XML 126 R38.htm IDEA: XBRL DOCUMENT v3.22.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2021
Schedule of Investments
    
2021
      2020  
Equity method investments
[a]
   
$
1,031
 
    $ 677  
Public and private equity investments
   
 
358
 
      270  
Warrants
[b]
   
 
204
 
      —    
    
 
 
     
 
 
  
    
$
1,593
      $ 947  
    
 
 
     
 
 
  
 
[a]
The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]:
 
          
2021
      2020  
LG Magna
e-Powertrain
Co., Ltd.
[i]
   
 
49.0
% 
  
$
481
 
    $ —    
Litens Automotive Partnership
[ii]
   
 
76.7
% 
  
$
291
 
    $ 273  
Hubei HAPM Magna Seating Systems Co., Ltd.
   
 
49.9
% 
  
$
127
 
    $
121
  
 
[i]
On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna
e-Powertrain
Co., Ltd. [“LME”], for cash consideration of $517 million. LME is a variable interest entity [“VIE”] and depends on the Company and LG for funding. The Company is not considered the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of its investment balance as at December 31, 2021.
The difference between the purchase price of the Company’s investment in LME and its proportionate share of the fair value of LME’s net assets created a basis difference of $188 million, which has been allocated on a preliminary basis as follows:
 
Equity method goodwill
    $ 118  
Intangible assets
      47  
Fixed assets
      47  
Deferred tax liabilities
      (24 ) 
    
 
 
  
Total basis difference included in equity method investments
    $ 188  
    
 
 
  
Ownership Percentages and Carrying Value Principal Equity Method Investments
[a]
The ownership percentages and carrying values of the Company’s principal equity method investments at December 31 were as follows [in millions, except percentages]:
 
          
2021
      2020  
LG Magna
e-Powertrain
Co., Ltd.
[i]
   
 
49.0
% 
  
$
481
 
    $ —    
Litens Automotive Partnership
[ii]
   
 
76.7
% 
  
$
291
 
    $ 273  
Hubei HAPM Magna Seating Systems Co., Ltd.
   
 
49.9
% 
  
$
127
 
    $
121
  
 
[i]
On July 28, 2021, the Company’s Power & Vision segment formed a joint venture with LG Electronics [“LG”], LG Magna
e-Powertrain
Co., Ltd. [“LME”], for cash consideration of $517 million. LME is a variable interest entity [“VIE”] and depends on the Company and LG for funding. The Company is not considered the primary beneficiary. The Company’s known maximum exposure to loss approximated the carrying value of its investment balance as at December 31, 2021.
Summary of Total Financial Results of Equity Method Investees
A summary of the total financial results, as reported by the Company’s equity method investees, in the aggregate, at December 31 was as follows:
Summarized Balance Sheets
 
    
2021
      2020  
Current assets
    $ 1,825      $ 1,510  
    
 
 
     
 
 
  
Non-current
assets
    $ 1,838      $      1,748  
    
 
 
     
 
 
  
Current liabilities
    $   1,269      $ 873  
    
 
 
     
 
 
  
Long-term liabilities
    $ 450      $ 835  
    
 
 
     
 
 
  
Summarized Income Statements
 
    
2021
      2020  
Sales
    $        3,303      $      3,384  
Cost of goods sold & expenses
      3,156        3,140  
    
 
 
     
 
 
  
Net income
    $ 147      $ 244