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SEGMENTED INFORMATION | 12 Months Ended
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Dec. 31, 2012
SEGMENTED INFORMATION | 23. SEGMENTED INFORMATION
[a] | Magna is a leading global automotive supplier with 313 manufacturing operations and 88 product development, engineering and sales centres in 29 countries. Magna’s 119,000 employees are focused on delivering superior value to customers through innovative processes and World Class Manufacturing. The Company’s capabilities include body, chassis, interiors, exteriors, seating, powertrain, electronics, mirrors, closures and roof systems and modules, as well as complete vehicle engineering and contract manufacturing.
Magna’s success is directly dependent upon the levels of North American and European [and currently to a lesser extent on 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 between North America, Europe 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 and Rest of World for purposes of presentation to the chief operating decision maker to assist in the assessment of operating performance, the allocation of resources, and the long-term strategic direction and future global growth in the Company. The Company’s chief operating decision maker uses Adjusted EBIT as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. Adjusted EBIT represents income from operations before income taxes; interest expense (income), net; and other (income) expense, net. The accounting policies of each segment are the same as those set out under “Significant Accounting Policies” [note 1] and intersegment sales and transfers are accounted for at fair market value. As more fully described in notes 3 and 6, on August 31, 2012 the Company acquired the controlling 27% interest in the E-Car partnership. From August 31, 2010 to August 31, 2012, the Company held a 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting. Prior to the deconsolidation of E-Car on August 31, 2010, 100% of the results of E-Car were fully consolidated. For segment reporting purposes, prior to August 31, 2012 the Company recorded its proportionate share of the losses of E-Car in the Corporate and Other segment. Beginning on August 31, 2012, the consolidated results of E-Car are recorded in the Company’s North America and Europe segments. The footnotes to the following tables provide information regarding amounts that are recorded in each operating segment related to E-Car. The following tables show certain information with respect to segment disclosures:
|  | 2012 |
|  | Total sales |  |  | External sales |  |  | Depreciation and amortization |  |  | Adjusted EBIT |  |  | Goodwill |  |  | Fixed asset additions |  |  | Fixed assets, net |
North America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  | $ | 6,343 |  |  | $ | 5,907 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 158 |  |  | $ | 660 |
United States |  |  | 7,518 |  |  |  | 7,053 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 294 |  |  |  | 973 |
Mexico |  |  | 3,520 |  |  |  | 3,281 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 163 |  |  |  | 573 |
Eliminations |  |  | (1,046 | ) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
North America |  |  | 16,335 |  |  |  | 16,241 |  |  | $ | 432 |  |  | $ | 1,521 |  |  | $ | 701 |  |  |  | 615 |  |  |  | 2,206 |
Europe |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Western Europe (excluding Great Britain) |  |  | 10,089 |  |  |  | 9,927 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 246 |  |  |  | 1,490 |
Great Britain |  |  | 961 |  |  |  | 952 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15 |  |  |  | 58 |
Eastern Europe |  |  | 1,847 |  |  |  | 1,684 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 117 |  |  |  | 584 |
Eliminations |  |  | (188 | ) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Europe |  |  | 12,709 |  |  |  | 12,563 |  |  |  | 283 |  |  |  | 165 |  |  |  | 611 |  |  |  | 378 |  |  |  | 2,132 |
Rest of World |  |  | 2,111 |  |  |  | 2,010 |  |  |  | 59 |  |  |  | (28 | ) |  |  | 160 |  |  |  | 270 |  |  |  | 686 |
Corporate and Other [i] |  |  | (318 | ) |  |  | 23 |  |  |  | 27 |  |  |  | — |  |  |  | 1 |  |  |  | 11 |  |  |  | 249 |
Total reportable segments |  |  | 30,837 |  |  |  | 30,837 |  |  |  | 801 |  |  |  | 1,658 |  |  |  | 1,473 |  |  |  | 1,274 |  |  |  | 5,273 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 108 |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (16 | ) |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 30,837 |  |  | $ | 30,837 |  |  | $ | 801 |  |  | $ | 1,750 |  |  | $ | 1,473 |  |  | $ | 1,274 |  |  | $ | 5,273 |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9,135 |
Investments, goodwill, deferred tax assets and other assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,701 |
Consolidated total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 17,109 |
Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:
|  | Total sales |  |  | Equity loss |  |  | Amortization of intangibles |  |  | Adjusted EBIT |
North America |  | $ | 12 |  |  | $ | — |  |  | $ | 52 |  |  | $ | (76 | )
Europe |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | (6 | )
Corporate and Other |  |  | — |  |  |  | 35 |  |  |  | — |  |  |  | (35 | )
Total reportable segments |  | $ | 24 |  |  | $ | 35 |  |  | $ | 52 |  |  | $ | (117 | )
For the year ended December 31, 2012, E-Car had total sales of $91 million and total adjusted EBIT loss of $130 million.
