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Other Expense, Net | 12 Months Ended
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Dec. 31, 2022
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:
|  | 2022 |  |  | 2021 |
Impairments related to operations in Russia [a] |  | $ | 376 |  |  | $ | — |
Net losses on investments [b] |  |  | 221 |  |  |  | 2 |
Loss on sale of business [c] |  |  | 58 |  |  |  | 75 |
Restructuring and impairments [d] |  |  | 48 |  |  |  | 101 |
Merger agreement termination fee [e] |  |  | — |  |  |  | (100 | )
Gain on business combinations [f] |  |  | — |  |  |  | (40 | )
Other expense, net |  | $ | 703 |  |  | $ | 38 |
[a] | Impairments related to operations in Russia
As at December 31, 2022, the Company’s operations in Russia remain substantially idled. In accordance with U.S. GAAP, as a result of the expected lack of future cashflows and the continuing uncertainties connected with the Russian economy, the Company recorded a $376 million [$361 million after tax] impairment charge related to its investment in Russia. This included net asset impairments of $173 million and a $203 million reserve against the related foreign currency translation losses that are included in accumulated other comprehensive loss. The net asset impairments consisted of $163 million and $10 million in our Body Exteriors & Structures segment and our Seating Systems segment, respectively.
[b] | Net losses (gains) on investments
|  | 2022 |  |  | 2021 |
Revaluation of public company warrants |  | $ | 173 |  |  | $ | (4 | )
Revaluation of public and private equity investments |  |  | 49 |  |  |  | 6 |
Net gain on sale of public equity investments |  |  | (1 | ) |  |  | — |
Other expense, net |  |  | 221 |  |  |  | 2 |
Tax effect |  |  | (53 | ) |  |  | 7 |
Net loss attributable to Magna |  | $ | 168 |  |  | $ | 9 |
[c] | Loss on sale of business
During the fourth quarter of 2022, the Company entered into an agreement to sell a European Power & Vision operation in early 2023. Under the terms of the arrangement, the Company is contractually obligated to provide the buyer with up to $42 million of funding, resulting in a loss of $58 million [$57 million after tax]. During 2021, the Company sold three Body Exteriors & Structures operations in Germany. Under the terms of the arrangement, the Company provided the buyer with $41 million of funding, resulting in a loss on disposal of $75 million [$75 million after tax].
[d] | Restructuring and impairments
For the year ended December 31, 2022, the Company recorded restructuring and impairment charges of $26 million [$25 million after tax] for its Power & Vision segment and $22 million [$21 million after tax] for its Body Exteriors & Structures segment. For the year ended December 31, 2021, the Company recorded restructuring and impairment charges of $67 million [$52 million after tax] for its Power & Vision segment, $18 million [$17 million after tax] for its Seating Systems segment and $16 million [$14 million after tax] for its Body Exteriors & Structures segment.
[e] | Merger agreement termination fee
In the fourth quarter of 2021, Veoneer, Inc. [“Veoneer”] terminated its merger agreement with the Company. In connection with the termination of the merger agreement, Veoneer paid Magna a termination fee which, net of the Company’s associated transaction costs, amounted to $100 million [$75 million after tax].
[f] | Gain on business combinations
During 2021, the Company acquired a 65% equity interest and a controlling financial interest in Chongqing Hongli Zhixin Scientific Technology Development Group LLC (“Hongli”). The acquisition included an additional 15% equity interest in two entities that were previously equity accounted for by the Company. On the change in basis of accounting, the Company recognized a $22 million gain [$22 million after tax]. Also during 2021, the Company recorded a gain of $18 million [$18 million after tax] in connection with the distribution of substantially all of the assets of the Company’s European joint venture, Getrag Ford Transmission GmbH .

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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 https://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 https://asc.fasb.org/topic&trid=49130413 + Details
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