EX-99 2 exh_99.htm EXHIBIT 99

Exhibit 99

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. 
(United States dollars in millions, except per share figures) (Unaudited)
Prepared in accordance with U.S. GAAP
                                               
              2017   2018   2019
          Note   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL
VEHICLE VOLUME STATISTICS (in millions)                      
North American vehicle volumes (including Mexico)     4.534 4.456 3.979 4.146 17.115       4.414 4.368 4.048 4.211 17.041       4.250 4.269 3.925 3.909 16.353
                                               
European vehicle volumes:                                      
  Western Europe       4.012 3.830 3.337 3.762 14.941   3.939 4.005 2.998 3.393 14.335   3.725 3.622 3.007 3.287 13.641
  Eastern Europe       1.880 1.962 1.634 1.956 7.432   1.974 2.071 1.696 2.065 7.806   2.015 2.066 1.676 2.013 7.770
    Total Europe       5.892 5.792 4.971 5.718 22.373   5.913 6.076 4.694 5.458 22.141   5.740 5.688 4.683 5.300 21.411
                                               
Asia volumes         12.660 11.531 12.144 14.048 50.383   12.559 12.304 11.693 12.872 49.428   11.955 11.290 11.132 13.378 47.755
                                               
China volumes         6.794 6.029 6.512 8.420 27.755   6.663 6.591 6.102 6.977 26.333   6.031 5.504 5.674 7.549 24.758
                                               
Magna Steyr vehicle assembly volumes     0.008 0.021 0.022 0.027 0.078   0.041 0.033 0.034 0.037 0.145   0.046 0.043 0.035 0.034 0.158
                                               
AVERAGE FOREIGN EXCHANGE RATES                                      
1 Canadian dollar equals U.S. dollars     0.756 0.744 0.798 0.787 0.771   0.790 0.775 0.765 0.756 0.771   0.752 0.748 0.757 0.758 0.754
1 Euro equals U.S. dollars     1.066 1.101 1.175 1.178 1.130   1.229 1.193 1.163 1.141 1.181   1.135 1.124 1.112 1.107 1.119
1 Chinese renminbi equals U.S. dollars     0.145 0.146 0.150 0.151 0.148   0.157 0.157 0.147 0.145 0.151   0.148 0.147 0.142 0.142 0.145
                                               
CONSOLIDATED STATEMENTS OF INCOME (LOSS)                                      
Sales           8,900        9,140        8,864        9,684 36,588   10,792      10,280        9,618      10,137 40,827   10,591      10,126        9,319        9,395 39,431
                                               
Costs and expenses:                                        
  Cost of goods sold     7,457        7,745        7,488        8,205 30,895   9,293        8,795        8,253        8,714 35,055   9,164        8,710        8,063        8,085 34,022
  Selling, general and administrative      416           409           406           437 1,668   396           434           403           431 1,664   421           453           400           423 1,697
  Equity income       (67)            (54)            (45)            (87) (253)   (87)            (72)            (62)            (56) (277)   (35)            (48)            (37)            (58) (178)
                                               
  EBITDA     2   1,094        1,040        1,015        1,129 4,278   1,190        1,123        1,024        1,048 4,385   1,041        1,011           893           945 3,890
  Depreciation and amortization     276           282           310           316 1,184   315           320           325           318 1,278   321           334           335           355 1,345
  EBIT     3   818           758           705           813 3,094   875           803           699           730 3,107   720           677           558           590 2,545
  Interest expense, net     19             11             20             20 70   21             23             23             26 93   31             14             18             19 82
                                               
Operating income      2   799 747 685 793 3,024   854 780 676 704 3,014   689 663 540 571 2,463
Other expense (income), net 2   6 3 2 28 39   3 (39) 2 97 63   (679) 68 859 (8) 240
Income (loss) from operations before income taxes               793           744           683           765        2,985             851           819           674           607        2,951          1,368           595          (319)           579        2,223
Income taxes         206           183           162           190 741   182           183           114           140 619   267           145             45           134 591
                                               
