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Segmented Information

12 Months Ended

Dec. 31, 2019

25.	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, electronics, mirrors & lighting, mechatronics and roof systems. Magna also has electronic and software capabilities across many of these areas.

The Company is organized under four operating segments: Body Exteriors & Structures, Power & Vision, Seating System

and Complete Vehicles. These segments have been determined on the basis of technological opportunities, product similarities, and market and operating factors, and are also the Company’s reportable segments.

The Company’s chief operating decision maker uses Adjusted Earnings before Interest and Income Taxes [“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 and adding back income taxes, interest expense, net, and other expense, net.

The accounting policies of each segment are the same as those set out under “Significant Accounting Policies”

[note 1]

. All intersegment sales and transfers are accounted for at fair market value.

[a]	The following tables show segment information for the Company’s reporting segments and a reconciliation of Adjusted EBIT to the Company’s consolidated income before income taxes:


	2019
								Depreciation		Equity
	Total			External		Adjusted		and		( income )
	sales			sales		EBIT		amortization		loss
Body Exteriors & Structures	$	16,458		$	16,110	$	1,299	$	710	$	(3	)
Power & Vision		11,312			11,103		747		464		(174	)
Seating Systems		5,577			5,548		312		66		(4	)
Complete Vehicles		6,707			6,661		144		84		(1	)
Corporate & Other [i]		(623	)		9		43		21		4

Total Reportable Segments	$	39,431		$	39,431	$	2,545	$	1,345	$	(178	)

	2018
								Depreciation
	Total			External		Adjusted		and		Equity
	sales			sales		EBIT		amortization		income
Body Exteriors & Structures	$	17,527		$	17,220	$	1,413	$	701	$	(12	)
Power & Vision		12,321			12,086		1,171		435		(261	)
Seating Systems		5,548			5,546		426		57		(3	)
Complete Vehicles		6,018			5,968		68		65		—
Corporate & Other [i]		(587	)		7		29		20		(1	)

Total Reportable Segments	$	40,827		$	40,827	$	3,107	$	1,278	$	(277	)

	2019
								Fixed		Fixed
	Net							asset,		asset
	assets			Investments		Goodwill		net		additions
Body Exteriors & Structure	$	7,906		$	31	$	458	$	4,827	$	713
Power & Vision		5,626			899		1,238		2,299		577
Seating Systems		1,219			134		169		412		76
Complete Vehicles		735			2		111		593		69
Corporate & Other [i]		468			144		—		129		6

Total Reportable Segments	$	15,954		$	1,210	$	1,976	$	8,260	$	1,441

	2018
								Fixed		Fixed
	Net							asset,		asset
	assets			Investments		Goodwill		net		additions
Body Exteriors & Structure	$	7,142		$	34	$	459	$	4,825	$	730
Power & Vision [ii]		6,703			1,680		1,260		2,151		655
Seating Systems		815			135		147		330		78
Complete Vehicles		605			2		113		622		170
Corporate & Other [i]		563			338		—		167		17

Total Reportable Segments	$	15,828		$	2,189	$	1,979	$	8,095	$	1,650

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

[ii]	Includes $541 million of net assets held for sale.

[b]	The following table reconciles Net income from operations to Adjusted EBIT:


	2019		2018
Net Income	$	1,632	$	2,332
Add:
Interest expense, net		82		93
Other expense, net		240		63
Income taxes		591		619

Adjusted EBIT	$	2,545	$	3,107

[c]	The following table shows Net Assets for the Company’s reporting segments:


	2019			2018
Total Assets	$	25,790		$	25,945
Deduct assets not included in segment net assets:
Cash and cash equivalents		(1,276	)		(684	)
Deferred tax assets		(308	)		(300	)
Long-term receivables from joint venture partners		(71	)		(71	)
Income taxes receivable		—			(57	)
Deduct liabilities included in segment net assets:
Accounts Payable		(5,628	)		(6,094	)
Accrued salaries and wages		(753	)		(769	)
Other accrued liabilities		(1,800	)		(1,734	)
Liabilities held for sale		—			(408	)

Segment Net Assets	$	15,954		$	15,828

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


	2019		2018
General Motors	$	5,732	$	6,303
BMW		5,469		4,826
Ford Motor Company		5,270		5,721
Fiat Chrysler Automobiles		5,173		5,693
Daimler AG		4,887		4,687
Volkswagen		4,001		4,128
Other		8,899		9,469

	$	39,431	$	40,827

[e]	The following table summarizes external revenues and long-lived assets by geographic region:


	External Sales				Fixed Assets, Net
	2019		2018		2019		2018
North America
United States	$	9,702	$	10,043	$	1,661	$	1,359
Canada		5,353		5,886		993		1,001
Mexico		4,294		4,618		1,287		1,275

		19,349		20,547		3,941		3,635
Europe
Austria		8,279		7,750		872		938
Germany		4,878		4,893		1,090		1,271
Czech Republic		899		764		276		257
Poland		689		694		201		200
Italy		527		850		244		288
United Kingdom		422		517		209		191
Russia		434		424		134		138
Spain		431		382		79		47
Turkey		293		291		10		8
France		201		219		55		46
Slovakia		139		127		223		71
Other Europe		139		144		215		221

		17,331		17,055		3,608		3,676
Asia Pacific
China		1,947		2,152		528		588
India		144		180		98		106
Korea		44		158		1		21
Other Asia Pacific		29		50		4		3

		2,164		2,540		631		718
Rest of World		587		685		80		66

	$	39,431	$	40,827	$	8,260	$	8,095