Accounts receivable | 6,165 | 5,439 | |
Long-term receivables included in other assets [note 14] | 229 | 87 | |
Total | 6,394 | 5,526 | |
Other financial liabilities | |||
Short term borrowings | 623 | 25 | |
Long-term debt (including portion due within one year) | 2,533 | 2,538 | |
Accounts payable | 5,430 | 4,746 | |
Total | 8,586 | 7,309 | |
Derivatives designated as effective hedges, measured at fair value, Assets | 18 | 31 | |
Derivatives designated as effective hedges, measured at fair value, Liabilities | (195) | (343) | |
Liabilities, Net Amounts | (178) | (313) | |
Foreign Exchange Contract [Member] | |||
Other financial liabilities | |||
Liabilities, Net Amounts | (177) | (312) | |
Prepaid Expenses and Other [Member] | Foreign Exchange Contract [Member] | |||
Other financial liabilities | |||
Derivatives designated as effective hedges, measured at fair value, Assets | 12 | 27 | |
Other Assets [Member] | Foreign Exchange Contract [Member] | |||
Other financial liabilities | |||
Derivatives designated as effective hedges, measured at fair value, Assets | 6 | 4 | |
Other Accrued Liabilities [Member] | Foreign Exchange Contract [Member] | |||
Other financial liabilities | |||
Derivatives designated as effective hedges, measured at fair value, Liabilities | (134) | (191) | |
Other Long-term Liabilities [Member] | Foreign Exchange Contract [Member] | |||
Other financial liabilities | |||
Derivatives designated as effective hedges, measured at fair value, Liabilities | (61) | (152) | |
Bank Indebtedness [Member] | |||
Other financial liabilities | |||
Short term borrowings | 8 | $ 25 | |
Commercial Paper [Member] | |||
Other financial liabilities | |||
Short term borrowings | $ 615 |
Financial Instruments - Derivat
Financial Instruments - Derivative Foreign Currency Contracts at Gross Fair Value and Unrecognized Impacts of Master Netting Arrangements (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting [Abstract] | ||
Assets, Gross amounts presented in consolidated balance sheets | $ 18 | $ 31 |
Assets, Gross amounts not offset in consolidated balance sheets | 17 | 30 |
Assets, Net amounts | 1 | 1 |
Liabilities, Gross amounts presented in Consolidated Balance Sheets | (195) | (343) |
Liabilities, Gross amounts not offset in Consolidated Balance Sheets | (17) | (30) |
Liabilities, Net Amounts | $ (178) | $ (313) |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) CAD in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2016CADOfficers | Dec. 31, 2016CADSubsidiary | |
Loss Contingencies [Line Items] | ||
Amount related to damages | CAD | CAD 1,800 | CAD 2,560 |
KS Centoco Ltd [Member] | ||
Loss Contingencies [Line Items] | ||
Number of subsidiaries sued by KS Centoco Ltd | Subsidiary | 2 | |
Percentage of equity interest owned by Company | 23.00% | |
Percentage of equity interest owned by third party | 77.00% | |
Number of officers sued | Officers | 2 | |
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 - Additio
Segmented Information - Additional Information (Detail) | Dec. 31, 2016Market |
Segment Reporting [Abstract] | |
Number of primary markets | 2 |
Segmented Information - Schedul
Segmented Information - Schedule of Information with Respect to Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total sales | $ 36,445 | $ 32,134 | |
Depreciation and amortization | 1,056 | 802 | |
Adjusted EBIT | 2,898 | 2,529 | |
Goodwill | 1,923 | 1,344 | $ 1,337 |
Fixed assets, net | 7,022 | 5,948 | |
Current assets | 10,163 | 11,144 | |
Investments, intangible assets, goodwill, deferred tax assets and other assets | 5,381 | 2,595 | |
Consolidated total assets | 22,566 | 19,687 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 36,445 | 32,134 | |
External sales | 36,445 | 32,134 | |
Depreciation and amortization | 1,056 | 802 | |
Adjusted EBIT | 2,898 | 2,529 | |
Goodwill | 1,923 | 1,344 | |
Fixed asset additions | 1,807 | 1,591 | |
Fixed assets, net | 7,022 | 5,948 | |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 595 | 590 | 633 |
North America [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 20,744 | 19,015 | |
External sales | 20,657 | 18,908 | |
Depreciation and amortization | 486 | 411 | |
Adjusted EBIT | 2,061 | 1,934 | |
Goodwill | 595 | 590 | |
Fixed asset additions | 910 | 896 | |
Fixed assets, net | 3,293 | 2,822 | |
North America [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | (1,387) | (1,178) | |
North America [Member] | Canada [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 6,784 | 6,329 | |
External sales | 6,214 | 5,856 | |
Fixed asset additions | 201 | 242 | |