Net income (loss)         587           561           521           575 2,244   669           636           560           467 2,332   1,101           450          (364)           445 1,632
(Income) loss attributable to non-controlling interests 2   (10)            (13)              (9)            (16) (48)   (9)            (10)              (6)            (11) (36)   5               2           131              (5) 133
Net income (loss) attributable to Magna International Inc.     577 548 512 559 2,196   660 626 554 456 2,296   1,106 452 (233) 440 1,765
                                               
                                               
Adjusted net income attributable to Magna International Inc. 2   583 551 514 571 2,219   663 590 535 542 2,330   531 509 438 433 1,911
                                               
Diluted earnings (loss) per share:                                      
  Diluted          $      1.51  $      1.44  $      1.38  $      1.54  $      5.87    $      1.83  $      1.77  $      1.62  $      1.37  $      6.61    $      3.39  $      1.42  $     (0.75)  $      1.43  $      5.59
  Adjusted Diluted        $      1.53  $      1.45  $      1.39  $      1.58  $      5.93    $      1.84  $      1.67  $      1.56  $      1.63  $      6.71    $      1.63  $      1.59  $      1.41  $      1.41  $      6.05
                                               
                                               
Weighted average number of Common Shares outstanding                                       
  during the year (in millions):     383.4 379.5 370.4 362.3 373.9   359.9 354.1 343.0 333.2 347.5   326.3 319.5 310.7 306.3 315.8
                                               
PROFITABILITY RATIOS                                      
  Selling, general and administrative /Sales     4.7% 4.5% 4.6% 4.5% 4.6%   3.7% 4.2% 4.2% 4.3% 4.1%   4.0% 4.5% 4.3% 4.5% 4.3%
  EBITDA /Sales       12.3% 11.4% 11.5% 11.7% 11.7%   11.0% 10.9% 10.6% 10.3% 10.7%   9.8% 10.0% 9.6% 10.1% 9.9%
  EBIT /Sales         9.2% 8.3% 8.0% 8.4% 8.5%   8.1% 7.8% 7.3% 7.2% 7.6%   6.8% 6.7% 6.0% 6.3% 6.5%
  Operating income /Sales     9.0% 8.2% 7.7% 8.2% 8.3%   7.9% 7.6% 7.0% 6.9% 7.4%   6.5% 6.5% 5.8% 6.1% 6.2%
  Effective tax rate                                        
    Reported       26.0% 24.6% 23.7% 24.8% 24.8%   21.4% 22.3% 16.9% 23.1% 21.0%   19.5% 24.4% -14.1% 23.1% 26.6%
    Excluding Other expense (income), net of taxes     25.8% 24.5% 23.6% 26.0% 25.0%   21.3% 23.1% 20.0% 21.4% 21.5%   23.7% 23.5% 19.6% 23.3% 22.7%

 

Page 1 of 6

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.                        
CONSOLIDATED BALANCE SHEETS                        
(United States dollars in millions) (Unaudited)                        
                                             
              2017     2018     2019
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q
ASSETS                       [Note 1]      
Current assets:                                        
  Accounts receivable     6,776        6,852        6,940        6,695     8,073        7,656        7,160        6,548     7,446        7,204        7,068        5,927
  Inventories         3,242        3,472        3,609        3,542     3,564        3,600        3,580        3,403     3,501        3,521        3,457        3,304
  Prepaid expenses and other     205           230           225           237     250           201           237           250     275           278           211           238
                   10,223      10,554      10,774      10,474          11,887      11,457      10,977      10,201          11,222      11,003      10,736        9,469
Current liabilities:                                        
  Accounts payable and other accruals     8,603        8,440        8,698        8,876     9,855        9,048        8,847        8,597     9,347        9,048        8,757        8,198
                                             
