Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | May. 09, 2016 | Sep. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Novelis Inc. | ||
Entity Central Index Key | 1,304,280 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 2,402 | $ 2,354 | $ 2,482 | $ 2,634 | $ 2,789 | $ 2,847 | $ 2,831 | $ 2,680 | $ 9,872 | $ 11,147 | $ 9,767 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,035 | 2,051 | 2,241 | 2,400 | 2,483 | 2,498 | 2,483 | 2,329 | 8,727 | 9,793 | 8,468 |
Selling, general and administrative expenses | 103 | 104 | 100 | 100 | 108 | 108 | 103 | 108 | 407 | 427 | 461 |
Depreciation and amortization | 89 | 88 | 89 | 87 | 86 | 87 | 90 | 89 | 353 | 352 | 334 |
Research and development expenses | 15 | 13 | 13 | 13 | 12 | 14 | 12 | 12 | 54 | 50 | 45 |
Interest expense and amortization of debt issuance costs | 83 | 82 | 82 | 80 | 78 | 85 | 82 | 81 | 327 | 326 | 304 |
Gain on assets held for sale | 0 | 22 | 6 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | 13 | 13 | 0 | 0 | ||||
Restructuring and impairment, net | 19 | 10 | 4 | 15 | (1) | 25 | 7 | 6 | 48 | 37 | 75 |
Equity in net loss of non-consolidated affiliates | 1 | 0 | 1 | 1 | 1 | 2 | 0 | 2 | 3 | 5 | 12 |
Other (income) expense, net | 10 | (16) | (32) | (30) | 3 | (9) | 18 | 5 | (68) | 17 | (41) |
Total expenses | 9,864 | 10,985 | 9,652 | ||||||||
Income before income taxes | 8 | 162 | 115 | ||||||||
Income tax provision | 18 | 16 | (3) | 15 | (11) | 3 | (2) | 24 | 46 | 14 | 11 |
Net (loss) income | 29 | 6 | (13) | (60) | 29 | 46 | 38 | 35 | (38) | 148 | 104 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net (loss) income attributable to our common shareholder | $ 29 | $ 6 | $ (13) | $ (60) | $ 29 | $ 46 | $ 38 | $ 35 | $ (38) | $ 148 | $ 104 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (38) | $ 148 | $ 104 |
Other comprehensive income (loss): | |||
Currency translation adjustment | 17 | (304) | 120 |
Change in fair value of effective portion of hedges, net | 60 | (44) | (21) |
Change in pension and other benefits, net | 33 | 209 | (120) |
Other comprehensive income (loss) before income tax effect | 44 | (557) | 219 |
Income tax (benefit) provision related to items of other comprehensive income (loss) | (6) | (72) | 44 |
Other comprehensive income (loss), net of tax | 50 | (485) | 175 |
Comprehensive (loss) income | 12 | (337) | 279 |
Less: Comprehensive loss attributable to noncontrolling interest, net of tax | (11) | (15) | (2) |
Comprehensive income attributable to our common shareholder | $ 23 | $ (322) | $ 281 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Current assets | |||||
Cash and cash equivalents | $ 556 | $ 628 | $ 509 | $ 301 | $ 301 |
Accounts receivable, net | |||||
— third parties (net of uncollectible accounts of $3 as of March 31, 2016 and 2015) | 956 | 1,289 | |||
— related parties | 59 | 53 | |||
Inventories | 1,180 | 1,431 | |||
Prepaid expenses and other current assets | 127 | 112 | |||
Fair value of derivative instruments | 88 | 77 | |||
Deferred income tax assets | 0 | 79 | |||
Assets held for sale | 5 | 6 | |||
Total current assets | 2,971 | 3,675 | |||
Property, plant and equipment, net | 3,506 | 3,542 | |||
Goodwill | 607 | 607 | |||
Intangible assets, net | 523 | 584 | |||
Investment in and advances to non–consolidated affiliate | 488 | 447 | |||
Deferred income tax assets | 87 | 95 | |||
Other long–term assets | |||||
— third parties | 112 | 137 | |||
— related parties | 16 | 15 | |||
Total assets | 8,310 | 9,102 | |||
Current liabilities | |||||
Current portion of long–term debt | 47 | 108 | |||
Short–term borrowings | 579 | 846 | |||
Accounts payable | |||||
— third parties | 1,506 | 1,854 | |||
— related parties | 48 | 44 | |||
Fair value of derivative instruments | 85 | 149 | |||
Accrued expenses and other current liabilities | 569 | 572 | |||
Deferred income tax liabilities | 0 | 20 | |||
Total current liabilities | 2,834 | 3,593 | |||
Long–term debt, net of current portion | 4,451 | 4,349 | |||
Deferred income tax liabilities | 89 | 261 | |||
Accrued postretirement benefits | 820 | 748 | |||
Other long–term liabilities | 175 | 221 | |||
Total liabilities | $ 8,369 | $ 9,172 | |||
Commitments and contingencies | |||||
Shareholder’s deficit | |||||
Common stock, no par value; unlimited number of shares authorized; 1,000 shares issued and outstanding as of March 31, 2016 and 2015 | $ 0 | $ 0 | |||
Additional paid–in capital | 1,404 | 1,404 | |||
Accumulated deficit | (963) | (925) | |||
Accumulated other comprehensive loss | (500) | (561) | (91) | (268) | |
Total deficit of our common shareholder | (59) | (82) | |||
Noncontrolling interests | 0 | 12 | |||
Total deficit | (59) | (70) | $ 268 | $ 239 | |
Total liabilities and deficit | $ 8,310 | $ 9,102 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 3 | $ 3 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (38) | $ 148 | $ 104 |
Adjustments to determine net cash provided by operating activities: | |||
Depreciation and amortization | 353 | 352 | 334 |
(Gain) loss on unrealized derivatives and other realized derivatives in investing activities, net | (27) | 39 | (3) |
Gain on assets held for sale | 0 | (22) | (6) |
Loss on sale of assets | 4 | 5 | 9 |
Impairment charges | 25 | 7 | 24 |
Loss on extinguishment of debt | 13 | 0 | 0 |
Deferred income taxes | (93) | (88) | (129) |
Amortization of fair value adjustments, net | 11 | 10 | 12 |
Equity in net loss of non-consolidated affiliates | 3 | 5 | 12 |
Gain on foreign exchange remeasurement of debt | (2) | (5) | (2) |
Amortization of debt issuance costs and carrying value adjustments | 19 | 25 | 26 |
Other, net | 0 | 1 | (4) |
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | |||
Accounts receivable | 336 | (54) | 106 |
Inventories | 268 | (390) | 17 |
Accounts payable | (327) | 578 | 159 |
Other current assets | (12) | (27) | 0 |
Other current liabilities | 7 | 66 | 32 |
Other noncurrent assets | 20 | 7 | (9) |
Other noncurrent liabilities | (19) | (53) | 20 |
Net cash provided by operating activities | 541 | 604 | 702 |
INVESTING ACTIVITIES | |||
Capital expenditures | (370) | (518) | (717) |
Proceeds from sales of assets, third party, net of transaction fees and hedging | 3 | 117 | 8 |
Proceeds from the sale of assets, related party, net of transaction fees | 0 | 0 | 8 |
Outflows from investment in and advances to non-consolidated affiliates, net | (2) | (20) | (16) |
(Outflows) proceeds from settlement of other undesignated derivative instruments, net | (9) | 5 | 15 |
Net cash used in investing activities | (378) | (416) | (702) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term and short-term borrowings | 174 | 362 | 169 |
Principal payments of long-term and short-term borrowings | (216) | (324) | (164) |
Revolving credit facilities and other, net | (187) | 160 | 208 |
Return of capital to our common shareholder | 0 | (250) | 0 |
Dividends, noncontrolling interest | (1) | (1) | 0 |
Debt issuance costs | (15) | (3) | (8) |
Net cash (used in) provided by financing activities | (245) | (56) | 205 |
Net (decrease) increase in cash and cash equivalents | (82) | 132 | 205 |
Effect of exchange rate changes on cash | 10 | (13) | 3 |
Cash and cash equivalents — beginning of period | 628 | 509 | 301 |
Cash and cash equivalents — end of period | $ 556 | $ 628 | $ 509 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) (AOCI) | Non-controlling Interests |
Balance, shares at Mar. 31, 2013 | 1,000 | |||||
Balance at Mar. 31, 2013 | $ 239 | $ 0 | $ 1,654 | $ (1,177) | $ (268) | $ 30 |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net income attributable to our common shareholder | 104 | 104 | ||||
Currency translation adjustment, net of tax provision of $ - million included in AOCI | 120 | 122 | (2) | |||
Change in fair value of effective portion of hedges, net of tax/benefit included in AOCI | (18) | (18) | ||||
Change in pension and other benefits, net of tax included in AOCI | 73 | 73 | ||||
Return of capital | 0 | |||||
Return of Capital to Parent Company, Declaration | 250 | 250 | ||||
Balance, shares at Mar. 31, 2014 | 1,000 | |||||
Balance at Mar. 31, 2014 | 268 | $ 0 | 1,404 | (1,073) | (91) | 28 |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net income attributable to our common shareholder | 148 | 148 | ||||
Currency translation adjustment, net of tax provision of $ - million included in AOCI | (304) | (302) | (2) | |||
Change in fair value of effective portion of hedges, net of tax/benefit included in AOCI | (43) | (43) | ||||
Change in pension and other benefits, net of tax included in AOCI | (138) | (125) | (13) | |||
Noncontrolling interests cash dividends declared | (1) | (1) | ||||
Balance, shares at Mar. 31, 2015 | 1,000 | |||||
Balance at Mar. 31, 2015 | (70) | $ 0 | 1,404 | (925) | (561) | 12 |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net income attributable to our common shareholder | (38) | (38) | ||||
Currency translation adjustment, net of tax provision of $ - million included in AOCI | 17 | 17 | ||||
Change in fair value of effective portion of hedges, net of tax/benefit included in AOCI | 52 | 52 | ||||
Change in pension and other benefits, net of tax included in AOCI | (19) | (8) | (11) | |||
Noncontrolling interests cash dividends declared | (1) | (1) | ||||
Balance, shares at Mar. 31, 2016 | 1,000 | |||||
Balance at Mar. 31, 2016 | $ (59) | $ 0 | $ 1,404 | $ (963) | $ (500) | $ 0 |
Consolidated Statement of Shar8
Consolidated Statement of Shareholder's Equity (Parenthetical) - Accumulated Other Comprehensive Income (Loss) (AOCI) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Tax on currency translation adjustment | $ 0 | $ 0 | $ 0 |
Tax on change in fair value of cash flow hedges | (8) | 1 | (3) |
Tax on change in pension and other benefits | $ 14 | $ 71 | $ 47 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References herein to “Novelis,” the “Company,” “we,” “our,” or “us” refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to “Hindalco” refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco Industries Limited. Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of March 31, 2016 , we had manufacturing operations in eleven countries on four continents: North America, South America, Asia and Europe, through 25 operating facilities, including recycling operations in eleven of these plants. Consolidation Policy Our consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated “Net (loss) income attributable to our common shareholder” includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the consolidated financial statements for consolidated entities, compared to a two-line presentation of "Investment in and advances to non-consolidated affiliates" and "Equity in net loss of non-consolidated affiliates." Use of Estimates and Assumptions The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Risks and Uncertainties We are exposed to a number of risks in the normal course of our operations that could potentially affect our financial position, results of operations, and cash flows. Laws and regulations We operate in an industry that is subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate. These laws and regulations impose increasingly stringent environmental, health and safety protection standards and permitting requirements regarding, among other things, air emissions, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste disposal practices, the remediation of environmental contamination, post-mining reclamation and working conditions for our employees. Some environmental laws, such as the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, and comparable state laws, impose joint and several liability for the cost of environmental remediation, natural resource damages, third party claims, and other expenses, without regard to the fault or the legality of the original conduct. The costs of complying with these laws and regulations, including participation in assessments and remediation of contaminated sites and installation of pollution control facilities, have been, and in the future could be, significant. In addition, these laws and regulations may also result in substantial environmental liabilities associated with divested assets, third party locations and past activities. In certain instances, these costs and liabilities, as well as related action to be taken by us, could be accelerated or increased if we were to close, divest of or change the principal use of certain facilities with respect to which we may have environmental liabilities or remediation obligations. Currently, we are involved in a number of compliance efforts, remediation activities and legal proceedings concerning environmental matters, including certain activities and proceedings arising under U.S. Superfund and comparable laws in other jurisdictions where we have operations. We have established liabilities for environmental remediation where appropriate. However, the cost of addressing environmental matters (including the timing of any charges related thereto) cannot be predicted with certainty, and these liabilities may not ultimately be adequate, especially in light of potential changes in environmental conditions, changing interpretations of laws and regulations by regulators and courts, the discovery of previously unknown environmental conditions, the risk of governmental orders to carry out additional compliance on certain sites not initially included in remediation in progress, our potential liability to remediate sites for which provisions have not been previously established and the adoption of more stringent environmental laws. Such future developments could result in increased environmental costs and liabilities and could require significant capital expenditures, any of which could have a material adverse effect on our financial position or results of operations or cash flows. Furthermore, the failure to comply with our obligations under the environmental laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions or other orders, including orders to cease operations. In addition, the presence of environmental contamination at our properties could adversely affect our ability to sell a property, receive full value for a property or use a property as collateral for a loan. Some of our current and potential operations are located or could be located in or near communities that may regard such operations as having a detrimental effect on their social and economic circumstances. Environmental laws typically provide for participation in permitting decisions, site remediation decisions and other matters. Concern about environmental justice issues may affect our operations. Should such community objections be presented to government officials, the consequences of such a development may have a material adverse impact upon the profitability or, in extreme cases, the viability of an operation. In addition, such developments may adversely affect our ability to expand or enter into new operations in such location or elsewhere and may also have an effect on the cost of our environmental remediation projects. We use a variety of hazardous materials and chemicals in our rolling processes and in connection with maintenance work on our manufacturing facilities. Because of the nature of these substances or related residues, we may be liable for certain costs, including, among others, costs for health-related claims or removal or re-treatment of such substances. Certain of our current and former facilities incorporated asbestos-containing materials, a hazardous substance that has been the subject of health-related claims for occupation exposure. In addition, although we have developed environmental, health and safety programs for our employees, including measures to reduce employee exposure to hazardous substances, and conduct regular assessments at our facilities, we are currently, and in the future may be, involved in claims and litigation filed on behalf of persons alleging injury predominantly as a result of occupational exposure to substances at our current or former facilities. It is not possible to predict the ultimate outcome of these claims and lawsuits due to the unpredictable nature of personal injury litigation. If these claims and lawsuits, individually or in the aggregate, were finally resolved against us, our financial position, results of operations and cash flows could be adversely affected. Materials and labor In the aluminum rolled products industry, our raw materials are subject to continuous price volatility. We may not be able to pass on the entire cost of the increases to our customers or offset fully the effects of higher raw material costs through productivity improvements, which may cause our profitability to decline. In addition, there is a potential time lag between changes in prices under our purchase contracts and the point when we can implement a corresponding change under our sales contracts with our customers. As a result, we could be exposed to fluctuations in raw materials prices which could have a material adverse effect on our financial position, results of operations and cash flows. Significant price increases may result in our customers’ substituting other materials, such as plastic or glass, for aluminum or switching to another aluminum rolled products producer, which could have a material adverse effect on our financial position, results of operations and cash flows. We consume substantial amounts of energy in our rolling operations and our cast house operations. The factors that affect our energy costs and supply reliability tend to be specific to each of our facilities. A number of factors could materially adversely affect our energy position including, but not limited to: (a) increases in the cost of natural gas; (b) increases in the cost of supplied electricity or fuel oil related to transportation; (c) interruptions in energy supply due to equipment failure or other causes and (d) the inability to extend energy supply contracts upon expiration on economical terms. A significant increase in energy costs or disruption of energy supplies or supply arrangements could have a material adverse effect on our financial position, results of operations and cash flows. A substantial portion of our employees are represented by labor unions under a large number of collective bargaining agreements with varying durations and expiration dates. We may not be able to satisfactorily renegotiate our collective bargaining agreements when they expire. In addition, existing collective bargaining agreements may not prevent a strike or work stoppage at our facilities in the future, and any such work stoppage could have a material adverse effect on our financial position, results of operations and cash flows. Geographic markets We are, and will continue to be, subject to financial, political, economic and business risks in connection with our global operations. We have made investments and carry on production activities in various emerging markets, including China, Brazil, South Korea and Malaysia, and we market our products in these countries, as well as certain other countries in Asia, Africa, and the Middle East. While we anticipate higher growth or attractive production opportunities from these emerging markets, they also present a higher degree of risk than more developed markets. In addition to the business risks inherent in developing and servicing new markets, economic conditions may be more volatile, legal and regulatory systems less developed and predictable, and the possibility of various types of adverse governmental action more pronounced. In addition, inflation, fluctuations in currency and interest rates, competitive factors, civil unrest and labor problems could affect our revenues, expenses and results of operations. Our operations could also be adversely affected by acts of war, terrorism or the threat of any of these events as well as government actions such as controls on imports, exports and prices, tariffs, new forms of taxation, changes in fiscal regimes and increased government regulation in the countries in which we operate or service customers. Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial position, results of operations and cash flows. Other risks and uncertainties In addition, refer to Note 17 — Fair Value Measurements and Note 20 — Commitments and Contingencies for a discussion of financial instruments and commitments and contingencies. Revenue Recognition We recognize sales when the revenue is realized or realizable, and has been earned. We record sales when a firm sales agreement is in place, delivery has occurred and collectability of the fixed or determinable sales price is reasonably assured. We recognize product revenue, net of trade discounts, allowances, and estimated billing adjustments, in the reporting period in which the products are shipped and the title and risk of ownership pass to the customer. We sell most of our products under contracts based on a “conversion premium,” which is subject to periodic adjustments based on market factors. As a result, the aluminum price risk is largely absorbed by the customer. In situations where we offer customers fixed prices for future delivery of our products, we enter into derivative instruments for all or a portion of the cost of metal inputs to protect our profit on the conversion of the product. Shipping and handling amounts we bill to our customers are included in “Net sales” and the related shipping and handling costs we incur are included in “Cost of goods sold (exclusive of depreciation and amortization).” Our customers can receive or earn certain incentives including, but not limited to, contract signing bonuses, cash discounts, volume based incentive programs, and support for infrastructure programs. The incentives are recorded as reductions to "Net sales," and are recognized over the minimum contractual period in which the customer is obligated to make purchases from Novelis. For incentives that must be earned, management must make estimates related to customer performance and sales volume to determine the total amounts earned and to be recorded as reductions to "Net sales." In making these estimates, management considers historical results. The actual amounts may differ from these estimates. On occasion, and in an attempt to better manage inventory levels, we sell inventory to third parties and have agreed to repurchase the same or similar inventory back from the third parties over a future period, based on market prices at the time of repurchase. For transactions in which the Company sells inventory and agrees to repurchase at a later date, we record the initial sale of the inventory on a net basis in our consolidated statement of operations through "Cost of goods sold (exclusive of depreciation and amortization)." Upon repurchase, the Company accounts for the inventory at the reacquisition price which becomes an input to our moving average inventory cost basis. Cost of Goods Sold (Exclusive of Depreciation and Amortization) “Cost of goods sold (exclusive of depreciation and amortization)” includes all costs associated with inventories, including the procurement of materials, the conversion of such materials into finished products, and the costs of warehousing and distributing finished goods to customers. Material procurement costs include inbound freight charges as well as purchasing, receiving, inspection and storage costs. Conversion costs include the costs of direct production inputs such as labor and energy, as well as allocated overheads from indirect production centers and plant administrative support areas. Warehousing and distribution costs include inside and outside storage costs, outbound freight charges and the costs of internal transfers. Selling, General and Administrative Expenses “Selling, general and administrative expenses” include selling, marketing and advertising expenses; salaries, travel and office expenses of administrative employees and contractors; legal and professional fees; software license fees; bad debt expenses; and factoring expenses. Research and Development We incur costs in connection with research and development programs that are expected to contribute to future earnings, and charge such costs against income as incurred. Research and development costs consist primarily of salaries and administrative costs. Restructuring Activities Restructuring charges, which are recorded within “Restructuring and impairment, net," include employee severance and benefit costs, impairments of assets, and other costs associated with exit activities. We apply the provisions of ASC 420, Exit or Disposal Cost Obligations (ASC 420). Severance costs accounted for under ASC 420 are recognized when management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. Impairment losses are based upon the estimated fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include environmental remediation costs and contract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we evaluate the accruals for restructuring costs to ensure the accruals are still appropriate. See Note 2 — Restructuring and Impairment for further discussion. Cash and Cash Equivalents “Cash and cash equivalents” includes investments that are highly liquid and have maturities of three months or less when purchased. The carrying values of cash and cash equivalents approximate their fair value due to the short-term nature of these instruments. We maintain amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions, and we have not experienced any losses on such deposits. Accounts Receivable Our accounts receivable are geographically dispersed. We do not obtain collateral relating to our accounts receivable. We do not believe there are any significant concentrations of revenues from any particular customer or group of customers that would subject us to any significant credit risks in the collection of our accounts receivable. We report accounts receivable at the estimated net realizable amount we expect to collect from our customers. Additions to the allowance for doubtful accounts are made by means of the provision for doubtful accounts. We write-off uncollectible accounts receivable against the allowance for doubtful accounts after exhausting collection efforts. For each of the periods presented, we performed an analysis of our historical cash collection patterns and considered the impact of any known material events in determining the allowance for doubtful accounts. See Note 3 — Accounts Receivable for further discussion. Derivative Instruments We hold derivatives for risk management purposes and not for trading. We use derivatives to mitigate uncertainty and volatility caused by underlying exposures to aluminum prices, foreign exchange rates, interest rates, and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. We may be exposed to losses in the future if the counterparties to our derivative contracts fail to perform. We are satisfied that the risk of such non-performance is remote due to our monitoring of credit exposures. Additionally, we enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default, and we do not face credit contingent provisions that would result in the posting of collateral. For derivatives designated as cash flow hedges or net investment hedges, we assess hedge effectiveness by formally evaluating the high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The effective portion of gain or loss on the derivative is included in other comprehensive income (OCI) and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. Gains or losses representing reclassifications of OCI to earnings are recognized in the line item most reflective of the underlying risk exposure. We exclude the time value component of foreign currency and aluminum price risk hedges when measuring and assessing ineffectiveness to align our accounting policy with risk management objectives when it is necessary. If at any time during the life of a cash flow hedge relationship we determine that the relationship is no longer effective, the derivative will no longer be designated as a cash flow hedge and future gains or losses on the derivative will be recognized in “Other (income) expense, net.” For derivatives designated as fair value hedges, we assess hedge effectiveness by formally evaluating the high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. The changes in the fair values of the underlying hedged items are reported in "Prepaid expenses and other current assets," "Other long-term assets", "Accrued expenses and other current liabilities," and "Other long-term liabilities" in the consolidated balance sheets. Changes in the fair values of these derivatives and underlying hedged items generally offset and the effective portion is recorded in "Net sales" consistent with the underlying hedged item and the net ineffectiveness is recorded in "Other (income) expense, net." If no hedging relationship is designated, gains or losses are recognized in “Other (income) expense, net” in our current period earnings. Consistent with the cash flows from the underlying risk exposure, we classify cash settlement amounts associated with designated derivatives as part of either operating or investing activities in the consolidated statements of cash flows. If no hedging relationship is designated, we classify cash settlement amounts as part of investing activities in the consolidated statement of cash flows. The majority of our derivative contracts are valued using industry-standard models that use observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices for foreign exchange rates. See Note 15 — Financial Instruments and Commodity Contracts and Note 17 — Fair Value Measurements for additional discussion related to derivative instruments. Inventories We carry our inventories at the lower of their cost or market value, reduced for obsolete and excess inventory. We use the average cost method to determine cost. Included in inventories are stores inventories, which are carried at average cost. See Note 4 — Inventories for further discussion. Property, Plant and Equipment We record land, buildings, leasehold improvements and machinery and equipment at cost. We record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments as of the beginning of the lease term. We generally depreciate our assets using the straight-line method over the shorter of the estimated useful life of the assets or the lease term, excluding any lease renewals, unless the lease renewals are reasonably assured. See Note 6 — Property, Plant and Equipment for further discussion. We assign useful lives to and depreciate major components of our property, plant and equipment. The ranges of estimated useful lives are as follows: Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under capital lease obligations 5 to 15 As noted above, our machinery and equipment have useful lives of 2 to 25 years. Most of our large scale machinery, including hot mills, cold mills, continuous casting mills, furnaces and finishing mills have useful lives of 15 to 25 years. Supporting machinery and equipment, including automation and work rolls, have useful lives of 2 to 15 years. Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset, and we capitalize interest on major construction and development projects while in progress. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, after consideration of any proceeds, is included as a gain or loss in “Other (income) expense, net” or "(Gain) loss on assets held for sale" in our consolidated statements of operations. We account for operating leases under the provisions of ASC 840, Leases. These pronouncements require us to recognize escalating rents, including any rent holidays, on a straight-line basis over the term of the lease for those lease agreements where we receive the right to control the use of the entire leased property at the beginning of the lease term. Goodwill We test for impairment at least annually as of the last day of February of each fiscal year, unless a triggering event occurs that would require an interim impairment assessment. We do not aggregate components of operating segments to arrive at our reporting units and, as such, our reporting units are the same as our operating segments. In performing our goodwill impairment test, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If we perform a qualitative assessment and determine that an impairment is more likely than not, then we perform the two-step quantitative impairment test, otherwise no further analysis is required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether we choose to perform the qualitative assessment or proceed directly to the two-step quantitative impairment test. For the years ended March 31, 2016 , 2015 and 2014 we elected to perform the two-step quantitative impairment test. No goodwill impairment was identified in any of the years. See Note 7 — Goodwill and Intangible Assets for further discussion. We use the present value of estimated future cash flows to establish the estimated fair value of our reporting units as of the testing date. This approach includes many assumptions related to future growth rates, discount factors and tax rates, among other considerations. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairment in future periods. When available and as appropriate, we use the market approach to corroborate the estimated fair value. If the carrying amount of a reporting unit's goodwill exceeds its estimated fair value, the second step of the impairment test is performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value we would recognize an impairment charge in an amount equal to that excess in our consolidated statements of operations. When a business within a reporting unit is disposed of, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology. Long-Lived Assets and Other Intangible Assets We amortize the cost of intangible assets over their respective estimated useful lives to their estimated residual value. See Note 7 — Goodwill and Intangible Assets for further discussion. We assess the recoverability of long-lived assets (excluding goodwill) and finite-lived intangible assets, whenever events or changes in circumstances indicate that we may not be able to recover the asset’s carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset (groups) to the expected, undiscounted future net cash flows to be generated by that asset (groups), or, for identifiable intangible assets, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets is based on the present value of estimated future cash flows. We measure the amount of impairment of other long-lived assets and intangible assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined as the present value of estimated future cash flows or as the appraised value. Impairments of long-lived assets and intangible assets are included in “Restructuring and impairment, net” in the consolidated statement of operations. See Note 2 - Restructuring and Impairment for further discussions. Assets and Liabilities Held for Sale We classify long-lived assets (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset (disposal group) that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. We assess the fair value of a long-lived asset (disposal group) less any costs to sell each reporting period it remains classified as held for sale and report any reduction in fair value as an adjustment to the carrying value of the asset (disposal group). Upon being classified as held for sale we cease depreci |
Restructuring and Impairment
Restructuring and Impairment | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT | RESTRUCTURING AND IMPAIRMENT “Restructuring and impairment, net” for the year ended March 31, 2016 was $48 million , which included impairment charges unrelated to restructuring actions of $3 million on certain fixed assets in North America, South America, and Asia. "Restructuring and impairment, net” for the year ended March 31, 2015 was $37 million , which included impairment charges unrelated to restructuring actions of $2 million on certain non-core fixed assets in North America. “Restructuring and impairment, net” for the year ended March 31, 2014 was $75 million , which included impairment charges unrelated to restructuring actions of $17 million on certain non-core assets in Brazil, $5 million on certain capitalized software assets, and $2 million on other long-lived assets. The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2013 $ 33 Fiscal 2014 Activity: Expenses 48 $ 3 $ 51 $ 24 $ 75 Cash payments (34 ) Balance as of March 31, 2014 47 Fiscal 2015 Activity: Expenses 30 $ 5 $ 35 $ 2 $ 37 Cash payments (32 ) Foreign currency translation and other (C) (13 ) Balance as of March 31, 2015 32 Fiscal 2016 Activity: -Provisions 23 -Reversal of expense (2 ) Expenses, net 21 $ 24 $ 45 $ 3 $ 48 Cash payments (22 ) Foreign currency translation and other (C) (4 ) Balance as of March 31, 2016 $ 27 (A) Other restructuring charges include period expenses that were not recorded through the restructuring liability and impairments related to a restructuring activity. (B) Other impairment charges not related to a restructuring activity. (C) This primarily relates to the remeasurement of Brazilian real denominated restructuring liabilities. As of March 31, 2016 , $23 million of restructuring liabilities was classified as short-term and was included in "Accrued expenses and other current liabilities" and $4 million was classified as long-term and was included in "Other long-term liabilities" on our consolidated balance sheet. Additionally, restructuring expenses and the remaining liability for the Asia segment for the year ended March 31, 2016 was $2 million which relates primarily to staff rationalization activities to better align operations to current needs. North America The following table summarizes our restructuring activity for the North America segment by plan (in millions). Year Ended March 31, 2016 2015 2014 Prior to Restructuring charges - North America Saguenay Plant Closure: Severance $ — $ — $ — $ 5 Fixed asset impairment (A) — — — 28 Other exit related costs — 1 1 — Period expenses (A) 1 — 1 3 Relocation of R&D operations to Kennesaw, Georgia Severance — — 1 11 Relocation costs — — 1 — Period expenses (A) — — 1 — Total restructuring charges - North America $ 1 $ 1 $ 5 $ 47 Restructuring payments - North America Severance $ — $ (2 ) $ (4 ) Other (1 ) (1 ) (2 ) Total restructuring payments - North America $ (1 ) $ (3 ) $ (6 ) (A) These charges were not recorded through the restructuring liability. In fiscal 2012, we closed our Saguenay Works facility in Canada and relocated our North America research and development operations to a new global research and technology facility in Kennesaw, Georgia. Europe The following table summarizes our restructuring activity for the Europe segment by plan (in millions). Year Ended March 31, 2016 2015 2014 Prior to Restructuring charges - Europe Business optimization Severance $ — $ 3 $ 26 $ 16 Pension settlement loss (A) — — 1 — Corporate restructuring program Severance 4 — — — Total restructuring charges - Europe $ 4 $ 3 $ 27 $ 16 Restructuring payments - Europe Severance $ (6 ) $ (12 ) $ (18 ) Other — — (1 ) Total restructuring payments - Europe $ (6 ) $ (12 ) $ (19 ) (A) These charges were not recorded through the restructuring liability. The Company implemented a series of restructuring actions at the global headquarters office and in the Europe region which include staff rationalization activities and the shutdown of facilities to optimize our business in Europe. As of March 31, 2016 , the outstanding restructuring liability for the Europe segment was $4 million , which relates to severance charges. South America The following table summarizes our restructuring activity for the South America segment by plan (in millions). Year Ended March 31, 2016 2015 2014 Prior to Restructuring charges - South America Ouro Preto closures Severance $ 2 $ 14 $ 2 $ 3 Asset impairments (A) — 5 — 1 Environmental (reversal) charges (1 ) 6 16 — Contract termination and other exit related costs 2 5 1 5 Other past restructuring programs Severance — — — 7 Asset impairments (A) — — — 7 Contract termination and other exit related costs — 1 — 6 Total restructuring charges - South America $ 3 $ 31 $ 19 $ 29 Restructuring payments - South America Severance $ (2 ) $ (12 ) $ (4 ) Other (3 ) (4 ) (4 ) Total restructuring payments - South America $ (5 ) $ (16 ) $ (8 ) (A) These charges were not recorded through the restructuring liability. We ceased operations at the smelter in Ouro Preto, Brazil, in December 2014. This decision was made in an effort to further align our global sustainability strategy, as we work towards our goal of having higher recycled content in our products. Certain charges associated with this closure are reflected within the "Ouro Preto closures" section above, along with our closure of a pot line in Ouro Preto, Brazil, in fiscal 2013. Additionally, in March 2016, we made a decision to sell properties in Ouro Preto smelter facility in South America with a net book value of $1 million as of March 31, 2016, which were classified as "Assets held for sale" in our consolidated balance sheet. As of March 31, 2016 , the outstanding restructuring liability for the South America segment was $19 million and relates to $12 million of environmental charges, $7 million of contract termination and other exit related costs. For additional information on environmental charges see Note 20 – Commitments and Contingencies. Corporate The following table summarizes our restructuring activity for the Corporate segment by plan (in millions). Year Ended March 31 2016 2015 2014 Prior to Restructuring charges - Corporate Severance $ 12 $ — $ — $ — Asset impairments (A) 21 — — — Period expenses (A) 2 — — — Total restructuring charges - Corporate 35 — — — Restructuring payments - Corporate Severance (10 ) — — Total restructuring payments - Corporate $ (10 ) $ — $ — (A) These charges were not recorded through the restructuring liability and related to the partial impairment of certain capitalized software intangible assets that will no longer be developed. In fiscal 2016, the Company implemented a series of restructuring actions at the global headquarters office and in the Europe region to better align the organizational structure and corporate staffing levels with strategic priorities. As part of this plan, the Company impaired certain capitalized software assets. As of March 31, 2016 , the restructuring liability for the corporate office was $2 million and related to severance charges. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE “Accounts receivable, net” consists of the following (in millions). March 31, 2016 2015 Trade accounts receivable $ 884 $ 1,158 Other accounts receivable 75 134 Accounts receivable — third parties 959 1,292 Allowance for doubtful accounts — third parties (3 ) (3 ) Accounts receivable, net — third parties $ 956 $ 1,289 Accounts receivable, net — related parties $ 59 $ 53 Allowance for Doubtful Accounts As of March 31, 2016 and 2015 , our allowance for doubtful accounts represented approximately 0.3% and 0.2% , respectively, of gross accounts receivable. Activity in the allowance for doubtful accounts is as follows (in millions). Balance at Additions Accounts Foreign Balance at Year Ended March 31, 2016 $ 3 $ — $ — $ — $ 3 Year Ended March 31, 2015 $ 4 $ — $ — $ (1 ) $ 3 Year Ended March 31, 2014 $ 3 $ 2 $ (1 ) $ — $ 4 Factoring of Trade Receivables We factor and forfait trade receivables (collectively, we refer to these as "factoring" programs) to balance the timing of cash flows of trade payables and receivables and to fund other business needs. Factored receivables are not included in our consolidated balance sheets when we do not retain a financial or legal interest. If a financial or legal interest is retained, we classify these factorings as secured borrowings. The following tables summarize amounts relating to our factoring activities (in millions). Year Ended March 31, 2016 2015 2014 Aggregated receivables factored $ 3,314 $ 1,796 $ 1,081 Factoring expense $ 19 $ 10 $ 5 March 31, 2016 2015 Factored receivables outstanding $ 626 $ 591 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES “Inventories” consists of the following (in millions). March 31, 2016 2015 Finished goods $ 295 $ 358 Work in process 416 531 Raw materials 322 419 Supplies 147 123 Inventories $ 1,180 $ 1,431 |
Assets Held For Sale
Assets Held For Sale | 12 Months Ended |
Mar. 31, 2016 | |
