Canada | 98-0442987 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
3560 Lenox Road, Suite 2000 Atlanta, | 30326 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
N/A | N/A | N/A |
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||||||||||||||
Non-accelerated filer | Smaller reporting company | ¨ | |||||||||||||||
Emerging growth company | ¨ |
PART | ||||||||
PART | ||||||||
Term | Definition | |||||||
Adjusted EBITDA | ||||||||
Aleris | Aleris Corporation | |||||||
AluInfra | AluInfra Services | |||||||
Alunorf | Aluminium Norf GmbH | |||||||
ASC | FASB Accounting Standards Codification | |||||||
Duffel | Plant located in Duffel, Belgium, required to be divested (Refer to Note 2 – Discontinued Operations) | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
fiscal 2016 | Fiscal year ended March 31, 2016 | |||||||
fiscal 2020 | Fiscal year ended March 31, 2020 | |||||||
fiscal 2021 | Fiscal year ended March 31, 2021 | |||||||
fiscal 2022 | Fiscal year ended March 31, 2022 | |||||||
fiscal 2023 | Fiscal year ending March 31, 2023 | |||||||
Form 10-Q | Quarterly Report on Form 10-Q | |||||||
FRP | Flat-rolled products | |||||||
GAAP | Generally Accepted Accounting Principles | |||||||
Kobe | Kobe Steel, Ltd. | |||||||
kt | kilotonne (One kt is 1,000 metric tonnes.) | |||||||
Lewisport | Plant located in Lewisport, Kentucky, required to be divested (Refer to Note 2 – Discontinued Operations) | |||||||
LME | The London Metals Exchange | |||||||
LMP | Local market premium | |||||||
Logan | Logan Aluminum Inc. | |||||||
MMBtu | One decatherm or 1 million British Thermal Units | |||||||
OEM | Original equipment manufacturer | |||||||
RSUs | Restricted stock units | |||||||
SARs | Stock appreciation rights | |||||||
SEC | United States Securities and Exchange Commission | |||||||
SG&A | Selling, general and administrative expenses | |||||||
Tri-Arrows | Tri-Arrows Aluminum Inc. | |||||||
UAL | Ulsan Aluminum Ltd. | |||||||
UBC | Used beverage can | |||||||
U.S. | United States | |||||||
U.K. | United Kingdom | |||||||
VIE | Variable interest entity | |||||||
2022 Form 10-K | Our Annual Report on Form 10-K for the fiscal year ended March 31, 2022, as filed with the SEC on May 11, 2022 |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Net sales | $ | 5,089 | $ | 3,855 | |||||||||||||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 4,265 | 3,137 | |||||||||||||||||||||
Selling, general and administrative expenses | 164 | 159 | |||||||||||||||||||||
Depreciation and amortization | 138 | 134 | |||||||||||||||||||||
Interest expense and amortization of debt issuance costs | 58 | 59 | |||||||||||||||||||||
Research and development expenses | 23 | 24 | |||||||||||||||||||||
Gain on extinguishment of debt, net | — | (2) | |||||||||||||||||||||
Restructuring and impairment expenses (reversals), net | 1 | (2) | |||||||||||||||||||||
Equity in net income of non-consolidated affiliates | (4) | (1) | |||||||||||||||||||||
Other expenses (income), net | 50 | (64) | |||||||||||||||||||||
4,695 | 3,444 | ||||||||||||||||||||||
Income from continuing operations before income tax provision | 394 | 411 | |||||||||||||||||||||
Income tax provision | 87 | 108 | |||||||||||||||||||||
Net income from continuing operations | 307 | 303 | |||||||||||||||||||||
Loss from discontinued operations, net of tax | (1) | (63) | |||||||||||||||||||||
Net income | 306 | 240 | |||||||||||||||||||||
Net loss attributable to noncontrolling interests | (1) | — | |||||||||||||||||||||
Net income attributable to our common shareholder | $ | 307 | $ | 240 |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 3,085 | $ | 2,313 | $ | 8,548 | $ | 6,970 | |||||||
Cost of goods sold (exclusive of depreciation and amortization) | 2,646 | 1,924 | 7,268 | 5,834 | |||||||||||
Selling, general and administrative expenses | 128 | 103 | 358 | 303 | |||||||||||
Depreciation and amortization | 86 | 88 | 267 | 267 | |||||||||||
Interest expense and amortization of debt issuance costs | 64 | 67 | 192 | 231 | |||||||||||
Loss on extinguishment of debt | — | — | — | 112 | |||||||||||
Research and development expenses | 17 | 14 | 48 | 41 | |||||||||||
Gain on assets held for sale | — | — | — | (2 | ) | ||||||||||
(Gain) loss on sale of a business, net | — | — | (318 | ) | 27 | ||||||||||
Restructuring and impairment, net | 25 | 1 | 33 | 4 | |||||||||||
Equity in net loss of non-consolidated affiliates | — | 8 | 1 | 8 | |||||||||||
Other (income) expense, net | (6 | ) | (3 | ) | 7 | 36 | |||||||||
2,960 | 2,202 | 7,856 | 6,861 | ||||||||||||
Income before income taxes | 125 | 111 | 692 | 109 | |||||||||||
Income tax provision | 20 | 47 | 179 | 110 | |||||||||||
Net income (loss) | 105 | 64 | 513 | (1 | ) | ||||||||||
Net (loss) income attributable to noncontrolling interests | (16 | ) | 1 | (16 | ) | 1 | |||||||||
Net income (loss) attributable to our common shareholder | $ | 121 | $ | 63 | $ | 529 | $ | (2 | ) |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Net income | $ | 306 | $ | 240 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Currency translation adjustment | (173) | 30 | |||||||||||||||||||||
Net change in fair value of effective portion of cash flow hedges | 913 | (15) | |||||||||||||||||||||
Net change in pension and other benefits | 9 | 3 | |||||||||||||||||||||
Other comprehensive income before income tax effect | 749 | 18 | |||||||||||||||||||||
Income tax provision related to items of other comprehensive income | 234 | — | |||||||||||||||||||||
Other comprehensive income, net of tax | 515 | 18 | |||||||||||||||||||||
Comprehensive income | 821 | 258 | |||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests, net of tax | (1) | — | |||||||||||||||||||||
Comprehensive income attributable to our common shareholder | $ | 822 | $ | 258 |
Three Months Ended December 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 105 | $ | 64 | |||
Other comprehensive income (loss): | |||||||
Currency translation adjustment | 58 | (140 | ) | ||||
Net change in fair value of effective portion of cash flow hedges | (36 | ) | (24 | ) | |||
Net change in pension and other benefits | 3 | 26 | |||||
Other comprehensive income (loss) before income tax effect | 25 | (138 | ) | ||||
Income tax benefit, net, related to items of other comprehensive income (loss) | (10 | ) | — | ||||
Other comprehensive income (loss), net of tax | 35 | (138 | ) | ||||
Comprehensive income (loss) | 140 | (74 | ) | ||||
Less: Comprehensive (loss) income attributable to noncontrolling interests, net of tax | (16 | ) | 2 | ||||
Comprehensive income (loss) attributable to our common shareholder | $ | 156 | $ | (76 | ) |
Nine Months Ended December 31, | |||||||
2017 | 2016 | ||||||
Net income (loss) | $ | 513 | $ | (1 | ) | ||
Other comprehensive income (loss): | |||||||
Currency translation adjustment | 149 | (129 | ) | ||||
Net change in fair value of effective portion of cash flow hedges | (33 | ) | (22 | ) | |||
Net change in pension and other benefits | 8 | 55 | |||||
Other comprehensive income (loss) before income tax effect | 124 | (96 | ) | ||||
Income tax (benefit) provision, net, related to items of other comprehensive income | (6 | ) | 8 | ||||
Other comprehensive income (loss), net of tax | 130 | (104 | ) | ||||
Comprehensive income (loss) | 643 | (105 | ) | ||||
Less: Comprehensive (loss) income attributable to noncontrolling interests, net of tax | (16 | ) | 3 | ||||
Comprehensive income (loss) attributable to our common shareholder | $ | 659 | $ | (108 | ) |
December 31, 2017 | March 31, 2017 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 757 | $ | 594 | |||
Accounts receivable, net | |||||||
— third parties (net of uncollectible accounts of $6 as of December 31, 2017 and March 31, 2017) | 1,331 | 1,067 | |||||
— related parties | 253 | 60 | |||||
Inventories | 1,572 | 1,333 | |||||
Prepaid expenses and other current assets | 120 | 137 | |||||
Fair value of derivative instruments | 115 | 113 | |||||
Assets held for sale | 3 | 3 | |||||
Total current assets | 4,151 | 3,307 | |||||
Property, plant and equipment, net | 3,073 | 3,357 | |||||
Goodwill | 607 | 607 | |||||
Intangible assets, net | 420 | 457 | |||||
Investment in and advances to non–consolidated affiliates | 831 | 451 | |||||
Deferred income tax assets | 90 | 86 | |||||
Other long–term assets | |||||||
— third parties | 93 | 94 | |||||
— related parties | 10 | 15 | |||||
Total assets | $ | 9,275 | $ | 8,374 | |||
LIABILITIES AND SHAREHOLDER’S EQUITY (DEFICIT) | |||||||
Current liabilities | |||||||
Current portion of long–term debt | $ | 136 | $ | 121 | |||
Short–term borrowings | 116 | 294 | |||||
Accounts payable | |||||||
— third parties | 1,909 | 1,722 | |||||
— related parties | 206 | 51 | |||||
Fair value of derivative instruments | 192 | 151 | |||||
Accrued expenses and other current liabilities | 607 | 580 | |||||
Total current liabilities | 3,166 | 2,919 | |||||
Long–term debt, net of current portion | 4,352 | 4,437 | |||||
Deferred income tax liabilities | 137 | 98 | |||||
Accrued postretirement benefits | 813 | 799 | |||||
Other long–term liabilities | 241 | 198 | |||||
Total liabilities | 8,709 | 8,451 | |||||
Commitments and contingencies | |||||||
Shareholder’s equity (deficit) | |||||||
Common stock, no par value; unlimited number of shares authorized; 1,000 shares issued and outstanding as of December 31, 2017 and March 31, 2017 | — | — | |||||
Additional paid–in capital | 1,404 | 1,404 | |||||
Accumulated deficit | (389 | ) | (918 | ) | |||
Accumulated other comprehensive loss | (415 | ) | (545 | ) | |||
Total equity (deficit) of our common shareholder | 600 | (59 | ) | ||||
Noncontrolling interests | (34 | ) | (18 | ) | |||
Total equity (deficit) | 566 | (77 | ) | ||||
Total liabilities and equity (deficit) | $ | 9,275 | $ | 8,374 |
Nine Months Ended December 31, | |||||||
2017 | 2016 | ||||||
OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | 513 | $ | (1 | ) | ||
Adjustments to determine net cash provided by operating activities: | |||||||
Depreciation and amortization | 267 | 267 | |||||
Loss (gain) on unrealized derivatives and other realized derivatives in investing activities, net | 4 | (23 | ) | ||||
Gain on assets held for sale | — | (2 | ) | ||||
(Gain) loss on sale of business | (318 | ) | 27 | ||||
Loss on sale of assets | 4 | 4 | |||||
Impairment charges | 15 | — | |||||
Loss on extinguishment of debt | — | 112 | |||||
Deferred income taxes | 41 | 15 | |||||
Amortization of fair value adjustments, net | — | 7 | |||||
Equity in net loss of non-consolidated affiliates | 1 | 8 | |||||
Loss on foreign exchange remeasurement of debt | 3 | — | |||||
Amortization of debt issuance costs and carrying value adjustments | 15 | 10 | |||||
Other, net | (1 | ) | 1 | ||||
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | |||||||
Accounts receivable | (403 | ) | (108 | ) | |||
Inventories | (175 | ) | (200 | ) | |||
Accounts payable | 221 | 59 | |||||