Working capital          1,620        2,114        2,076        1,598     2,032        2,409        2,130        1,604     1,875        1,955        1,979        1,271
Investments                1,844        1,828        1,934        2,079            2,132        2,320        2,337        2,189            2,408        2,334        1,430        1,210
Fixed assets, net                7,130        7,462        7,741        8,176            8,204        8,026        7,743        8,095            7,958        8,109        7,943        8,260
Goodwill, other assets and intangible assets     3,390        3,589        3,693        3,775     3,837        3,684        3,467        3,527     3,487        3,593        3,461        3,456
Operating lease right-of-use assets                   -               -               -               -                   -               -               -               -            1,716        1,744        1,702        1,811
                   13,984      14,993      15,444      15,628          16,205      16,439      15,677      15,415          17,444      17,735      16,515      16,008
Net assets held for sale                    -               -               -               -                   -               -           568           541                   -               -               -               -
Funds employed              13,984      14,993      15,444      15,628          16,205      16,439      16,245      15,956          17,444      17,735      16,515      16,008
FINANCING                                        
Straight debt:                                        
  Short-term borrowings     488           868           457           259     262        1,123        1,291        1,098     335           199           436                -
  Cash and cash equivalents     (831)          (666)          (783)          (726)     (769)          (626)          (884)          (684)     (925)          (563)          (769)       (1,276)
  Long-term debt due within one year     152           138           102           108     114           120           231           201     122           112           104           106
  Current portion of operating lease liabilities     -              -              -              -     -              -              -              -     176           214           218           225
  Long-term debt       2,394        2,427        3,175        3,195     3,220        3,115        3,112        3,084     3,062        3,071        3,021        3,062
  Operating lease liabilities                  -              -              -              -                  -              -              -              -            1,566        1,544        1,527        1,601
                     2,203        2,767        2,951        2,836            2,827        3,732        3,750        3,699            4,336        4,577        4,537        3,718
Long-term employee benefit liabilities     679           719           739           670     691           659           592           597     598           606           584           677
Other long-term liabilities     291           290           248           326     340           314           291           400     396           404           388           371
Deferred tax liabilities, net     16             16             46             84     54             86           107           101     167           196           133           111
                        986        1,025        1,033        1,080            1,085        1,059           990        1,098            1,161        1,206        1,105        1,159
Shareholders' equity       10,795      11,201      11,460      11,712     12,293      11,648      11,505      11,159     11,947      11,952      10,873      11,131
                   13,984      14,993      15,444      15,628          16,205      16,439      16,245      15,956          17,444      17,735      16,515      16,008
                                                        
ASSET UTILIZATION RATIOS                                    
  Days in accounts receivable     68.5 67.5 70.5 62.2     67.3 67.0 67.0 58.1     63.3 64.0 68.3 56.8
  Days in accounts payable     103.8 98.1 104.5 97.4     95.4 92.6 96.5 88.8     91.8 93.5 97.7 91.3
  Inventory turnover - cost of sales     9.2 8.9 8.3 9.3     10.4 9.8 9.2 10.2     10.5 9.9 9.3 9.8
  Working capital turnover      22.0 17.3 17.1 24.2     21.2 17.1 18.1 25.3     22.6 20.7 18.8 29.6
  Total asset turnover      2.5 2.4 2.3 2.5     2.7 2.5 2.5 2.6     2.4 2.3 2.3 2.3
                                             
CAPITAL STRUCTURE                                      
  Straight debt         15.8% 18.5% 19.1% 18.1%     17.4% 22.7% 23.1% 23.2%     24.9% 25.8% 27.5% 23.2%
  Long-term employee benefit liabilities, other long-term                                    
    liabilities & deferred tax liabilities, net     7.0% 6.8% 6.7% 6.9%     6.6% 6.4% 6.1% 6.9%     6.7% 6.8% 6.7% 7.2%
  Shareholders' equity      77.2% 74.7% 74.2% 74.9%     75.9% 70.9% 70.8% 69.9%     68.5% 67.4% 65.8% 69.5%
              100.0% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0% 100.0%
                                             
  Debt to total capitalization      21.9% 23.5% 24.6% 23.3%     22.6% 27.2% 28.7% 28.2%     30.6% 30.1% 32.8% 31.0%
                                             
  Adjusted Debt to Adjusted EBITDA 2   1.07x 1.17x 1.23x 1.20x     1.18x 1.32x 1.37x 1.32x     1.18x 1.18x 1.26x 1.21x
ANNUALIZED RETURNS                                    
  Return on assets (EBIT/assets employed)     23.4% 20.2% 18.3% 20.8%     21.6% 19.5% 17.8% 18.9%     16.5% 15.3% 13.5% 14.7%
  Return on equity (Net income attributable to Magna                                    
    International Inc. / Average shareholders' equity)     22.0% 19.9% 18.1% 19.3%     22.0% 20.9% 19.1% 16.1%     38.3% 15.1% -8.2% 16.0%
  Adjusted Return on equity (Adjusted Net income attributable                                    
     to Magna International Inc. / Average shareholders' equity)     22.2% 20.0% 18.2% 19.7%     22.1% 19.7% 18.5% 19.1%     18.4% 17.0% 15.4% 15.7%