Assets Held For Sale [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE We are focused on capturing the global growth we see in our product markets of beverage can, automotive and specialty products. We continually analyze our product portfolio to ensure we are focused on growing in attractive market segments. The following transactions relate to exiting certain non-core operations to focus on our growth strategy in the premium product markets. In April 2014, we entered into agreements to sell the hydroelectric generation operations in South America and our share of the joint venture of the Consorcio Candonga to two separate parties. In December 2014, we sold our share of the joint venture of the Consorcio Candonga. Additionally, we sold the majority of our hydroelectric power generation operations fully owned by the Company in February 2015. The remaining assets include two hydroelectric power generation facilities, with a net book value of $4 million as of March 31, 2016 and $6 million as of March 31, 2015 , which were classified as "Assets held for sale" in our consolidated balance sheets. The contract for the sale of one facility is subject to final regulatory approval and resolution of certain license issues, and the other facility is in the final stages of being sold. Additionally, during the fourth quarter of fiscal 2016, an impairment of $1 million was recorded due to the expiration of a license related to a portion of the hydroelectric power generation facilities. In March 2016, we made a decision to sell properties in Ouro Preto, Brazil related to the closure of the Ouro Preto smelter facility in South America with a net book value of $1 million as of March 31, 2016, which were classified as "Assets held for sale" in our consolidated balance sheet. During the year ended March 31, 2015, "Gain on assets held for sale" includes a $23 million gain from our sale of the joint venture of Consorcio Candonga, $7 million from the sale of our consumer foil operations in North America and $6 million for a property and mining rights sale in South America. These gains were partially offset during the twelve months ended March 31, 2015 by an estimated loss of $14 million related to the sale of certain hydroelectric assets that was completed in the fourth quarter of fiscal 2015. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT “Property, plant and equipment, net” consists of the following (in millions). March 31, 2016 2015 Land and property rights $ 179 $ 180 Buildings 1,325 1,183 Machinery and equipment 4,265 3,947 5,769 5,310 Accumulated depreciation and amortization (2,398 ) (2,132 ) 3,371 3,178 Construction in progress 135 364 Property, plant and equipment, net $ 3,506 $ 3,542 As of March 31, 2016 and 2015 , there were $1 billion and $756 million , respectively, of fully depreciated assets included in our consolidated balance sheets. For the years ended March 31, 2016 , 2015 and 2014 , we capitalized $14 million , $20 million and $33 million of interest related to construction of property, plant and equipment and intangibles under development, respectively. Depreciation expense related to property, plant, and equipment, net is shown in the table below (in millions). Year Ended March 31, 2016 2015 2014 Depreciation expense related to property, plant and equipment, net $ 294 $ 294 $ 279 Asset impairments Impairment charges are recorded in "Restructuring and impairment, net." See Note 2 — Restructuring and impairment for additional information. Leases We lease certain land, buildings and equipment under non-cancelable operating leases expiring at various dates, and we lease assets in Sierre, Switzerland, including a fifteen -year capital lease through December 2019 from Rio Tinto. Operating leases generally have five to ten-year terms, with one or more renewal options, with terms to be negotiated at the time of renewal. Various facility leases include provisions for rent escalation to recognize increased operating costs or require us to pay certain maintenance and utility costs. During fiscal 2014 and 2015 we entered into various capital lease arrangements to upgrade and expand our information technology infrastructure. The following table summarizes rent expense included in our consolidated statements of operations (in millions): Year Ended March 31, 2016 2015 2014 Rent expense $ 22 $ 22 $ 21 Future minimum lease payments as of March 31, 2016 , for our operating and capital leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Year Ending March 31, Operating leases Capital lease obligations 2017 $ 30 $ 11 2018 19 9 2019 17 7 2020 15 5 2021 13 — Thereafter 39 — Total minimum lease payments $ 133 $ 32 Less: interest portion on capital lease 4 Principal obligation on capital leases $ 28 Assets and related accumulated amortization under capital lease obligations as of March 31, 2016 and 2015 are as follows (in millions). March 31, 2016 2015 Assets under capital lease obligations: Buildings $ 11 $ 11 Machinery and equipment 77 76 88 87 Accumulated amortization (70 ) (65 ) $ 18 $ 22 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS There were no changes to the gross carrying amount or accumulated impairment of goodwill during the years ended March 31, 2016 and 2015 . The following table summarizes “Goodwill” (in millions) for the years ended March 31, 2016 and 2015 . March 31, 2016 March 31, 2015 Gross Carrying Amount Accumulated Impairment Net Carrying Value Gross Accumulated Net North America $ 1,145 $ (860 ) $ 285 $ 1,145 $ (860 ) $ 285 Europe 511 (330 ) 181 511 (330 ) 181 South America 291 (150 ) 141 291 (150 ) 141 $ 1,947 $ (1,340 ) $ 607 $ 1,947 $ (1,340 ) $ 607 The components of “Intangible assets, net” are as follows (in millions). March 31, 2016 March 31, 2015 Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradenames 20 years $ 142 $ (63 ) $ 79 $ 142 $ (56 ) $ 86 Technology and software 10.6 years 365 (179 ) 186 357 (149 ) 208 Customer-related intangible assets 20 years 449 (199 ) 250 444 (173 ) 271 Favorable energy supply contract 9.5 years 124 (116 ) 8 124 (105 ) 19 15.6 years $ 1,080 $ (557 ) $ 523 $ 1,067 $ (483 ) $ 584 In the year ended March 31, 2016 , we recorded impairment charges related to certain capitalized software. For additional information refer to Note 2 - Restructuring and impairment. Our favorable energy supply contract is amortized over its estimated useful life using a method that reflects the pattern in which the economic benefits are expected to be consumed. All other intangible assets are amortized using the straight-line method. Amortization expense related to “Intangible assets, net” is as follows (in millions). Year Ended March 31, 2016 2015 2014 Total amortization expense related to intangible assets $ 71 $ 70 $ 67 Less: Amortization expense related to intangible assets included in “Cost of goods sold (exclusive of depreciation and amortization)” (A) (12 ) (12 ) (12 ) Amortization expense related to intangible assets included in “Depreciation and amortization” $ 59 $ 58 $ 55 (A) Relates to amortization of favorable energy supply contract. Estimated total amortization expense related to “Intangible assets, net” for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions and other events. Fiscal Year Ending March 31, 2017 $ 72 2018 64 2019 64 2020 64 2021 64 |
Consolidation
Consolidation | 12 Months Ended |
Mar. 31, 2016 | |
Consolidation [Abstract] | |
CONSOLIDATION | CONSOLIDATION Variable Interest Entities (VIE) The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. An entity is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We have a joint interest in Logan Aluminum Inc. (Logan) with Tri-Arrows Aluminum Inc. (Tri-Arrows). Logan processes metal received from Novelis and Tri-Arrows and charges the respective partner a fee to cover expenses. Logan is thinly capitalized and relies on the regular reimbursement of costs and expenses by Novelis and Tri-Arrows to fund its operations. This reimbursement is considered a variable interest as it constitutes a form of financing of the activities of Logan. Other than these contractually required reimbursements, we do not provide other material support to Logan. Logan’s creditors do not have recourse to our general credit. We have the ability to make decisions regarding Logan's production operations. We also have the ability to take the majority share of production and associated costs. These facts qualify us as Logan's primary beneficiary and this entity is consolidated for all periods presented. All significant intercompany transactions and balances have been eliminated. The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our consolidated balance sheets (in millions). There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. March 31, 2016 2015 Assets Current assets Cash and cash equivalents $ 3 $ 2 Accounts receivable 33 40 Inventories 61 52 Prepaid expenses and other current assets 2 1 Total current assets 99 95 Property, plant and equipment, net 21 20 Goodwill 12 12 Deferred income taxes 84 65 Other long-term assets 8 4 Total assets $ 224 $ 196 Liabilities Current liabilities Accounts payable $ 30 $ 33 Accrued expenses and other current liabilities 15 12 Total current liabilities 45 45 Accrued postretirement benefits 214 166 Other long-term liabilities 3 2 Total liabilities $ 262 $ 213 |
Investment in and Advances to N
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | |
INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS The following table summarizes the ownership structure and our ownership percentage of the non-consolidated affiliate in which we have an investment as of March 31, 2016 and 2015 , and which we account for using the equity method. We do not control our non-consolidated affiliate, but have the ability to exercise significant influence over the operating and financial policies. We have no material investments that we account for using the cost method. Affiliate Name Ownership Structure Ownership Percentage Aluminium Norf GmbH (Alunorf) Corporation 50% The following table summarizes the assets, liabilities and equity of our equity method affiliate in the aggregate as of March 31, 2016 and 2015 (in millions). March 31, 2016 2015 Assets: Current assets $ 148 $ 145 Non-current assets 394 357 Total assets $ 542 $ 502 Liabilities: Current liabilities $ 55 $ 51 Non-current liabilities 337 232 Total liabilities 392 283 Equity: Total equity 150 219 Total liabilities and equity $ 542 $ 502 As of March 31, 2016 , the investment in Alunorf exceeded our proportionate share of the net assets of Alunorf by $413 million . The difference is primarily related to the unamortized fair value adjustments that are included in our investment balance as a result of the acquisition of Novelis by Hindalco in 2007. The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2016 , 2015 and 2014 ; and the nature and amounts of significant transactions that we had with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Year Ended March 31, 2016 2015 2014 Net sales $ 464 $ 524 $ 550 Costs and expenses related to net sales 463 527 543 Provision for taxes on income 2 — 4 Net (loss) income $ (1 ) $ (3 ) $ 3 Purchase of tolling services from Aluminium Norf GmbH (Alunorf) $ 232 $ 261 $ 275 Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with Alunorf, which we classify as related party transactions and balances. The following table describes the period-end account balances that we had with Norf, shown as related party balances in the accompanying consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates. March 31, 2016 2015 Accounts receivable-related parties $ 59 $ 53 Other long-term assets-related parties $ 16 $ 15 Accounts payable-related parties $ 48 $ 44 We earned less than $1 million of interest income on a loan due from Alunorf during each of the years presented in "Other long-term assets-related parties" in the table above. We believe collection of the full receivable from Alunorf is probable; thus no allowance for loan loss was provided for this loan as of March 31, 2016 and 2015 . We have guaranteed the indebtedness for a credit facility and loan on behalf of Alunorf. The guarantee is limited to 50% of the outstanding debt, not to exceed 6 million euros. As of March 31, 2016 , there were no amounts outstanding under our guarantee with Alunorf. We have also guaranteed the payment of early retirement benefits on behalf of Alunorf. As of March 31, 2016 , this guarantee totaled $2 million . Transactions with Hindalco and AV Metals Inc. We occasionally have related party transactions with our indirect parent company, Hindalco. During the years ended March 31, 2016 , 2015 and 2014 we recorded “Net sales” of less than $1 million , $1 million and $1 million , respectively, between Novelis and our indirect parent related primarily to sales of equipment and other services. During the year ended March 31, 2014, we sold our bauxite mining rights and certain alumina assets and liabilities in Brazil to Hindalco for $8 million in cash. As of March 31, 2016 and 2015 there were less than $1 million and $1 million of "Accounts receivable, net - related parties" outstanding related to transactions with Hindalco, respectively. During the year ended March 31, 2016 , Novelis purchased $5 million in raw materials from Hindalco that were fully paid for during the quarter ended December 31, 2015 . There were no such comparable purchases in the prior year. In March 2014, we declared a return of capital to our direct shareholder, AV Metals Inc., in the amount of $250 million , which we subsequently paid on April 30, 2014. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES “Accrued expenses and other current liabilities” consists of the following (in millions). March 31, 2016 2015 Accrued compensation and benefits $ 174 $ 172 Accrued interest payable 66 67 Accrued income taxes 13 11 Other current liabilities 316 322 Accrued expenses and other current liabilities — third parties $ 569 $ 572 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consists of the following (in millions). March 31, 2016 March 31, 2015 Interest Rates (A) Principal Unamortized Carrying Value Adjustments Carrying Value Principal Unamortized Carrying Value Adjustments Carrying Value Third party debt: Short term borrowings 2.84 % $ 579 $ — $ 579 $ 846 $ — $ 846 Novelis Inc. Floating rate Term Loan Facility, due June 2022 4.00 % 1,787 (16 ) (B) 1,771 1,731 (13 ) (B) 1,718 8.375% Senior Notes, due December 2017 8.375 % 1,100 — 1,100 1,100 — 1,100 8.75% Senior Notes, due December 2020 8.75 % 1,400 — 1,400 1,400 — 1,400 Capital lease obligations, due through July 2017 3.64 % 5 — 5 9 — 9 Novelis Korea Limited Bank loans, due through September 2020 (KRW 226 billion) 2.79 % 195 — 195 192 — 192 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 23 million) 7.50 % 23 (1 ) (C) 22 28 (1 ) (C) 27 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 16 million) 5.93 % 5 (1 ) (D) 4 7 (1 ) (D) 6 Other Other debt, due through December 2020 3.64 % 1 — 1 5 — 5 Total debt 5,095 (18 ) 5,077 5,318 (15 ) 5,303 Less: Short term borrowings (579 ) — (579 ) (846 ) — (846 ) Current portion of long-term debt (47 ) — (47 ) (108 ) — (108 ) Long-term debt, net of current portion: $ 4,469 $ (18 ) $ 4,451 $ 4,364 $ (15 ) $ 4,349 (A) I nterest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of March 31, 2016 , and therefore, exclude the effects of related interest rate swaps and accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to the debt exchange completed in fiscal 2009 and the series of refinancing transactions and additional borrowings we completed in fiscal 2011 through 2016. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value. In connection with a series of refinancing transactions, a portion of the historical fair value adjustments were allocated to the Term Loan Facility, resulting in carrying value adjustments on this debt obligation. The unamortized carrying value also includes issuance discounts from subsequent refinancings. (C) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value resulting in carrying value adjustments to our capital lease obligations in Novelis Switzerland. (D) The unamortized carrying value balance includes issuance discounts related to the difference resulting from the contractual rates of interest specified in the instruments that are lower than the market rates of interest upon issuance. Principal repayment requirements for our total debt over the next five years and thereafter (excluding unamortized carrying value adjustments and using exchange rates as of March 31, 2016 for our debt denominated in foreign currencies) are as follows (in millions). As of March 31, 2016 Amount Short-term borrowings and Current portion of long term debt due within one year $ 626 2 years 1,204 3 years 125 4 years 23 5 years 1,421 Thereafter 1,696 Total $ 5,095 Senior Secured Credit Facilities As of March 31, 2016 , the senior secured credit facilities consisted of (i) a $1.8 billion seven -year secured term loan credit facility (Term Loan Facility), (ii) a $1.2 billion five -year asset based loan facility (ABL Revolver) and (iii) a $200 million 15 -month subordinated secured lien revolving facility (Subordinated Lien Revolver). As of March 31, 2016 , $18 million of the Term Loan Facility is due within one year. In June 2015, we entered into the Subordinated Lien Revolver with a maturity date of September 10, 2016. The interest rate for a loan under the Subordinated Lien Revolver is either equal to (i) a prime rate plus a spread of 2.5% or 2.25% depending on the total net leverage ratio then in effect or (ii) the higher of LIBOR and 0.75% plus a spread of 3.50% or 3.25% depending on the total net leverage ratio then in effect. The Subordinated Lien Revolver requires us to maintain a secured net leverage ratio of 4 to 1 . Pursuant to the terms of the Term Loan Facility, such secured net leverage maintenance covenant will automatically apply to the Term Loan Facility as well for so long as the Subordinated Lien Revolver is in effect. In June 2015, we entered into a Refinancing Amendment Agreement with respect to our Term Loan Facility. The Amendment increases the principal amount of the Term Loan Facility from $1.7 billion to $1.8 billion and extends the final maturity from December 17, 2017 to June 2, 2022; provided that, in the event that any series of our senior unsecured notes remain outstanding 92 days prior to its maturity date, then the Term Loan Facility will mature on such date, subject to limited exceptions. The loans under the Term Loan Facility accrue interest at the higher of LIBOR and 0.75% plus a 3.25% spread. The Amendment eliminates the senior secured net leverage covenant that requires us to maintain a minimum senior secured net leverage ratio (subject to the terms disclosed in the preceding paragraph). In addition, certain negative covenants were amended to increase the Company’s operational flexibility, including increasing flexibility to enter into working capital management programs and incur other debt. In October 2014, we amended and extended our ABL Revolver by entering into a $1.2 billion , five -year, senior secured ABL Revolver bearing an interest rate of LIBOR plus a spread of 1.50% to 2.00% plus a prime spread of 0.50% to 1.00% based on excess availability. The ABL Revolver has a provision that allows the facility to be increased by an additional $500 million . The ABL Revolver has various customary covenants including maintaining a minimum fixed charge coverage ratio of 1.25 to 1 if excess availability is less than the greater of (1) $110 million and (2) 12.5% of the lesser of (a) the maximum size of the ABL Revolver and (b) the borrowing base. The fixed charge coverage ratio will be equal to the ratio of (1) (a) ABL Revolver defined Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") less (b) maintenance capital expenditures less (c) cash taxes; to (2) (a) interest expense plus (b) scheduled principal payments plus (c) dividends to the Company's direct holding company to pay certain taxes, operating expenses and management fees and repurchases of equity interests from employees, officers and directors. The ABL Revolver matures on October 6, 2019; provided that, in the event that any of the Notes, the Term Loan Facility, or certain other indebtedness are outstanding (and not refinanced with a maturity date later than April 6, 2020) 90 days prior to their respective maturity dates, then the ABL Revolver will mature 90 days prior to the maturity date for the Notes, the Term Loan Facility or such other indebtedness, as applicable; unless excess availability under the ABL Revolver is at least (i) 25% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base and (ii) 20% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base, and a minimum fixed charged ratio test of at least 1.25 to 1 is met. The senior secured credit facilities contain various affirmative covenants, including covenants with respect to our financial statements, litigation and other reporting requirements, insurance, payment of taxes, employee benefits and (subject to certain limitations) causing new subsidiaries to pledge collateral and guaranty our obligations. The senior secured credit facilities also include various customary negative covenants and events of default, including limitations on our ability to (1) make certain restricted payments, (2) incur additional indebtedness, (3) sell certain assets, (4) enter into sale and leaseback transactions, (5) make investments, loans and advances, (6) pay dividends or returns of capital and distributions beyond certain amounts, (7) engage in mergers, amalgamations or consolidations, (8) engage in certain transactions with affiliates, and (9) prepay certain indebtedness. The senior secured credit facilities include a cross-default provision under which lenders could accelerate repayment of the loans if a payment or non-payment default arises under any other indebtedness with an aggregate principal amount of more than $100 million (or, in the case of the Term Loan Facility and Subordinated Lien Revolver, under the ABL Revolver regardless of the amount outstanding). Substantially all of our assets are pledged as collateral under the senior secured credit facilities. As of March 31, 2016 , we were in compliance with the covenants in the Subordinated Lien Revolver, Term Loan Facility and ABL Revolver. Short-Term Borrowings As of March 31, 2016 , our short-term borrowings were $579 million consisting of $394 million of short-term loans under our ABL Revolver, $38 million (KRW 44 billion ) in Novelis Korea bank loans, $77 million in Novelis Brazil loans, $9 million (VND 203 billion ) in Novelis Vietnam loans, $46 million in Novelis China loans (CNY 296 million ), $12 million in Novelis Middle East and Africa loans and $3 million of other short term borrowings. As of March 31, 2016 , $12 million of the ABL Revolver was utilized for letters of credit, and we had $204 million in remaining availability under the ABL Revolver. As of March 31, 2016, $200 million under the Subordinated Lien Revolver was available. In fiscal years 2015 and 2016 , Novelis Korea entered into various short-term facilities, including revolving loan facilities and committed credit lines. As of March 31, 2016 , we had $204 million (KRW 236 billion ) in remaining availability under these facilities. In December 2014, Novelis China entered into a committed facility. As of March 31, 2016 , we had $4 million (CNY 23 million ) in remaining availability under this facility. Senior Notes In December 2010, we issued $1.1 billion in aggregate principal amount of 8.375% Senior Notes Due 2017 (the 2017 Notes) and $1.4 billion in aggregate principal amount of 8.75% Senior Notes Due 2020 (the 2020 Notes, and together with the 2017 Notes, the Notes). The Notes contain customary covenants and events of default that will limit our ability and, in certain instances, the ability of certain of our subsidiaries to (1) incur additional debt and provide additional guarantees, (2) pay dividends or return capital beyond certain amounts and make other restricted payments, (3) create or permit certain liens, (4) make certain asset sales, (5) use the proceeds from the sales of assets and subsidiary stock, (6) create or permit restrictions on the ability of certain of the Company's subsidiaries to pay dividends or make other distributions to the Company, (7) engage in certain transactions with affiliates, (8) enter into sale and leaseback transactions, (9) designate subsidiaries as unrestricted subsidiaries and (10) consolidate, merge or transfer all or substantially all of our assets and the assets of certain of our subsidiaries. During any future period in which either Standard & Poor's Ratings Group, Inc. or Moody's Investors Service, Inc. have assigned an investment grade credit rating to the Notes and no default or event of default under the indenture has occurred and is continuing, most of the covenants will be suspended. The Notes include a cross-acceleration event of default triggered if (1) any other indebtedness with an aggregate principal amount of more than $100 million is (1) accelerated prior to its maturity or (2) not repaid at its maturity. As of March 31, 2016 , we were in compliance with the covenants in the Notes. The Notes also contain customary call protection provisions for our bond holders that extend through December 2016 for the 2017 Notes and through December 2018 for the 2020 Notes. Korean Bank Loans As of March 31, 2016 , Novelis Korea had $17 million (KRW 20 billion ) of outstanding long-term loans with various due within one year. All loans have variable interest rates with base rates tied to Korea's 91-day CD rate plus an applicable spread ranging from 0.91% to 1.58% . Brazil BNDES Loans Novelis Brazil entered into loan agreements with Brazil’s National Bank for Economic and Social Development (the BNDES loans) related to the plant expansion in Pindamonhangaba, Brazil (Pinda). As of March 31, 2016 , there are $1 million of BNDES loans due within one year. Other Long-term Debt In December 2004, we entered into a fifteen -year capital lease obligation with Alcan for assets in Sierre, Switzerland, which has an interest rate of 7.5% and fixed quarterly payments of CHF 1.7 million , (USD $1.8 million ). During fiscal 2013 and 2014, Novelis Inc. entered into various five -year capital lease arrangements to upgrade and expand our information technology infrastructure. As of March 31, 2016 , we had $1 million of other debt, including certain capital lease obligations, with due dates through December 2020. Interest Rate Swaps We use interest rate swaps to manage our exposure to changes in benchmark interest rates which impact our variable-rate debt. See Note 15- Financial Instruments and Commodity Contracts for further information about these interest rate swaps. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company's board of directors has authorized long term incentive plans (LTIPs), under which Hindalco stock appreciation rights (Hindalco SARs), Novelis stock appreciation rights (Novelis SARs), and phantom restricted stock units (RSUs) are granted to certain executive officers and key employees. The Hindalco SARs and Novelis SARs vest at the rate of 25% per year, subject to the achievement of an annual performance target, and expire 7 years from their original grant date. Each Hindalco SAR is to be settled in cash based on the difference between the market value of one Hindalco share on the date of grant and the market value on the date of exercise. Each Novelis SAR is to be settled in cash based on the difference between the fair value of one Novelis phantom share on the original date of grant and the fair value of a phantom share on the date of the exercise. The amount of cash paid to settle Hindalco SARs and Novelis SARs are limited to two and a half or three times the target payout , depending on the plan year. The Hindalco SARs and Novelis SARs do not transfer any shareholder rights in Hindalco or Novelis to a participant. The Hindalco SARs and Novelis SARs are classified as liability awards and are remeasured at fair value each reporting period until the SARs are settled. The performance criterion for vesting of both the Hindalco SARs and Novelis SARs is based on the actual overall Novelis operating EBITDA compared to the target established and approved each fiscal year. The minimum threshold for vesting each year is 75% of each annual target operating EBITDA. Given that the performance criterion is based on an earnings target in a future period for each fiscal year, the grant date of the awards for accounting purposes is generally not established until the performance criterion has been defined. The RSUs vest in full three years from the grant date, subject to continued employment with the Company, but are not subject to performance criteria. Each RSU is to be settled in cash equal to the market value of one Hindalco share. The payout on the RSUs is limited to three times the market value of one Hindalco share measured on the original date of grant. The RSUs are classified as liability awards and expensed over the requisite service period (three years) based on the Hindalco stock price as of each balance sheet date. On May 13, 2013, the Company's board of directors amended the long-term incentive plans for fiscal years 2010 - 2013 (FY 2010 Plan), fiscal years 2011- 2014 (FY 2011 Plan), fiscal years 2012 - 2015 (FY 2012 Plan) and fiscal years 2013 - 2016 (FY 2013 Plan). The amendment gave each participant the option to cancel a portion of their outstanding Hindalco SARs for a lump-sum cash payment and/or the issuance of new Novelis SARs. The remaining Hindalco SARs and the new Novelis SARs continue to vest according to the terms and conditions of the original grant. The table below reflects the fiscal 2014 activity related to the participants' elections under the amendment. Total compensation expense related to Hindalco SARs, Novelis SARs, and RSUs under the plans for the respective periods is presented in the table below (in millions). These amounts are included in “Selling, general and administrative expenses” in our consolidated statements of operations. As the performance criteria for fiscal years 2017, 2018 and 2019 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. Year Ended March 31, 2016 2015 2014 Total compensation (income) expense $ (2 ) $ 9 $ 27 The table below shows the RSUs activity for the year ended March 31, 2016 . Number of RSUs Grant Date Fair Value (in Indian Rupees) Aggregate Intrinsic Value (USD in millions) RSUs outstanding as of March 31, 2015 5,338,612 120.77 $ 12 Granted 2,193,752 123.69 — Exercised (2,160,299 ) 132.82 5 Forfeited/Cancelled (789,340 ) 130.44 — RSUs outstanding as of March 31, 2016 4,582,725 124.52 $ 7 The table below shows Hindalco SARs activity for the year ended March 31, 2016 . Number of Hindalco SARs Weighted Average Exercise Price (in Indian Rupees) Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2015 21,176,557 126.77 4.4 $ 6 Granted 7,643,528 123.69 6.1 — Exercised (1,543,314 ) 94.85 — 1 Forfeited/Cancelled (5,783,059 ) 135.49 — — SARs outstanding as of March 31, 2016 21,493,712 125.65 4.4 — SARs exercisable as of March 31, 2016 7,958,423 127.22 2.8 $ — The table below shows the Novelis SARs activity for the year ended March 31, 2016 . Number of Weighted Weighted Average Aggregate SARs outstanding as of March 31, 2015 1,033,735 $ 92.85 5.2 $ 3 Granted 673,677 65.35 6.1 — Exercised (49,534 ) 83.26 — 1 Forfeited/Cancelled (315,995 ) 90.29 — — SARs outstanding as of March 31, 2016 1,341,883 80.00 5.1 — SARs exercisable as of March 31, 2016 322,151 $ 91.08 3.7 $ — The fair value of each unvested Hindalco SAR was estimated using the following assumptions: Year ended March 31, 2016 2015 2014 Risk-free interest rate 7.23% - 7.68% 7.75% - 7.79% 8.67% - 8.96% Dividend yield 1.14 % 0.78 % 0.99 % Volatility 43% - 44% 39% - 46% 37% - 51% The fair value of each unvested Novelis SAR was estimated using the following assumptions: Year ended March 31, 2016 2015 2014 Risk-free interest rate 0.89% - 1.39% 0.96% - 1.59% 0.96% - 2.05% Dividend yield — % — % — % Volatility 38% - 41% 27% - 34% 28% - 41% The fair value of each unvested Hindalco SAR was based on the difference between the fair value of a long call and a short call option. The fair value of each of these call options was determined using the Monte Carlo Simulation model. We used historical stock price volatility data of Hindalco on the National Stock Exchange of India to determine expected volatility assumptions. The risk-free interest rate is based on Indian treasury yields interpolated for a time period corresponding to the remaining contractual life. The forfeiture rate is estimated based on actual historical forfeitures. The dividend yield is estimated to be the annual dividend of the Hindalco stock over the remaining contractual lives of the Hindalco SARs. The value of each vested Hindalco SAR is remeasured at fair value each reporting period based on the excess of the current stock price over the exercise price, not to exceed the maximum payout as defined by the plans. The fair value of the Hindalco SARs is being recognized over the requisite performance and service period of each tranche, subject to the achievement of any performance criteria. The fair value of each unvested Novelis SAR was based on the difference between the fair value of a long call and a short call option. The fair value of each of these call options was determined using the Monte Carlo Simulation model. We used the historical volatility of comparable companies to determine expected volatility assumptions. The risk-free interest rate is based on U.S. treasury yields for a time period corresponding to the remaining contractual life. The forfeiture rate is estimated based on actual historical forfeitures of Hindalco SARs. The value of each vested Novelis SAR is remeasured at fair value each reporting period based on the percentage increase in the current Novelis phantom stock price over the exercise price, not to exceed the maximum payout as defined by the plans. The fair value of the Novelis SARs is being recognized over the requisite performance and service period of each tranche, subject to the achievement of any performance criteria. The cash payments made to settle SAR liabilities were $2 million , $8 million , and $15 million , in the years ended March 31, 2016 , 2015 , and 2014 , respectively. Total cash payments made to settle Hindalco RSUs were $5 million , $3 million , and $2 million in the years ended March 31, 2016 , 2015 and 2014 , respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $4 million which is expected to be recognized over a weighted average period of 2.7 years . Unrecognized compensation expense related to the non-vested Novelis SARs (assuming all future performance criteria are met) was $10 million , which is expected to be recognized over a weighted average period of 2.7 years . Unrecognized compensation expense related to the RSUs was $3 million , which will be recognized over the remaining weighted average vesting period of 1.3 years. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS Our pension obligations relate to: (1) funded defined benefit pension plans in the U.S., Canada, Switzerland, and the U.K.; (2) unfunded defined benefit pension plans in Germany; (3) unfunded lump sum indemnities payable upon retirement to employees in France, Malaysia and Italy; and (4) partially funded lump sum indemnities in South Korea. Our other postretirement obligations (Other Benefits, as shown in certain tables below) include unfunded health care and life insurance benefits provided to retired employees in the U.S., Canada, and Brazil. We have combined our domestic (i.e. Canadian Plans) and foreign (i.e. All other Plans other than Canadian Plans) postretirement benefit plan disclosures because our domestic benefit obligation is not significant as compared to our total benefit obligation, as our foreign benefit obligation is 94% of the total benefit obligation, and the assumptions used to value domestic and foreign plans were not significantly different. During fiscal year 2015 and as a result of the sale of our North America foil operations, $11 million of benefits were transferred out of the pension plan along with a corresponding amount of plan assets resulting in settlement accounting. Various other pension plans recognized settlements totaling $3 million as a result of restructuring initiatives and other factors. The settlements resulted in an insignificant impact to the statement of operations. In October 2014, the Society of Actuaries published an updated mortality table and mortality improvement scale for U.S. plans. We recognized an increase of $33 million to our benefit obligation and net actuarial loss as a result of updating mortality assumptions applicable to our U.S. plans. These deferred costs will be amortized on a straight-line basis to net periodic benefit costs in future years. In June 2014, the Company amended its U.S. non-union retiree medical plan to extend retirees' option to participate in a Retiree Health Access Exchange (RHA). For calendar years 2014 through 2017, the Company will subsidize a portion of the retiree medical premium rates of the RHA. The Company will not provide a subsidy beginning in calendar year 2018. The amendment to the plan resulted in a plan remeasurement and recognition of prior service costs of approximately $11 million which is being amortized on a straight-line basis through December 31, 2017, subject to an annual remeasurement adjustment. In August 2013, the Company amended its U.S. non-union retiree medical plan. Beginning January 2014, the health care benefits provided by the Company to retirees' was discontinued and replaced with the retirees' option to participate in a new Retiree Health Access Exchange. For calendar year 2014 and 2015, the Company will subsidize a portion of the retiree medical premium rates of the RHA. The amendment resulted in the Company no longer providing a subsidy beginning in calendar year 2016. The amendments to the plan resulted in a plan remeasurement and recognition of a negative plan amendment, which reduced our obligation by $97 million as of August 31, 2013. The negative plan amendment, net of unrecognized actuarial losses resulted in a credit balance of $70 million recorded in AOCI as of August 31, 2013. The $70 million is being amortized, on a straight-line basis, as a reduction to net periodic benefit cost from September 1, 2013 through December 31, 2015, subject to an annual remeasurement adjustment. Employer Contributions to Plans For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to-date, and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., U.K., Canada, Germany, Italy, Switzerland, Malaysia and Brazil. We contributed the following amounts (in millions) to all plans. Year Ended March 31, 2016 2015 2014 Funded pension plans $ 28 $ 28 $ 31 Unfunded pension plans 12 13 13 Savings and defined contribution pension plans 24 18 20 Total contributions $ 64 $ 59 $ 64 During fiscal year 2017 , we expect to contribute $23 million to our funded pension plans, $13 million to our unfunded pension plans and $23 million to our savings and defined contribution pension plans. Benefit Obligations, Fair Value of Plan Assets, Funded Status and Amounts Recognized in Financial Statements The following tables present the change in benefit obligation, change in fair value of plan assets and the funded status for pension and other benefits (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2016 2015 2016 2015 Benefit obligation at beginning of period $ 1,863 $ 1,672 $ 139 $ 135 Service cost 47 43 5 5 Interest cost 59 66 5 5 Members’ contributions 5 5 — — Benefits paid (65 ) (56 ) (10 ) (10 ) Amendments — (3 ) — 11 Curtailments, settlements and special termination benefits (1 ) (16 ) — (1 ) Actuarial (gains) losses (43 ) 296 11 (4 ) Other (1 ) (2 ) — — Currency losses (gains) 4 (142 ) 1 (2 ) Benefit obligation at end of period $ 1,868 $ 1,863 $ 151 $ 139 Benefit obligation of funded plans $ 1,578 $ 1,558 $ — $ — Benefit obligation of unfunded plans 290 305 151 139 Benefit obligation at end of period $ 1,868 $ 1,863 $ 151 $ 139 Pension Benefits Year Ended March 31, 2016 2015 Change in fair value of plan assets Fair value of plan assets at beginning of period $ 1,233 $ 1,163 Actual return on plan assets (21 ) 159 Members’ contributions 5 5 Benefits paid (65 ) (56 ) Company contributions 39 41 Settlements (1 ) (14 ) Other (1 ) (2 ) Currency (12 ) (63 ) Fair value of plan assets at end of period $ 1,177 $ 1,233 March 31, 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Funded status Funded status at end of period: Assets less the benefit obligation of funded plans $ (401 ) $ — $ (325 ) $ — Benefit obligation of unfunded plans (290 ) (151 ) (305 ) (139 ) $ (691 ) $ (151 ) $ (630 ) $ (139 ) As included in our consolidated balance sheets within Total assets / (Total liabilities) Other non- current assets $ — $ — $ 1 $ — Accrued expenses and other current liabilities (13 ) (9 ) (12 ) (10 ) Accrued postretirement benefits (678 ) (142 ) (619 ) (129 ) $ (691 ) $ (151 ) $ (630 ) $ (139 ) The postretirement amounts recognized in “Accumulated other comprehensive loss,” before tax effects, are presented in the table below (in millions), and includes the impact related to our equity method investments. Amounts are amortized to net periodic benefit cost over the group’s average future service life of the employees or the group's average life expectancy. March 31, 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Net actuarial losses $ (444 ) $ (22 ) $ (450 ) $ (14 ) Prior service credit 9 6 11 32 Total postretirement amounts recognized in Accumulated other comprehensive (loss) income $ (435 ) $ (16 ) $ (439 ) $ 18 The estimated amounts that will be amortized from “Accumulated other comprehensive loss” into net periodic benefit costs in fiscal year 2017 (exclusive of equity method investments) are $38 million for pension benefit costs related to net actuarial losses of $40 million partially offset by prior service credits of $2 million , and $6 million for other postretirement benefits, related to amortization of prior service costs of $2 million and net actuarial losses of $4 million . The postretirement changes recognized in “Accumulated other comprehensive loss,” before tax effects, are presented in the table below (in millions), and include the impact related to our equity method investments. March 31, 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Beginning balance in Accumulated other comprehensive (loss) income $ (439 ) $ 18 $ (268 ) $ 56 Plan amendment — — 3 (11 ) Net actuarial (loss) gain (25 ) (11 ) (249 ) 5 Amortization of: Prior service credits (2 ) (27 ) (2 ) (37 ) Actuarial losses 41 4 24 5 Effect of currency exchange (10 ) — 53 — Total postretirement amounts recognized in Accumulated other comprehensive (loss) income $ (435 ) $ (16 ) $ (439 ) $ 18 Pension Plan Obligations The projected benefit obligation, accumulated benefit obligation and fair value of plan assets are presented in the table below (in millions). March 31, 2016 2015 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans: Projected benefit obligation $ 1,868 $ 1,863 Accumulated benefit obligation $ 1,692 $ 1,689 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 1,868 $ 1,760 Fair value of plan assets $ 1,177 $ 1,129 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 1,567 $ 1,563 Fair value of plan assets $ 1,039 $ 1,093 Pension plans with projected benefit obligations less than plan assets: Projected benefit obligation $ — $ 103 Fair value of plan assets $ — $ 104 Future Benefit Payments Expected benefit payments to be made during the next ten fiscal years are listed in the table below (in millions). Pension Benefits Other Benefits 2017 $ 66 $ 9 2018 68 8 2019 72 6 2020 77 7 2021 81 8 2021 through 2025 465 50 Total $ 829 $ 88 Components of Net Periodic Benefit Cost The components of net periodic benefit cost for the respective periods are listed in the table below (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2016 2015 2014 2016 2015 2014 Net periodic benefit costs Service cost $ 47 $ 43 $ 48 $ 5 $ 5 $ 8 Interest cost 59 66 63 5 5 7 Expected return on assets (67 ) (69 ) (67 ) — — — Amortization — losses 37 22 30 4 5 7 Amortization — prior service credit (2 ) (2 ) (2 ) (27 ) (37 ) (24 ) Curtailment/settlement/special termination losses (gains) — 1 1 — (1 ) — Net periodic benefit cost (income) $ 74 $ 61 $ 73 $ (13 ) $ (23 ) $ (2 ) Proportionate share of non-consolidated affiliates’ pension costs 9 7 7 — — — Total net periodic benefit costs (income) recognized $ 83 $ 68 $ 80 $ (13 ) $ (23 ) $ (2 ) Actuarial Assumptions and Sensitivity Analysis The weighted average assumptions used to determine benefit obligations and net periodic benefit costs for the respective periods are listed in the table below. Pension Benefits Other Benefits Year Ended March 31, Year Ended March 31, 2016 2015 2014 2016 2015 2014 Weighted average assumptions used to determine benefit obligations Discount rate 3.3 % 3.1 % 4.0 % 4.0 % 3.6 % 4.1 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Weighted average assumptions used to determine net periodic benefit cost Discount rate 3.1 % 4.0 % 3.9 % 3.6 % 4.1 % 3.8 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Expected return on plan assets 5.6 % 6.1 % 6.3 % — % — % — % In selecting the appropriate discount rate for each plan, for pension and other postretirement plans in Canada, the U.S., U.K., and other Euro zone countries, we used spot rate yield curves and individual bond matching models. For other countries we used published long-term high quality corporate bond indices with adjustments made to the index rates based on the duration of the plans' obligation. In estimating the expected return on assets of a pension plan, consideration is given primarily to its target allocation, the current yield on long-term bonds in the country where the plan is established, and the historical risk premium of equity or real estate over long-term bond yields in each relevant country. The approach is consistent with the principle that assets with higher risk provide a greater return over the long-term. The expected long-term rate of return on plan assets is 5.4% in fiscal 2017 . We provide unfunded health care and life insurance benefits to our retired employees in Canada, the U.S. and Brazil, for which we paid $10 million , $10 million , and $9 million in fiscal 2016 , 2015 and 2014 , respectively. The assumed health care cost trend used for measurement purposes is 7.1% for fiscal 2017 , decreasing gradually to 5% in 2026 and remaining at that level thereafter. A change of one percentage point in the assumed health care cost trend rates would have the following effects on our other benefits (in millions). 1% Increase 1% Decrease Sensitivity Analysis Effect on service and interest costs $ 1 $ (1 ) Effect on benefit obligation $ 14 $ (13 ) In addition, we provide post-employment benefits, including disability, early retirement and continuation of benefits (medical, dental, and life insurance) to our former or inactive employees, which are accounted for on the accrual basis in accordance with ASC No. 712, Compensation — Retirement Benefits . “Other long-term liabilities” and "Accrued expenses and other current liabilities" on our consolidated balance sheets include $12 million and $5 million , respectively, as of March 31, 2016 , for these benefits. Comparatively, “Other long-term liabilities” and "Accrued expenses and other current liabilities" on our consolidated balance sheets include $10 million and $4 million , respectively, as of March 31, 2015 . Investment Policy and Asset Allocation The Company’s overall investment strategy is to achieve a mix of approximately 50% of investments for long-term growth (equities, real estate) and 50% for near-term benefit payments (debt securities, other) with a wide diversification of asset categories, investment styles, fund strategies and fund managers. Since most of the defined benefit plans are closed to new entrants, we expect this strategy to gradually shift more investments toward near-term benefit payments. Each of our funded pension plans is governed by an Investment Fiduciary, who establishes an investment policy appropriate for the pension plan. The Investment Fiduciary is responsible for selecting the asset allocation for each plan, monitoring investment managers, monitoring returns versus benchmarks and monitoring compliance with the investment policy. The targeted allocation ranges by asset class, and the actual allocation percentages for each class are listed in the table below. Asset Category Target Allocation Ranges Allocation in Aggregate as of March 31, 2016 2015 Equity 15-53% 32% 36% Fixed income 47-68% 62% 60% Real estate 0-15% 2% 1% Other 0-16% 5% 3% Fair Value of Plan Assets The following pension plan assets are measured and recognized at fair value on a recurring basis (in millions). Please see Note 17— Fair value measurements for a description of the fair value hierarchy. The U.S. and Canadian pension plan assets are invested exclusively in commingled funds and classified in Level 2, and the U.K., Switzerland, and South Korea pension plan assets are invested in both direct investments (Levels 1 and 2) and commingled funds (Level 2). Pension Plan Assets March 31, 2016 March 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equity $ — $ 375 $ — $ 375 $ 85 $ 361 $ — $ 446 Fixed income 131 592 — 723 135 608 — 743 Real estate — 25 — 25 — 15 — 15 Cash and cash equivalents 9 — 9 8 — — 8 Other — 45 — 45 — 21 — 21 Total $ 140 $ 1,037 $ — $ 1,177 $ 228 $ 1,005 $ — $ 1,233 |
