Magna International Inc 40-F for FY2021
Magna International Inc (MGA)
40-F
2022-03-28
For: 2021-12-31
View Original
Added on
April 11, 2026
About this 40-F
Magna International Inc filed this 40-F on March 28, 2022, covering the fiscal year ended December 31, 2021 (FY2021).
Headline figures
Fiscal year ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $36.24B
- up 11.0% from $32.65B a year earlier
- Net income
- $1.51B
- up 100.0% from net income of $757M a year earlier
- Diluted EPS
- $5.00
- up 98.4% from $2.52 a year earlier
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 40-F
REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR
ANNUAL REPORT PURSUANT TO SECTION 13(a) or 15(d) of THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended |
Commission File Number |
(Exact name of Registrant as specified in its charter)
Not Applicable
(Translation of Registrant’s name into English (if applicable)
Province of Ontario ,
Canada
(Province of other jurisdiction of incorporation or organization)
3714
(Primary Standard Industrial Classification Code number (if applicable)
Not Applicable
(I.R.S. Employer Identification Number (if applicable)
(905 ) 726-2462
(Address and telephone number of Registrant’s principal executive offices)
Telephone 212 -299-5600
(Name, address (including zip code) and telephone number (including area code)
of agent for service in the United States)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each class |
Name of each exchange on which registered | |
Securities registered or to be registered pursuant to Section 12(g) of the Act. None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None
For annual reports, indicate by check mark the information filed with this Form:
Annual Information Form |
Audited Annual Financial Statements |
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. 297,871,976 Common Shares.
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation Yes ☒ No ☐
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Indicate by check mark whether the registrant is an emerging growth company as defined in Rule
12b-2
of the Exchange Act. Emerging Growth Company ☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Auditor Name: |
Auditor Location: |
Auditor Firm ID: |
| 1. | ANNUAL INFORMATION FORM |
The Registrant’s Annual Information Form for the year ended December 31, 2021 is attached as
Exhibit 1
(the “Annual Information Form”) to this annual report on Form 40-F
and is incorporated by reference herein. | 2. | AUDITED ANNUAL FINANCIAL STATEMENTS |
The Registrant’s consolidated audited financial statements as at and for the fiscal years ended December 31, 2021 and December 31, 2020, including the Report of Independent Registered Public Accounting Firm, prepared by Deloitte LLP (“Deloitte”) with respect thereto, are included in
Exhibit 2
attached to this annual report on Form 40-F and
are incorporated by reference herein. | 3. | MANAGEMENT’S DISCUSSION AND ANALYSIS |
The Registrant’s Management’s Discussion and Analysis of Operations and Financial Position for the year ended December 31, 2021 is included in
Exhibit 3
attached to this annual report on Form 40-F and
is incorporated by reference herein. | 4. | WEBSITE INFORMATION |
Notwithstanding any reference to the Registrant’s website on the World Wide Web in the Annual Information Form or in the documents attached or incorporated as exhibits hereto, the information contained in the Registrant’s website, or any other site on the World Wide Web referred to in the Registrant’s website, is not a part of this annual report on Form
40-F
and, therefore, is not filed with the Commission. | 5. | FORWARD-LOOKING STATEMENTS |
The Registrant has made in the documents filed as part of this annual report on Form
40-F,
and from time to time may otherwise make “forward-looking statements”, within the meaning of Section 21E under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the U.S. Securities Act of 1933, and related assumptions concerning its operations, economic performance and financial matters. Actual results or events could differ materially from those set forth in, or implied by, the forward-looking statements and the related assumptions due to a variety of factors. Reference is made to the section titled “Forward-Looking Statements” on page 2 of the Annual Information Form for a discussion of such factors. | 6. | CONTROLS AND PROCEDURES |
The Registrant’s Chief Executive Officer and its Executive Vice-President and Chief Financial Officer are responsible for establishing and maintaining the Registrant’s disclosure controls and procedures (as such term is defined in Rules
13a-15(e)
and 15d-15(e)
under the Exchange Act) and internal control over financial reporting (as such term is defined in Rules 13a-15(f)
and 15d-15(f)
under the Exchange Act). Disclosure Controls and Procedures
The Registrant maintains disclosure controls and procedures designed to ensure that material information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported on a timely basis, and that such information is accumulated and communicated to senior management, including the Registrant’s Chief Executive Officer and Chief Financial Officer, as appropriate, to enable them to make timely decisions regarding required disclosure of such information. The Registrant has conducted an evaluation of its disclosure controls and procedures as of December 31, 2021 under the supervision, and with the participation of, its Chief Executive Officer and its Chief Financial Officer. Based on this evaluation, the Registrant’s Chief Executive Officer and Chief Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as this term is defined in the rules adopted by Canadian securities regulatory authorities and the United States Securities and Exchange Commission) are effective as of December 31, 2021.