Other current assets | 24 | (3 | ) | ||||
Other current liabilities | 12 | (55 | ) | ||||
Other noncurrent assets | (4 | ) | (17 | ) | |||
Other noncurrent liabilities | 18 | 50 | |||||
Net cash provided by operating activities | 237 | 151 | |||||
INVESTING ACTIVITIES | |||||||
Capital expenditures | (136 | ) | (138 | ) | |||
Proceeds from sales of assets, third party, net of transaction fees and hedging | 1 | 2 | |||||
Proceeds (outflows) from the sale of a business | 314 | (2 | ) | ||||
Proceeds from investment in and advances to non-consolidated affiliates, net | 9 | 12 | |||||
Outflows from related party loans receivable, net | — | (3 | ) | ||||
(Outflows) proceeds from the settlement of derivative instruments, net | (18 | ) | 7 | ||||
Net cash provided by (used in) investing activities | 170 | (122 | ) | ||||
FINANCING ACTIVITIES | |||||||
Proceeds from issuance of long-term and short-term borrowings | — | 2,770 | |||||
Principal payments of long-term and short-term borrowings | (138 | ) | (2,676 | ) | |||
Revolving credit facilities and other, net | (140 | ) | (20 | ) | |||
Debt issuance costs | (5 | ) | (139 | ) | |||
Net cash used in financing activities | (283 | ) | (65 | ) | |||
Net increase (decrease) in cash and cash equivalents | 124 | (36 | ) | ||||
Effect of exchange rate changes on cash | 39 | (15 | ) | ||||
Cash and cash equivalents — beginning of period | 594 | 556 | |||||
Cash and cash equivalents — end of period | $ | 757 | $ | 505 |
Equity (Deficit) of our Common Shareholder | ||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Loss (AOCI) | Non- controlling Interests | Total (Deficit)/ Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance as of March 31, 2016 | 1,000 | $ | — | $ | 1,404 | $ | (963 | ) | $ | (500 | ) | $ | — | $ | (59 | ) | ||||||||||
Net loss attributable to our common shareholder | — | — | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | 1 | 1 | |||||||||||||||||||
Currency translation adjustment included in AOCI | — | — | — | — | (129 | ) | — | (129 | ) | |||||||||||||||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit of $8 million included in AOCI | — | — | — | — | (14 | ) | — | (14 | ) | |||||||||||||||||
Change in pension and other benefits, net of tax provision of $16 million included in AOCI | — | — | — | — | 37 | 2 | 39 | |||||||||||||||||||
Sale of subsidiary shares to a third party | — | — | — | — | — | (22 | ) | (22 | ) | |||||||||||||||||
Balance as of December 31, 2016 | 1,000 | $ | — | $ | 1,404 | $ | (965 | ) | $ | (606 | ) | $ | (19 | ) | $ | (186 | ) |
Equity (Deficit) of our Common Shareholder | ||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Loss (AOCI) | Non- controlling Interests | Total (Deficit)/ Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance as of March 31, 2017 | 1,000 | $ | — | $ | 1,404 | $ | (918 | ) | $ | (545 | ) | $ | (18 | ) | $ | (77 | ) | |||||||||
Net income attributable to our common shareholder | — | — | — | 529 | — | — | 529 | |||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | (16 | ) | (16 | ) | |||||||||||||||||
Currency translation adjustment included in AOCI | — | — | — | — | 149 | — | 149 | |||||||||||||||||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit of $9 million included in AOCI | — | — | — | — | (24 | ) | — | (24 | ) | |||||||||||||||||
Change in pension and other benefits, net of tax provision of $3 million included in AOCI | — | — | — | — | 5 | — | 5 | |||||||||||||||||||
Balance as of December 31, 2017 | 1,000 | $ | — | $ | 1,404 | $ | (389 | ) | $ | (415 | ) | $ | (34 | ) | $ | 566 |
in millions, except number of shares | June 30, 2022 | March 31, 2022 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,037 | $ | 1,070 | |||||||
Accounts receivable, net | |||||||||||
— third parties (net of allowance for credit losses of $6 as of June 30, 2022, and March 31, 2022) | 2,601 | 2,590 | |||||||||
— related parties | 234 | 222 | |||||||||
Inventories | 3,456 | 3,038 | |||||||||
Prepaid expenses and other current assets | 182 | 195 | |||||||||
Fair value of derivative instruments | 621 | 377 | |||||||||
Assets held for sale | 5 | 5 | |||||||||
Current assets of discontinued operations | 6 | 6 | |||||||||
Total current assets | 8,142 | 7,503 | |||||||||
Property, plant and equipment, net | 4,477 | 4,624 | |||||||||
Goodwill | 1,075 | 1,081 | |||||||||
Intangible assets, net | 604 | 623 | |||||||||
Investment in and advances to non-consolidated affiliates | 801 | 832 | |||||||||
Deferred income tax assets | 149 | 158 | |||||||||
Other long-term assets | |||||||||||
— third parties | 295 | 274 | |||||||||
— related parties | 1 | 1 | |||||||||
Total assets | $ | 15,544 | $ | 15,096 | |||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 59 | $ | 26 | |||||||
Short-term borrowings | 603 | 529 | |||||||||
Accounts payable | |||||||||||
— third parties | 3,843 | 3,869 | |||||||||
— related parties | 345 | 320 | |||||||||
Fair value of derivative instruments | 266 | 959 | |||||||||
Accrued expenses and other current liabilities | 859 | 774 | |||||||||
Current liabilities of discontinued operations | 21 | 21 | |||||||||
Total current liabilities | 5,996 | 6,498 | |||||||||
Long-term debt, net of current portion | 4,894 | 4,967 | |||||||||
Deferred income tax liabilities | 387 | 158 | |||||||||
Accrued postretirement benefits | 631 | 669 | |||||||||
Other long-term liabilities | 306 | 295 | |||||||||
Total liabilities | 12,214 | 12,587 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Shareholder's equity: | |||||||||||
Common stock, no par value; Unlimited number of shares authorized; 1,000 shares issued and outstanding as of June 30, 2022, and March 31, 2022 | — | — | |||||||||
Additional paid-in capital | 1,304 | 1,304 | |||||||||
Retained earnings | 2,125 | 1,818 | |||||||||
Accumulated other comprehensive loss | (105) | (620) | |||||||||
Total equity of our common shareholder | 3,324 | 2,502 | |||||||||
Noncontrolling interests | 6 | 7 | |||||||||
Total equity | 3,330 | 2,509 | |||||||||
Total liabilities and equity | $ | 15,544 | $ | 15,096 |
Three Months Ended June 30, | |||||||||||
in millions | 2022 | 2021 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 306 | $ | 240 | |||||||
Net loss from discontinued operations | (1) | (63) | |||||||||
Net income from continuing operations | $ | 307 | $ | 303 | |||||||
Adjustments to determine net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 138 | 134 | |||||||||
(Gain) loss on unrealized derivatives and other realized derivatives in investing activities, net | (18) | 13 | |||||||||
Loss on sale of assets, net | 1 | — | |||||||||
Gain on extinguishment of debt, net | — | (2) | |||||||||
Deferred income taxes, net | 12 | 56 | |||||||||
Equity in net income of non-consolidated affiliates | (4) | (1) | |||||||||
(Gain) loss on foreign exchange remeasurement of debt | (11) | 1 | |||||||||
Amortization of debt issuance costs and carrying value adjustments | 4 | 5 | |||||||||
Other, net | 1 | 1 | |||||||||
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | |||||||||||
Accounts receivable | (97) | (357) | |||||||||
Inventories | (510) | (451) | |||||||||
Accounts payable | 135 | 498 | |||||||||
Other assets | 7 | (55) | |||||||||
Other liabilities | 79 | (80) | |||||||||
Net cash provided by operating activities – continuing operations | 44 | 65 | |||||||||
Net cash used in operating activities – discontinued operations | (1) | (3) | |||||||||
Net cash provided by operating activities | $ | 43 | $ | 62 | |||||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures | $ | (110) | $ | (101) | |||||||
Acquisition of business and other investments, net of cash acquired | (4) | — | |||||||||
Proceeds from sales of assets, third party, net of transaction fees and hedging | — | 1 | |||||||||
(Outflows) proceeds from investment in and advances to non-consolidated affiliates, net | (9) | 7 | |||||||||
Outflows from the settlement of derivative instruments, net | (3) | (4) | |||||||||
Other | 6 | 3 | |||||||||
Net cash used in investing activities | $ | (120) | $ | (94) | |||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of long-term and short-term borrowings | $ | — | $ | 20 | |||||||
Principal payments of long-term and short-term borrowings | (107) | (262) | |||||||||
Revolving credit facilities and other, net | 183 | 125 | |||||||||
Debt issuance costs | — | (2) | |||||||||
Net cash provided by (used in) financing activities | $ | 76 | $ | (119) | |||||||
Net decrease in cash, cash equivalents and restricted cash | (1) | (151) | |||||||||
Effect of exchange rate changes on cash | (33) | 11 | |||||||||
Cash, cash equivalents and restricted cash – beginning of period | 1,084 | 1,027 | |||||||||
Cash, cash equivalents and restricted cash – end of period | $ | 1,050 | $ | 887 | |||||||
Cash and cash equivalents | $ | 1,037 | $ | 872 | |||||||
Restricted cash (included in other long-term assets) | 13 | 15 | |||||||||
Cash, cash equivalents and restricted cash – end of period | $ | 1,050 | $ | 887 | |||||||
Supplemental Disclosures: | |||||||||||
Accrued capital expenditures as of June 30 | $ | 62 | $ | 55 | |||||||
Leased assets obtained in exchange for new operating lease liabilities | 26 | 5 | |||||||||
Equity of our Common Shareholder | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
in millions, except number of shares | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 1,000 | $ | — | $ | 1,404 | $ | 864 | $ | (366) | $ | (16) | $ | 1,886 | ||||||||||||||||||||||||||||
Net income attributable to our common shareholder | — | — | — | 240 | — | — | 240 | ||||||||||||||||||||||||||||||||||
Currency translation adjustment included in other comprehensive income | — | — | — | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit of $1 included in other comprehensive income | — | — | — | — | (14) | — | (14) | ||||||||||||||||||||||||||||||||||
Change in pension and other benefits, net of tax provision of $1 included in other comprehensive income | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 1,000 | $ | — | $ | 1,404 | $ | 1,104 | $ | (348) | $ | (16) | $ | 2,144 | ||||||||||||||||||||||||||||
Equity of our Common Shareholder | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 1,000 | $ | — | $ | 1,304 | $ | 1,818 | $ | (620) | $ | 7 | $ | 2,509 | ||||||||||||||||||||||||||||
Net income attributable to our common shareholder | — | — | — | 307 | — | — | 307 | ||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Currency translation adjustment included in other comprehensive income | — | — | — | — | (173) | — | (173) | ||||||||||||||||||||||||||||||||||
Change in fair value of effective portion of cash flow hedges, net of tax provision of $232 included in other comprehensive income | — | — | — | — | 681 | — | 681 | ||||||||||||||||||||||||||||||||||
Change in pension and other benefits, net of tax provision of $2 included in other comprehensive income | — | — | — | — | 7 | — | 7 | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 1,000 | $ | — | $ | 1,304 | $ | 2,125 | $ | (105) | $ | 6 | $ | 3,330 | ||||||||||||||||||||||||||||