 

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FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.                        
CONSOLIDATED STATEMENTS OF CASH FLOWS                        
(United States dollars in millions) (Unaudited)                        
                                               
              2017   2018   2019
Cash provided from (used for): Note   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL
                               
Operating activities                                                
  Net income (loss)                 587           561           521           575        2,244             669           636           560           467        2,332          1,101           450          (364)           445        1,632
  Items not involving current cash flows               274           373           352           316        1,315             363           303           339           534        1,539            (213)           470        1,210           509        1,976
                        861           934           873           891        3,559          1,032           939           899        1,001        3,871             888           920           846           954        3,608
  Changes in operating assets and liabilities              (404)          (376)               9           558          (213)            (455)          (472)           177           597          (153)            (294)               -              (96)           742           352
                                               
Cash provided from operating activities               457           558           882        1,449        3,346             577           467        1,076        1,598        3,718             594           920           750        1,696        3,960
                                                     
Investment activities                                              
  Fixed asset additions               (323)          (421)          (380)          (751)       (1,875)            (243)          (379)          (381)          (647)       (1,650)            (251)          (328)          (349)          (513)       (1,441)
  Proceeds from sale of (Investment in) Lyft, Inc.                   -                 -                 -                 -                 -                   -            (200)            (20)               -            (220)                 -                 -               10           221           231
  Increase in investments, other assets and intangible assets                (83)          (143)          (158)          (267)          (651)            (114)          (103)          (114)          (150)          (481)              (82)          (107)            (83)          (122)          (394)
  Proceeds from disposition               142             14             71           105           332               29             48             76             70           223               86             26             57             16           185
  Acquisitions                       -                 -                 -                 -                 -                   -                 4               -            (152)          (148)                 -            (152)               -                 5          (147)
  Proceeds on disposal of facilities                   -                 -                 -               49             49                 -                 -                 -                 -                 -                   -                 -                 -                 -                 -  
  Sale of Fluid Pressure & Controls Business ["FP&C"]                   -                 -                 -                 -                 -                   -                 -                 -                 -                 -            1,129               -                 3               -          1,132
                                                     
Cash provided from (used for) investment activities              (264)          (550)          (467)          (864)       (2,145)            (328)          (630)          (439)          (879)       (2,276)             882          (561)          (362)          (393)          (434)
                                                     
Financing activities                                              
  Net issues (repayments) of debt              (145)           313           141          (197)           112                 3           886           262          (284)           867            (855)          (187)           251          (435)       (1,226)
  Common Shares issued on exercise of stock options                   6               5               9             24             44                 5             41               1               3             50                 8               6             19             11             44
  Repurchase of Common Shares              (100)          (383)          (422)          (366)       (1,271)            (103)          (729)          (520)          (479)       (1,831)            (284)          (409)          (342)          (254)       (1,289)
  Shares repurchased for tax withholdings on vesting of equity awards                 -                 -                 -              (11)            (11)                 -                (2)              (4)            (10)            (16)                (3)              (2)               -                (4)              (9)
  Contributions to subsidiaries by non-controlling interests                   -               10               -                 -               10                 -                 4               -                 -                 4                 2               -                 2               -                 4
  Dividends paid to non-controlling interests                   -                (7)            (26)              (5)            (38)                 -              (30)               -              (39)            (69)                 -              (13)               -                (9)            (22)
  Dividends paid                (105)          (101)            (99)            (95)          (400)            (118)          (115)          (109)          (106)          (448)            (119)          (110)          (109)          (111)          (449)
                                                     
