Accounting Standards (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Summary of Impact of Adopting New Standard on Financial Statements

The impact of adopting the new revenue standard affected certain balances in the Consolidated Statements of Income as follows:

	2017
Decrease in sales	$	(2,358	)
Decrease in cost of goods sold		(2,363	)
Increase in depreciation and amortization		11
Decrease in equity income		8
Decrease in income from operations before income taxes		(14	)
Decrease in income taxes		(3	)
Decrease in net income		(11	)
Decrease in income attributable to non-controlling interests		1
Decrease in net income attributable to Magna International Inc.	$	(10	)
Earnings per Common Share:
Basic	$	(0.02	)
Diluted	$	(0.03	)

The decrease in Sales and Cost of goods sold for the period was primarily a result of the change in the accounting for tooling and pre-production engineering activities as a cost recovery rather than as revenue, and also due to a change in the timing of recognition for customer reimbursements related to tooling and pre-production engineering activities.

The impact of adopting the new revenue standard affected certain balances in the Consolidated Balance Sheets as follows:

	2017
ASSETS
Decrease in accounts receivable	$	(183	)
Increase in inventories		163
Decrease in investments		(9	)
Increase in fixed assets, net		35
Increase in deferred tax assets		2
Increase in other assets		67
LIABILITIES AND SHAREHOLDERS’ EQUITY
Decrease in accounts payable	$	(3	)
Increase in other accrued liabilities		77
Increase in other long-term liabilities		22
Decrease in deferred tax liabilities		(1	)
Decrease in retained earnings		(15	)
Decrease in accumulated other comprehensive loss		(3	)
Decrease in non-controlling interests		(2	)

The impact of adopting the new revenue standard affected certain balances in the Consolidated Statements of Cash Flows as follows:

	2017
OPERATING ACTIVITIES
Decrease in net income	$	(11	)
Increase in items not involving current cash flows		9
		(2	)
Decrease in changes in operating assets and liabilities		19
Increase in cash provided from operating activities		17
INVESTING ACTIVITIES
Increase in fixed asset additions		(17	)
Increase in cash used for investing activities		(17	)
Cash, cash equivalents and restricted cash equivalents beginning of period		1,168
Cash, cash equivalents and restricted cash equivalents, end of period	$	839