in millions | June 30, 2022 | March 31, 2022 | |||||||||
Finished goods | $ | 824 | $ | 677 | |||||||
Work in process | 1,561 | 1,511 | |||||||||
Raw materials | 838 | 620 | |||||||||
Supplies | 233 | 230 | |||||||||
Inventories | $ | 3,456 | $ | 3,038 |
Total restructuring liabilities | Other restructuring charges (A) | Total restructuring charges | Other impairments (B) | Total restructuring and impairments, net | ||||||||||||||||
Balance as of March 31, 2017 | $ | 24 | ||||||||||||||||||
Expenses | 18 | $ | 9 | $ | 27 | $ | 6 | $ | 33 | |||||||||||
Cash payments | (5 | ) | ||||||||||||||||||
Foreign currency (C) | (1 | ) | ||||||||||||||||||
Balance as of December 31, 2017 | $ | 36 |
December 31, 2017 | March 31, 2017 | ||||||
Finished goods | $ | 417 | $ | 389 | |||
Work in process | 733 | 576 | |||||
Raw materials | 263 | 213 | |||||
Supplies | 159 | 155 | |||||
Inventories | $ | 1,572 | $ | 1,333 |
December 31, 2017 | March 31, 2017 | |||||||||||||||||
Assets | ||||||||||||||||||
Current assets | ||||||||||||||||||
in millions | in millions | June 30, 2022 | March 31, 2022 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 2 | Cash and cash equivalents | $ | 5 | $ | 3 | |||||||||
Accounts receivable | 29 | 29 | ||||||||||||||||
Accounts receivable, net | Accounts receivable, net | 31 | 50 | |||||||||||||||
Inventories | 69 | 62 | Inventories | 118 | 115 | |||||||||||||
Prepaid expenses and other current assets | 1 | 2 | Prepaid expenses and other current assets | 5 | 8 | |||||||||||||
Total current assets | 103 | 95 | Total current assets | 159 | 176 | |||||||||||||
Property, plant and equipment, net | 21 | 25 | Property, plant and equipment, net | 24 | 22 | |||||||||||||
Goodwill | 12 | 12 | Goodwill | 12 | 12 | |||||||||||||
Deferred income taxes | 59 | 89 | ||||||||||||||||
Deferred income tax assets | Deferred income tax assets | 41 | 41 | |||||||||||||||
Other long-term assets | 23 | 30 | Other long-term assets | 10 | 6 | |||||||||||||
Total assets | $ | 218 | $ | 251 | Total assets | $ | 246 | $ | 257 | |||||||||
Liabilities | ||||||||||||||||||
Current liabilities | ||||||||||||||||||
LIABILITIES | LIABILITIES | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | $ | 40 | $ | 32 | Accounts payable | $ | 56 | $ | 53 | |||||||||
Accrued expenses and other current liabilities | 18 | 21 | Accrued expenses and other current liabilities | 21 | 28 | |||||||||||||
Total current liabilities | 58 | 53 | Total current liabilities | 77 | 81 | |||||||||||||
Accrued postretirement benefits | 217 | 224 | Accrued postretirement benefits | 146 | 153 | |||||||||||||
Other long-term liabilities | 3 | 3 | Other long-term liabilities | 5 | 2 | |||||||||||||
Total liabilities | $ | 278 | $ | 280 | Total liabilities | $ | 228 | $ | 236 |
5. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 308 | $ | 95 | $ | 549 | $ | 340 | |||||||
Costs and expenses related to net sales | 309 | 116 | 551 | 358 | |||||||||||
Provision for taxes on income | (1 | ) | (7 | ) | (1 | ) | (6 | ) | |||||||
Net loss | $ | — | $ | (14 | ) | $ | (1 | ) | $ | (12 | ) | ||||
Purchases of tolling services from Alunorf | $ | 59 | $ | 47 | $ | 180 | $ | 170 |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Net sales | $ | 509 | $ | 385 | |||||||||||||||||||
Costs and expenses related to net sales | 489 | 372 | |||||||||||||||||||||
Income tax provision | 6 | 3 | |||||||||||||||||||||
Net income | $ | 14 | $ | 10 | |||||||||||||||||||
Purchases of tolling services from Alunorf | $ | 81 | $ | 69 |
December 31, 2017 | March 31, 2017 | ||||||
Accounts receivable-related parties | $ | 253 | $ | 60 | |||
Other long-term assets-related parties | $ | 10 | $ | 15 | |||
Accounts payable-related parties | $ | 206 | $ | 51 |
in millions | June 30, 2022 | March 31, 2022 | |||||||||
Accounts receivable, net — related parties | $ | 234 | $ | 222 | |||||||
Other long-term assets — related parties | 1 | 1 | |||||||||
Accounts payable — related parties | 345 | 320 |
December 31, 2017 | March 31, 2017 | |||||||||||||||||||||||||
Interest Rates (A) | Principal | Unamortized Carrying Value Adjustments (B) | Carrying Value | Principal | Unamortized Carrying Value Adjustments (B) | Carrying Value | ||||||||||||||||||||
Third party debt: | ||||||||||||||||||||||||||
Short-term borrowings | 2.51 | % | $ | 116 | $ | — | $ | 116 | $ | 294 | $ | — | $ | 294 | ||||||||||||
Novelis Inc. | ||||||||||||||||||||||||||
Floating rate Term Loan Facility, due June 2022 | 3.54 | % | 1,782 | (46 | ) | 1,736 | 1,796 | (53 | ) | 1,743 | ||||||||||||||||
Novelis Corporation | ||||||||||||||||||||||||||
5.875% Senior Notes, due September 2026 | 5.875 | % | 1,500 | (22 | ) | 1,478 | 1,500 | (23 | ) | 1,477 | ||||||||||||||||
6.25% Senior Notes, due August 2024 | 6.25 | % | 1,150 | (17 | ) | 1,133 | 1,150 | (19 | ) | 1,131 | ||||||||||||||||
Novelis Korea Limited | ||||||||||||||||||||||||||
Bank loans, due through September 2020 (KRW 132 billion) | 2.65 | % | 123 | — | 123 | 184 | — | 184 | ||||||||||||||||||
Novelis Switzerland S.A. | ||||||||||||||||||||||||||
Capital lease obligation, due through December 2019 (Swiss francs (CHF) 14 million) | 7.50 | % | 14 | — | 14 | 17 | (1 | ) | 16 | |||||||||||||||||
Novelis do Brasil Ltda. | ||||||||||||||||||||||||||
BNDES loans, due through April 2021 (BRL 7 million) | 6.02 | % | 2 | — | 2 | 4 | — | 4 | ||||||||||||||||||
Other | ||||||||||||||||||||||||||
Capital Lease Obligations and Other debt, due through December 2020 | 4.84 | % | 2 | — | 2 | 3 | — | 3 | ||||||||||||||||||
Total debt | 4,689 | (85 | ) | 4,604 | 4,948 | (96 | ) | 4,852 | ||||||||||||||||||
Less: Short term borrowings | (116 | ) | — | (116 | ) | (294 | ) | — | (294 | ) | ||||||||||||||||
Current portion of long term debt | (136 | ) | — | (136 | ) | (121 | ) | — | (121 | ) | ||||||||||||||||
Long-term debt, net of current portion | $ | 4,437 | $ | (85 | ) | $ | 4,352 | $ | 4,533 | $ | (96 | ) | $ | 4,437 |
June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
in millions | Interest Rates(1) | Principal | Unamortized Carrying Value Adjustments(2) | Carrying Value | Principal | Unamortized Carrying Value Adjustments(2) | Carrying Value | ||||||||||||||||||||||||||||||||||
Short-term borrowings | 2.77 | % | $ | 603 | $ | — | $ | 603 | $ | 529 | $ | — | $ | 529 | |||||||||||||||||||||||||||
Floating rate Term Loans, due January 2025 | 4.00 | % | 758 | (10) | 748 | 760 | (11) | 749 | |||||||||||||||||||||||||||||||||
Floating rate Term Loans, due March 2028 | 4.25 | % | 494 | (8) | 486 | 495 | (8) | 487 | |||||||||||||||||||||||||||||||||
3.25% Senior Notes, due November 2026 | 3.25 | % | 750 | (9) | 741 | 750 | (10) | 740 | |||||||||||||||||||||||||||||||||
3.375% Senior Notes, due April 2029 | 3.375 | % | 522 | (9) | 513 | 556 | (10) | 546 | |||||||||||||||||||||||||||||||||
4.75% Senior Notes, due January 2030 | 4.75 | % | 1,600 | (24) | 1,576 | 1,600 | (25) | 1,575 | |||||||||||||||||||||||||||||||||
3.875% Senior Notes, due August 2031 | 3.875 | % | 750 | (10) | 740 | 750 | (10) | 740 | |||||||||||||||||||||||||||||||||
China Bank Loans, due August 2027 | 4.90 | % | 72 | — | 72 | 76 | — | 76 | |||||||||||||||||||||||||||||||||
1.8% Brazil Loan, due June 2023 | 1.80 | % | 30 | — | 30 | 30 | — | 30 | |||||||||||||||||||||||||||||||||
1.8% Brazil Loan, due December 2023 | 1.80 | % | 20 | — | 20 | 20 | — | 20 | |||||||||||||||||||||||||||||||||
Finance lease obligations and other debt, due through June 2028 | 2.23 | % | 27 | — | 27 | 30 | — | 30 | |||||||||||||||||||||||||||||||||
Total debt | $ | 5,626 | $ | (70) | $ | 5,556 | $ | 5,596 | $ | (74) | $ | 5,522 | |||||||||||||||||||||||||||||
Less: Short-term borrowings | (603) | — | (603) | (529) | — | (529) | |||||||||||||||||||||||||||||||||||
Less: Current portion of long-term debt | (59) | — | (59) | (26) | — | (26) | |||||||||||||||||||||||||||||||||||
Long-term debt, net of current portion | $ | 4,964 | $ | (70) | $ | 4,894 | $ | 5,041 | $ | (74) | $ | 4,967 |
As of June 30, 2022 | Amount | ||||
Short-term borrowings and current portion of long-term debt due within one year | $ | 662 | |||
2 years | 53 | ||||
3 years | 763 | ||||
4 years | 22 | ||||
5 years | 774 | ||||
Thereafter | 3,352 | ||||
Total | $ | 5,626 |
As of December 31, 2017 | Amount | ||
Short-term borrowings and current portion of long-term debt due within one year | $ | 252 | |
2 years | 38 | ||
3 years | 21 | ||
4 years | 18 | ||
5 years | 1,710 | ||
Thereafter | 2,650 | ||
Total | $ | 4,689 |
Pension Benefit Plans | Other Benefit Plans | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
in millions | in millions | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 6 | $ | 8 | $ | 1 | $ | 3 | |||||||||||||||||||||||||||||
Interest cost | Interest cost | 16 | 14 | 1 | 2 | |||||||||||||||||||||||||||||||||
Expected return on assets | Expected return on assets | (18) | (20) | — | — | |||||||||||||||||||||||||||||||||
Amortization — losses, net | Amortization — losses, net | 2 | 5 | — | — | |||||||||||||||||||||||||||||||||
Amortization — prior service credit, net | Amortization — prior service credit, net | — | — | (1) | — | |||||||||||||||||||||||||||||||||
Settlement/curtailment gain | Settlement/curtailment gain | — | (3) | — | — | |||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 6 | $ | 4 | $ | 1 | $ | 5 | ||||||||||||||||||||||||||||||
Pension Benefit Plans | Other Benefit Plans | |||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
Service cost | $ | 11 | $ | 11 | $ | 1 | $ | 2 | ||||||||||||||||||||||||||||||
Interest cost | 15 | 15 | 2 | 2 | ||||||||||||||||||||||||||||||||||
Expected return on assets | (16 | ) | (16 | ) | — | — | ||||||||||||||||||||||||||||||||
Amortization — losses, net | 9 | 10 | — | 1 | ||||||||||||||||||||||||||||||||||
Amortization — prior service credit, net | — | (1 | ) | — | — | |||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 19 | $ | 19 | $ | 3 | $ | 5 |
Pension Benefit Plans | Other Benefit Plans | ||||||||||||||
Nine Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 33 | $ | 34 | $ | 5 | $ | 5 | |||||||
Interest cost | 44 | 46 | 5 | 5 | |||||||||||
Expected return on assets | (46 | ) | (47 | ) | — | — | |||||||||
Amortization — losses | 26 | 30 | 1 | 3 | |||||||||||
Amortization — prior service credit, net | — | (2 | ) | — | 1 | ||||||||||
Termination benefits / (curtailments) | 2 | — | — | — | |||||||||||
Net periodic benefit cost | $ | 59 | $ | 61 | $ | 11 | $ | 14 |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
in millions | in millions | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
Funded pension plans | $ | 8 | $ | 13 | $ | 42 | $ | 20 | Funded pension plans | $ | 2 | $ | 7 | |||||||||||||||||||||||||
Unfunded pension plans | 3 | 3 | 10 | 9 | Unfunded pension plans | 4 | 4 | |||||||||||||||||||||||||||||||