Internal Control Over Financial Reporting
Management of the Registrant is responsible for establishing and maintaining adequate internal control over financial reporting for the Registrant. Internal control over financial reporting is a process designed to provide reasonable, but not absolute, assurance regarding the reliability of financial reporting and preparation of financial
statements for external purposes in accordance with U.S. GAAP. Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Additionally, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Registrant’s management used the Committee of Sponsoring Organizations of the Treadway Commission [“COSO”] Internal Control-Integrated Framework (2013) to evaluate the effectiveness of internal control over financial reporting. Based on this evaluation, the Registrant’s Chief Executive Officer and Chief Financial Officer have assessed the effectiveness of the internal control over financial reporting and concluded that, as at December 31, 2021, such internal control over financial reporting is effective. The Registrant’s internal control over financial reporting as of December 31, 2021 has been audited by Deloitte, the Independent Registered Public Accounting Firm who also audited the Registrant’s consolidated financial statements for the year ended December 31, 2021. Deloitte expressed an unqualified opinion on the effectiveness of the Registrant’s internal control over financial reporting. This report precedes the Registrant’s audited consolidated financial statements for the year ended December 31, 2021, included in Exhibit 2
attached to this annual report on Form 40-F. Changes in Internal Controls Over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 7. | AUDIT COMMITTEE MEMBERS AND AUDIT COMMITTEE FINANCIAL EXPERT |
The Registrant has a separately designated standing audit committee of its Board of Directors (the “Audit Committee”), which is currently comprised of the following members of the Registrant’s Board of Directors: Robert F. MacLellan (Chair), Peter G. Bowie, Mary Lou Maher and Cynthia A. Niekamp.
The Registrant’s Board of Directors has determined that each of Mr. MacLellan, the Chair of the Audit Committee, and Mr. Bowie, Ms. Maher and Ms. Niekamp, is an “audit committee financial expert” and that each member of the Audit Committee is “independent” and “financially literate”, as such terms are defined in the listing standards of the New York Stock Exchange and Exchange Act
Rule 10A-3.
| 8. | CODE OF ETHICS |
The Registrant has adopted a code of ethics that applies to all of its employees, including its Chief Executive Officer, its Chief Financial Officer, its Controller and other persons performing similar functions. The full text of such code of ethics is available on the Registrant’s website at www.magna.com under the Leadership & Governance section.
| 9. | CORPORATE GOVERNANCE |
As a “foreign private issuer” listed on the New York Stock Exchange (NYSE), the Registrant is required to disclose the significant ways in which its corporate governance practices differ from those to be followed by U.S. domestic issuers under the NYSE listing standards. The Registrant has disclosed on its website (www.magna.com) a Statement of Significant Corporate Governance Differences (NYSE), which discloses such differences.
| 10. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
The table below shows the fees for professional services rendered by our principal accountant, Deloitte, for the fiscal years ended December 31, 2021 and December 31, 2020.