Cash (used for) provided from financing activities              (344)          (163)          (397)          (650)       (1,554)            (213)             55          (370)          (915)       (1,443)         (1,251)          (715)          (179)          (802)       (2,947)
Effect of exchange rate changes on cash, cash equivalents                                            
  and restricted cash equivalents                 11               3               1               9             24               10            (31)            (10)              (5)            (36)               14              (4)              (9)             10             11
Net increase (decrease) in cash, cash equivalents                                      
  and restricted cash equivalents during the period              (140)          (152)             19            (56)          (329)               46          (139)           257          (201)            (37)             239          (360)           200           511           590
Cash, cash equivalents and restricted cash equivalents,                                      
  beginning of period 4          1,168        1,028           876           895        1,168             839           885           746        1,003           839             802        1,041           681           881           802
Cash, cash equivalents and restricted cash equivalents,                                            
  end of period              1,028           876           895           839           839             885           746        1,003           802           802          1,041           681           881        1,392        1,392

 

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FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.  
(United States dollars in millions, except per share figures) (Unaudited)  
   
    This Analyst should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019.  
       
Note 1:  LEASES ADOPTION  
    On January 1, 2019, the Company adopted ASC 842, Leases using the modified retrospective transition approach, without restatement of comparative periods' financial information. The adoption requires the Company to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets.  
                                                 
Note 2: NON-GAAP MEASURES  
    The Company presents Operating income, EBIT (Earnings before interest and taxes) and EBITDA (Earnings before interest, taxes and depreciation and amortization) before Other expense (income),net.  The Company also presents Adjusted Net Income (Net Income before Other expense (income),net , net of tax and excluding significant income tax valuation allowance adjustments), Adjusted Diluted Earnings per Share, Gross margin as a percentage of sales, Adjusted EBIT and Adjusted EBIT as a percentage of sales, Return on Invested Capital and Return on Equity. The Company calculates Adjusted Debt as total debt adjusted to include pension and lease liabilities and Adjusted EBITDA as earnings before, interest, net, taxes, depreciation and amortization adjusted to add back interest income, certain pension costs and operating lease expense. The Company presents these financial figures because such measures are widely used by analysts and investors in evaluating the operating performance of the Company.  However, such measures do not have any standardized meaning under U.S. generally accepted accounting principles and may not be comparable to the calculation of similar measures by other companies.

Other expense (income), net consists of:		  
                                                 
              2017   2018   2019  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
                                                 
                                                 
    Impairment charges [a]   - - - 81 81   - - - 74 74   - - 727 - 727  
    Restructuring charges [b]   6 3 2 18 29   3 17 2 23 45   14 7 7 3 31  
    Net (gains) losses on investments [c]   - - - (26) (26)   - (56) - - (56)   (177) 67 127 (11) 6  
    Gain on the sale of business [d]   - - - - -   - - - - -   (516) (6) (2) - (524)  
    Gain on formation of a new venture [e]   - - - (45) (45)   - - - - -   - - - - -  
                                                 
              6               3               2             28             39   3            (39)               2             97             63   (679)             68           859              (8)           240  
                                                 
  [a] Impairment charges                                        
    In Power & Vision, during the third quarter of 2019, the Company concluded that indicators of potential impairment were present and recorded $700 million impairment on its investment in Getrag (Jiangxi) Transmission Co., Ltd., Getrag Ford Transmission GmbH, and Dongfeng Getrag Transmission Co. Ltd.  Additionally, the Company recorded asset impairment charges of $27 million in the Company's Power & Vision segment.

In Body Exteriors & Structures, during the fourth quarter of 2018, the Company recorded $14 million of impairment charges for fixed assets. In Power & Vision, during the fourth quarter of 2018, the Company recorded a $60 million impairment charge on investment.

In Body Exteriors & Structures, during the fourth quarter of 2017, the Company recorded $64 million of impairment charges for fixed assets. In Power & Vision, during the fourth quarter of 2017, the Company recorded a $17 million impairment charge on investment.
     
  [b] Restructuring charges  
              2017   2018   2019  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
                                                 
    Power & Vision     6 3 2 3 14   3 12 2 3 20   - - - - -  
    Body Exteriors & Structures     - - - 15 15   - 5 - 20 25   14 7 7 3 31  
              6               3               2             18             29   3             17               2             23 45   14               7               7               3             31  
                                             
  [c] Net (gains) losses on investments  
    In Corporate, during the first, second, third and fourth quarters of 2019, the Company recorded gains of $177 million, net losses of $67 million, net losses of $127 million, and net gains of $11 million respectively, substantially related to the revaluation of its investment in Lyft, Inc.