Savings and defined contribution pension plans | 7 | 6 | 21 | 19 | Savings and defined contribution pension plans | 14 | 15 | |||||||||||||||||||||||||||||||
Total contributions | $ | 18 | $ | 22 | $ | 73 | $ | 48 | Total contributions | $ | 20 | $ | 26 |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Gain) loss on remeasurement of monetary assets and liabilities, net | $ | (4 | ) | $ | (1 | ) | $ | (43 | ) | $ | 14 | ||||
Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net | 4 | (1 | ) | 43 | (15 | ) | |||||||||
Currency gains, net | $ | — | $ | (2 | ) | $ | — | $ | (1 | ) |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
(Gains) losses on remeasurement of monetary assets and liabilities, net | $ | (32) | $ | 13 | |||||||||||||||||||
Losses (gains) recognized on balance sheet remeasurement currency exchange contracts, net | 37 | (8) | |||||||||||||||||||||
Currency losses, net | $ | 5 | $ | 5 |
Three Months Ended June 30, 2022 | Fiscal Year Ended March 31, 2022 | ||||||||||
in millions | |||||||||||
Cumulative currency translation adjustment — beginning of period | $ | (166) | $ | (95) | |||||||
Effect of changes in exchange rates | (173) | (71) | |||||||||
Cumulative currency translation adjustment — end of period | $ | (339) | $ | (166) |
Nine Months Ended December 31, 2017 | Year Ended March 31, 2017 | ||||||
Cumulative currency translation adjustment — beginning of period | $ | (256 | ) | $ | (197 | ) | |
Effect of changes in exchange rates | 149 | (75 | ) | ||||
Sale of investment in foreign entities (A) | — | 16 | |||||
Cumulative currency translation adjustment — end of period | $ | (107 | ) | $ | (256 | ) |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | Assets | Liabilities | Net Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Net Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Current | Noncurrent (A) | Current | Noncurrent (A) | Assets / (Liabilities) | ||||||||||||||||||||||||||||||||||||||||||||
in millions | in millions | Current | Noncurrent(1) | Current | Noncurrent(1) | Assets / (Liabilities) | ||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | Cash flow hedges | |||||||||||||||||||||||||||||||||||||||||||||||
Aluminum contracts | $ | — | $ | — | $ | (62 | ) | $ | — | $ | (62 | ) | ||||||||||||||||||||||||||||||||||||
Metal contracts | Metal contracts | $ | 331 | $ | 9 | $ | (10) | $ | (1) | $ | 329 | |||||||||||||||||||||||||||||||||||||
Currency exchange contracts | 12 | 1 | (6 | ) | (4 | ) | 3 | Currency exchange contracts | 15 | 3 | (53) | (15) | (50) | |||||||||||||||||||||||||||||||||||
Energy contracts | — | 1 | (2 | ) | (7 | ) | (8 | ) | Energy contracts | 19 | 6 | — | — | 25 | ||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | 12 | 2 | (70 | ) | (11 | ) | (67 | ) | Total derivatives designated as hedging instruments | $ | 365 | $ | 18 | $ | (63) | $ | (16) | $ | 304 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||
Aluminum contracts | 76 | — | (91 | ) | (1 | ) | (16 | ) | ||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Metal contracts | Metal contracts | $ | 223 | $ | 2 | $ | (148) | $ | (2) | $ | 75 | |||||||||||||||||||||||||||||||||||||
Currency exchange contracts | 26 | — | (31 | ) | (1 | ) | (6 | ) | Currency exchange contracts | 30 | — | (55) | (1) | (26) | ||||||||||||||||||||||||||||||||||
Energy contracts | 1 | — | — | — | 1 | Energy contracts | 3 | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 103 | — | (122 | ) | (2 | ) | (21 | ) | Total derivatives not designated as hedging instruments | $ | 256 | $ | 2 | $ | (203) | $ | (3) | $ | 52 | |||||||||||||||||||||||||||||
Total derivative fair value | $ | 115 | $ | 2 | $ | (192 | ) | $ | (13 | ) | $ | (88 | ) | Total derivative fair value | $ | 621 | $ | 20 | $ | (266) | $ | (19) | $ | 356 |
March 31, 2022 | |||||||||||||||||||||||||||||
Assets | Liabilities | Net Fair Value | |||||||||||||||||||||||||||
Current | Noncurrent(1) | Current | Noncurrent(1) | Assets / (Liabilities) | |||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||
Metal contracts | $ | 10 | $ | — | $ | (535) | $ | (7) | $ | (532) | |||||||||||||||||||
Currency exchange contracts | 30 | 8 | (28) | (1) | 9 | ||||||||||||||||||||||||
Energy contracts | 22 | 6 | — | — | 28 | ||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 62 | $ | 14 | $ | (563) | $ | (8) | $ | (495) | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Metal contracts | $ | 290 | $ | 3 | $ | (372) | $ | (2) | $ | (81) | |||||||||||||||||||
Currency exchange contracts | 22 | — | (24) | — | (2) | ||||||||||||||||||||||||
Energy contracts | 3 | — | — | — | 3 | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 315 | $ | 3 | $ | (396) | $ | (2) | $ | (80) | |||||||||||||||||||
Total derivative fair value | $ | 377 | $ | 17 | $ | (959) | $ | (10) | $ | (575) |
March 31, 2017 | |||||||||||||||||||
Assets | Liabilities | Net Fair Value | |||||||||||||||||
Current | Noncurrent (A) | Current | Noncurrent(A) | Assets / (Liabilities) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cash flow hedges | |||||||||||||||||||
Aluminum contracts | $ | — | $ | — | $ | (69 | ) | $ | — | $ | (69 | ) | |||||||
Currency exchange contracts | 26 | 1 | (1 | ) | (3 | ) | 23 | ||||||||||||
Energy contracts | 1 | — | — | (9 | ) | (8 | ) | ||||||||||||
Total derivatives designated as hedging instruments | 27 | 1 | (70 | ) | (12 | ) | (54 | ) | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Aluminum contracts | 57 | 1 | (68 | ) | (1 | ) | (11 | ) | |||||||||||
Currency exchange contracts | 29 | — | (13 | ) | — | 16 | |||||||||||||
Total derivatives not designated as hedging instruments | 86 | 1 | (81 | ) | (1 | ) | 5 | ||||||||||||
Total derivative fair value | $ | 113 | $ | 2 | $ | (151 | ) | $ | (13 | ) | $ | (49 | ) |
December 31, 2017 | March 31, 2017 | |||||||||||||||
in kt | in kt | June 30, 2022 | March 31, 2022 | |||||||||||||
Hedge type | Hedge type | |||||||||||||||
Purchase (Sale) | ||||||||||||||||
Purchase (sale) | Purchase (sale) | |||||||||||||||
Cash flow purchases | Cash flow purchases | 12 | 6 | |||||||||||||
Cash flow sales | (341 | ) | (391 | ) | Cash flow sales | (873) | (910) | |||||||||
Not designated | (197 | ) | (89 | ) | Not designated | (56) | (16) | |||||||||
Total, net | (538 | ) | (480 | ) | Total, net | (917) | (920) |
Three Months Ended June 30 | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Derivative instruments not designated as hedges | |||||||||||||||||||||||
Metal contracts | $ | 42 | $ | (3) | |||||||||||||||||||
Currency exchange contracts | 42 | (11) | |||||||||||||||||||||
Energy contracts(1) | (4) | (2) | |||||||||||||||||||||
Loss (gain) recognized in other expenses (income), net | 80 | (16) | |||||||||||||||||||||
Derivative instruments designated as hedges | |||||||||||||||||||||||
Gain recognized in other expenses (income), net(2) | (2) | — | |||||||||||||||||||||
Total loss (gain) recognized in other expenses (income), net | $ | 78 | $ | (16) | |||||||||||||||||||
Losses (gains) recognized on balance sheet remeasurement currency exchange contracts, net | $ | 37 | $ | (8) | |||||||||||||||||||
Realized losses (gains) on change in fair value of derivative instruments, net | 83 | (12) | |||||||||||||||||||||
Unrealized (gains) losses on change in fair value of derivative instruments, net | (42) | 4 | |||||||||||||||||||||
Total loss (gain) recognized in other expenses (income), net | $ | 78 | $ | (16) |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Derivative instruments not designated as hedges | |||||||||||||||
Aluminum contracts | $ | 6 | $ | (10 | ) | $ | 8 | $ | (27 | ) | |||||
Currency exchange contracts | (2 | ) | 4 | (51 | ) | 17 | |||||||||
Energy contracts (A) | 3 | 4 | 6 | 9 | |||||||||||
Gain (loss) recognized in "Other (income) expense, net" | 7 | (2 | ) | (37 | ) | (1 | ) | ||||||||
Derivative instruments designated as hedges | |||||||||||||||
(Loss) gain recognized in "Other (income) expense, net" (B) | (1 | ) | 5 | (8 | ) | (8 | ) | ||||||||
Total gain (loss) recognized in "Other (income) expense, net" | $ | 6 | $ | 3 | $ | (45 | ) | $ | (9 | ) | |||||
Balance sheet remeasurement currency exchange contract (losses) gains | $ | (4 | ) | $ | 1 | $ | (43 | ) | $ | 15 | |||||
Realized losses, net | (5 | ) | (19 | ) | (15 | ) | (42 | ) | |||||||
Unrealized gains on other derivative instruments, net | 15 | 21 | 13 | 18 | |||||||||||
Total gain (loss) recognized in "Other (income) expense, net" | $ | 6 | $ | 3 | $ | (45 | ) | $ | (9 | ) |
Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedging derivatives | |||||||||||||||||||||||||||||||||||||||||||||||
Metal contracts | $ | 899 | $ | (193) | |||||||||||||||||||||||||||||||||||||||||||
Currency exchange contracts | (78) | 30 | |||||||||||||||||||||||||||||||||||||||||||||
Energy contracts | 7 | 10 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 828 | $ | (153) |
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | Amount of Gain (Loss) Recognized in OCI (Effective Portion) | Amount of Gain (Loss) Recognized in “Other Expense, net” (Ineffective and Excluded Portion) | Amount of Gain (Loss) Recognized in “Other Expense, net” (Ineffective and Excluded Portion) | ||||||||||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
Cash flow hedging derivatives | |||||||||||||||||||||||||||||||
Aluminum contracts | $ | (66 | ) | $ | (22 | ) | $ | (89 | ) | $ | (52 | ) | $ | — | $ | 4 | $ | (9 | ) | $ | (9 | ) | |||||||||
Currency exchange contracts | — | (14 | ) | (7 | ) | 18 | — | — | 1 | 1 | |||||||||||||||||||||
Energy contracts | (2 | ) | 1 | (4 | ) | (3 | ) | — | — | 1 | (1 | ) | |||||||||||||||||||
Total cash flow hedging derivatives | $ | (68 | ) | $ | (35 | ) | $ | (100 | ) | $ | (37 | ) | $ | — | $ | 4 | $ | (7 | ) | $ | (9 | ) | |||||||||
Net investment derivatives | |||||||||||||||||||||||||||||||
Currency exchange contracts | (17 | ) | — | (17 | ) | — | — | — | — | — | |||||||||||||||||||||
Total | $ | (85 | ) | $ | (35 | ) | $ | (117 | ) | $ | (37 | ) | $ | — | $ | 4 | $ | (7 | ) | $ | (9 | ) |
Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended December 31, | Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Nine Months Ended September 30, | Location of Gain (Loss) Reclassified from AOCI into Earnings | Three Months Ended June 30, | Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings | ||||||||||||||||||||||||||||||||||||||||||
in millions | in millions | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||
Cash flow hedging derivatives | 2017 | 2016 | 2017 | 2016 | Cash flow hedging derivatives | |||||||||||||||||||||||||||||||||||||||||
Energy contracts (A) | $ | — | $ | (1 | ) | $ | — | $ | (4 | ) | Other (income) expense, net | |||||||||||||||||||||||||||||||||||
Energy contracts (C) | (1 | ) | (1 | ) | (2 | ) | (4 | ) | Cost of goods sold (B) | |||||||||||||||||||||||||||||||||||||
Aluminum contracts | (36 | ) | (13 | ) | (79 | ) | (19 | ) | Cost of goods sold (B) | |||||||||||||||||||||||||||||||||||||
Aluminum contracts | — | (1 | ) | — | (3 | ) | Net sales | |||||||||||||||||||||||||||||||||||||||
Energy contracts(1) | Energy contracts(1) | $ | 7 | $ | (1) | Cost of goods sold (exclusive of depreciation and amortization) | ||||||||||||||||||||||||||||||||||||||||
Metal contracts | Metal contracts | 6 | 2 | Cost of goods sold (exclusive of depreciation and amortization) | ||||||||||||||||||||||||||||||||||||||||||
Metal contracts | Metal contracts | (82) | (139) | Net sales | ||||||||||||||||||||||||||||||||||||||||||
Currency exchange contracts | 4 | 5 | 11 | 10 | Cost of goods sold (B) | Currency exchange contracts | 7 | — | Cost of goods sold (exclusive of depreciation and amortization) | |||||||||||||||||||||||||||||||||||||
Currency exchange contracts | — | — | 1 | 1 | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||
Currency exchange contracts | 1 | 1 | 3 | 4 | Net sales | |||||||||||||||||||||||||||||||||||||||||
Currency exchange contracts | — | — | — | 1 | Other (income) expense, net | Currency exchange contracts | (12) | 1 | Net sales | |||||||||||||||||||||||||||||||||||||
Currency exchange contracts | — | — | (1 | ) | (1 | ) | Depreciation and amortization | Currency exchange contracts | (1) | (1) | Depreciation and amortization | |||||||||||||||||||||||||||||||||||
Total | $ | (32 | ) | $ | (10 | ) | $ | (67 | ) | $ | (15 | ) | Loss before taxes | Total | $ | (75) | $ | (138) | Income from continuing operations before income tax provision | |||||||||||||||||||||||||||
11 | 2 | 23 | 3 | Income tax benefit | 21 | 37 | Income tax provision | |||||||||||||||||||||||||||||||||||||||
$ | (21 | ) | $ | (8 | ) | $ | (44 | ) | $ | (12 | ) | Net loss | $ | (54) | $ | (101) | Net income from continuing operations |
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in millions | Net Sales | Cost of Goods Sold | Selling, General & Administrative Expenses | Depreciation and Amortization | Other (Income) Expenses, Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Metal commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (loss) gain reclassified from accumulated other comprehensive loss into income | $ | (82) | $ | 6 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain reclassified from accumulated other comprehensive loss into income | $ | — | $ | 7 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (loss) gain reclassified from accumulated other comprehensive loss into income | $ | (12) | $ | 7 | $ | — | $ | (1) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | $ | — | $ | — | $ | — | $ | — | $ | — |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in millions | Net Sales | Cost of Goods Sold | Selling, General & Administrative Expenses | Depreciation and Amortization | Other (Income) Expenses, Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Metal commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (loss) gain reclassified from accumulated other comprehensive loss into income | $ | (139) | $ | 2 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodity contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into income | $ | — | $ | (1) | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income | $ | 1 | $ | — | $ | — | $ | (1) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | $ | — | $ | — | $ | — | $ | — | $ | — |
Currency Translation | (A) Cash Flow Hedges | (B) Postretirement Benefit Plans | Total | |||||||||||||
Balance as of September 30, 2017 | $ | (165 | ) | $ | (44 | ) | $ | (241 | ) | $ | (450 | ) | ||||
Other comprehensive income (loss) before reclassifications | 58 | (46 | ) | (10 | ) | 2 | ||||||||||
Amounts reclassified from AOCI, net | — | 20 | 13 | 33 | ||||||||||||
Net current-period other comprehensive income (loss) | 58 | (26 | ) | 3 | 35 | |||||||||||
Balance as of December 31, 2017 | $ | (107 | ) | $ | (70 | ) | $ | (238 | ) | $ | (415 | ) |
Currency Translation | (A) Cash Flow Hedges | (B) Postretirement Benefit Plans | Total | |||||||||||||
Balance as of September 30, 2016 | $ | (185 | ) | $ | (8 | ) | $ | (274 | ) | $ | (467 | ) | ||||
Other comprehensive loss before reclassifications | (140 | ) | (25 | ) | — | (165 | ) | |||||||||
Amounts reclassified from AOCI, net | — | 8 | 18 | 26 | ||||||||||||
Net current-period other comprehensive income (loss) | (140 | ) | (17 | ) | 18 | (139 | ) | |||||||||
Balance as of December 31, 2016 | $ | (325 | ) | $ | (25 | ) | $ | (256 | ) | $ | (606 | ) |
Currency Translation | (A) Cash Flow Hedges | (B) Postretirement Benefit Plans | Total | |||||||||||||
Balance as of March 31, 2017 | $ | (256 | ) | $ | (46 | ) | $ | (243 | ) | $ | (545 | ) | ||||
Other comprehensive income (loss) before reclassifications | 149 | (67 | ) | (14 | ) | 68 | ||||||||||
Amounts reclassified from AOCI, net | — | 43 | 19 | 62 | ||||||||||||
Net current-period other comprehensive income (loss) | 149 | (24 | ) | 5 | 130 | |||||||||||
Balance as of December 31, 2017 | $ | (107 | ) | $ | (70 | ) | $ | (238 | ) | $ | (415 | ) |
Currency Translation | (A) Cash Flow Hedges | (B) Postretirement Benefit Plans | Total | |||||||||||||
Balance as of March 31, 2016 | $ | (196 | ) | $ | (11 | ) | $ | (293 | ) | $ | (500 | ) | ||||
Other comprehensive (loss) income before reclassifications | (145 | ) | (26 | ) | 17 | (154 | ) | |||||||||
Amounts reclassified from AOCI, net (C) | 16 | 12 | 20 | 48 | ||||||||||||
Net current-period other comprehensive (loss) income | (129 | ) | (14 | ) | 37 | (106 | ) | |||||||||
Balance as of December 31, 2016 | $ | (325 | ) | $ | (25 | ) | $ | (256 | ) | $ | (606 | ) |
in millions | Currency Translation | Cash Flow Hedges(1) | Postretirement Benefit Plans(2) | Total | |||||||||||||||||||
Balance as of March 31, 2022 | $ | (166) | $ | (435) | $ | (19) | $ | (620) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (173) | 627 | 6 | 460 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net | — | 54 | 1 | 55 | |||||||||||||||||||
Net current-period other comprehensive (loss) income | (173) | 681 | 7 | 515 | |||||||||||||||||||
Balance as of June 30, 2022 | $ | (339) | $ | 246 | $ | (12) | $ | (105) | |||||||||||||||
Currency Translation | Cash Flow Hedges(1) | Postretirement Benefit Plans(2) | Total | ||||||||||||||||||||
Balance as of March 31, 2021 | $ | (95) | $ | (133) | $ | (138) | $ | (366) | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 30 | (115) | 1 | (84) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net | — | 101 | 1 | 102 | |||||||||||||||||||
Net current-period other comprehensive income (loss) | 30 | (14) | 2 | 18 | |||||||||||||||||||
Balance as of June 30, 2021 | $ | (65) | $ | (147) | $ | (136) | $ | (348) | |||||||||||||||
June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||
in millions | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Level 2 instruments: | |||||||||||||||||||||||
Metal contracts | $ | 565 | $ | (161) | $ | 303 | $ | (916) | |||||||||||||||
Currency exchange contracts | 48 | (124) | 60 | (53) | |||||||||||||||||||
Energy contracts | 28 | — | 31 | — | |||||||||||||||||||
Total level 2 instruments | $ | 641 | $ | (285) | $ | 394 | $ | (969) | |||||||||||||||
Netting adjustment(1) | (145) | 145 | (236) | 236 | |||||||||||||||||||
Total net | $ | 496 | $ | (140) | $ | 158 | $ | (733) |
December 31, 2017 | March 31, 2017 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Level 2 instruments | |||||||||||||||
Aluminum contracts | $ | 76 | $ | (154 | ) | $ | 58 | $ | (138 | ) | |||||
Currency exchange contracts | 39 | (42 | ) | 56 | (17 | ) | |||||||||
Energy contracts | 2 | (2 | ) | 1 | — | ||||||||||
Total level 2 instruments | 117 | (198 | ) | 115 | (155 | ) | |||||||||
Level 3 instruments | |||||||||||||||
Energy contracts | — | (7 | ) | — | (9 | ) | |||||||||
Total level 3 instruments | — | (7 | ) | — | (9 | ) | |||||||||
Total gross | $ | 117 | $ | (205 | ) | $ | 115 | $ | (164 | ) | |||||
Netting adjustment (A) | $ | (64 | ) | $ | 64 | $ | (46 | ) | $ | 46 | |||||
Total net | $ | 53 | $ | (141 | ) | $ | 69 | $ | (118 | ) |
(1)Amounts represent the impact |
Level 3 – Derivative Instruments (A) | |||
Balance as of March 31, 2017 | $ | (9 | ) |
Unrealized/realized gain included in earnings (B) | 4 | ||
Unrealized loss included in AOCI (C) | — | ||
Settlements (B) | (2 | ) | |
Balance as of December 31, 2017 | $ | (7 | ) |
June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||
in millions | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Long-term receivables from related parties | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||
Total debt — third parties (excluding finance leases and short-term borrowings) | 4,926 | 4,387 | 4,963 | 4,912 |
December 31, 2017 | March 31, 2017 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Assets | |||||||||||||||
Long-term receivables from related parties | $ | 10 | $ | 10 | $ | 15 | $ | 14 | |||||||
Liabilities | |||||||||||||||
Total debt — third parties (excluding short-term borrowings) | $ | 4,488 | $ | 4,689 | $ | 4,558 | $ | 4,797 |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Currency losses, net(1) | $ | 5 | $ | 5 | |||||||||||||||||||
Unrealized (gains) losses on change in fair value of derivative instruments, net(2) | (42) | 4 | |||||||||||||||||||||
Realized losses (gains) on change in fair value of derivative instruments, net(2) | 83 | (12) | |||||||||||||||||||||
Loss on sale of assets, net | 1 | — | |||||||||||||||||||||
Gain on Brazilian tax litigation, net(3) | — | (76) | |||||||||||||||||||||
Interest income | (4) | (3) | |||||||||||||||||||||
Non-operating net periodic benefit cost(4) | — | (2) | |||||||||||||||||||||
Other, net(5) | 7 | 20 | |||||||||||||||||||||
Other expenses (income), net | $ | 50 | $ | (64) |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Currency gains, net (A) | $ | — | $ | (2 | ) | $ | — | $ | (1 | ) | |||||
Unrealized gains on change in fair value of derivative instruments, net (B) | (15 | ) | (21 | ) | (13 | ) | (18 | ) | |||||||
Realized losses on change in fair value of derivative instruments, net (B) | 5 | 19 | 15 | 42 | |||||||||||
Loss (gain) on sale of assets, net | 2 | (2 | ) | 4 | 4 | ||||||||||
Loss on Brazilian tax litigation, net (C) | — | 1 | 2 | 4 | |||||||||||
Interest income | (2 | ) | (2 | ) | (6 | ) | (7 | ) | |||||||
Other, net | 4 | 4 | 5 | 12 | |||||||||||
Other (income) expense, net (D) | $ | (6 | ) | $ | (3 | ) | $ | 7 | $ | 36 |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Pre-tax income before equity in net (income) loss of non-consolidated affiliates and noncontrolling interests | $ | 125 | $ | 119 | $ | 692 | $ | 117 | |||||||
Canadian statutory tax rate | 25 | % | 25 | % | 25 | % | 25 | % | |||||||
Provision at the Canadian statutory rate | $ | 31 | $ | 30 | $ | 173 | $ | 29 | |||||||
Increase (decrease) for taxes on income (loss) resulting from: | |||||||||||||||
Exchange translation items | 2 | 3 | 8 | 7 | |||||||||||
Exchange remeasurement of deferred income taxes | (3 | ) | — | (3 | ) | 6 | |||||||||