Fixed assets, net | 721 | 645 | |
North America [Member] | United States [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 10,226 | 9,603 | |
External sales | 9,857 | 9,183 | |
Fixed asset additions | 400 | 421 | |
Fixed assets, net | 1,573 | 1,422 | |
North America [Member] | Mexico [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 5,121 | 4,261 | |
External sales | 4,586 | 3,869 | |
Fixed asset additions | 309 | 233 | |
Fixed assets, net | 999 | 755 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 1,116 | 525 | 577 |
Europe [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 13,080 | 11,123 | |
External sales | 12,815 | 10,912 | |
Depreciation and amortization | 431 | 276 | |
Adjusted EBIT | 543 | 451 | |
Goodwill | 1,116 | 525 | |
Fixed asset additions | 738 | 495 | |
Fixed assets, net | 2,584 | 1,879 | |
Europe [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | (400) | (327) | |
Europe [Member] | Western Europe Excluding Great Britain [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 10,537 | 8,936 | |
External sales | 10,159 | 8,635 | |
Fixed asset additions | 578 | 357 | |
Fixed assets, net | 1,912 | 1,263 | |
Europe [Member] | Great Britain [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 658 | 404 | |
External sales | 656 | 404 | |
Fixed asset additions | 24 | 26 | |
Fixed assets, net | 127 | 145 | |
Europe [Member] | Eastern Europe [Member] | Reportable Subsegments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 2,285 | 2,110 | |
External sales | 2,000 | 1,873 | |
Fixed asset additions | 136 | 112 | |
Fixed assets, net | 545 | 471 | |
Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 212 | 229 | $ 127 |
Asia [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 2,674 | 1,981 | |
External sales | 2,502 | 1,846 | |
Depreciation and amortization | 103 | 77 | |
Adjusted EBIT | 266 | 149 | |
Goodwill | 212 | 229 | |
Fixed asset additions | 97 | 121 | |
Fixed assets, net | 679 | 811 | |
Rest of World [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 465 | 461 | |
External sales | 464 | 461 | |
Depreciation and amortization | 13 | 17 | |
Adjusted EBIT | (17) | (25) | |
Fixed asset additions | 11 | 15 | |
Fixed assets, net | 62 | 51 | |
Corporate and Other [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | (518) | (446) | |
External sales | 7 | 7 | |
Depreciation and amortization | 23 | 21 | |
Adjusted EBIT | 45 | 20 | |
Fixed asset additions | 51 | 64 | |
Fixed assets, net | $ 404 | $ 385 |
Segmented Information - Sche125
Segmented Information - Schedule of Information with Respect to Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | ||
Net income from continuing operations | $ 2,074 | $ 1,940 |
Add (deduct): | ||
Interest expense, net | 88 | 44 |
Other expense (income), net | 30 | (166) |
Income taxes | 706 | 711 |
Adjusted EBIT | $ 2,898 | $ 2,529 |
Segmented Information - Sche126
Segmented Information - Schedule of Aggregates External Revenues by Customer (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Revenue from external customers | $ 36,445 | $ 32,134 |
General Motors [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 7,207 | 6,424 |
Ford Motor Company [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 5,667 | 4,923 |
Fiat or Chrysler Group [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 5,349 | 5,094 |
Daimler AG [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 4,294 | 3,779 |
BMW [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 3,786 | 3,300 |
Volkswagen [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 3,758 | 3,301 |
Other Customers [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | $ 6,384 | $ 5,313 |
Segmented Information - Summary
Segmented Information - Summary of External Revenues by Automotive Products and Services (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue from external customers | $ 36,445 | $ 32,134 |
Body Systems and Chassis Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 9,157 | 7,790 |
Powertrain Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 6,489 | 4,755 |
Exterior Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 5,272 | 5,155 |
Seating Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 5,079 | 4,497 |
Tooling, Engineering and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 3,078 | 2,700 |
Vision and Electronic Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 2,768 | 2,583 |
Closure Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 2,412 | 2,297 |
Complete Vehicle Assembly [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | $ 2,190 | $ 2,357 |