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Debt and Commitments | 12 Months Ended
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Dec. 31, 2013
Debt Disclosure [Abstract] |
Debt and Commitments | 15. DEBT AND COMMITMENTS
[a] | The Company’s long-term debt, which is substantially uncollateralized, consists of the following:
|  | 2013 |  |  | 2012 |
Bank term debt at a weighted average interest rate of approximately 6.3% [2012 – 8.0%], denominated primarily in Chinese renminbi and Brazilian real |  | $ | 239 |  |  | $ | 268 |
Government loans at a weighted average interest rate of approximately 5.9% [2012 – 5.4%], denominated primarily in Brazilian real and euros |  |  | 26 |  |  |  | 15 |
Other |  |  | 67 |  |  |  | 78 |
|  |  | 332 |  |  |  | 361 |
Less due within one year |  |  | 230 |  |  |  | 249 |
|  | $ | 102 |  |  | $ | 112 |
[b] | Future principal repayments on long-term debt are estimated to be as follows:
2014 |  | $ | 230 |
2015 |  |  | 39 |
2016 |  |  | 22 |
2017 |  |  | 15 |
2018 |  |  | 18 |
Thereafter |  |  | 8 |
|  | $ | 332 |
[c] | On June 20, 2013, the Company amended its previous $2.25 billion revolving credit facility to become a five year facility with a maturity of June 20, 2018. The facility now includes a $200 million Asian tranche, a $50 million Mexican tranche and a tranche for Canada, U.S. and Europe, which is fully transferable between jurisdictions and can be drawn in U.S. dollars, Canadian dollars or euros.
[d] | Interest expense (income), net includes:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 26 |  |  | $ | 27 |  |  | $ | 16 |
Long-term |  |  | 8 |  |  |  | 7 |  |  |  | 3 |
|  |  | 34 |  |  |  | 34 |  |  |  | 19 |
Interest income |  |  | (18 | ) |  |  | (18 | ) |  |  | (25 | )
Interest expense (income), net |  | $ | 16 |  |  | $ | 16 |  |  | $ | (6 | )
[e] | Interest paid in cash was $32 million for the year ended December 31, 2013 [2012 - $32 million; 2011 - $19 million].
[f] | At December 31, 2013, the Company had commitments under operating leases requiring annual rental payments as follows:
|  | Total |
2014 |  | $ | 343 |
2015 |  |  | 303 |
2016 |  |  | 273 |
2017 |  |  | 240 |
2018 |  |  | 157 |
Thereafter |  |  | 402 |
|  | $ | 1,718 |
Prior to June 30, 2011, MI Developments Inc. [“MID”] was a considered a related party. In the normal course of business, Magna leases various land and buildings from MID under operating lease agreements, which were effected on normal commercial terms. The leases were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Lease expense related to MID for 2011 was $166 million.
[g] | The Company has agreements with Mr. Stronach and certain affiliated entities for the provision of business development, consulting and other business services. The cost of these agreements is measured at the exchange amount. The court-approved plan of arrangement in which the Company’s dual-class share structure was collapsed, set a termination date of December 31, 2014 with a declining fee schedule for the consulting, business development and business services agreements. The aggregate amount expensed under these agreements with respect to the year ended December 31, 2013 was $52 million [2012 - $47 million; 2011 - $38 million].

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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- Details
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