23. SEGMENTED INFORMATION

[a]

Magna is a leading global automotive supplier with 316 manufacturing operations and 84 product development, engineering and sales centres in 29 countries. Magna has over 125,000 employees focused on delivering superior value to customers through innovative processes and World Class Manufacturing. The Company’s product capabilities include body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing.

Magna’s success is directly dependent upon the levels of North American and European [and currently to a lesser extent on Asia and Rest of World] car and light truck production by its customers. OEM production volumes in each of North America and Europe may be impacted by a number of geographic factors, including general economic conditions, interest rates, consumer credit availability, fuel prices and availability, infrastructure, legislative changes, environmental emission and safety issues, and labour and/or trade relations.

Given the differences between the regions in which the Company operates, Magna’s operations are segmented on a geographic basis. Beginning in the fourth quarter of 2013, the Company’s segments consist of North America, Europe, Asia and Rest of World. The Company maintains management teams in each of the Company’s two primary markets, North America and Europe. The role of the North American and European management teams is to manage Magna’s interests to ensure a coordinated effort across the Company’s different product capabilities. In addition to maintaining key customer, supplier and government contacts in their respective markets, the regional management teams centrally manage key aspects of the Company’s operations while permitting the divisions enough flexibility through Magna’s decentralized structure to foster an entrepreneurial environment.

Consistent with the above, the Company’s internal financial reporting separately segments key internal operating performance measures between North America, Europe, Asia and Rest of World for purposes of presentation to the chief operating decision maker to assist in the assessment of operating performance, the allocation of resources, and the long-term strategic direction and future global growth in the Company.

The Company’s chief operating decision maker uses Adjusted EBIT as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. Adjusted EBIT represents income from operations before income taxes; interest expense (income), net; and other expense (income), net.

The accounting policies of each segment are the same as those set out under “Significant Accounting Policies” [note 1] and intersegment sales and transfers are accounted for at fair market value.

As more fully described in notes 3 and 6, on August 31, 2012 the Company acquired the controlling 27% interest in the E-Car partnership. From August 31, 2010 to August 31, 2012, the Company held a 73% non-controlling interest in E-Car and accounted for this investment using the equity method of accounting.

For segment reporting purposes, prior to August 31, 2012 the Company recorded its proportionate share of the losses of E-Car in the Corporate and Other segment. Beginning on August 31, 2012, the consolidated results of E-Car are recorded in the Company’s North America and Europe segments.

The following tables show certain information with respect to segment disclosures:

2013

Total
sales

External
sales

Depreciation
and
amortization

Adjusted
EBIT

Goodwill

Fixed
asset
additions

Fixed
assets,
net

North America

Canada

6,734

6,223

167

601

United States

8,409

7,938

349

1,135

Mexico

3,993

3,698

129

611

Eliminations

(1,182

)

North America

17,954

17,859

598

1,645

656

645

2,347

Europe

Western Europe (excluding Great Britain)

11,813

11,544

225

1,463

Great Britain

975

968

Eastern Europe

2,317

2,013

112

636

Eliminations

(387

)

Europe

14,718

14,525

355

375

655

361

2,169

Asia

1,684

1,539

129

114

597

Rest of World

889

(76

)

102

Corporate and Other [i]

(410

)

226

Total reportable segments

34,835

1,063

2,065

1,440

1,170

5,441

Other expense, net

(144

)

Interest expense, net

(16

)

34,835

1,063

1,905

1,440

1,170

5,441

Current assets

9,923

Investments, goodwill, deferred tax assets and other assets

2,626

Consolidated total assets

17,990


	2012
	Total sales			External sales		Depreciation and amortization		Adjusted EBIT			Goodwill		Fixed asset addition		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	)		0									0		0

North America		16,335			16,241	$	432	$	1,521		$	701		615		2,206

Europe
Western Europe (excluding Great Britain)		10,089			9,927									246		1,490
Great Britain		961			952									15		58
Eastern Europe		1,847			1,684									117		584
Eliminations		(188	)		0									0		0

Europe		12,709			12,563		283		165			611		378		2,132

Asia		1,289			1,188		42		49			74		214		558
Rest of World		822			822		17		(77	)		87		56		128
Corporate and Other [i, ii]		(318	)		23		27		0			0		11		249

Total reportable segments		30,837			30,837		801		1,658			1,473		1,274		5,273
Other income, net									108
Interest expense, net									(16	)

	$	30,837		$	30,837	$	801	$	1,750		$	1,473	$	1,274		5,273
Current assets																9,135
Investments, goodwill, deferred tax assets and other assets																2,701

Consolidated total assets															$	17,109


	2011
	Total 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	)		0									0		0

North America		14,855			14,764	$	358	$	1,373		$	644		558		1,867

Europe
Western Europe (excluding Great Britain)		10,124			9,963									284		1,111
Great Britain		913			909									7		53
Eastern Europe		1,708			1,557									132		438
Eliminations		(189	)		0									0		0

Europe		12,556			12,429		259		(22	)		392		423		1,602

Asia		1,074			982		31		68			74		204		378
Rest of World		525			524		7		(12	)		86		32		107
Corporate and Other [i, ii]		(262	)		49		31		(40	)		0		19		282

Total reportable segments		28,748			28,748		686		1,367			1,196		1,236		4,236
Other expense, net									(156	)
Interest income, net									6

	$	28,748		$	28,748	$	686	$	1,217		$	1,196	$	1,236		4,236
Current assets																8,146
Investments, goodwill, deferred tax assets and other assets																2,297

Consolidated total assets															$	14,679

[i]	Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.

[ii]	For the year ended December 31, 2012, Corporate and Other includes $35 million equity loss related to the Company’s investment in E-Car.

For the year ended December 31, 2011, Corporate and Other includes $66 million equity loss related to the Company’s investment in E-Car.

[b]	The following table aggregates external revenues by customer as follows:


	2013		2012		2011

General Motors	$	6,394	$	5,704	$	6,202
Fiat / Chrysler Group		5,137		4,637		3,864
BMW		4,882		4,100		4,191
Ford Motor Company		4,450		3,848		3,549
Volkswagen		4,047		3,835		3,187
Daimler AG		3,949		3,367		2,793
Other		5,976		5,346		4,962

	$	34,835	$	30,837	$	28,748

[c]	The following table summarizes external revenues generated by automotive products and services:


	2013		2012		2011

Exterior and interior systems	$	12,308	$	11,673	$	11,020
Body systems and chassis systems		7,874		7,123		6,056
Powertrain systems		4,634		3,825		3,667
Complete vehicle assembly		3,062		2,561		2,690
Tooling, engineering and other		2,823		2,317		2,065
Vision and electronic systems		2,193		2,132		2,066
Closure systems		1,941		1,206		1,184

	$	34,835	$	30,837	$	28,748