Currency (Gains) Losses
Currency (Gains) Losses | 12 Months Ended |
Mar. 31, 2016 | |
Foreign Currency [Abstract] | |
CURRENCY (GAINS) LOSSES | CURRENCY (GAINS) LOSSES The following currency (gains) losses are included in “Other (income) expense, net” in the accompanying consolidated statements of operations (in millions). Year Ended March 31, 2016 2015 2014 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (55 ) $ 14 $ (26 ) Loss released from accumulated other comprehensive loss 1 3 2 Loss recognized on balance sheet remeasurement currency exchange contracts, net 52 10 17 Currency (gains) losses, net $ (2 ) $ 27 $ (7 ) The following currency (losses) gains are included in Accumulated other comprehensive loss (“AOCI”) and “Noncontrolling interests” in the accompanying consolidated balance sheets (in millions). Year Ended March 31, 2016 2015 2014 Cumulative currency translation adjustment — beginning of period $ (214 ) $ 90 $ (30 ) Effect of changes in exchange rates 17 (304 ) 120 Cumulative currency translation adjustment — end of period $ (197 ) $ (214 ) $ 90 |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of March 31, 2016 and 2015 (in millions): March 31, 2016 Assets Liabilities Net Fair Value Current Noncurrent(A) Current Noncurrent(A) Assets/(Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 10 $ — $ (2 ) $ — $ 8 Currency exchange contracts 15 5 (3 ) (5 ) 12 Energy contracts — — (4 ) — (4 ) Interest rate swaps — — — (1 ) (1 ) Net Investment hedges Currency exchange contracts — — (1 ) — (1 ) Total derivatives designated as hedging instruments 25 5 (10 ) (6 ) 14 Derivatives not designated as hedging instruments Aluminum contracts 24 — (26 ) — (2 ) Currency exchange contracts 39 — (39 ) (1 ) (1 ) Energy contracts — 1 (10 ) — (9 ) Total derivatives not designated as hedging instruments 63 1 (75 ) (1 ) (12 ) Total derivative fair value $ 88 $ 6 $ (85 ) $ (7 ) $ 2 March 31, 2015 Assets Liabilities Net Fair Value Current Noncurrent(A) Current Noncurrent(A) Assets/(Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 15 $ — $ (5 ) $ — $ 10 Currency exchange contracts 4 — (42 ) (15 ) (53 ) Energy contracts — — (6 ) (2 ) (8 ) Interest rate swaps — — (1 ) — (1 ) Net Investment hedges Currency exchange contracts 5 — — — 5 Total derivatives designated as hedging instruments 24 — (54 ) (17 ) (47 ) Derivatives not designated as hedging instruments Aluminum contracts 24 — (26 ) — (2 ) Currency exchange contracts 26 — (54 ) — (28 ) Energy contracts 3 — (15 ) (7 ) (19 ) Total derivatives not designated as hedging instruments 53 — (95 ) (7 ) (49 ) Total derivative fair value $ 77 $ — $ (149 ) $ (24 ) $ (96 ) (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying consolidated balance sheets. Aluminum We use derivative instruments to preserve our conversion margins and manage the timing differences associated with metal price lag. We use over-the-counter derivatives indexed to the London Metals Exchange (LME) (referred to as our "aluminum derivative forward contracts") to reduce our exposure to fluctuating metal prices associated with the period of time between the pricing of our purchases of inventory and the pricing of the sale of that inventory to our customers, which is known as "metal price lag." We also purchase forward LME aluminum contracts simultaneously with our sales contracts with customers that contain fixed metal prices. These LME aluminum forward contracts directly hedge the economic risk of future metal price fluctuations to better match the selling price of the metal with the purchase price of the metal. The volatility in local market premiums also results in metal price lag, although we do not have derivative contracts associated with local market premiums as these are not prevalent in the market. Price risk exposure arises from commitments to sell aluminum in future periods at fixed prices. We identify and designate certain LME aluminum forward contracts as fair value hedges of the metal price risk associated with fixed price sales commitments that qualify as firm commitments. Such exposures do not extend beyond two years in length. We had less than 1 kt and 2 kt of outstanding aluminum forward purchase contracts designated as fair value hedges as of March 31, 2016 and 2015 , respectively. One kilotonne (kt) is 1,000 metric tonnes. The following table summarizes the amount of gain (loss) recognized on fair value hedges of metal price risk (in millions): Amount of Gain (Loss) Recognized on Changes in Fair Value Year Ended March 31, 2016 2015 Fair Value Hedges of Metal Price Risk Derivative contracts $ (2 ) $ — Designated hedged items 2 — Net ineffectiveness (A) $ — $ — (A) Effective portion is recorded in "Net sales" and net ineffectiveness in "Other (income) expense, net". There was no amount excluded from the assessment of hedge effectiveness related to Fair Value Hedges. Price risk arises due to fluctuating aluminum prices between the time the sales order is committed and the time the order is shipped. We identify and designate certain LME aluminum forward purchase contracts as cash flow hedges of the metal price risk associated with our future metal purchases that vary based on changes in the price of aluminum. Such exposures do not extend beyond two years in length. We had 1 kt of outstanding aluminum forward purchase contracts designated as cash flow hedges as of March 31, 2016 and 2015 . Price risk exposure arises due to the timing lag between the LME based pricing of raw material metal purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. We had 301 kt and 285 kt of outstanding aluminum forward sales contracts designated as cash flow hedges as of March 31, 2016 and 2015 , respectively. The remaining aluminum derivative contracts are not designated as accounting hedges. As of March 31, 2016 and 2015 , we had 76 kt and 36 kt, respectively, of outstanding aluminum sales contracts not designated as hedges. The average duration of undesignated contracts is less than six months . The following table summarizes our notional amount (in kt). March 31, 2016 2015 Hedge Type Purchase (Sale) Cash flow purchases 1 1 Cash flow sales (301 ) (285 ) Fair value — 2 Not designated (76 ) (36 ) Total, net (376 ) (318 ) Foreign Currency We use foreign exchange forward contracts, cross-currency swaps and options to manage our exposure to changes in exchange rates. These exposures arise from recorded assets and liabilities, firm commitments and forecasted cash flows denominated in currencies other than the functional currency of certain operations. We use foreign currency contracts to hedge expected future foreign currency transactions, which include capital expenditures. These contracts cover the same periods as known or expected exposures. We had total notional amounts of $601 million and $590 million in outstanding foreign currency forwards designated as cash flow hedges as of March 31, 2016 and 2015 , respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We had $36 million and $28 million of outstanding foreign currency forwards designated as net investment hedges as of March 31, 2016 and March 31, 2015 , respectively. As of March 31, 2016 and 2015 , we had outstanding foreign currency exchange contracts with a total notional amount of $636 million and $868 million , respectively, to primarily hedge balance sheet remeasurement risk, which were not designated as hedges. Contracts representing the majority of this notional amount will mature during the first quarter of fiscal 2017 and offset the remeasurement impact. Energy We own an interest in an electricity swap that matures January 5, 2017 which we formerly designated as a cash flow hedge of our exposure to fluctuating electricity prices. As of March 31, 2011, due to significant credit deterioration of our counterparty, we discontinued hedge accounting for this electricity swap, even though the counterparty's credit has subsequently improved. Less than 1 million of notional megawatt hours remained outstanding as of March 31, 2016 , and the fair value of this swap was a liability of $9 million as of March 31, 2016 . As of March 31, 2015 , the fair value of this electricity swap was a liability of $16 million . On December 31, 2015, we entered into an agreement to extend the existing electricity swap contract for an additional five years, effective January 6, 2017 and maturing on January 5, 2022. As of March 31, 2016 , 1 million of notional megawatt hours was outstanding and the fair value of this swap was an asset of $1 million . The electricity swap was not designated as of March 31, 2016 . We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had 5 million MMBTUs designated as cash flow hedges as of March 31, 2016 , and the fair value was a liability of $4 million . There were 7 million MMBTUs of natural gas forward purchase contracts designated as cash flow hedges as of March 31, 2015 and the fair value was a liability of $8 million . As of March 31, 2016 and 2015 , we had less than 1 million MMBTUs and 2 million MMBTUs, respectively, of natural gas forward purchase contracts that were not designated as hedges. The fair value as of March 31, 2016 and 2015 was a liability of $1 million and a liability of $3 million , respectively, for the forward purchase contracts not designated as hedges. The average duration of undesignated contracts is less than two years . One MMBTU is the equivalent of one decatherm, or one million British Thermal Units. We use diesel fuel forward purchase contracts to manage our exposure to fluctuating fuel prices in North America, which are not designated as hedges as of March 31, 2016 . We had 4 million gallons of diesel fuel forward purchase contracts outstanding as of March 31, 2016 , and the fair value was a liability of less than $1 million . The average duration of undesignated contracts is less than one year . Interest Rate As of March 31, 2016 , we swapped $115 million ( KRW 133 billion ) floating rate loans to a weighted average fixed rate of 2.92% . All swaps expire concurrent with the maturity of the related loans. As of March 31, 2016 and 2015 , $115 million ( KRW 133 billion ) and $78 million ( KRW 86 billion ), respectively, were designated as cash flow hedges, respectively. Gain (Loss) Recognition The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the ineffectiveness of designated derivatives recognized in “Other (income) expense, net” (in millions). Gains (losses) recognized in other line items in the consolidated statement of operations are separately disclosed within this footnote. Year Ended March 31, 2016 2015 2014 Derivative instruments not designated as hedges Aluminum contracts $ 47 $ (31 ) $ (4 ) Currency exchange contracts (60 ) (5 ) (15 ) Energy contracts (A) 3 2 14 Loss recognized in "Other (income) expense, net" (10 ) (34 ) (5 ) Derivative instruments designated as hedges Gain recognized in "Other (income) expense, net" (B) 17 19 38 Total gain (loss) recognized in "Other (income) expense, net" $ 7 $ (15 ) $ 33 Balance sheet remeasurement currency exchange contract losses $ (53 ) $ (13 ) $ (19 ) Realized gains (losses), net (C) 64 (2 ) 62 Unrealized losses on other derivative instruments, net (4 ) — (10 ) Total gain (loss) recognized in "Other (income) expense, net" $ 7 $ (15 ) $ 33 (A) Includes amounts related to de-designated electricity swap and natural gas swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capex contracts; releases to income from AOCI on balance sheet remeasurement contracts; and ineffectiveness of fair value hedges involving aluminum derivatives. (C) During the year ended March 31, 2016 , the level of undesignated aluminum derivatives was higher due to the recent volatility in the local market premium component of our net selling prices, forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capex contracts. The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow and net investment hedges (in millions). Within the next twelve months, we expect to reclassify $8 million of gains from “AOCI” to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Recognized in “Other (Income) Expense, net” (Ineffective and Excluded Portion) Year Ended March 31, Year Ended March 31, 2016 2015 2014 2016 2015 2014 Cash flow hedging derivatives Aluminum contracts $ 84 $ (26 ) $ 35 $ 17 $ 24 $ 39 Currency exchange contracts (7 ) (44 ) (16 ) 1 (2 ) 1 Energy contracts (5 ) (12 ) 1 (1 ) — — Interest Rate Swaps (1 ) (1 ) — — — — Total cash flow hedging derivatives 71 (83 ) 20 17 22 40 Net Investment derivatives Currency exchange contracts (2 ) 11 (3 ) — — — Total $ 69 $ (72 ) $ 17 $ 17 $ 22 $ 40 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Year Ended March 31, Location of Gain (Loss) Reclassified from AOCI into Earnings Cash flow hedging derivatives 2016 2015 2014 Energy contracts (A) $ (5 ) $ (5 ) $ (5 ) Other (income) expense, net Energy contracts (C) (10 ) — — Cost of goods sold (B) Aluminum contracts 83 (40 ) 53 Cost of goods sold (B) Aluminum contracts — — 7 Net sales Currency exchange contracts (44 ) (14 ) (14 ) Cost of goods sold (B) Currency exchange contracts (4 ) (1 ) (1 ) Selling, general and administrative expenses Currency exchange contracts (9 ) 18 3 Net sales Currency exchange contracts (1 ) (3 ) (2 ) Other (income) expense, net Currency exchange contracts — 7 — Gain on assets held for sale, net Currency exchange contracts (1 ) (1 ) — Depreciation and amortization Interest rate swaps (1 ) — — Interest expense Total 8 (39 ) 41 Income (loss) before income taxes (19 ) 8 (16 ) Income tax (provision) benefit $ (11 ) $ (31 ) $ 25 Net income (loss) (A) Includes amounts related to de-designated electricity swap. AOCI related to this swap is amortized to income over the remaining term of the hedged item. (B) "Cost of goods sold" is exclusive of depreciation and amortization. (C) Includes amounts related to natural gas swaps. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the change in the components of accumulated other comprehensive loss net of tax and "Noncontrolling interests", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of March 31, 2013 $ (33 ) $ (2 ) $ (233 ) $ (268 ) Other comprehensive income before reclassifications 122 7 64 193 Amounts reclassified from AOCI, net — (25 ) 9 (16 ) Net current-period other comprehensive income (loss) 122 (18 ) 73 177 Balance as of March 31, 2014 89 (20 ) (160 ) (91 ) Other comprehensive loss before reclassifications (302 ) (74 ) (118 ) (494 ) Amounts reclassified from AOCI, net — 31 (7 ) 24 Net current-period other comprehensive loss (302 ) (43 ) (125 ) (470 ) Balance as of March 31, 2015 (213 ) (63 ) (285 ) (561 ) Other comprehensive income (loss) before reclassifications 17 41 (15 ) 43 Amounts reclassified from AOCI, net — 11 7 18 Net current-period other comprehensive income (loss) 17 52 (8 ) 61 Balance as of March 31, 2016 $ (196 ) $ (11 ) $ (293 ) $ (500 ) (A) For additional information on our cash flow hedges see Note 15 - Financial Instruments and Commodity Contracts. (B) For additional information on our postretirement benefit plans see Note 13 - Postretirement Benefit Plans. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our consolidated balance sheets at fair value. We also disclose the fair values of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions we used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, foreign exchange, natural gas and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum derivative contracts, natural gas and diesel fuel forward contracts. We classify derivative contracts that are valued based on models with significant unobservable market inputs as Level 3 of the valuation hierarchy. Our two electricity swaps, which are our only Level 3 derivative contracts, represent agreements to buy electricity at a fixed price at our Oswego, New York facility. Forward prices are not observable for this market, so we must make certain assumptions based on available information we believe to be relevant to market participants. We use observable forward prices for a geographically nearby market and adjust for 1) historical spreads between the cash prices of the two markets, and 2) historical spreads between retail and wholesale prices. For the electricity swap maturing January 5, 2017, the average forward price at March 31, 2016 , estimated using the method described above, was $41 per megawatt hour, which represented a $2 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $25 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by less than $1 million . For the electricity swap maturing January 5, 2022, the average forward price at March 31, 2016 , estimated using the method described above, was $46 per megawatt hour, which represented a $3 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $25 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by $1 million . For Level 2 and 3 of the fair value hierarchy, where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations (nonperformance risk). We regularly monitor these factors along with significant market inputs and assumptions used in our fair value measurements and evaluate the level of the valuation input according to the fair value hierarchy. This may result in a transfer between levels in the hierarchy from period to period. As of March 31, 2016 and March 31, 2015 , we did not have any Level 1 derivative contracts. No amounts were transferred between levels in the fair value hierarchy. All of the Company's derivative instruments are carried at fair value in the statements of financial position prior to considering master netting agreements. The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of March 31, 2016 and March 31, 2015 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. March 31, 2016 2015 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 34 $ (28 ) $ 39 $ (31 ) Currency exchange contracts 59 (49 ) 35 (111 ) Energy contracts — (5 ) 3 (14 ) Interest rate swaps — (1 ) — (1 ) Total level 2 instruments 93 (83 ) 77 (157 ) Level 3 instruments Energy contracts 1 (9 ) — (16 ) Total level 3 instruments 1 (9 ) — (16 ) Total gross $ 94 $ (92 ) $ 77 $ (173 ) Netting adjustment (A) $ (31 ) $ 31 $ (28 ) $ 28 Total net $ 63 $ (61 ) $ 49 $ (145 ) (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. We recognized unrealized gains of $2 million for the year ended March 31, 2016 related to Level 3 financial instruments that were still held as of March 31, 2016 . These unrealized gains were included in “Other (income) expense, net.” The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2014 $ (19 ) Unrealized gain included in earnings (B) 10 Settlements (7 ) Balance as of March 31, 2015 $ (16 ) Unrealized/realized gain included in earnings (B) 9 Settlements (1 ) Balance as of March 31, 2016 $ (8 ) (A) Represents net derivative liabilities. (B) Included in “Other (income) expense, net.” Financial Instruments Not Recorded at Fair Value The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis (in millions). The table excludes short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term receivables and long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. March 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 16 $ 17 $ 15 $ 15 Liabilities Total debt — third parties (excluding short term borrowings) $ 4,498 $ 4,659 $ 4,457 $ 4,659 |
Other (Income) Expense
Other (Income) Expense | 12 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME) | OTHER (INCOME) EXPENSE “Other (income) expense, net” is comprised of the following (in millions). Year Ended March 31, 2016 2015 2014 Foreign currency remeasurement (gains) losses, net (A) $ (2 ) $ 27 $ (7 ) Loss on change in fair value of other unrealized derivative instruments, net (B) 4 — 10 (Gain) loss on change in fair value of other realized derivative instruments, net (B) (64 ) 2 (62 ) Loss on sale of assets, net 4 5 9 Loss on Brazilian tax litigation, net (C) 5 7 6 Interest income (13 ) (7 ) (6 ) Gain on business interruption insurance recovery (D) (10 ) (19 ) — Other, net 8 2 9 Other (income) expense, net $ (68 ) $ 17 $ (41 ) (A) Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” (B) See Note 15 - Financial Instruments and Commodity Contracts for further details. (C) See Note 20 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. (D) We experienced an outage at the hotmill in the Logan facility in North America due to an unexpected failure of a motor, which resulted in lost shipments and profits during the fourth quarter of fiscal 2015. A repaired motor was installed and operations at the hotmill resumed within approximately three weeks of the outage. We recognized gains of $5 million , $5 million and $13 million during the second quarter of fiscal 2016, first quarter of fiscal 2016, and fourth quarter of fiscal 2015, respectively, as settlements of the related business interruption recovery claim were reached. The payment in the second quarter of fiscal 2016 represented the final settlement payment. Additionally, the fiscal year 2015 gain also includes an insurance settlement which resulted in a gain of $6 million related to lost shipments and profits resulting from an electrical short circuit impacting a hot mill motor at one of our facilities in our Europe segment in fiscal 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We are subject to Canadian and United States federal, state, and local income taxes as well as other foreign income taxes. The domestic (Canada) and foreign components of our "Income before income taxes" (and after removing our "Equity in net loss of non-consolidated affiliates") are as follows (in millions). Year Ended March 31, 2016 2015 2014 Domestic (Canada) $ (313 ) $ (267 ) $ (294 ) Foreign (all other countries) 324 434 421 Pre-tax income before equity in net loss of non-consolidated affiliates $ 11 $ 167 $ 127 The components of the "Income tax provision" are as follows (in millions). Year Ended March 31, 2016 2015 2014 Current provision: Domestic (Canada) $ 5 $ 4 $ 12 Foreign (all other countries) 134 98 128 Total current 139 102 140 Deferred provision (benefit): Domestic (Canada) — — — Foreign (all other countries) (93 ) (88 ) (129 ) Total deferred (93 ) (88 ) (129 ) Income tax provision $ 46 $ 14 $ 11 The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below (in millions, except percentages). Year Ended March 31, 2016 2015 2014 Pre-tax income before equity in net loss on non-consolidated affiliates $ 11 $ 167 $ 127 Canadian Statutory tax rate 25 % 25 % 25 % Provision at the Canadian statutory rate $ 3 $ 42 $ 32 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 16 (22 ) — Exchange remeasurement of deferred income taxes (8 ) (31 ) (20 ) Change in valuation allowances 104 95 94 Tax credits and other allowances (22 ) (22 ) (38 ) Income items not subject to tax — 2 (6 ) State tax benefit, net (10 ) (7 ) (7 ) Dividends not subject to tax (52 ) (52 ) (52 ) Enacted tax rate changes 5 (1 ) 3 Tax rate differences on foreign earnings 4 7 (4 ) Uncertain tax positions 7 10 8 Prior year adjustments (2 ) 2 (1 ) Income tax settlements — (6 ) — Other — net 1 (3 ) 2 Income tax provision $ 46 $ 14 $ 11 Effective tax rate 411 % 8 % 9 % Our effective tax rate differs from the Canadian statutory rate primarily due to the following factors: (1) pre-tax foreign currency gains or losses with no tax effect and the tax effect of U.S. dollar denominated currency gains or losses with no pre-tax effect, which is shown above as exchange translation items; (2) the remeasurement of deferred income taxes due to foreign currency changes, which is shown above as exchange remeasurement of deferred income taxes; (3) changes in valuation allowances; (4) non-taxable dividends; (5) income tax settlements; (6) differences between the Canadian statutory and foreign effective tax rates applied to entities in different jurisdictions shown above as tax rate differences on foreign earnings; (7) tax credits in various jurisdictions; (8) state income tax benefit; and (9) increases or decreases in uncertain tax positions recorded under the provisions of ASC 740. We continue to maintain valuation allowances in Canada and certain foreign jurisdictions primarily related to tax losses where we believe it is more likely than not that we will be unable to utilize those losses. The impact on our income tax provision of the change in these valuation allowances during the year ended March 31, 2016 was an increase of $104 million . We earn tax credits in a number of the jurisdictions in which we operate. Primarily comprised of empire zone credits in New York in the current year of $7 million , and foreign tax credits in the U.K. of $11 million . The impact on our income tax provision of these credits during the year ended March 31, 2016 was a benefit of $22 million . However, legislation enacted in New York state on March 31, 2014 established a zero percent statutory income tax rate for manufacturers. As a result, the current year empire zone credits in New York are offset with a corresponding valuation allowance of $7 million. In 2005, we entered into a tax sharing and disaffiliation agreement with Alcan that provides indemnification if certain factual representations are breached or if certain transactions are undertaken or certain actions are taken that have the effect of negatively affecting the tax treatment of our spin-off from Alcan. It further governs the disaffiliation of the tax matters of Alcan and its subsidiaries or affiliates other than us, on the one hand, and us and our subsidiaries or affiliates, on the other hand. In this respect it allocates taxes accrued prior to the spin-off and after the spin-off as well as transfer taxes resulting there from. It also allocates obligations for filing tax returns and the management of certain pending or future tax contests and creates mutual collaboration obligations with respect to tax matters. We receive the benefits of favorable tax holidays in various jurisdictions, which resulted in a $10 million reduction to tax expense for the year ended March 31, 2016 , and phase out as of December 31, 2015. Deferred Income Taxes Deferred income taxes recognize the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for income tax purposes, and the impact of available net operating loss (NOL) and tax credit carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. As of March 31, 2016, we elected to early adopt ASU 2015-17. The new standard requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. We applied the new standard prospectively to the Consolidated Balance Sheet as of March 31, 2016. The Consolidated Balance Sheet as of March 31, 2015 was not retrospectively adjusted. Our deferred income tax assets and deferred income tax liabilities are as follows (in millions). March 31, 2016 2015 Deferred income tax assets: Provisions not currently deductible for tax purposes $ 396 $ 366 Tax losses/benefit carryforwards, net 741 627 Depreciation and amortization 41 38 Other assets (1 ) 4 Total deferred income tax assets 1,177 1,035 Less: valuation allowance (613 ) (528 ) Net deferred income tax assets $ 564 $ 507 Deferred income tax liabilities: Depreciation and amortization $ 457 $ 477 Inventory valuation reserves 64 102 Monetary exchange gains, net 15 9 Other liabilities 30 26 Total deferred income tax liabilities $ 566 $ 614 Net deferred income tax liabilities $ 2 $ 107 ASC 740 requires that we reduce our deferred income tax assets by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that all or a portion of a deferred tax asset will not be realized. After consideration of all evidence, both positive and negative, management concluded that it is more likely than not that we will be unable to realize a portion of our deferred tax assets and that valuation allowances of $613 million and $528 million were necessary as of March 31, 2016 and 2015 , respectively. It is reasonably possible that our estimates of future taxable income may change within the next 12 months, resulting in a change to the valuation allowance in one or more jurisdictions. As of March 31, 2016 , we had net operating loss carryforwards of approximately $638 million (tax effected) and tax credit carryforwards of $103 million , which will be available to offset future taxable income and tax liabilities, respectively. The carryforwards will begin expiring in fiscal year 2019 with some amounts being carried forward indefinitely. As of March 31, 2016 , valuation allowances of $468 million , $88 million and $57 million had been recorded against net operating loss carryforwards, tax credit carryforwards and other deferred tax assets, respectively, where it appeared more likely than not that such benefits will not be realized. The net operating loss carryforwards are predominantly in Canada, the U.S., Italy, Germany, Switzerland, China and the U.K. As of March 31, 2015 , we had net operating loss carryforwards of approximately $515 million (tax effected) and tax credit carryforwards of $112 million , which will be available to offset future taxable income and tax liabilities, respectively. The carryforwards will begin expiring in fiscal 2020 with some amounts being carried forward indefinitely. As of March 31, 2015 , valuation allowances of $381 million , $99 million and $48 million had been recorded against net operating loss carryforwards, tax credit carryforwards and other deferred tax assets, respectively, where it appeared more likely than not that such benefits will not be realized. The net operating loss carryforwards are predominantly in Canada, the U.S., Italy, and the U.K. Although realization is not assured, management believes it is more likely than not that all the remaining net deferred tax assets will be realized. In the near term, the amount of deferred tax assets considered realizable could be reduced if we do not generate sufficient taxable income in certain jurisdictions. As of March 31, 2016 , we had cumulative earnings of approximately $2.5 billion for which we had not provided Canadian income tax or withholding taxes because we consider them to be indefinitely reinvested. We acknowledge that we would need to accrue and pay taxes should we decide to repatriate cash and short term investments generated from earnings of our foreign subsidiaries that are considered indefinitely reinvested. Except for those jurisdictions where we have already distributed and paid taxes on the earnings, we have reinvested and expect to continue to reinvest undistributed earnings of foreign subsidiaries indefinitely. Cash and cash equivalents held by foreign subsidiaries that are indefinitely reinvested are used to cover expansion and short-term cash flow needs of such subsidiaries. The amounts considered indefinitely reinvested would be subject to possible Canadian taxation only if remitted as dividends. However, due to our full valuation allowance position of $538 million in Canada, in excess of $443 million of net operating loss carryforwards, exempt surpluses for Canadian tax purposes, and $47 million of tax credits in Canada, a portion of the cumulative earnings would not be taxed if distributed. Due to the complex structure of our international holdings, and the various methods available for repatriation, quantification of the deferred tax liability, if any, associated with these undistributed earnings is not practicable. Tax Uncertainties As of March 31, 2016 and 2015 , the total amount of unrecognized benefits that, if recognized, would affect the effective income tax rate in future periods based on anticipated settlement dates is $34 million and $37 million , respectively. Tax authorities continue to examine certain other of our tax filings for fiscal years 2005 through 2014. As a result of further settlement of audits, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations, our reserves for unrecognized tax benefits, as well as reserves for interest and penalties, may decrease in the next 12 months by an amount up to approximately $14 million . With few exceptions, tax returns for all jurisdictions for all tax years before 2003 are no longer subject to examination by taxing authorities. Our policy is to record interest and penalties related to unrecognized tax benefits in the income tax provision (benefit). As of March 31, 2016 , 2015 and 2014 , we had $4 million , $5 million and $4 million accrued, respectively, for interest and penalties. For the year ended March 31, 2016 , we recognized $2 million expense related to accrued interest and penalties. For the years ended March 31, 2015 and 2014 we recognized a tax expense and benefit of $1 million and $1 million , respectively, related to reductions in accrued interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year Ended March 31, 2016 2015 2014 Beginning balance $ 37 $ 39 $ 30 Additions based on tax positions related to the current period 6 7 7 Additions based on tax positions of prior years 3 3 1 Reductions based on tax positions of prior years (6 ) (1 ) — Settlements (10 ) (3 ) — Foreign exchange 4 (8 ) 1 Ending Balance $ 34 $ 37 $ 39 Income Taxes Payable Our consolidated balance sheets include income taxes payable (net) of $42 million and $14 million as of March 31, 2016 and 2015 , respectively. Of these amounts, $13 million and $11 million are reflected in “Accrued expenses and other current liabilities” as of March 31, 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in the ordinary course of our business, including some we assert against others, such as environmental, health and safety, product liability, employee, tax, personal injury and other matters. We have established a liability with respect to contingencies for which a loss is probable and estimable. While the ultimate resolution of and liability and costs related to these matters cannot be determined with certainty, we do not believe any of these pending actions, individually or in the aggregate, will materially impact our operations or materially affect our financial condition or liquidity. For certain matters in which the Company is involved for which a loss is reasonably possible, we are unable to estimate a loss. For certain other matters for which a loss is reasonably possible and the loss is estimable, we have estimated the aggregated range of loss as $0 to $70 million . This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. The following describes certain contingencies relating to our business, including those for which we assumed liability as a result of our spin-off from Alcan Inc. Environmental Matters We own and operate numerous manufacturing and other facilities in various countries around the world. Our operations are subject to environmental laws and regulations from various jurisdictions, which govern, among other things, air emissions, wastewater discharges, the handling, storage and disposal of hazardous substances and wastes, the remediation of contaminated sites, post-mining reclamation and restoration of natural resources, and employee health and safety. Future environmental regulations may impose stricter compliance requirements on the industries in which we operate. Additional equipment or process changes at some of our facilities may be needed to meet future requirements. The cost of meeting these requirements may be significant. Failure to comply with such laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions and other orders, including orders to cease operations. We are involved in proceedings under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, or analogous state provisions regarding liability arising from the usage, storage, treatment or disposal of hazardous substances and wastes at a number of sites in the United States, as well as similar proceedings under the laws and regulations of the other jurisdictions in which we have operations, including Brazil and certain countries in the European Union. Many of these jurisdictions have laws that impose joint and several liability, without regard to fault or the legality of the original conduct, for the costs of environmental remediation, natural resource damages, third party claims, and other expenses. In addition, we are, from time to time, subject to environmental reviews and investigations by relevant governmental authorities. We are also involved in claims and litigation filed on behalf of persons alleging exposure to substances and other hazards at our current and former facilities. We have established liabilities based on our estimates for the currently anticipated costs associated with these environmental matters. We estimated that the remaining undiscounted clean-up costs related to our environmental liabilities as of March 31, 2016 were approximately $17 million , of which $13 million was associated with restructuring actions and the remaining undiscounted clean-up costs were approximately $4 million . Additionally, $7 million of the environmental liability was included in “Other long-term liabilities,” with the remaining $10 million included in “Accrued expenses and other current liabilities” in our consolidated balance sheet as of March 31, 2016 . As of March 31, 2015 , $18 million of the environmental liability was included in “Other long-term liabilities,” with the remaining $4 million included in “Accrued expenses and other current liabilities” in our consolidated balance sheet. Management has reviewed the environmental matters, including those for which we assumed liability as a result of our spin-off from Alcan Inc. As a result of management's review of these items, management has determined that the currently anticipated costs associated with these environmental matters will not, individually or in the aggregate, materially impact our operations or materially adversely affect our financial condition, results of operations or liquidity. Brazil Tax and Legal Matters Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. In most cases, we are paying the settlement amounts over a period of 180 months , although in some cases we are paying the settlement amounts over a shorter period. The assets and liabilities related to these settlements are presented in the table below (in millions). March 31, 2016 2015 Cash deposits (A) $ 2 $ 3 Short-term settlement liability (B) $ 7 $ 7 Long-term settlement liability (B) 57 66 Total settlement liability $ 64 $ 73 Liability for other disputes and claims (C) $ 17 $ 12 (A) We have maintain these cash deposits as a result of legal proceedings with Brazil's tax authorities. These deposits, which are included in “Other long-term assets — third parties” in our accompanying consolidated balance sheets, will be expended toward these legal proceedings. (B) The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying consolidated balance sheets. (C) In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying consolidated balance sheets. The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposits is included in the table below (in millions). Year Ended March 31, 2016 2015 2014 Loss on Brazilian tax litigation, net $ 5 $ 7 $ 6 Additionally, we have included in the range of reasonably possible losses disclosed above, any unresolved tax disputes or other contingencies for which a loss is reasonably possible and estimable. Other Commitments As of March 31, 2016 and 2015 , we had sold certain inventories to third parties and have agreed to repurchase the same or similar inventory back from the third parties subsequent to the balance sheet dates. Our estimated outstanding repurchase obligations for this inventory as of March 31, 2016 is $22 million and as of March 31, 2015 was approximately $218 million , based on market prices as of these dates. We sell and repurchase inventory with third parties in an attempt to better manage inventory levels and to better match the purchasing of inventory with the demand for our products. As of March 31, 2016 and 2015 , there was no liability related to these repurchase obligations on our accompanying consolidated balance sheets. |
Segment, Geographical Area, Maj
Segment, Geographical Area, Major Customer and Major Supplier Information | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment, Geographical Area, Major Customer and Major Supplier Information | SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia and South America. All of our segments manufacture aluminum sheet and light gauge products. The following is a description of our operating segments: North America. Headquartered in Atlanta, Georgia, this segment operates eight plants, including two fully dedicated recycling facilities and one facility with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates five plants, including three facilities with recycling operations, in four countries. South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operations, and operates two plants, including a facility with recycling operations, in Brazil. Our remaining smelting operations facilities ceased operations in December 2014. The majority of our power generation operations were sold during the fourth quarter of fiscal 2015. