XML 74 R45.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2015
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:
|  | 2015 |  |  | 2014 |
Canadian statutory income tax rate |  |  | 26.5 | % |  |  | 26.5 | %
Manufacturing and processing profits deduction |  |  | (0.4 | ) |  |  | (0.4 | )
Foreign rate differentials |  |  | 0.8 |  |  |  | 0.5 |
Losses not benefited |  |  | 1.1 |  |  |  | 1.2 |
Utilization of losses previously not benefited |  |  | (0.1 | ) |  |  | (0.2 | )
Earnings of equity accounted investees |  |  | (0.8 | ) |  |  | (1.0 | )
Tax on repatriation of foreign earnings |  |  | 2.1 |  |  |  | 0.7 |
Valuation allowance on deferred tax assets [i] |  |  | — |  |  |  | (0.1 | )
Austrian tax reform [ii] |  |  | — |  |  |  | 1.2 |
Write off of investment [iii] |  |  | (1.4 | ) |  |  | — |
Research and development tax credits |  |  | (1.3 | ) |  |  | (1.6 | )
Reserve for uncertain tax positions |  |  | (0.3 | ) |  |  | (1.7 | )
Others |  |  | 0.6 |  |  |  | 1.1 |
Effective income tax rate |  |  | 26.8 | % |  |  | 26.2 | %
[i] | GAAP requires that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a “more-likely-than-not” standard. The factors the Company uses to assess the likelihood of realization are its history of losses, forecasts of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets.
[ii] | During 2014, the Austrian government enacted legislation abolishing the utilization of foreign losses, where the foreign subsidiary is not a member of the European Union. Furthermore, any foreign losses previously used by Austrian entities arising in those non European Union subsidiaries are subject to recapture in Austria. As a consequence of this change, the Company recorded a charge to income tax expense of $32 million [“Austrian tax reform”].
[iii] | During 2015, the Company recorded a benefit related to the write-off of historical tax basis in one of its South American subsidiaries.
Details of Income before Income Taxes by Jurisdiction |
[b] | The details of income before income taxes by jurisdiction are as follows:
|  | 2015 |  |  | 2014 |
Canadian |  | $ | 590 |  |  | $ | 821 |
Foreign |  |  | 2,061 |  |  |  | 1,784 |
|  | $ | 2,651 |  |  | $ | 2,605 |
Details of Income Tax Provision |
[c] | The details of the income tax provision are as follows:
|  | 2015 |  |  | 2014 |
Current |  |  |  |  |  |  |  |
Canadian |  | $ | 140 |  |  | $ | 196 |
Foreign |  |  | 578 |  |  |  | 374 |
|  |  | 718 |  |  |  | 570 |
Deferred |  |  |  |  |  |  |  |
Canadian |  |  | 14 |  |  |  | 1 |
Foreign |  |  | (21 | ) |  |  | 112 |
|  |  | (7 | ) |  |  | 113 |
|  | $ | 711 |  |  | $ | 683 |
Summary of Deferred Income Taxes Provided on Temporary Differences |
[d] | Deferred income taxes have been provided on temporary differences, which consist of the following:
|  | 2015 |  |  | 2014 |
Tax depreciation greater than book depreciation |  | $ | 12 |  |  | $ | 40 |
Book amortization less than (in excess of) tax amortization |  |  | 7 |  |  |  | (25 | )
Liabilities currently not deductible for tax |  |  | — |  |  |  | 20 |
Net tax losses (benefited) utilized |  |  | (13 | ) |  |  | 46 |
Change in valuation allowance on deferred tax assets |  |  | (1 | ) |  |  | (3 | )
Austrian tax reform |  |  | — |  |  |  | 32 |
Net tax credits utilized |  |  | — |  |  |  | 10 |
Others |  |  | (12 | ) |  |  | (7 | )
|  | $ | (7 | ) |  | $ | 113 |
Summary of Deferred Tax Assets and Liabilities |
[e] | Deferred tax assets and liabilities consist of the following temporary differences:
|  | 2015 |  |  | 2014 |
Assets |  |  |  |  |  |  |  |
Tax benefit of loss carryforwards |  | $ | 614 |  |  | $ | 686 |
Liabilities currently not deductible for tax |  |  | 211 |  |  |  | 231 |
Tax credit carryforwards |  |  | 24 |  |  |  | 25 |
Unrealized loss on cash flow hedges and retirement liabilities |  |  | 154 |  |  |  | 119 |
Others |  |  | 16 |  |  |  | 12 |
|  |  | 1,019 |  |  |  | 1,073 |
Valuation allowance against tax benefit of loss carryforwards |  |  | (562 | ) |  |  | (637 | )
Other valuation allowance |  |  | (50 | ) |  |  | (80 | )
|  |  | 407 |  |  |  | 356 |
Liabilities |  |  |  |  |  |  |  |
Tax depreciation in excess of book depreciation |  |  | 249 |  |  |  | 212 |
Tax on undistributed foreign earnings |  |  | 10 |  |  |  | 7 |
Unrealized gain on cash flow hedges and retirement liabilities |  |  | 9 |  |  |  | 9 |
|  |  | 268 |  |  |  | 228 |
Net deferred tax assets |  | $ | 139 |  |  | $ | 128 |
Net Deferred Tax Assets Presented on Consolidated Balance Sheet | The net deferred tax assets are presented on the consolidated balance sheet in the following categories:
|  | 2015 |  |  | 2014 |
Long-term deferred tax assets |  | $ | 271 |  |  | $ | 220 |
Long-term deferred tax liabilities |  |  | (132 | ) |  |  | (92 | )
|  | $ | 139 |  |  | $ | 128 |
Summary of Changes in Gross Unrecognized Tax Benefits |
A summary of the changes in gross unrecognized tax benefits is as follows:
|  | 2015 |  |  | 2014 |
Balance, beginning of year |  | $ | 202 |  |  | $ | 238 |
Increase based on tax positions related to current year |  |  | 17 |  |  |  | 21 |
Increase (decrease) based on tax positions of prior years |  |  | 53 |  |  |  | (23 | )
Settlements |  |  | (15 | ) |  |  | (8 | )
Statute expirations |  |  | (20 | ) |  |  | (10 | )
Foreign currency translation |  |  | (16 | ) |  |  | (16 | )
|  | $ | 221 |  |  | $ | 202 |

X
- Definition Deferred tax assets and liabilities net classification. + References No definition available. + Details
Name: | mga_DeferredTaxAssetsAndLiabilitiesNetClassificationTableTextBlock
Namespace Prefix: | mga_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of changes in gross unrecognized tax benefits. + References No definition available. + Details
Name: | mga_SummaryOfChangesInGrossUnrecognizedTaxBenefitsTableTextBlock
Namespace Prefix: | mga_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of deferred income taxes based on temporary differences. + References No definition available. + Details
Name: | mga_SummaryOfDeferredIncomeTaxesBasedOnTemporaryDifferencesTableTextBlock
Namespace Prefix: | mga_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration