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Segmented Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segmented Information
23.
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 Systems 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 from operations 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:
 
   
                       
   
                       
   
                       
   
                       
   
                       
 
   
2020
 
   
Total
sales
  
External
sales
   
Adjusted
EBIT
  
Depreciation
and
amortization
   
Equity
income
 
      
Body Exteriors & Structures
  
$
13,550
 
 
$
13,292
 
  
$
817
 
 
$
727
 
  
$
—
 
Power & Vision
  
 
9,722
 
 
 
9,553
 
  
 
495
 
 
 
464
 
  
 
(179
) 
Seating Systems
  
 
4,455
 
 
 
4,433
 
  
 
107
 
 
 
73
 
  
 
(6
) 
Complete Vehicles
  
 
5,415
 
 
 
5,363
 
  
 
274
 
 
 
84
 
  
 
(3
) 
Corporate & Other [i]
  
 
(495
) 
 
 
6
 
  
 
(17
) 
 
 
18
 
  
 
(1
) 
   
 
 
  
 
 
   
 
 
  
 
 
   
 
 
 
Total Reportable Segments
  
$
32,647
 
 
$
32,647
 
  
$
1,676
 
 
$
1,366
 
  
$
(189
) 
   
 
 
  
 
 
   
 
 
  
 
 
   
 
 
 
 
                                                                                                                                             
   
2019
 
   
Total
sales
  
External
sales
   
Adjusted
EBIT
   
Depreciation
and
amortization
   
Equity
(income)
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
) 
   
 
 
  
 
 
   
 
 
   
 
 
   
 
 
 
 
   
                         
   
                         
   
                         
   
                         
   
                         
 
   
2020
 
   
Net
assets
   
Investments
   
Goodwill
   
Fixed
assets,
net
   
Fixed
asset
additions
 
Body Exteriors & Structures
  
$
7,536
 
  
$
31
 
  
$
483
 
  
$
4,725
 
  
$
581
 
Power & Vision
  
 
5,529
 
  
 
371
 
  
 
1,315
 
  
 
2,666
 
  
 
440
 
Seating Systems
  
 
1,118
 
  
 
144
 
  
 
176
 
  
 
418
 
  
 
70
 
Complete Vehicles
  
 
671
 
  
 
80
 
  
 
121
 
  
 
578
 
  
 
34
 
Corporate & Other [i]
  
 
710
 
  
 
321
 
  
 
—
 
  
 
88
 
  
 
20
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Reportable Segments
  
$
15,564
 
  
$
947
 
  
$
2,095
 
  
$
8,475
 
  
$
1,145
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
   
                         
   
                         
   
                         
   
                         
   
                         
 
   
2019
 
   
Net
assets
   
Investments
   
Goodwill
   
Fixed
assets,
net
   
Fixed
asset
additions
 
Body Exteriors & Structures
  
$
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
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 [i]
Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.
 
[b]
The following table reconciles Net income from operations to Adjusted EBIT:
 
   
2020
   2019 
   
Net Income
  
$
677
 
  $1,632 
Add:
          
Interest expense, net
  
 
86
 
   82 
Other expense, net
  
 
584
 
   240 
Income taxes
  
 
329
 
   591 
   
 
 
   
 
 
 
Adjusted EBIT
  
$
1,676
 
  $2,545 
   
 
 
   
 
 
 
 
[c]
The following table shows Net Assets for the Company’s reporting segments:
 
   
2020
   2019 
   
Total Assets
  
$
28,605
 
  $25,790 
Deduct assets not included in segment net assets:
          
Cash and cash equivalents
  
 
(3,268
) 
   (1,276) 
Deferred tax assets
  
 
(372
) 
   (308) 
Long-term receivables from joint venture partners
  
 
(66
) 
   (71) 
Deduct liabilities included in segment net assets:
          
Accounts payable
  
 
(6,266
) 
   (5,628) 
Accrued salaries and wages
  
 
(815
) 
   (753) 
Other accrued liabilities
  
 
(2,254
) 
   (1,800) 
   
 
 
   
 
 
 
Segment Net Assets
  
$
15,564
 
  $15,954 
   
 
 
   
 
 
 
 
[d]
The following table aggregates external revenues by customer as follows:
 
   
2020
   2019 
   
General Motors
  
$
4,921
 
  $5,732 
BMW
  
 
4,714
 
   5,469 
Daimler AG
  
 
4,596
 
   4,887 
Ford Motor Company
  
 
4,004
 
   5,270 
Fiat Chrysler Automobiles
  
 
3,958
 
   5,173 
Volkswagen
  
 
3,510
 
   4,001 
Other
  
 
6,944
 
   8,899 
   
 
 
   
 
 
 
   
$
32,647
 
  $39,431 
   
 
 
   
 
 
 
 
[e]
The following table summarizes external revenues and long-lived assets by geographic region:
 
   
External Sales
   
Fixed Assets, Net
 
   
2020
   2019   
2020
   2019 
     
North America
                    
United States
  
$
8,210
 
  $9,702   
$
1,610
 
  $1,661 
Canada
  
 
4,144
 
   5,353   
 
974
 
   993 
Mexico
  
 
3,359
 
   4,294   
 
1,247
 
   1,287 
   
 
 
   
 
 
   
 
 
   
 
 
 
   
 
15,713
 
   19,349   
 
3,831
 
   3,941 
     
Europe
                    
Austria
  
 
6,817
 
   8,279   
 
867
 
   872 
Germany
  
 
4,366
 
   4,878   
 
1,095
 
   1,090 
Czech Republic
  
 
912
 
   899   
 
293
 
   276 
Poland
  
 
535
 
   689   
 
221
 
   201 
Russia
  
 
345
 
   434   
 
120
 
   134 
Spain
  
 
323
 
   431   
 
82
 
   79 
United Kingdom
  
 
292
 
   422   
 
214
 
   209 
Italy
  
 
256
 
   527   
 
265
 
   244 
Turkey
  
 
247
 
   293   
 
9
 
   10 
France
  
 
142
 
   201   
 
62
 
   55 
Slovakia
  
 
126
 
   139   
 
283
 
   223 
Other Europe
  
 
111
 
   139   
 
222
 
   215 
   
 
 
   
 
 
   
 
 
   
 
 
 
   
 
14,472
 
   17,331   
 
3,733
 
   3,608 
     
Asia Pacific
                    
China
  
 
1,921
 
   1,947   
 
758
 
   528 
India
  
 
79
 
   144   
 
89
 
   98 
Other Asia Pacific
  
 
31
 
   73   
 
6
 
   5 
   
 
 
   
 
 
   
 
 
   
 
 
 
   
 
2,031
 
   2,164   
 
853
 
   631 
Rest of World
  
 
431
 
   587   
 
58
 
   80 
   
 
 
   
 
 
   
 
 
   
 
 
 
   
$
32,647
 
  $39,431   
$
8,475
 
  $8,260