Fiscal 2021 |
Fiscal 2020 |
|||||||||||||||
| Type of Services |
Fees | % of Total | Fees | % of Total | ||||||||||||
| Audit Fees |
9,453,000 | 58% | 9,032,000 | 56 | % | |||||||||||
| Audit-Related Fees |
5,603,000 | 35% | 5,332,000 | 33 | % | |||||||||||
| Tax Fees |
999,000 | 6% | 911,000 | 6 | % | |||||||||||
| All Other Fees |
195,000 | 1% | 738,000 | 5 | % | |||||||||||
| Total |
16,250,000 |
100.00% |
16,013,000 |
100.00 |
% | |||||||||||
The services comprising the “Audit Fees” category for each of the last two fiscal years were performed by Deloitte to comply with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), including integrated audit of the consolidated financial statements and quarterly reviews. In some cases, fees in this category may include an appropriate allocation of fees for tax services or accounting consultations, to the extent such services were necessary to comply with the standards of the PCAOB. This category includes fees incurred in connection with the audit of our internal control over financial reporting for purposes of Section 404 of the Sarbanes-Oxley Act of 2002.
The services comprising the “Audit-Related Fees” category consists of fees paid in respect of assurance and related services, including such things as due diligence relating to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, services related to statutory audits of certain foreign subsidiaries, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards. Audit-related services actually provided by Deloitte in each of fiscal 2021 and fiscal 2020 consisted of: services related to statutory audits of certain foreign subsidiaries, assurance services and procedures related to attest engagements not required by statute or regulation, and other assurance services.
The services comprising the “Tax Fees” category consists of all fees paid in respect of tax compliance, planning and advisory services performed by Deloitte’s tax professionals, except those services required in order to comply with the standards of the PCAOB which are included under “Audit Services”. The tax services actually provided by Deloitte in each of fiscal 2021 and fiscal 2020 consisted of: domestic and international tax advisory, compliance and research services, as well as transfer pricing advisory services.
The category “All Other Fees” captures fees in respect of all permitted services not falling under any of the previous categories.
In order to protect Deloitte’s independence, the Audit Committee has a process for
pre-approving
all services provided by, and related fees to be paid to, Deloitte. This process includes reviewing, on a quarterly basis, the details and associated costs of the services expected to be provided by Deloitte. Audit Committee approval is required for any services that have not previously been approved by the Audit Committee. In assessing the impact of any proposed services on auditor independence, the Audit Committee considers whether: | • | the services are consistent with applicable auditor independence rules; |
| • | the independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Registrant’s business, people, culture, accounting systems and risk profile; and |
| • | the services enhance the Registrant’s ability to manage or control risks and improve audit quality . |
None of the services provided by Deloitte in 2021 were treated as exempt from provision of paragraph (c)(7)(i)(C) of
pre-approval
pursuant to the de minimis
Rule 2-01
of Regulation S-X.
| 11. | TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS |
For the tabular disclosure regarding the Registrant’s known contractual obligations, with amounts aggregated by the type of contractual obligation, see pages 20 and 21 of the Management’s Discussion and Analysis, included in
Exhibit 3
to this annual report on Form 40-F. | 12. | INTERACTIVE DATA FILE |
Concurrent with this filing, the Registrant has submitted to the Commission and posted on its website, www.magna.com, an Interactive Data File.
UNDERTAKING AND CONSENT TO SERVICE OF PROCESS
| A. | Undertaking |
Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to
Form 40-F;
the securities in relation to which the obligation to file an annual report on Form 40-F
arises; or transactions in said securities. | B. | Consent to Service of Process |
A
Form F-X
signed by the Registrant and its agent for service of process was previously filed with the Commission. SIGNATURES
Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form
40-F
and has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized. | Registrant: | MAGNA INTERNATIONAL INC. | |
| By (Signature and Title): | /s/ “Bassem Shakeel” | |
| Bassem A. Shakeel, | ||
Vice-President and Corporate Secretary | ||
| Date: | March 25, 2022. | |
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