Change in valuation allowances | 7 | 6 | 10 | 49 | |||||||||||
Tax credits | (8 | ) | — | (14 | ) | — | |||||||||
Income items not subject to tax | (4 | ) | (2 | ) | (4 | ) | — | ||||||||
Tax gain, net | — | — | — | 9 | |||||||||||
Dividends not subject to tax | — | — | — | (23 | ) | ||||||||||
Legislative changes including enacted tax rates | (18 | ) | — | (18 | ) | 3 | |||||||||
Tax rate differences on foreign earnings | 9 | 10 | 22 | 25 | |||||||||||
Uncertain tax positions | 2 | 3 | 5 | 4 | |||||||||||
Other — net | 2 | (3 | ) | — | 1 | ||||||||||
Income tax provision | $ | 20 | $ | 47 | $ | 179 | $ | 110 | |||||||
Effective tax rate | 16 | % | 39 | % | 26 | % | 94 | % |
December 31, 2017 | March 31, 2017 | ||||||
Cash deposits (A) | $ | 7 | $ | 7 | |||
Short-term settlement liability (B) | $ | 9 | $ | 9 | |||
Long-term settlement liability (B) | 51 | 59 | |||||
Total settlement liability | $ | 60 | $ | 68 | |||
Liability for other disputes and claims (C) | $ | 28 | $ | 22 |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Loss on Brazilian tax litigation, net | $ | — | $ | 1 | $ | 2 | $ | 4 |
in millions | |||||||||||||||||||||||||||||||||||
June 30, 2022 | North America | Europe | Asia | South America | Eliminations and Other(1) | Total | |||||||||||||||||||||||||||||
Investment in and advances to non-consolidated affiliates | $ | — | $ | 483 | $ | 318 | $ | — | $ | — | $ | 801 | |||||||||||||||||||||||
Total assets | 5,518 | 4,465 | 2,555 | 2,265 | 741 | 15,544 |
December 31, 2017 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Investment in and advances to non–consolidated affiliates | $ | — | $ | 508 | $ | 323 | $ | — | $ | — | $ | 831 | |||||||||||
Total assets | $ | 2,575 | $ | 2,957 | $ | 1,812 | $ | 1,726 | $ | 205 | $ | 9,275 |
in millions | |||||||||||||||||||||||||||||||||||
March 31, 2022 | North America | Europe | Asia | South America | Eliminations and Other(1) | Total | |||||||||||||||||||||||||||||
Investment in and advances to non-consolidated affiliates | $ | — | $ | 508 | $ | 324 | $ | — | $ | — | $ | 832 | |||||||||||||||||||||||
Total assets | 5,084 | 4,535 | 2,627 | 2,115 | 735 | 15,096 |
in millions | |||||||||||||||||||||||||||||||||||
Selected Operating Results Three Months Ended June 30, 2022 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||||||||||||||
Net sales – third party | $ | 2,096 | $ | 1,358 | $ | 751 | $ | 770 | $ | 114 | $ | 5,089 | |||||||||||||||||||||||
Net sales – intersegment | — | 36 | 107 | 56 | (199) | — | |||||||||||||||||||||||||||||
Net sales | $ | 2,096 | $ | 1,394 | $ | 858 | $ | 826 | $ | (85) | $ | 5,089 | |||||||||||||||||||||||
Depreciation and amortization | $ | 57 | $ | 40 | $ | 22 | $ | 21 | $ | (2) | $ | 138 | |||||||||||||||||||||||
Income tax (benefit) provision | (24) | (4) | 20 | 37 | 58 | 87 | |||||||||||||||||||||||||||||
Capital expenditures | 54 | 22 | 23 | 11 | — | 110 | |||||||||||||||||||||||||||||
in millions | |||||||||||||||||||||||||||||||||||
Selected Operating Results Three Months Ended June 30, 2021 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||||||||||||||
Net sales – third party | $ | 1,456 | $ | 1,068 | $ | 666 | $ | 574 | $ | 91 | $ | 3,855 | |||||||||||||||||||||||
Net sales – intersegment | — | 52 | 6 | 2 | (60) | — | |||||||||||||||||||||||||||||
Net sales | $ | 1,456 | $ | 1,120 | $ | 672 | $ | 576 | $ | 31 | $ | 3,855 | |||||||||||||||||||||||
Depreciation and amortization | $ | 56 | $ | 44 | $ | 22 | $ | 18 | $ | (6) | $ | 134 | |||||||||||||||||||||||
Income tax provision (benefit) | 17 | 11 | 18 | 63 | (1) | 108 | |||||||||||||||||||||||||||||
Capital expenditures | 45 | 15 | 14 | 29 | (2) | 101 | |||||||||||||||||||||||||||||
March 31, 2017 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Investment in and advances to non–consolidated affiliates | $ | — | $ | 451 | $ | — | $ | — | $ | — | $ | 451 | |||||||||||
Total assets | $ | 2,359 | $ | 2,683 | $ | 1,602 | $ | 1,637 | $ | 93 | $ | 8,374 |
Selected Operating Results Three Months Ended December 31, 2017 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales-third party | $ | 985 | $ | 820 | $ | 533 | $ | 542 | $ | 205 | $ | 3,085 | |||||||||||
Net sales-intersegment | 1 | 17 | 14 | 25 | (57 | ) | — | ||||||||||||||||
Net sales | $ | 986 | $ | 837 | $ | 547 | $ | 567 | $ | 148 | $ | 3,085 | |||||||||||
Depreciation and amortization | $ | 37 | $ | 29 | $ | 18 | $ | 16 | $ | (14 | ) | $ | 86 | ||||||||||
Income tax (benefit) provision | $ | (11 | ) | $ | (6 | ) | $ | 9 | $ | 18 | $ | 10 | $ | 20 | |||||||||
Capital expenditures | $ | 19 | $ | 19 | $ | 7 | $ | 10 | $ | (1 | ) | $ | 54 |
Selected Operating Results Three Months Ended December 31, 2016 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales-third party | $ | 789 | $ | 684 | $ | 409 | $ | 386 | $ | 45 | $ | 2,313 | |||||||||||
Net sales-intersegment | — | 9 | 3 | 13 | (25 | ) | — | ||||||||||||||||
Net sales | $ | 789 | $ | 693 | $ | 412 | $ | 399 | $ | 20 | $ | 2,313 | |||||||||||
Depreciation and amortization | $ | 38 | $ | 25 | $ | 14 | $ | 15 | $ | (4 | ) | $ | 88 | ||||||||||
Income tax provision | $ | 8 | $ | 8 | $ | 3 | $ | 19 | $ | 9 | $ | 47 | |||||||||||
Capital expenditures | $ | 20 | $ | 16 | $ | 10 | $ | 9 | $ | (7 | ) | $ | 48 |
Selected Operating Results Nine Months Ended December 31, 2017 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales - third party | $ | 2,878 | $ | 2,480 | $ | 1,533 | $ | 1,348 | $ | 309 | $ | 8,548 | |||||||||||
Net sales - intersegment | 17 | 39 | 32 | 62 | (150 | ) | — | ||||||||||||||||
Net sales | $ | 2,895 | $ | 2,519 | $ | 1,565 | $ | 1,410 | $ | 159 | $ | 8,548 | |||||||||||
Depreciation and amortization | $ | 112 | $ | 83 | $ | 47 | $ | 48 | $ | (23 | ) | $ | 267 | ||||||||||
Income tax provision | $ | 10 | $ | 5 | $ | 98 | $ | 54 | $ | 12 | $ | 179 | |||||||||||
Capital expenditures | $ | 52 | $ | 40 | $ | 19 | $ | 22 | $ | 3 | $ | 136 |
Selected Operating Results Nine Months Ended December 31, 2016 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales - third party | $ | 2,305 | $ | 2,158 | $ | 1,305 | $ | 1,044 | $ | 158 | $ | 6,970 | |||||||||||
Net sales - intersegment | 2 | 31 | 9 | 46 | (88 | ) | — | ||||||||||||||||
Net sales | $ | 2,307 | $ | 2,189 | $ | 1,314 | $ | 1,090 | $ | 70 | $ | 6,970 | |||||||||||
Depreciation and amortization | $ | 112 | $ | 79 | $ | 44 | $ | 46 | $ | (14 | ) | $ | 267 | ||||||||||
Income tax provision | $ | 2 | $ | 11 | $ | 16 | $ | 58 | $ | 23 | $ | 110 | |||||||||||
Capital expenditures | $ | 47 | $ | 49 | $ | 24 | $ | 28 | $ | (10 | ) | $ | 138 |
Three Months Ended December 31, 2017 | Nine Months Ended December 31, 2017 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) attributable to our common shareholder | $ | 121 | $ | 63 | $ | 529 | $ | (2 | ) | ||||||
Noncontrolling interests | (16 | ) | 1 | (16 | ) | 1 | |||||||||
Income tax provision | 20 | 47 | 179 | 110 | |||||||||||
Depreciation and amortization | 86 | 88 | 267 | 267 | |||||||||||
Interest expense and amortization of debt issuance costs | 64 | 67 | 192 | 231 | |||||||||||
Adjustment to reconcile proportional consolidation | 17 | 4 | 33 | 20 | |||||||||||
Unrealized gains on change in fair value of derivative instruments, net | (15 | ) | (21 | ) | (13 | ) | (18 | ) | |||||||
Realized losses (gains) on derivative instruments not included in segment income | 1 | (1 | ) | — | (2 | ) | |||||||||
Gain on assets held for sale | — | — | — | (2 | ) | ||||||||||
Loss on extinguishment of debt | — | — | — | 112 | |||||||||||
Restructuring and impairment, net | 25 | 1 | 33 | 4 | |||||||||||
Losses (gains) on sale of fixed assets | 2 | (2 | ) | 4 | 4 | ||||||||||
(Gain) loss on sale of a business (A) | — | — | (318 | ) | 27 | ||||||||||
Metal price lag (B) | (1 | ) | 4 | 5 | 32 | ||||||||||
Other, net | 1 | 4 | 1 | 10 | |||||||||||
Total of reportable segments | $ | 305 | $ | 255 | $ | 896 | $ | 794 |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Net income attributable to our common shareholder | $ | 307 | $ | 240 | |||||||||||||||||||
Net loss attributable to noncontrolling interests | (1) | — | |||||||||||||||||||||
Income tax provision | 87 | 108 | |||||||||||||||||||||
Loss from discontinued operations, net of tax | 1 | 63 | |||||||||||||||||||||
Income from continuing operations before income tax provision | 394 | 411 | |||||||||||||||||||||
Depreciation and amortization | 138 | 134 | |||||||||||||||||||||
Interest expense and amortization of debt issuance costs | 58 | 59 | |||||||||||||||||||||
Adjustment to reconcile proportional consolidation(1) | 14 | 14 | |||||||||||||||||||||
Unrealized (gains) losses on change in fair value of derivative instruments, net | (42) | 4 | |||||||||||||||||||||
Realized gains on derivative instruments not included in Adjusted EBITDA(2) | (1) | (1) | |||||||||||||||||||||
Gain on extinguishment of debt, net | — | (2) | |||||||||||||||||||||
Restructuring and impairment expenses (reversals), net | 1 | (2) | |||||||||||||||||||||
Loss on sale of assets, net | 1 | — | |||||||||||||||||||||
Metal price lag | (3) | (54) | |||||||||||||||||||||
Other, net(3) | 1 | (8) | |||||||||||||||||||||
Adjusted EBITDA | $ | 561 | $ | 555 |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2017 | Nine Months Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
in millions | in millions | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
North America | $ | 111 | $ | 90 | $ | 351 | $ | 276 | North America | $ | 227 | $ | 172 | |||||||||||||||||||||||||
Europe | 50 | 44 | 158 | 150 | Europe | 84 | 102 | |||||||||||||||||||||||||||||||
Asia | 43 | 40 | 124 | 132 | Asia | 94 | 88 | |||||||||||||||||||||||||||||||
South America | 107 | 81 | 269 | 236 | South America | 156 | 193 | |||||||||||||||||||||||||||||||
Intersegment eliminations | (6 | ) | — | (6 | ) | — | ||||||||||||||||||||||||||||||||
Total of reportable segments | $ | 305 | $ | 255 | $ | 896 | $ | 794 | ||||||||||||||||||||||||||||||
Eliminations and other | Eliminations and other | — | — | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA | Adjusted EBITDA | $ | 561 | $ | 555 |
Three Months Ended June 30, | |||||||||||||||||||||||
in millions | 2022 | 2021 | |||||||||||||||||||||
Can | $ | 2,488 | $ | 1,940 | |||||||||||||||||||
Automotive | 947 | 746 | |||||||||||||||||||||
Aerospace and industrial plate | 164 | 114 | |||||||||||||||||||||
Specialty | 1,490 | 1,055 | |||||||||||||||||||||
Net sales | $ | 5,089 | $ | 3,855 |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Ball (A) | 21 | % | 26 | % | 21 | % | 27 | % | |||
Ford | 10 | % | 11 | % | 10 | % | 10 | % | |||
Crown | 8 | % | 10 | % | 9 | % | 10 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Ball | 17 | % | 16 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Purchases from Rio Tinto as a percentage of total combined metal purchases | 7 | % | 8 | % |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Purchases from RT as a percentage of total combined metal purchases | 9 | % | 11 | % | 10 | % | 11 | % |
