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Other Expense, Net | 12 Months Ended
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Dec. 31, 2020
Other Income and Expenses [Abstract] |
Other Expense, Net |
2. | OTHER EXPENSE, NET
Other expense, net consists of significant items such as: impairment charges; restructuring costs generally related to significant plant closures or consolidations; net (gains) losses on investments; gains or losses on disposal of facilities or businesses; and other items not reflective of on-going operating profit or loss. Other expense, net consists of:
|  | 2020 |  |  | 2019 |
Impairments and loss on sale of equity-accounted investments [a] |  | $ | 347 |  |  | $ | 700 |
Restructuring and impairments [b] |  |  | 269 |  |  |  | 58 |
Net (gains) losses on investments [c] |  |  | (32 | ) |  |  | 6 |
Gain on sale of business [d] |  |  | — |  |  |  | (524 | )
Other expense, net |  | $ | 584 |  |  | $ | 240 |
[a] | Impairments and loss on sale of equity-accounted investments
The following table summarizes the impairment charges and loss on sale recorded for certain investments in the Company’s Power & Vision segment:
|  | 2020 |  |  | 2019 |
Impairment of Getrag (Jiangxi) Transmission Co., Ltd. [“GJT”] [i] |  | $ | 337 |  |  | $ | 511 |
Impairment of Getrag Ford Transmission GmbH [“GFT”] [ii] |  |  | — |  |  |  | 150 |
Loss on sale and impairment of Dongfeng Getrag Transmission Co. Ltd. [“DGT”] [iii] |  |  | 10 |  |  |  | 39 |
Total impairments and loss on sale of equity-accounted investments |  |  | 347 |  |  |  | 700 |
Tax effect on Other expense, net |  |  | (53 | ) |  |  | (36 | )
Loss attributable to non-controlling interests |  |  | (75 | ) |  |  | (127 | )
Non-cash impairment charge included in Net income attributable to Magna International Inc. |  | $ | 219 |  |  | $ | 537 |
| [i] | During 2019, the Company recorded an impairment charge related to its equity-accounted investment in GJT. The impairment was based on the in-sourcing of transmissions by certain Chinese OEMs, lower than expected sales, pricing pressure in the China market, and declines in volume projections for manual transmissions and dual-clutch transmissions in China.
During 2020, an impairment for GJT was recorded based on pricing pressure in the China market as a result of the global economic climate, as well as additional declines in volume and sales projections for the foreseeable future. In the fourth quarter of 2020, the governing documents related to GJT were revised, providing the Company with a controlling financial interest. As a result, the Company began consolidating GJT on December 29, 2020, the effective date of the amendments [note 5] .
| [ii] | On December 22, 2020, the Company entered into multiple agreements with the Ford Motor Company [“Ford”] to operate certain businesses within GFT under separate ownership. The transaction closed on March 1, 2021 [note 7] . In 2019 the Company recorded an impairment charge related to its equity investment in GFT as a result of lower than expected sales and declines in volume projections for manual transmissions in Europe.
| [iii] | During 2020, the Company recorded a $10 million loss on the sale of its 50% interest in DGT. An impairment loss of $39 million related to DGT was recorded during 2019 as a result of the factors listed above impacting the China market.
[b] | Restructuring and impairments
The following table summarizes the restructuring and fixed asset impairment charges recorded by segment for the year ended December 31, 2020:
|  | Body Exteriors & Structures |  |  | Power &Vision |  |  | Seating Systems |  |  | Total |  |  | Net of Tax |
COVID-19 Restructuring and Impairments [i] |  | $ | 37 |  |  | $ | 115 |  |  | $ | 16 |  |  | $ | 168 |  |  | $ | 136 |
Restructuring |  |  | 21 |  |  |  | — |  |  |  | — |  |  |  | 21 |  |  |  | 21 |
Fixed Asset Impairments |  |  | 57 |  |  |  | — |  |  |  | — |  |  |  | 57 |  |  |  | 57 |
Brazil Closures [ii] |  |  | 8 |  |  |  | — |  |  |  | 15 |  |  |  | 23 |  |  |  | 23 |
|  | $ | 123 |  |  | $ | 115 |  |  | $ | 31 |  |  | $ | 269 |  |  | $ | 237 |
| [i] | In response to the impact that COVID-19 was expected to have on vehicle production volumes over the short to medium term, the Company initiated and/or accelerated the timing of restructuring plans to right-size its business. These restructuring actions include plant closures and workforce reductions which will be substantially complete by December 31, 2021.
| [ii] | In connection with the recently announced plant closures by Ford in Brazil, the Company made the decision to accelerate the closure of two facilities that supply these plants.
During 2019, the Company recorded net restructuring costs of $31 million [$31 million after tax] for its Body Exteriors & Structures’ operations and asset impairment charges of $27 million [$20 million after tax] for its Electronics’ operations which are included in the Company’s Power & Vision segment.
[c] | Net (gains) losses on investments
During 2020, the Company recorded unrealized gains of $34 million [$29 million after tax] on the revaluation of its private equity investments and a non-cash impairment charge of $2 million [$2 million after tax] related to a private equity investment, which was included in the Corporate segment. During 2019, the Company recorded net losses on investments of $6 million [$5 million after tax]. This includes net unrealized gains of $17 million [$15 million after tax] related to the revaluation of its private equity investments and net losses of $23 million [$20 million after tax] related to its investment in Lyft, Inc. [“Lyft”]. During 2019, the Company sold 5.4 million shares of its publicly traded equity securities in Lyft for proceeds of $231 million.
[d] | Gain on sale of business
During 2019, the Company completed the sale of its global Fluid Pressure & Controls business [“FP&C business”] which was included in the Power & Vision segment. Total consideration was $1.23 billion, and the Company recognized a gain on the sale of $524 million [$447 million after tax].

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- Definition The entire disclosure for other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that may be disclosed, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 720 -URI http://asc.fasb.org/topic&trid=2122503 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 610 -URI http://asc.fasb.org/topic&trid=49130413 + Details
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