|  | 2011 |
|  | Total sales |  |  | External sales |  |  | Depreciation and amortization |  |  | Adjusted EBIT |  |  | Goodwill |  |  | Fixed asset additions |  |  | Fixed assets, net |
North America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  | $ | 5,951 |  |  | $ | 5,552 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 115 |  |  | $ | 586 |
United States |  |  | 7,025 |  |  |  | 6,514 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 281 |  |  |  | 804 |
Mexico |  |  | 2,902 |  |  |  | 2,698 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 162 |  |  |  | 477 |
Eliminations |  |  | (1,023 | ) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
North America |  |  | 14,855 |  |  |  | 14,764 |  |  | $ | 358 |  |  | $ | 1,373 |  |  | $ | 644 |  |  |  | 558 |  |  |  | 1,867 |
Europe |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Western Europe (excluding Great Britain) |  |  | 10,124 |  |  |  | 9,963 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 284 |  |  |  | 1,111 |
Great Britain |  |  | 913 |  |  |  | 909 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  |  | 53 |
Eastern Europe |  |  | 1,708 |  |  |  | 1,557 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 132 |  |  |  | 438 |
Eliminations |  |  | (189 | ) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Europe |  |  | 12,556 |  |  |  | 12,429 |  |  |  | 259 |  |  |  | (22 | ) |  |  | 393 |  |  |  | 423 |  |  |  | 1,602 |
Rest of World |  |  | 1,599 |  |  |  | 1,506 |  |  |  | 38 |  |  |  | 56 |  |  |  | 158 |  |  |  | 236 |  |  |  | 485 |
Corporate and Other [i] |  |  | (262 | ) |  |  | 49 |  |  |  | 31 |  |  |  | (40 | ) |  |  | 1 |  |  |  | 19 |  |  |  | 282 |
Total reportable segments |  |  | 28,748 |  |  |  | 28,748 |  |  |  | 686 |  |  |  | 1,367 |  |  |  | 1,196 |  |  |  | 1,236 |  |  |  | 4,236 |
Other expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (156 | ) |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 28,748 |  |  | $ | 28,748 |  |  | $ | 686 |  |  | $ | 1,217 |  |  | $ | 1,196 |  |  | $ | 1,236 |  |  |  | 4,236 |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,146 |
Investments, goodwill, deferred tax assets and other assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,297 |
Consolidated total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 14,679 |
Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:
|  | Total sales |  |  | Equity loss |  |  | Amortization of intangibles |  |  | Adjusted EBIT |
North America |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Europe |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and Other |  |  | — |  |  |  | 66 |  |  |  | — |  |  |  | (66 | )
Total reportable segments |  | $ | — |  |  | $ | 66 |  |  | $ | — |  |  | $ | (66 | )
For the year ended December 31, 2011, E-Car had total sales of $92 million and total adjusted EBIT loss of $91 million.