In Corporate, during the second quarter of 2018, the Company remeasured its private equity investments at fair value resulting in a $56 million gain, of which $46 million related to its investment in Lyft, Inc.

In Corporate, during the fourth quarter of 2017, the Company recorded a gain of $26 million on the sale of a cost-based investment.
     
  [d] Gain on the sale of business  
    In Power & Vision, during the first quarter of 2019, the Company recorded a gain on the sale of the FP&C business of $516 million. In the second and third quarter of 2019, the Company recorded an increase in the gain on sale of $6 million and $2 million, respectively, as a result of finalizing the proceeds relating to working capital.   
       
  [e] Gain on formation of a new venture  
    In Seating Systems, the Company recorded a gain of $45 million related to the formation of a new venture.  

 

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    The following table reconciles Net (loss) income attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.:
                                               
              2017   2018   2019
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL
                               
                                                      
    Net income (loss) attributable to Magna International Inc.     577           548           512           559        2,196   660           626           554           456        2,296   1,106           452          (233)           440        1,765
      Exclude:                                       
        Impairment charges [f]     -                -                - 81             81   -                -                - 71             71   -                -           557 -           557
        Restructuring charges     6 3 2 14             25   3 17 2 21             43   14 7 7 3             31
        Net (gains) losses on investments     - - - (26)            (26)   - (53) - -            (53)   (151) 57 109 (10)               5
        Gain on the sale of business     - - - -                -   - - - -                -   (438) (7) (2) -          (447)
        Gain on formation of a new venture     - - - (34)            (34)   - - - -                -   - - - -                -
        US tax reform     - - - (23)            (23)   - - - 11             11   - - - -                -
        Reassessment of deferred tax balances - FP&C [g]   - - - -                -   - - (21) -            (21)   - - - -                -
        Adjustment to tax valuation allowance [h]     - - - -                -   -   - (17)            (17)   - - - -                -
                                      -                      -
    Adjusted net income attributable to Magna International Inc.   583           551           514           571        2,219   663           590           535           542        2,330   531           509           438           433        1,911
                                               
                                               
    Diluted earnings (loss) per share      $      1.51  $      1.44  $      1.38  $      1.54  $      5.87    $      1.83  $      1.77  $      1.62  $      1.37  $      6.61    $      3.39 1.42         (0.75)  $      1.43  $      5.59
      Exclude:                                      
        Impairment charges [f]     -               -                 -            0.22 0.22   -               -                 -            0.22 0.21   -               -            1.80               -   1.76
        Restructuring charges     0.02          0.01          0.01          0.04 0.06   0.01          0.05               -            0.06 0.12   0.04          0.02          0.02          0.01 0.10
        Net (gains) losses on investments     -               -                 -           (0.07) (0.07)   -         (0.15)               -                 -   (0.15)   (0.46)          0.17          0.35         (0.03) 0.02
        Gain on the sale of business     -               -                 -                 -   -   -               -                 -                 -   -   (1.34)         (0.02)         (0.01)               -   (1.42)
        Gain on formation of a new venture     -               -                 -           (0.09) (0.09)   -               -                 -                 -   -   -               -                 -                 -   -
        US tax reform     -               -                 -           (0.06) (0.06)   -               -                 -            0.03 0.03   -               -                 -                 -   -
        Reassessment of deferred tax balances - FP&C [g]   -               -                 -                 -   -   -               -           (0.06)               -   (0.06)   -               -                 -                 -   -
        Adjustment to tax valuation allowance [h]     -               -                 -                 -   -   -               -                 -           (0.05) (0.05)   -               -                 -                 -   -
                                               
    Adjusted diluted earnings per share       $      1.53  $      1.45  $      1.39  $      1.58  $      5.93    $      1.84  $      1.67  $      1.56  $      1.63  $      6.71    $      1.63  $      1.59  $      1.41  $      1.41  $      6.05
                                           
  [f] Impairment charges                                      
    Impairment charges relating to its investment in Getrag (Jiangxi) Transmission Co., Ltd., include $127 million attributable to non-controlling interest.
     
  [g] Reassessment of deferred tax balances - FP&C
    Reassessment of deferred tax balances relating to timing differences that reversed on closing of the sale of the global Fluid Pressure & Controls ["FP&C"] business.
     