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies. We measure the profitability and financial performance of our operating segments based on “Segment income.” “Segment income” provides a measure of our underlying segment results that is in line with our approach to risk management. We define “Segment income” as earnings before (a) “depreciation and amortization”; (b) “interest expense and amortization of debt issuance costs”; (c) “interest income”; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) gain or loss on extinguishment of debt; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of “Segment income” from non-consolidated affiliates to income as determined on the equity method of accounting; (i) “restructuring and impairment, net”; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) provision or benefit for taxes on income (loss) and (o) cumulative effect of accounting change, net of tax. The tables below show selected segment financial information (in millions). The “Eliminations and Other” column in the table below includes eliminations and functions that are managed directly from our corporate office that have not been allocated to our operating segments, as well as the adjustments for proportional consolidation, and eliminations of intersegment “Net sales.” The financial information for our segments includes the results of our affiliates on a proportionately consolidated basis, which is consistent with the way we manage our business segments. In order to reconcile the financial information for the segments shown in the tables below to the relevant U.S. GAAP-based measures, we must adjust proportional consolidation of each line item. The “Eliminations and Other” in “Net sales – third party” includes the net sales attributable to our joint venture party, Tri-Arrows, for our Logan affiliate because we consolidate 100% of the Logan joint venture for U.S. GAAP, but we manage our Logan affiliate on a proportionately consolidated basis. See Note 8- Consolidation and Note 9 - Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis. Selected Segment Financial Information Selected Operating Results Year Ended March 31, 2016 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,262 $ 3,055 $ 1,879 $ 1,482 $ 194 $ 9,872 Net sales - intersegment 4 168 113 93 (378 ) — Net sales $ 3,266 $ 3,223 $ 1,992 $ 1,575 $ (184 ) $ 9,872 Depreciation and amortization $ 143 $ 106 $ 61 $ 61 $ (18 ) $ 353 Income tax (benefit) provision $ (53 ) $ (11 ) $ 12 $ 81 $ 17 $ 46 Capital expenditures $ 143 $ 146 $ 35 $ 39 $ 7 $ 370 March 31, 2016 Investment in and advances to non–consolidated affiliates $ — $ 488 $ — $ — $ — $ 488 Total assets $ 2,370 $ 2,687 $ 1,516 $ 1,584 $ 153 $ 8,310 Selected Operating Results Year Ended March 31, 2015 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,465 $ 3,609 $ 2,139 $ 1,749 $ 185 $ 11,147 Net sales - intersegment 18 174 201 101 (494 ) — Net sales $ 3,483 $ 3,783 $ 2,340 $ 1,850 $ (309 ) $ 11,147 Depreciation and amortization $ 137 $ 103 $ 71 $ 63 $ (22 ) $ 352 Income tax (benefit) provision $ (27 ) $ 12 $ 16 $ (1 ) $ 14 $ 14 Capital expenditures $ 122 $ 257 $ 85 $ 53 $ 1 $ 518 March 31, 2015 Investment in and advances to non–consolidated affiliates $ — $ 447 $ — $ — $ — $ 447 Total assets $ 2,744 $ 2,952 $ 1,663 $ 1,588 $ 155 $ 9,102 Selected Operating Results Year Ended March 31, 2014 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,042 $ 3,145 $ 1,849 $ 1,543 $ 188 $ 9,767 Net sales - intersegment 8 135 27 45 (215 ) — Net sales $ 3,050 $ 3,280 $ 1,876 $ 1,588 $ (27 ) $ 9,767 Depreciation and amortization $ 126 $ 103 $ 68 $ 69 $ (32 ) $ 334 Income tax provision $ (34 ) $ 6 $ 16 $ 6 $ 17 $ 11 Capital expenditures $ 147 $ 241 $ 198 $ 117 $ 14 $ 717 The following table shows the reconciliation from income from reportable segments to “Net income attributable to our common shareholder” (in millions). Year Ended March 31, 2016 2015 2014 North America $ 258 $ 273 $ 229 Europe 116 250 265 Asia 135 141 160 South America 282 240 231 Intersegment eliminations — (2 ) — Depreciation and amortization (353 ) (352 ) (334 ) Interest expense and amortization of debt issuance costs (327 ) (326 ) (304 ) Adjustment to eliminate proportional consolidation (30 ) (33 ) (40 ) Unrealized losses on change in fair value of derivative instruments, net (4 ) — (10 ) Realized (losses) gains on derivative instruments not included in segment income (1 ) (6 ) 5 Gain on assets held for sale — 22 6 Loss on extinguishment of debt (13 ) — — Restructuring and impairment, net (48 ) (37 ) (75 ) Loss on sale of fixed assets (4 ) (5 ) (9 ) Other costs, net (3 ) (3 ) (9 ) Income before income taxes 8 162 115 Income tax provision 46 14 11 Net (loss) income (38 ) 148 104 Net income attributable to noncontrolling interests — — — Net (loss) income attributable to our common shareholder $ (38 ) $ 148 $ 104 Geographical Area Information We had 25 operating facilities in eleven countries as of March 31, 2016 . The tables below present “Net sales” and “Long-lived assets and other intangible assets” by geographical area (in millions). “Net sales” are attributed to geographical areas based on the origin of the sale. “Long-lived assets and other intangible assets” are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill. Year Ended March 31, 2016 2015 2014 Net sales: United States $ 3,334 $ 3,507 $ 3,021 Asia and Other Pacific 1,879 2,139 1,845 Brazil 1,482 1,750 1,544 Canada 121 144 209 Germany 2,506 2,976 2,449 Other Europe 550 631 699 Total Net sales $ 9,872 $ 11,147 $ 9,767 March 31, 2016 2015 Long-lived assets and other intangibles: United States $ 1,483 $ 1,518 Asia and Other Pacific 784 840 Brazil 840 866 Canada 70 78 Germany 287 251 United Kingdom 43 45 Other Europe 522 528 Total long-lived assets $ 4,029 $ 4,126 Information about Product Sales, Major Customers and Primary Supplier The percentage of “Net sales” generated from beverage and food can products were 55% , 56% , and 55% in the years ended March 31, 2016 , 2015 , and 2014 , respectively. The percentage of “Net sales” generated from automotive products increased to 20% in the year ended March 31, 2016 , compared to 13% and 11% in the years ended March 31, 2015 and 2014 , respectively. The table below shows our net sales to Rexam Plc (Rexam) and Affiliates of Ball Corporation (Ball Corporation), our two largest customers, as a percentage of total “Net sales.” Year Ended March 31, 2016 2015 2014 Rexam (A) 19 % 18 % 17 % Ball Corporation (A) 11 % 10 % 10 % (A) In February of 2015, Ball Corporation made an offer to acquire Rexam. This acquisition will be subject to regulatory and shareholder approval. RT is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from RT as a percentage of our total combined metal purchases. Year Ended March 31, 2016 2015 2014 Purchases from RT as a percentage of total combined metal purchases 12 % 15 % 17 % |
Supplemental Information
Supplemental Information | 12 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION Supplemental cash flow information is as follows (in millions). Year Ended March 31, 2016 2015 2014 Supplemental disclosures of cash flow information: Interest paid $ 308 $ 303 $ 278 Income taxes paid $ 123 $ 131 $ 120 As of March 31, 2016 , we recorded $53 million of outstanding accounts payable and accrued liabilities related to capital expenditures in which the cash outflows will occur subsequent to March 31, 2016 . During the year ended March 31, 2016 , we did not incur any new capital lease obligations. During the years ended 2015 and 2014 , we incurred capital lease obligations of less than $1 million related to capital lease acquisitions. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | QUARTERLY RESULTS (UNAUDITED) The tables below present select operating results (in millions) by period: (Unaudited) Quarter Ended June 30, September 30, December 31, March 31, Net sales $ 2,634 $ 2,482 $ 2,354 $ 2,402 Cost of goods sold (exclusive of depreciation and amortization) 2,400 2,241 2,051 2,035 Selling, general and administrative expenses 100 100 104 103 Depreciation and amortization 87 89 88 89 Interest expense and amortization of debt issuance costs 80 82 82 83 Research and development expenses 13 13 13 15 Loss on extinguishment of debt 13 — — — Restructuring and impairment, net 15 4 10 19 Equity in net loss of non-consolidated affiliates 1 1 — 1 Other (income) expense, net (30 ) (32 ) (16 ) 10 Income tax provision (benefit) 15 (3 ) 16 18 Net (loss) income (60 ) (13 ) 6 29 Net income attributable to noncontrolling interests — — — — Net (loss) income attributable to our common shareholder $ (60 ) $ (13 ) $ 6 $ 29 (Unaudited) Quarter Ended June 30, September 30, December 31, March 31, Net sales $ 2,680 $ 2,831 $ 2,847 $ 2,789 Cost of goods sold (exclusive of depreciation and amortization) 2,329 2,483 2,498 2,483 Selling, general and administrative expenses 108 103 108 108 Depreciation and amortization 89 90 87 86 Interest expense and amortization of debt issuance costs 81 82 85 78 Research and development expenses 12 12 14 12 (Gain) loss on assets held for sale (11 ) — (12 ) 1 Restructuring and impairment, net 6 7 25 (1 ) Equity in net loss of non-consolidated affiliates 2 — 2 1 Other expense (income), net 5 18 (9 ) 3 Income tax provision (benefit) 24 (2 ) 3 (11 ) Net income 35 38 46 29 Net income attributable to noncontrolling interests — — — — Net income attributable to our common shareholder $ 35 $ 38 $ 46 $ 29 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Mar. 31, 2016 | |
Supplemental Guarantor Information [Abstract] | |
SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION In connection with the issuance of Novelis Inc.'s (the Parent and Issuer) 2017 Notes and 2020 Notes, certain of our wholly-owned subsidiaries, which are 100% owned within the meaning of Rule 3-10(h)(1) of Regulation S-X, provided guarantees. These guarantees are full and unconditional as well as joint and several. In the periods presented below, the guarantor subsidiaries (the Guarantors) are comprised of the majority of our businesses in Canada, the U.S., the U.K., Brazil, Portugal and Switzerland, as well as certain businesses in Germany and France. The remaining subsidiaries (the Non-Guarantors) of the Parent are not guarantors of the Notes. The fiscal 2015 and 2014 amounts below have been retrospectively adjusted to reflect the amalgamations of certain subsidiaries in the U.S. and Canada that occurred during fiscal 2016. These amalgamations had no impact on the consolidated financial statements. CONSOLIDATING STATEMENT OF OPERATIONS (In millions) Year Ended March 31, 2016 Parent Guarantors Non- Eliminations Consolidated Net sales $ 648 $ 8,519 $ 2,386 $ (1,681 ) $ 9,872 Cost of goods sold (exclusive of depreciation and amortization) 655 7,582 2,169 (1,679 ) 8,727 Selling, general and administrative expenses 32 315 60 — 407 Depreciation and amortization 19 269 65 — 353 Research and development expenses — 53 1 — 54 Interest expense and amortization of debt issuance costs 318 121 11 (123 ) 327 Loss on extinguishment of debt 13 — — — 13 Restructuring and impairment, net 14 30 4 — 48 Equity in net loss of non-consolidated affiliates — 3 — — 3 Equity in net income of consolidated subsidiaries (263 ) (44 ) — 307 — Other (income) expense, net (106 ) (105 ) 20 123 (68 ) 682 8,224 2,330 (1,372 ) 9,864 (Loss) income before income taxes (34 ) 295 56 (309 ) 8 Income tax provision 4 25 17 — 46 Net (loss) income (38 ) 270 39 (309 ) (38 ) Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to our common shareholder $ (38 ) $ 270 $ 39 $ (309 ) $ (38 ) Comprehensive (loss) income $ 23 $ 302 $ (6 ) $ (307 ) $ 12 Less: Comprehensive loss attributable to noncontrolling interest — — (11 ) — (11 ) Comprehensive income attributable to our common shareholder $ 23 $ 302 $ 5 $ (307 ) $ 23 CONSOLIDATING STATEMENT OF OPERATIONS (In millions) Year Ended March 31, 2015 Parent Guarantors Non- Eliminations Consolidated Net sales $ 665 $ 9,525 $ 2,743 $ (1,786 ) $ 11,147 Cost of goods sold (exclusive of depreciation and amortization) 650 8,413 2,514 (1,784 ) 9,793 Selling, general and administrative expenses 6 344 77 — 427 Depreciation and amortization 18 258 76 — 352 Research and development expenses — 49 1 — 50 Interest expense and amortization of debt issuance costs 319 127 7 (127 ) 326 Gain on assets held for sale, net (5 ) (17 ) — — (22 ) Restructuring and impairment, net 1 33 3 — 37 Equity in net loss of non-consolidated affiliates — 5 — — 5 Equity in net income of consolidated subsidiaries (403 ) (30 ) — 433 — Other (income) expense, net (71 ) (46 ) 7 127 17 515 9,136 2,685 (1,351 ) 10,985 Income before income taxes 150 389 58 (435 ) 162 Income tax provision (benefit) 2 (8 ) 20 — 14 Net income 148 397 38 (435 ) 148 Net income attributable to noncontrolling interests — — — — — Net income attributable to our common shareholder $ 148 $ 397 $ 38 $ (435 ) $ 148 Comprehensive (loss) income $ (322 ) $ 138 $ (7 ) $ (146 ) $ (337 ) Less: Comprehensive loss attributable to noncontrolling interest — — (15 ) — (15 ) Comprehensive (loss) income attributable to our common shareholder $ (322 ) $ 138 $ 8 $ (146 ) $ (322 ) CONSOLIDATING STATEMENT OF OPERATIONS (In millions) Year Ended March 31, 2014 Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ 693 $ 8,080 $ 2,416 $ (1,422 ) $ 9,767 Cost of goods sold (exclusive of depreciation and amortization) 677 7,055 2,158 (1,422 ) 8,468 Selling, general and administrative expenses 48 338 75 — 461 Depreciation and amortization 16 246 72 — 334 Research and development expenses 1 43 1 — 45 Interest expense and amortization of debt issuance costs 315 87 1 (99 ) 304 Gain on assets held for sale — (6 ) — — (6 ) Restructuring and impairment, net 8 59 8 — 75 Equity in net loss of non-consolidated affiliates — 12 — — 12 Equity in net income of consolidated subsidiaries (389 ) (99 ) — 488 — Other (income) expense, net (94 ) (57 ) 11 99 (41 ) 582 7,678 2,326 (934 ) 9,652 Income before income taxes 111 402 90 (488 ) 115 Income tax provision (benefit) 7 16 (12 ) — 11 Net income 104 386 102 (488 ) 104 Net income attributable to noncontrolling interests — — — — — Net income attributable to our common shareholder $ 104 $ 386 $ 102 $ (488 ) $ 104 Comprehensive income $ 281 $ 480 $ 153 $ (635 ) $ 279 Less: Comprehensive loss attributable to noncontrolling interest — — (2 ) — (2 ) Comprehensive income attributable to our common shareholder $ 281 $ 480 $ 155 $ (635 ) $ 281 CONSOLIDATING BALANCE SHEET (In millions) As of March 31, 2016 Parent Guarantors Non- Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 2 $ 301 $ 253 $ — $ 556 Accounts receivable, net of allowances — third parties 23 716 217 — 956 — related parties 188 139 175 (443 ) 59 Inventories 46 873 264 (3 ) 1,180 Prepaid expenses and other current assets 5 91 31 — 127 Fair value of derivative instruments 26 49 16 (3 ) 88 Assets held for sale — 5 — — 5 Total current assets 290 2,174 956 (449 ) 2,971 Property, plant and equipment, net 81 2,581 844 — 3,506 Goodwill — 596 11 — 607 Intangible assets, net 17 503 3 — 523 Investments in and advances to non-consolidated affiliates — 488 — — 488 Investments in consolidated subsidiaries 2,667 619 — (3,286 ) — Deferred income tax assets — 18 69 — 87 Other long-term assets — third parties 45 48 19 — 112 — related parties 1,752 16 — (1,752 ) 16 Total assets $ 4,852 $ 7,043 $ 1,902 $ (5,487 ) $ 8,310 LIABILITIES AND (DEFICIT) EQUITY Current liabilities Current portion of long-term debt $ 21 $ 8 $ 18 $ — $ 47 Short-term borrowings — third parties 337 149 93 — 579 — related parties 20 (71 ) — 51 — Accounts payable — third parties 43 958 505 — 1,506 — related parties 69 322 39 (382 ) 48 Fair value of derivative instruments 19 58 11 (3 ) 85 Accrued expenses and other current liabilities — third parties 95 398 76 — 569 — related parties — 102 10 (112 ) — Total current liabilities 604 1,924 752 (446 ) 2,834 Long-term debt, net of current portion — third parties 4,253 20 178 — 4,451 — related parties — 1,697 55 (1,752 ) — Deferred income tax liabilities — 87 2 — 89 Accrued postretirement benefits 32 557 231 — 820 Other long-term liabilities 22 143 10 — 175 Total liabilities 4,911 4,428 1,228 (2,198 ) 8,369 Commitments and contingencies Temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (963 ) 1,329 754 (2,083 ) (963 ) Accumulated other comprehensive loss (500 ) (395 ) (80 ) 475 (500 ) Total (deficit) equity of our common shareholder (59 ) 934 674 (1,608 ) (59 ) Noncontrolling interests — — — — — Total (deficit) equity (59 ) 934 674 (1,608 ) (59 ) Total liabilities and (deficit) equity $ 4,852 $ 7,043 $ 1,902 $ (5,487 ) $ 8,310 CONSOLIDATING BALANCE SHEET (In millions) As of March 31, 2015 Parent Guarantors Non- Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 4 $ 365 $ 259 $ — $ 628 Accounts receivable, net of allowances — third parties 23 1,034 232 — 1,289 — related parties 385 154 158 (644 ) 53 Inventories 55 1,084 294 (2 ) 1,431 Prepaid expenses and other current assets 6 89 17 — 112 Fair value of derivative instruments 19 55 9 (6 ) 77 Deferred income tax assets — 70 9 — 79 Assets held for sale — 6 — — 6 Total current assets 492 2,857 978 (652 ) 3,675 Property, plant and equipment, net 95 2,549 898 — 3,542 Goodwill — 596 11 — 607 Intangible assets, net 19 562 3 — 584 Investments in and advances to non-consolidated affiliates — 447 — — 447 Investments in consolidated subsidiaries 2,442 597 — (3,039 ) — Deferred income tax assets — 47 48 — 95 Other long-term assets — third parties 57 70 10 — 137 — related parties 1,836 64 — (1,885 ) 15 Total assets $ 4,941 $ 7,789 $ 1,948 $ (5,576 ) $ 9,102 LIABILITIES AND EQUITY Current liabilities Current portion of long-term debt $ 22 $ 8 $ 78 $ — $ 108 Short-term borrowings — third parties 394 381 71 — 846 — related parties — 122 — (122 ) — Accounts payable — third parties 27 1,195 632 — 1,854 — related parties 78 393 42 (469 ) 44 Fair value of derivative instruments 83 62 10 (6 ) 149 Accrued expenses and other current liabilities — third parties 99 412 61 — 572 — related parties — 47 6 (53 ) — Deferred income tax liabilities — 20 — — 20 Total current liabilities 703 2,640 900 (650 ) 3,593 Long-term debt, net of current portion — third parties 4,205 28 116 — 4,349 — related parties 49 1,780 56 (1,885 ) — Deferred income tax liabilities — 254 7 — 261 Accrued postretirement benefits 30 534 184 — 748 Other long-term liabilities 36 175 10 — 221 Total liabilities 5,023 5,411 1,273 (2,535 ) 9,172 Commitments and contingencies Temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (925 ) 1,122 711 (1,833 ) (925 ) Accumulated other comprehensive loss (561 ) (425 ) (48 ) 473 (561 ) Total (deficit) equity of our common shareholder (82 ) 697 663 (1,360 ) (82 ) Noncontrolling interests — — 12 — 12 Total (deficit) equity (82 ) 697 675 (1,360 ) (70 ) Total liabilities and (deficit) equity $ 4,941 $ 7,789 $ 1,948 $ (5,576 ) $ 9,102 CONSOLIDATING STATEMENT OF CASH FLOWS (In millions) Year Ended March 31, 2016 Parent Guarantors Non- Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (6 ) $ 728 $ 85 $ (266 ) $ 541 INVESTING ACTIVITIES Capital expenditures (10 ) (314 ) (46 ) (370 ) Proceeds from sales of assets, net of transaction fees and hedging — third parties 1 2 — — 3 Proceeds (outflows) from investment in and advances to affiliates, net 180 47 (65 ) (164 ) (2 ) (Outflows) proceeds from settlement of other undesignated derivative instruments, net (107 ) 117 (19 ) — (9 ) Net cash provided by (used in) investing activities 64 (148 ) (130 ) (164 ) (378 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties 59 48 67 — 174 — related parties 140 (140 ) — Principal payments of long-term and short-term borrowings — third parties (18 ) (141 ) (57 ) — (216 ) — related parties (49 ) (82 ) — 131 — Short-term borrowings, net — third parties (57 ) (158 ) 28 — (187 ) — related parties 20 (193 ) — 173 — Dividends, noncontrolling interest and intercompany — (265 ) (2 ) 266 (1 ) Debt issuance costs (15 ) — — — (15 ) Net cash (used in) provided by financing activities (60 ) (651 ) 36 430 (245 ) Net decrease in cash and cash equivalents (2 ) (71 ) (9 ) — (82 ) Effect of exchange rate changes on cash — 7 3 — 10 Cash and cash equivalents — beginning of period 4 365 259 — 628 Cash and cash equivalents — end of period $ 2 $ 301 $ 253 $ — $ 556 CONSOLIDATING STATEMENT OF CASH FLOWS (In millions) Year Ended March 31, 2015 Parent Guarantors Non- Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities $ 29 $ 606 $ 161 $ (192 ) $ 604 INVESTING ACTIVITIES Capital expenditures (17 ) (404 ) (97 ) — (518 ) Proceeds from the sale of assets, net of transaction fees — third parties 29 88 — — 117 Proceeds (outflows) from investment in and advances to affiliates, net 250 5 — (275 ) (20 ) (Outflows) proceeds from settlement of other undesignated derivative instruments, net (19 ) 23 1 — 5 Net cash provided by (used in) investing activities 243 (288 ) (96 ) (275 ) (416 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties — 315 47 — 362 — related parties — 500 3 (503 ) — Principal payments of long-term and short-term borrowings — third parties (21 ) (266 ) (37 ) — (324 ) — related parties — (80 ) — 80 — Short-term borrowings, net — third parties 27 97 36 — 160 — related parties (25 ) (686 ) — 711 — Return of capital to our common shareholder (250 ) — 13 (13 ) (250 ) Dividends, noncontrolling interests and intercompany — (191 ) (2 ) 192 (1 ) Debt issuance costs (3 ) — — — (3 ) Net cash (used in) provided by financing activities (272 ) (311 ) 60 467 (56 ) Net decrease in cash and cash equivalents — 7 125 132 Effect of exchange rate changes on cash — (14 ) 1 — (13 ) Cash and cash equivalents — beginning of period 4 372 133 — 509 Cash and cash equivalents — end of period $ 4 $ 365 $ 259 $ — $ 628 CONSOLIDATING STATEMENT OF CASH FLOWS (In millions) Year Ended March 31, 2014 Parent Guarantors Non- Guarantors Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities $ 144 $ 834 $ 233 $ (509 ) $ 702 INVESTING ACTIVITIES Capital expenditures (22 ) (492 ) (203 ) — (717 ) Proceeds from the sale of assets, net of transaction fees — third parties — 7 1 — 8 — related parties — 8 — — 8 Outflows from investment in and advances to affiliates, net (261 ) (41 ) — 286 (16 ) (Outflow) proceeds from settlement of undesignated derivative instruments, net (21 ) 21 15 — 15 Net cash used in investing activities (304 ) (497 ) (187 ) 286 (702 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties — 147 22 — 169 — related parties — — 56 (56 ) — Principal payments of long-term and short-term borrowings — third parties (19 ) (143 ) (2 ) — (164 ) Short-term borrowings, net — third parties 162 44 2 — 208 — related parties 25 208 — (233 ) — Return of capital — — (3 ) 3 — Dividends, noncontrolling interests — (420 ) (89 ) 509 — Debt issuance costs (8 ) — — — (8 ) Net cash provided by (used in) financing activities 160 (164 ) (14 ) 223 205 Net increase in cash and cash equivalents — 173 32 — 205 Effect of exchange rate changes on cash — 3 — — 3 Cash and cash equivalents — beginning of period 4 196 101 — 301 Cash and cash equivalents — end of period $ 4 $ 372 $ 133 $ — $ 509 |
Business and Summary of Signi33
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of March 31, 2016 , we had manufacturing operations in eleven countries on four continents: North America, South America, Asia and Europe, through 25 operating facilities, including recycling operations in eleven of these plants. |
Consolidation Policy | Consolidation Policy Our consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated “Net (loss) income attributable to our common shareholder” includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the consolidated financial statements for consolidated entities, compared to a two-line presentation of "Investment in and advances to non-consolidated affiliates" and "Equity in net loss of non-consolidated affiliates." |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. |