(in millions, except shipments which are in kt) | Three Months Ended | Year Ended | Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2016 | Sept 30, 2016 | Dec 31, 2016 | March 31, 2017 | March 31, 2017 | June 30, 2017 | Sept 30, 2017 | Dec 31, 2017 | |||||||||||||||||||||||||
Net sales | $ | 2,296 | $ | 2,361 | $ | 2,313 | $ | 2,621 | $ | 9,591 | $ | 2,669 | $ | 2,794 | $ | 3,085 | ||||||||||||||||
Percentage (decrease) increase in net sales versus comparable previous year period | (13 | )% | (5 | )% | (2 | )% | 9 | % | (3 | )% | 16 | % | 18 | % | 33 | % | ||||||||||||||||
Rolled product shipments: | ||||||||||||||||||||||||||||||||
North America | 242 | 252 | 247 | 269 | 1,010 | 273 | 274 | 269 | ||||||||||||||||||||||||
Europe | 246 | 236 | 226 | 235 | 943 | 235 | 237 | 222 | ||||||||||||||||||||||||
Asia | 178 | 176 | 162 | 174 | 690 | 180 | 180 | 177 | ||||||||||||||||||||||||
South America | 103 | 121 | 125 | 125 | 474 | 110 | 131 | 146 | ||||||||||||||||||||||||
Eliminations | (14 | ) | (12 | ) | (10 | ) | (14 | ) | (50 | ) | (13 | ) | (20 | ) | (18 | ) | ||||||||||||||||
Total | 755 | 773 | 750 | 789 | 3,067 | 785 | 802 | 796 | ||||||||||||||||||||||||
The following summarizes the percentage (decrease) increase in rolled product shipments versus the comparable previous year period: | ||||||||||||||||||||||||||||||||
North America | (7 | )% | (6 | )% | (2 | )% | 8 | % | (2 | )% | 13 | % | 9 | % | 9 | % | ||||||||||||||||
Europe | (2 | )% | (6 | )% | (3 | )% | (4 | )% | (4 | )% | (4 | )% | — | % | (2 | )% | ||||||||||||||||
Asia | (8 | )% | (6 | )% | (16 | )% | (7 | )% | (9 | )% | 1 | % | 2 | % | 9 | % | ||||||||||||||||
South America | (4 | )% | 3 | % | (5 | )% | (7 | )% | (3 | )% | 7 | % | 8 | % | 17 | % | ||||||||||||||||
Total | (2 | )% | (2 | )% | (4 | )% | — | % | (2 | )% | 4 | % | 4 | % | 6 | % |
Three Months Ended June 30, | Percent Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Percent | Nine Months Ended December 31, | Percent | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
London Metal Exchange Prices | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aluminum (per metric tonne, and presented in U.S. dollars): | Aluminum (per metric tonne, and presented in U.S. dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closing cash price as of beginning of period | $ | 2,111 | $ | 1,659 | 27 | % | $ | 1,947 | $ | 1,492 | 30 | % | Closing cash price as of beginning of period | $ | 3,503 | $ | 2,213 | 58 | % | |||||||||||||||||||||||||||||||||||||
Average cash price during the period | $ | 2,101 | $ | 1,710 | 23 | % | $ | 2,008 | $ | 1,634 | 23 | % | Average cash price during the period | 2,882 | 2,399 | 20 | ||||||||||||||||||||||||||||||||||||||||
Closing cash price as of end of period | $ | 2,242 | $ | 1,714 | 31 | % | $ | 2,242 | $ | 1,714 | 31 | % | Closing cash price as of end of period | 2,397 | 2,523 | (5) |
Three Months Ended December 31, | Percent | Nine Months Ended December 31, | Percent | ||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Weighted average Local Market Premium (per metric tonne, and presented in U.S. dollars) | $ | 180 | $ | 144 | 25 | % | $ | 168 | $ | 142 | 18 | % |
Three Months Ended June 30, | Percent Change | ||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Weighted average LMP (per metric tonne and presented in U.S. dollars) | $ | 526 | $ | 397 | 32 | % |
Exchange Rate as of | Average Exchange Rate Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchange Rate as of | Average Exchange Rate | Average Exchange Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | March 31, 2017 | Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. dollar per Euro | 1.201 | 1.068 | 1.185 | 1.070 | 1.163 | 1.104 | ||||||||||||||||||||||||||||||||||||||||||||||
Euro per U.S. dollar | Euro per U.S. dollar | 0.957 | 0.889 | 0.946 | 0.831 | |||||||||||||||||||||||||||||||||||||||||||||||
Brazilian real per U.S. dollar | 3.308 | 3.168 | 3.282 | 3.279 | 3.227 | 3.313 | Brazilian real per U.S. dollar | 5.238 | 4.738 | 4.962 | 5.213 | |||||||||||||||||||||||||||||||||||||||||
South Korean won per U.S. dollar | 1,071 | 1,116 | 1,093 | 1,174 | 1,118 | 1,151 | South Korean won per U.S. dollar | 1,293 | 1,211 | 1,269 | 1,118 | |||||||||||||||||||||||||||||||||||||||||
Canadian dollar per U.S. dollar | 1.254 | 1.329 | 1.278 | 1.343 | 1.288 | 1.313 | Canadian dollar per U.S. dollar | 1.290 | 1.249 | 1.277 | 1.226 | |||||||||||||||||||||||||||||||||||||||||
Swiss franc per Euro | 1.171 | 1.069 | 1.168 | 1.079 | 1.133 | 1.088 | ||||||||||||||||||||||||||||||||||||||||||||||
Swiss franc per euro | Swiss franc per euro | 1.001 | 1.023 | 1.017 | 1.098 |
Three Months Ended | Fiscal Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
in millions, except percentages and shipments, which are in kt | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | March 31, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 3,855 | $ | 4,119 | $ | 4,326 | $ | 4,849 | $ | 17,149 | $ | 5,089 | |||||||||||||||||||||||||||||||||||
Percentage (decrease) increase in net sales versus comparable prior year period | 59 | % | 38 | % | 33 | % | 34 | % | 40 | % | 32 | % | |||||||||||||||||||||||||||||||||||
Rolled product shipments: | |||||||||||||||||||||||||||||||||||||||||||||||
North America | 358 | 375 | 358 | 376 | 1,467 | 386 | |||||||||||||||||||||||||||||||||||||||||
Europe | 279 | 260 | 254 | 274 | 1,067 | 272 | |||||||||||||||||||||||||||||||||||||||||
Asia | 192 | 197 | 171 | 203 | 763 | 185 | |||||||||||||||||||||||||||||||||||||||||
South America | 157 | 147 | 157 | 156 | 617 | 148 | |||||||||||||||||||||||||||||||||||||||||
Eliminations | (13) | (11) | (10) | (22) | (56) | (29) | |||||||||||||||||||||||||||||||||||||||||
Total | 973 | 968 | 930 | 987 | 3,858 | 962 | |||||||||||||||||||||||||||||||||||||||||
The following summarizes the percentage (decrease) increase in rolled product shipments versus the comparable prior year period: | |||||||||||||||||||||||||||||||||||||||||||||||
North America | 32 | % | 2 | % | 3 | % | 4 | % | 9 | % | 8 | % | |||||||||||||||||||||||||||||||||||
Europe | 32 | 8 | — | 1 | 9 | (3) | |||||||||||||||||||||||||||||||||||||||||
Asia | 4 | 11 | (7) | 2 | 2 | (4) | |||||||||||||||||||||||||||||||||||||||||
South America | 39 | (1) | (1) | (3) | 7 | (6) | |||||||||||||||||||||||||||||||||||||||||
Total | 26 | % | 5 | % | — | % | — | % | 7 | % | (1) | % |
Selected Operating Results Three Months Ended December 31, 2017 | North America | Europe | Asia | South America | Eliminations and Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Operating Results Three Months Ended June 30, 2022 | Selected Operating Results Three Months Ended June 30, 2022 | North America | Europe | Asia | South America | Eliminations and other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 986 | $ | 837 | $ | 547 | $ | 567 | $ | 148 | $ | 3,085 | Net sales | $ | 2,096 | $ | 1,394 | $ | 858 | $ | 826 | $ | (85) | $ | 5,089 | |||||||||||||||||||||||||||||||||
Shipments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rolled products - third party | 268 | 217 | 173 | 138 | — | 796 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Rolled products - intersegment | 1 | 5 | 4 | 8 | (18 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shipments (in kt): | Shipments (in kt): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rolled products – third party | Rolled products – third party | 386 | 265 | 164 | 147 | — | 962 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Rolled products – intersegment | Rolled products – intersegment | — | 7 | 21 | 1 | (29) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total rolled products | 269 | 222 | 177 | 146 | (18 | ) | 796 | Total rolled products | 386 | 272 | 185 | 148 | (29) | 962 | ||||||||||||||||||||||||||||||||||||||||||||
Non-rolled products | — | 1 | 2 | 38 | — | 41 | Non-rolled products | 3 | 28 | 6 | 37 | (13) | 61 | |||||||||||||||||||||||||||||||||||||||||||||
Total shipments | 269 | 223 | 179 | 184 | (18 | ) | 837 | Total shipments | 389 | 300 | 191 | 185 | (42) | 1,023 |
Selected Operating Results Three Months Ended June 30, 2021 | North America | Europe | Asia | South America | Eliminations and other | Total | |||||||||||||||||||||||||||||
Net sales | $ | 1,456 | $ | 1,120 | $ | 672 | $ | 576 | $ | 31 | $ | 3,855 | |||||||||||||||||||||||
Shipments (in kt): | |||||||||||||||||||||||||||||||||||
Rolled products – third party | 358 | 268 | 190 | 157 | — | 973 | |||||||||||||||||||||||||||||
Rolled products – intersegment | — | 11 | 2 | — | (13) | — | |||||||||||||||||||||||||||||
Total rolled products | 358 | 279 | 192 | 157 | (13) | 973 | |||||||||||||||||||||||||||||
Non-rolled products | 3 | 32 | 2 | 21 | (5) | 53 | |||||||||||||||||||||||||||||
Total shipments | 361 | 311 | 194 | 178 | (18) | 1,026 |
Selected Operating Results Three Months Ended December 31, 2016 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales | $ | 789 | $ | 693 | $ | 412 | $ | 399 | $ | 20 | $ | 2,313 | |||||||||||
Shipments | |||||||||||||||||||||||
Rolled products - third party | 247 | 222 | 161 | 120 | — | 750 | |||||||||||||||||
Rolled products - intersegment | — | 4 | 1 | 5 | (10 | ) | — | ||||||||||||||||
Total rolled products | 247 | 226 | 162 | 125 | (10 | ) | 750 | ||||||||||||||||
Non-rolled products | — | 1 | 2 | 28 | — | 31 | |||||||||||||||||
Total shipments | 247 | 227 | 164 | 153 | (10 | ) | 781 |
in millions | North America | Europe | Asia | South America | Eliminations and other(1) | Total | |||||||||||||||||||||||||||||
Adjusted EBITDA - Three Months Ended June 30, 2021 | $ | 172 | $ | 102 | $ | 88 | $ | 193 | $ | — | $ | 555 | |||||||||||||||||||||||
Volume | 29 | (9) | (6) | (9) | (18) | (13) | |||||||||||||||||||||||||||||
Conversion premium and product mix | 66 | 43 | 45 | 23 | (15) | 162 | |||||||||||||||||||||||||||||
Conversion costs | (23) | (21) | (21) | (5) | 34 | (36) | |||||||||||||||||||||||||||||
Foreign exchange | 1 | (21) | (4) | 9 | — | (15) | |||||||||||||||||||||||||||||
Selling, general & administrative and research & development costs(2) | 1 | (2) | (5) | (7) | 2 | (11) | |||||||||||||||||||||||||||||
Other changes | (19) | (8) | (3) | (48) | (3) | (81) | |||||||||||||||||||||||||||||
Adjusted EBITDA - Three Months Ended June 30, 2022 | $ | 227 | $ | 84 | $ | 94 | $ | 156 | $ | — | $ | 561 |
Changes in Segment income | North America | Europe | Asia | South America | Eliminations (A) | Total | ||||||||||||||||||
Segment income - Three Months Ended December 31, 2016 (B) | $ | 90 | $ | 44 | $ | 40 | $ | 81 | $ | — | $ | 255 | ||||||||||||
Volume | 23 | (3 | ) | 11 | 23 | (8 | ) | 46 | ||||||||||||||||
Conversion premium and product mix | 7 | 2 | (9 | ) | (2 | ) | 3 | 1 | ||||||||||||||||
Conversion costs (C) | (2 | ) | 3 | 1 | 9 | 4 | 15 | |||||||||||||||||