  [h] Adjustment to tax valuation allowance
    During the fourth quarter of 2018, the Company released $17 million of the tax valuation allowance in India.

 

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Note 3: SEGMENTED INFORMATION
     
              2017   2018   2019  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
    Body Exteriors & Structures Group                        
      Total sales     4,167 4,109 4,004 4,333 16,613   4,619 4,551 4,180 4,177 17,527   4,308 4,243 3,984 3,923 16,458  
      Adjusted EBIT     349 337 306 354 1,346   343 388 326 356 1,413   363 341 306 289 1,299  
      Adjusted EBIT as a percentage of total sales     8.4% 8.2% 7.6% 8.2% 8.1%   7.4% 8.5% 7.8% 8.5% 8.1%   8.4% 8.0% 7.7% 7.4% 7.9%  
                                                 
    Power & Vision                                        
      Total sales     2,963 2,892 2,830 2,944 11,629   3,190 3,197 2,947 2,987 12,321   3,083 2,808 2,696 2,725 11,312  
      Adjusted EBIT     328 266 267 322 1,183   359 299 259 254 1,171   216 201 167 163 747  
      Adjusted EBIT as a percentage of total sales     11.1% 9.2% 9.4% 10.9% 10.2%   11.3% 9.4% 8.8% 8.5% 9.5%   7.0% 7.2% 6.2% 6.0% 6.6%  
                                                 
    Seating Systems                                        
      Total sales     1,335 1,367 1,217 1,305 5,224   1,470 1,424 1,219 1,435 5,548   1,433 1,452 1,266 1,426 5,577  
      Adjusted EBIT     116 117 95 106 434   130 117 69 110 426   94 83 56 79 312  
      Adjusted EBIT as a percentage of total sales     8.7% 8.6% 7.8% 8.1% 8.3%   8.8% 8.2% 5.7% 7.7% 7.7%   6.6% 5.7% 4.4% 5.5% 5.6%  
                                                 
    Complete Vehicles                                        
      Total sales     527 869 938 1,213 3,547   1,660 1,280 1,391 1,687 6,018   1,928 1,802 1,516 1,461 6,707  
      Adjusted EBIT     6 15 17 28 66   19 1 24 24 68   28 43 29 44 144  
      Adjusted EBIT as a percentage of total sales     1.1% 1.7% 1.8% 2.3% 1.9%   1.1% 0.1% 1.7% 1.4% 1.1%   1.5% 2.4% 1.9% 3.0% 2.1%  
                                                 
    Corporate and other                                        
      Intercompany fees     (92) (97) (125) (111) (425)   (147) (172) (119) (149) (587)   (161) (179) (143) (140) (623)  
      Adjusted EBIT     19 23 20 3 65   24 (2) 21 (14) 29   19 9 0 15 43  
                                                 
    Total                                            
      Total sales     8,900 9,140 8,864 9,684 36,588   10,792 10,280 9,618 10,137 40,827   10,591 10,126 9,319 9,395 39,431  
      Adjusted EBIT     818 758 705 813 3,094   875 803 699 730 3,107   720 677 558 590 2,545  
      Adjusted EBIT as a percentage of total sales     9.2% 8.3% 8.0% 8.4% 8.5%   8.1% 7.8% 7.3% 7.2% 7.6%   6.8% 6.7% 6.0% 6.3% 6.5%  
                                                 
Note 4: CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS
                                                 
    A reconciliation of Cash and cash equivalents and Restricted cash equivalents (included in prepaid expenses) to Total cash, cash equivalents and restricted cash equivalents is as follows:
                                                 
              2017     2018     2019    
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q    
                                                 
    Cash and cash equivalents     (831) (666) (783) (726)     (769) (626) (884) (684)     (925) (563) (769) (1,276)    
    Restricted cash equivalents included in prepaid expenses              (197)          (210)          (112)          (113)     (116) (120) (119) (118)     (116) (118) (112) (116)    
    Total cash, cash equivalents and restricted cash equivalents     (1,028) (876) (895) (839)     (885) (746) (1,003) (802)     (1,041) (681) (881) (1,392)    

 

 

 

 

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