|  | 2010 |
|  | Total sales |  |  | External sales |  |  | Depreciation and amortization |  |  | Adjusted EBIT |  |  | Goodwill |  |  | Fixed asset additions |  |  | Fixed assets, net |
North America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  | $ | 5,122 |  |  | $ | 4,777 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 126 |  |  | $ | 638 |
United States |  |  | 5,808 |  |  |  | 5,348 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 130 |  |  |  | 668 |
Mexico |  |  | 2,346 |  |  |  | 2,189 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 49 |  |  |  | 371 |
Eliminations |  |  | (906 | ) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
North America |  |  | 12,370 |  |  |  | 12,314 |  |  | $ | 358 |  |  | $ | 1,116 |  |  | $ | 651 |  |  |  | 305 |  |  |  | 1,677 |
Europe |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Western Europe (excluding Great Britain) |  |  | 8,349 |  |  |  | 8,190 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 189 |  |  |  | 1,109 |
Great Britain |  |  | 813 |  |  |  | 813 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |  |  |  | 58 |
Eastern Europe |  |  | 1,256 |  |  |  | 1,165 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 119 |  |  |  | 351 |
Eliminations |  |  | (129 | ) |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Europe |  |  | 10,289 |  |  |  | 10,168 |  |  |  | 242 |  |  |  | 117 |  |  |  | 402 |  |  |  | 313 |  |  |  | 1,518 |
Rest of World |  |  | 1,016 |  |  |  | 930 |  |  |  | 27 |  |  |  | 72 |  |  |  | 140 |  |  |  | 44 |  |  |  | 211 |
Corporate and Other [i] |  |  | (210 | ) |  |  | 53 |  |  |  | 29 |  |  |  | (94 | ) |  |  | 1 |  |  |  | 84 |  |  |  | 336 |
Total reportable segments |  |  | 23,465 |  |  |  | 23,465 |  |  |  | 656 |  |  |  | 1,211 |  |  |  | 1,194 |  |  |  | 746 |  |  |  | 3,742 |
Other expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (25 | ) |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 23,465 |  |  | $ | 23,465 |  |  | $ | 656 |  |  | $ | 1,197 |  |  | $ | 1,194 |  |  | $ | 746 |  |  |  | 3,742 |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,485 |
Investments, goodwill, deferred tax assets and other assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,447 |
Consolidated total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 13,674 |
Included in the table above are the following amounts related to Magna’s share of the E-Car Partnership:
|  |  |  |  |  |  |  | Amortization |  |  |  |
|  | Total sales |  |  | Equity loss |  |  | of intangibles |  |  | Adjusted EBIT |
North America |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Europe |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and Other |  |  | 8 |  |  |  | 30 |  |  |  | — |  |  |  | (80 | )
Total reportable segments |  | $ | 8 |  |  | $ | 30 |  |  | $ | — |  |  | $ | (80 | )
For the year ended December 31, 2010, E-Car had total sales of $20 million and total adjusted EBIT loss of $89 million.
[i] | Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.
[b] | The following table aggregates external revenues by customer as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
General Motors |  | $ | 5,704 |  |  | $ | 6,202 |  |  | $ | 4,731 |
Fiat / Chrysler Group |  |  | 4,637 |  |  |  | 3,864 |  |  |  | 3,102 |
BMW |  |  | 4,100 |  |  |  | 4,191 |  |  |  | 3,090 |
Ford Motor Company |  |  | 3,848 |  |  |  | 3,549 |  |  |  | 3,371 |
Volkswagen |  |  | 3,835 |  |  |  | 3,187 |  |  |  | 2,567 |
Daimler AG |  |  | 3,367 |  |  |  | 2,793 |  |  |  | 2,354 |
Other |  |  | 5,346 |  |  |  | 4,962 |  |  |  | 4,250 |
|  | $ | 30,837 |  |  | $ | 28,748 |  |  | $ | 23,465 |
[c] | The following table summarizes external revenues generated by automotive products and services:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Exterior and interior systems |  | $ | 11,673 |  |  | $ | 11,020 |  |  | $ | 8,637 |
Body systems and chassis systems |  |  | 7,123 |  |  |  | 6,056 |  |  |  | 4,801 |
Powertrain systems |  |  | 3,825 |  |  |  | 3,667 |  |  |  | 3,064 |
Complete vehicle assembly |  |  | 2,561 |  |  |  | 2,690 |  |  |  | 2,163 |
Tooling, engineering and other |  |  | 2,317 |  |  |  | 2,065 |  |  |  | 2,005 |
Vision and electronic systems |  |  | 2,132 |  |  |  | 2,066 |  |  |  | 1,756 |
Closure systems |  |  | 1,206 |  |  |  | 1,184 |  |  |  | 1,039 |
|  | $ | 30,837 |  |  | $ | 28,748 |  |  | $ | 23,465 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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