Foreign exchange | — | 6 | — | (3 | ) | — | 3 | |||||||||||||||||
Selling, general & administrative and research & development costs (D) | (11 | ) | (2 | ) | — | (8 | ) | (4 | ) | (25 | ) | |||||||||||||
Other changes (E) | 4 | — | — | 7 | (1 | ) | 10 | |||||||||||||||||
Segment income - Three Months Ended December 31, 2017 | $ | 111 | $ | 50 | $ | 43 | $ | 107 | $ | (6 | ) | $ | 305 |
(1)The recognition of Adjusted EBITDA by a region on an intersegment shipment could occur in a period prior to the recognition of Adjusted EBITDA on a consolidated basis, depending on the timing of when the inventory is sold to the |
Selected Operating Results Nine Months Ended December 31, 2017 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales | $ | 2,895 | $ | 2,519 | $ | 1,565 | $ | 1,410 | $ | 159 | $ | 8,548 | |||||||||||
Shipments | |||||||||||||||||||||||
Rolled products - third party | 809 | 682 | 527 | 365 | — | 2,383 | |||||||||||||||||
Rolled products - intersegment | 7 | 12 | 10 | 22 | (51 | ) | — | ||||||||||||||||
Total rolled products | 816 | 694 | 537 | 387 | (51 | ) | 2,383 | ||||||||||||||||
Non-rolled products | — | 5 | 6 | 97 | — | 108 | |||||||||||||||||
Total shipments | 816 | 699 | 543 | 484 | (51 | ) | 2,491 |
Selected Operating Results Nine Months Ended December 31, 2016 | North America | Europe | Asia | South America | Eliminations and Other | Total | |||||||||||||||||
Net sales | $ | 2,307 | $ | 2,189 | $ | 1,314 | $ | 1,090 | $ | 70 | $ | 6,970 | |||||||||||
Shipments | |||||||||||||||||||||||
Rolled products - third party | 740 | 695 | 512 | 331 | — | 2,278 | |||||||||||||||||
Rolled products - intersegment | 1 | 13 | 4 | 18 | (36 | ) | — | ||||||||||||||||
Total rolled products | 741 | 708 | 516 | 349 | (36 | ) | 2,278 | ||||||||||||||||
Non-rolled products | 3 | 6 | 6 | 61 | — | 76 | |||||||||||||||||
Total shipments | 744 | 714 | 522 | 410 | (36 | ) | 2,354 |
Changes in Segment income | North America | Europe | Asia | South America | Eliminations (A) | Total | ||||||||||||||||||
Segment income - Nine Months Ended December 31, 2016 (B) | $ | 276 | $ | 150 | $ | 132 | $ | 236 | $ | — | $ | 794 | ||||||||||||
Volume | 80 | (14 | ) | 25 | 44 | (14 | ) | 121 | ||||||||||||||||
Conversion premium and product mix | 8 | 12 | (27 | ) | (25 | ) | 10 | (22 | ) | |||||||||||||||
Conversion costs (C) | (7 | ) | 10 | 2 | 17 | 3 | 25 | |||||||||||||||||
Foreign exchange | 2 | 14 | (2 | ) | (4 | ) | — | 10 | ||||||||||||||||
Selling, general & administrative and research & development costs (D) | (21 | ) | (13 | ) | (4 | ) | (17 | ) | (5 | ) | (60 | ) | ||||||||||||
Other changes (E) | 13 | (1 | ) | (2 | ) | 18 | — | 28 | ||||||||||||||||
Segment income - Nine Months Ended December 31, 2017 | $ | 351 | $ | 158 | $ | 124 | $ | 269 | $ | (6 | ) | $ | 896 |
in millions | June 30, 2022 | March 31, 2022 | |||||||||
Cash and cash equivalents | $ | 1,037 | $ | 1,070 | |||||||
Availability under committed credit facilities | 1,341 | 1,499 | |||||||||
Total available liquidity | $ | 2,378 | $ | 2,569 |
December 31, 2017 | March 31, 2017 | ||||||
Cash and cash equivalents | $ | 757 | $ | 594 | |||
Availability under committed credit facilities | 967 | 701 | |||||
Total liquidity | $ | 1,724 | $ | 1,295 |
Nine Months Ended December 31, | |||||||||||
2017 | 2016 | Change | |||||||||
Net cash provided by operating activities | $ | 237 | $ | 151 | $ | 86 | |||||
Net cash provided by (used in) investing activities | 170 | (122 | ) | 292 | |||||||
Less: Proceeds from the sale of a business, net of transaction fees, cash income taxes and hedging (A) | (304 | ) | — | (304 | ) | ||||||
Free cash flow | $ | 103 | $ | 29 | $ | 74 | |||||
Ending cash and cash equivalents | $ | 757 | $ | 505 | $ | 252 |
Nine Months Ended December 31, | |||||||||||
2017 | 2016 | Change | |||||||||
Net cash used in operating activities due to changes in working capital: | |||||||||||
Accounts receivable | $ | (403 | ) | $ | (108 | ) | $ | (295 | ) | ||
Inventories | (175 | ) | (200 | ) | 25 | ||||||
Accounts payable | 221 | 59 | 162 | ||||||||
Other current assets and liabilities | 36 | (58 | ) | 94 | |||||||
Net change in working capital | $ | (321 | ) | $ | (307 | ) | $ | (14 | ) |
Nine Months Ended December 31, | |||||||||||
2017 | 2016 | Change | |||||||||
Capital expenditures | $ | (136 | ) | $ | (138 | ) | $ | 2 | |||
(Outflows) proceeds from the settlement of derivative instruments, net | (18 | ) | 7 | (25 | ) | ||||||
Proceeds from sales of assets, third party, net of transaction fees and hedging | 1 | 2 | (1 | ) | |||||||
Proceeds (outflows) from the sale of a business | 314 | (2 | ) | 316 | |||||||
Proceeds from investment in and advances to non-consolidated affiliates, net | 9 | 12 | (3 | ) | |||||||
Net cash provided by (used in) investing activities | $ | 170 | $ | (122 | ) | $ | 292 |
Nine Months Ended December 31, | |||||||||||
2017 | 2016 | Change | |||||||||
Proceeds from issuance of long-term and short-term borrowings | $ | — | $ | 2,770 | $ | (2,770 | ) | ||||
Principal payments of long-term and short-term borrowings | (138 | ) | (2,676 | ) | 2,538 | ||||||
Revolving credit facilities and other, net | (140 | ) | (20 | ) | (120 | ) | |||||
Debt issuance costs | (5 | ) | (139 | ) | 134 | ||||||
Net cash used in financing activities | $ | (283 | ) | $ | (65 | ) | $ | (218 | ) |
Three Months Ended June 30, | |||||||||||||||||
in millions | 2022 | 2021 | Change | ||||||||||||||
Net cash provided by operating activities – continuing operations | $ | 44 | $ | 65 | $ | (21) | |||||||||||
Net cash used in investing activities – continuing operations | (120) | (94) | (26) | ||||||||||||||
Plus: Cash used in the acquisition of business and other investments, net of cash acquired | 4 | — | 4 | ||||||||||||||
Less: Proceeds from sales of assets and business, net of transaction fees, cash income taxes and hedging | — | (1) | 1 | ||||||||||||||
Adjusted Free Cash Flow from Continuing Operations | (72) | (30) | (42) | ||||||||||||||
Net cash used in operating activities – discontinued operations | (1) | (3) | 2 | ||||||||||||||
Adjusted Free Cash Flow | $ | (73) | $ | (33) | $ | (40) | |||||||||||
Ending cash and cash equivalents | $ | 1,037 | $ | 872 | $ | 165 |
Three Months Ended June 30, | |||||||||||||||||
in millions | 2022 | 2021 | Change | ||||||||||||||
Net cash provided by operating activities | $ | 43 | $ | 62 | $ | (19) | |||||||||||
Net cash used in investing activities | (120) | (94) | (26) | ||||||||||||||
Net cash provided by (used in) financing activities | 76 | (119) | 195 |
Three Months Ended | ||||||||
in millions | June 30, 2021 | |||||||
Floating rate Term Loans, due March 2028 | $ | 20 | ||||||
Proceeds from issuance of long-term and short-term borrowings | $ | 20 | ||||||
Three Months Ended | ||||||||
in millions | June 30, 2022 | |||||||
Short-term loans due November 2022 | $ | (101) | ||||||
Floating rate Term Loans, due January 2025 | (2) | |||||||
Floating rate Term Loans, due March 2028 | (1) | |||||||
Finance leases and other repayments | (3) | |||||||
Principal payments of long-term and short-term borrowings | $ | (107) | ||||||
Three Months Ended | ||||||||
in millions | June 30, 2021 | |||||||
Zhenjiang Term Loans, due May 2024 | $ | (129) | ||||||
Floating rate Term Loans, due June 2022 | (125) | |||||||
Short-term borrowings in Brazil | (3) | |||||||
Floating rate Term Loans, due January 2025 | (2) | |||||||
Finance leases and other repayments | (3) | |||||||
Principal payments of long-term and short-term borrowings | $ | (262) | ||||||
Three Months Ended | ||||||||
in millions | June 30, 2022 | |||||||
ABL Revolver | $ | 179 | ||||||
Korea credit facility | 3 | |||||||
Other revolving facilities | 1 | |||||||
Revolving credit facilities and other, net | $ | 183 | ||||||
Three Months Ended | ||||||||
in millions | June 30, 2021 | |||||||
ABL Revolver | $ | 136 | ||||||
China credit facility | 7 | |||||||
Korea credit facility | (18) | |||||||
Revolving credit facilities and other, net | $ | 125 | ||||||
Item Description | Ratio | |||||||
Net sales represented by non-guarantor subsidiaries (for the three months ended June 30, 2022) | 19 | % | ||||||
Adjusted EBITDA represented by non-guarantor subsidiaries (for the three months ended June 30, 2022) | 16 | % | ||||||
Assets owned by non-guarantor subsidiaries (as of June 30, 2022) | 18 | % |
Change in Price | Change in Fair Value | |||||
LME aluminum | 10 | % | $ | (106 | ) |
in millions | Change in Price | Change in Fair Value | |||||||||
Aluminum | 10 | % | $ | (222) | |||||||
Copper | (10) | — | |||||||||
Zinc | (10) | — | |||||||||
Change in Price | Change in Fair Value | |||||
Electricity | (10 | )% | $ | (4 | ) | |
Natural Gas | (10 | )% | (6 | ) | ||
Diesel Fuel | (10 | )% | (1 | ) |
in millions | Change in Price | Change in Fair Value | |||||||||
Natural gas | (10) | % | $ | (4) | |||||||
Diesel fuel | (10) | (2) |
Change in Exchange Rate | Change in Fair Value | |||||
Currency measured against the U.S. dollar | ||||||
Brazilian real | (10 | )% | $ | (22 | ) | |
Euro | 10 | % | (39 | ) | ||
Korean won | (10 | )% | (31 | ) | ||
Canadian dollar | (10 | )% | (4 | ) | ||
British pound | (10 | )% | (19 | ) | ||
Swiss franc | (10 | )% | (40 | ) | ||
Chinese yuan | 10 | % | (8 | ) |
$ in millions | Change in Exchange Rate | Change in Fair Value | |||||||||
Currency measured against the U.S. dollar | |||||||||||
Brazilian real | (10) | % | $ | (30) | |||||||
Euro | (10) | (60) | |||||||||
Korean won | (10) | (92) | |||||||||
Canadian dollar | (10) | (4) | |||||||||
British pound | (10) | (21) | |||||||||
Swiss franc | (10) | (37) | |||||||||
Chinese yuan | 10 | (1) |
Exhibit No. | Description | ||||||||
2.1 | |||||||||
3.1 | |||||||||
3.2 | |||||||||
3.3 | |||||||||
10.1 | Amendment No. 6 to Credit Agreement, dated as of July 25, 2022, among Novelis Inc., as Borrower, Novelis ALR Aluminum Holdings Corporation, as co-borrower of the Aleris Incremental Term Loans and as guarantor, Minerals N.V., the Subsidiary Guarantors party thereto, the Lenders party thereto and Standard Chartered Bank, as administrative agent and as collateral agent. | ||||||||
31.1 | |||||||||
31.2 | |||||||||
32.1 | |||||||||
32.2 | |||||||||
101.INS | |||||||||
XBRL Instance Document | |||||||||
101.SCH | |||||||||
Inline XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL | |||||||||
Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||||
101.DEF | |||||||||
Inline XBRL Taxonomy Extension Definition Linkbase | |||||||||
101.LAB | |||||||||
Inline XBRL Taxonomy Extension Label Linkbase | |||||||||
101.PRE | |||||||||
Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
NOVELIS INC. | |||||||||||
By: | /s/ Devinder Ahuja | ||||||||||
Devinder Ahuja | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer and Authorized Officer) | |||||||||||
/s/ Stephanie Rauls | |||||||||||
Stephanie Rauls | |||||||||||
Senior Vice President, Deputy Chief Financial Officer and Chief Accounting Officer | |||||||||||