Risks and Uncertainties | Risks and Uncertainties We are exposed to a number of risks in the normal course of our operations that could potentially affect our financial position, results of operations, and cash flows. Laws and regulations We operate in an industry that is subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate. These laws and regulations impose increasingly stringent environmental, health and safety protection standards and permitting requirements regarding, among other things, air emissions, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste disposal practices, the remediation of environmental contamination, post-mining reclamation and working conditions for our employees. Some environmental laws, such as the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, and comparable state laws, impose joint and several liability for the cost of environmental remediation, natural resource damages, third party claims, and other expenses, without regard to the fault or the legality of the original conduct. The costs of complying with these laws and regulations, including participation in assessments and remediation of contaminated sites and installation of pollution control facilities, have been, and in the future could be, significant. In addition, these laws and regulations may also result in substantial environmental liabilities associated with divested assets, third party locations and past activities. In certain instances, these costs and liabilities, as well as related action to be taken by us, could be accelerated or increased if we were to close, divest of or change the principal use of certain facilities with respect to which we may have environmental liabilities or remediation obligations. Currently, we are involved in a number of compliance efforts, remediation activities and legal proceedings concerning environmental matters, including certain activities and proceedings arising under U.S. Superfund and comparable laws in other jurisdictions where we have operations. We have established liabilities for environmental remediation where appropriate. However, the cost of addressing environmental matters (including the timing of any charges related thereto) cannot be predicted with certainty, and these liabilities may not ultimately be adequate, especially in light of potential changes in environmental conditions, changing interpretations of laws and regulations by regulators and courts, the discovery of previously unknown environmental conditions, the risk of governmental orders to carry out additional compliance on certain sites not initially included in remediation in progress, our potential liability to remediate sites for which provisions have not been previously established and the adoption of more stringent environmental laws. Such future developments could result in increased environmental costs and liabilities and could require significant capital expenditures, any of which could have a material adverse effect on our financial position or results of operations or cash flows. Furthermore, the failure to comply with our obligations under the environmental laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions or other orders, including orders to cease operations. In addition, the presence of environmental contamination at our properties could adversely affect our ability to sell a property, receive full value for a property or use a property as collateral for a loan. Some of our current and potential operations are located or could be located in or near communities that may regard such operations as having a detrimental effect on their social and economic circumstances. Environmental laws typically provide for participation in permitting decisions, site remediation decisions and other matters. Concern about environmental justice issues may affect our operations. Should such community objections be presented to government officials, the consequences of such a development may have a material adverse impact upon the profitability or, in extreme cases, the viability of an operation. In addition, such developments may adversely affect our ability to expand or enter into new operations in such location or elsewhere and may also have an effect on the cost of our environmental remediation projects. We use a variety of hazardous materials and chemicals in our rolling processes and in connection with maintenance work on our manufacturing facilities. Because of the nature of these substances or related residues, we may be liable for certain costs, including, among others, costs for health-related claims or removal or re-treatment of such substances. Certain of our current and former facilities incorporated asbestos-containing materials, a hazardous substance that has been the subject of health-related claims for occupation exposure. In addition, although we have developed environmental, health and safety programs for our employees, including measures to reduce employee exposure to hazardous substances, and conduct regular assessments at our facilities, we are currently, and in the future may be, involved in claims and litigation filed on behalf of persons alleging injury predominantly as a result of occupational exposure to substances at our current or former facilities. It is not possible to predict the ultimate outcome of these claims and lawsuits due to the unpredictable nature of personal injury litigation. If these claims and lawsuits, individually or in the aggregate, were finally resolved against us, our financial position, results of operations and cash flows could be adversely affected. Materials and labor In the aluminum rolled products industry, our raw materials are subject to continuous price volatility. We may not be able to pass on the entire cost of the increases to our customers or offset fully the effects of higher raw material costs through productivity improvements, which may cause our profitability to decline. In addition, there is a potential time lag between changes in prices under our purchase contracts and the point when we can implement a corresponding change under our sales contracts with our customers. As a result, we could be exposed to fluctuations in raw materials prices which could have a material adverse effect on our financial position, results of operations and cash flows. Significant price increases may result in our customers’ substituting other materials, such as plastic or glass, for aluminum or switching to another aluminum rolled products producer, which could have a material adverse effect on our financial position, results of operations and cash flows. We consume substantial amounts of energy in our rolling operations and our cast house operations. The factors that affect our energy costs and supply reliability tend to be specific to each of our facilities. A number of factors could materially adversely affect our energy position including, but not limited to: (a) increases in the cost of natural gas; (b) increases in the cost of supplied electricity or fuel oil related to transportation; (c) interruptions in energy supply due to equipment failure or other causes and (d) the inability to extend energy supply contracts upon expiration on economical terms. A significant increase in energy costs or disruption of energy supplies or supply arrangements could have a material adverse effect on our financial position, results of operations and cash flows. A substantial portion of our employees are represented by labor unions under a large number of collective bargaining agreements with varying durations and expiration dates. We may not be able to satisfactorily renegotiate our collective bargaining agreements when they expire. In addition, existing collective bargaining agreements may not prevent a strike or work stoppage at our facilities in the future, and any such work stoppage could have a material adverse effect on our financial position, results of operations and cash flows. Geographic markets We are, and will continue to be, subject to financial, political, economic and business risks in connection with our global operations. We have made investments and carry on production activities in various emerging markets, including China, Brazil, South Korea and Malaysia, and we market our products in these countries, as well as certain other countries in Asia, Africa, and the Middle East. While we anticipate higher growth or attractive production opportunities from these emerging markets, they also present a higher degree of risk than more developed markets. In addition to the business risks inherent in developing and servicing new markets, economic conditions may be more volatile, legal and regulatory systems less developed and predictable, and the possibility of various types of adverse governmental action more pronounced. In addition, inflation, fluctuations in currency and interest rates, competitive factors, civil unrest and labor problems could affect our revenues, expenses and results of operations. Our operations could also be adversely affected by acts of war, terrorism or the threat of any of these events as well as government actions such as controls on imports, exports and prices, tariffs, new forms of taxation, changes in fiscal regimes and increased government regulation in the countries in which we operate or service customers. Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial position, results of operations and cash flows. Other risks and uncertainties In addition, refer to Note 17 — Fair Value Measurements and Note 20 — Commitments and Contingencies for a discussion of financial instruments and commitments and contingencies. |
Revenue Recognition | Revenue Recognition We recognize sales when the revenue is realized or realizable, and has been earned. We record sales when a firm sales agreement is in place, delivery has occurred and collectability of the fixed or determinable sales price is reasonably assured. We recognize product revenue, net of trade discounts, allowances, and estimated billing adjustments, in the reporting period in which the products are shipped and the title and risk of ownership pass to the customer. We sell most of our products under contracts based on a “conversion premium,” which is subject to periodic adjustments based on market factors. As a result, the aluminum price risk is largely absorbed by the customer. In situations where we offer customers fixed prices for future delivery of our products, we enter into derivative instruments for all or a portion of the cost of metal inputs to protect our profit on the conversion of the product. Shipping and handling amounts we bill to our customers are included in “Net sales” and the related shipping and handling costs we incur are included in “Cost of goods sold (exclusive of depreciation and amortization).” Our customers can receive or earn certain incentives including, but not limited to, contract signing bonuses, cash discounts, volume based incentive programs, and support for infrastructure programs. The incentives are recorded as reductions to "Net sales," and are recognized over the minimum contractual period in which the customer is obligated to make purchases from Novelis. For incentives that must be earned, management must make estimates related to customer performance and sales volume to determine the total amounts earned and to be recorded as reductions to "Net sales." In making these estimates, management considers historical results. The actual amounts may differ from these estimates. On occasion, and in an attempt to better manage inventory levels, we sell inventory to third parties and have agreed to repurchase the same or similar inventory back from the third parties over a future period, based on market prices at the time of repurchase. For transactions in which the Company sells inventory and agrees to repurchase at a later date, we record the initial sale of the inventory on a net basis in our consolidated statement of operations through "Cost of goods sold (exclusive of depreciation and amortization)." Upon repurchase, the Company accounts for the inventory at the reacquisition price which becomes an input to our moving average inventory cost basis. |
Cost of Goods Sold (Exclusive of Depreciation and Amortization) | Cost of Goods Sold (Exclusive of Depreciation and Amortization) “Cost of goods sold (exclusive of depreciation and amortization)” includes all costs associated with inventories, including the procurement of materials, the conversion of such materials into finished products, and the costs of warehousing and distributing finished goods to customers. Material procurement costs include inbound freight charges as well as purchasing, receiving, inspection and storage costs. Conversion costs include the costs of direct production inputs such as labor and energy, as well as allocated overheads from indirect production centers and plant administrative support areas. Warehousing and distribution costs include inside and outside storage costs, outbound freight charges and the costs of internal transfers. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses “Selling, general and administrative expenses” include selling, marketing and advertising expenses; salaries, travel and office expenses of administrative employees and contractors; legal and professional fees; software license fees; bad debt expenses; and factoring expenses. |
Research and Development | Research and Development We incur costs in connection with research and development programs that are expected to contribute to future earnings, and charge such costs against income as incurred. Research and development costs consist primarily of salaries and administrative costs. |
Restructuring Activities | Restructuring Activities Restructuring charges, which are recorded within “Restructuring and impairment, net," include employee severance and benefit costs, impairments of assets, and other costs associated with exit activities. We apply the provisions of ASC 420, Exit or Disposal Cost Obligations (ASC 420). Severance costs accounted for under ASC 420 are recognized when management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. Impairment losses are based upon the estimated fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include environmental remediation costs and contract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we evaluate the accruals for restructuring costs to ensure the accruals are still appropriate. See Note 2 — Restructuring and Impairment for further discussion. |
Cash and Cash Equivalents | Cash and Cash Equivalents “Cash and cash equivalents” includes investments that are highly liquid and have maturities of three months or less when purchased. The carrying values of cash and cash equivalents approximate their fair value due to the short-term nature of these instruments. We maintain amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions, and we have not experienced any losses on such deposits. |
Accounts Receivable | Accounts Receivable Our accounts receivable are geographically dispersed. We do not obtain collateral relating to our accounts receivable. We do not believe there are any significant concentrations of revenues from any particular customer or group of customers that would subject us to any significant credit risks in the collection of our accounts receivable. We report accounts receivable at the estimated net realizable amount we expect to collect from our customers. Additions to the allowance for doubtful accounts are made by means of the provision for doubtful accounts. We write-off uncollectible accounts receivable against the allowance for doubtful accounts after exhausting collection efforts. For each of the periods presented, we performed an analysis of our historical cash collection patterns and considered the impact of any known material events in determining the allowance for doubtful accounts. See Note 3 — Accounts Receivable for further discussion. |
Derivative Instruments | Derivative Instruments We hold derivatives for risk management purposes and not for trading. We use derivatives to mitigate uncertainty and volatility caused by underlying exposures to aluminum prices, foreign exchange rates, interest rates, and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. We may be exposed to losses in the future if the counterparties to our derivative contracts fail to perform. We are satisfied that the risk of such non-performance is remote due to our monitoring of credit exposures. Additionally, we enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default, and we do not face credit contingent provisions that would result in the posting of collateral. For derivatives designated as cash flow hedges or net investment hedges, we assess hedge effectiveness by formally evaluating the high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The effective portion of gain or loss on the derivative is included in other comprehensive income (OCI) and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. Gains or losses representing reclassifications of OCI to earnings are recognized in the line item most reflective of the underlying risk exposure. We exclude the time value component of foreign currency and aluminum price risk hedges when measuring and assessing ineffectiveness to align our accounting policy with risk management objectives when it is necessary. If at any time during the life of a cash flow hedge relationship we determine that the relationship is no longer effective, the derivative will no longer be designated as a cash flow hedge and future gains or losses on the derivative will be recognized in “Other (income) expense, net.” For derivatives designated as fair value hedges, we assess hedge effectiveness by formally evaluating the high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. The changes in the fair values of the underlying hedged items are reported in "Prepaid expenses and other current assets," "Other long-term assets", "Accrued expenses and other current liabilities," and "Other long-term liabilities" in the consolidated balance sheets. Changes in the fair values of these derivatives and underlying hedged items generally offset and the effective portion is recorded in "Net sales" consistent with the underlying hedged item and the net ineffectiveness is recorded in "Other (income) expense, net." If no hedging relationship is designated, gains or losses are recognized in “Other (income) expense, net” in our current period earnings. Consistent with the cash flows from the underlying risk exposure, we classify cash settlement amounts associated with designated derivatives as part of either operating or investing activities in the consolidated statements of cash flows. If no hedging relationship is designated, we classify cash settlement amounts as part of investing activities in the consolidated statement of cash flows. The majority of our derivative contracts are valued using industry-standard models that use observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices for foreign exchange rates. See Note 15 — Financial Instruments and Commodity Contracts and Note 17 — Fair Value Measurements for additional discussion related to derivative instruments. |
Inventories | Inventories We carry our inventories at the lower of their cost or market value, reduced for obsolete and excess inventory. We use the average cost method to determine cost. Included in inventories are stores inventories, which are carried at average cost. See Note 4 — Inventories for further discussion. |
Property, Plant and Equipment | Property, Plant and Equipment We record land, buildings, leasehold improvements and machinery and equipment at cost. We record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments as of the beginning of the lease term. We generally depreciate our assets using the straight-line method over the shorter of the estimated useful life of the assets or the lease term, excluding any lease renewals, unless the lease renewals are reasonably assured. See Note 6 — Property, Plant and Equipment for further discussion. We assign useful lives to and depreciate major components of our property, plant and equipment. The ranges of estimated useful lives are as follows: Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under capital lease obligations 5 to 15 As noted above, our machinery and equipment have useful lives of 2 to 25 years. Most of our large scale machinery, including hot mills, cold mills, continuous casting mills, furnaces and finishing mills have useful lives of 15 to 25 years. Supporting machinery and equipment, including automation and work rolls, have useful lives of 2 to 15 years. Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset, and we capitalize interest on major construction and development projects while in progress. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, after consideration of any proceeds, is included as a gain or loss in “Other (income) expense, net” or "(Gain) loss on assets held for sale" in our consolidated statements of operations. We account for operating leases under the provisions of ASC 840, Leases. These pronouncements require us to recognize escalating rents, including any rent holidays, on a straight-line basis over the term of the lease for those lease agreements where we receive the right to control the use of the entire leased property at the beginning of the lease term. |
Goodwill | Goodwill We test for impairment at least annually as of the last day of February of each fiscal year, unless a triggering event occurs that would require an interim impairment assessment. We do not aggregate components of operating segments to arrive at our reporting units and, as such, our reporting units are the same as our operating segments. In performing our goodwill impairment test, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If we perform a qualitative assessment and determine that an impairment is more likely than not, then we perform the two-step quantitative impairment test, otherwise no further analysis is required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether we choose to perform the qualitative assessment or proceed directly to the two-step quantitative impairment test. For the years ended March 31, 2016 , 2015 and 2014 we elected to perform the two-step quantitative impairment test. No goodwill impairment was identified in any of the years. See Note 7 — Goodwill and Intangible Assets for further discussion. We use the present value of estimated future cash flows to establish the estimated fair value of our reporting units as of the testing date. This approach includes many assumptions related to future growth rates, discount factors and tax rates, among other considerations. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairment in future periods. When available and as appropriate, we use the market approach to corroborate the estimated fair value. If the carrying amount of a reporting unit's goodwill exceeds its estimated fair value, the second step of the impairment test is performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value we would recognize an impairment charge in an amount equal to that excess in our consolidated statements of operations. When a business within a reporting unit is disposed of, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology. |
Long-Lived Assets and Other Intangible Assets | Long-Lived Assets and Other Intangible Assets We amortize the cost of intangible assets over their respective estimated useful lives to their estimated residual value. See Note 7 — Goodwill and Intangible Assets for further discussion. We assess the recoverability of long-lived assets (excluding goodwill) and finite-lived intangible assets, whenever events or changes in circumstances indicate that we may not be able to recover the asset’s carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset (groups) to the expected, undiscounted future net cash flows to be generated by that asset (groups), or, for identifiable intangible assets, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets is based on the present value of estimated future cash flows. We measure the amount of impairment of other long-lived assets and intangible assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined as the present value of estimated future cash flows or as the appraised value. Impairments of long-lived assets and intangible assets are included in “Restructuring and impairment, net” in the consolidated statement of operations. See Note 2 - Restructuring and Impairment for further discussions. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale We classify long-lived assets (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset (disposal group) that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. We assess the fair value of a long-lived asset (disposal group) less any costs to sell each reporting period it remains classified as held for sale and report any reduction in fair value as an adjustment to the carrying value of the asset (disposal group). Upon being classified as held for sale we cease depreciation. We continue to depreciate long-lived assets to be disposed of other than by sale. Upon determining that a long-lived asset (disposal group) meets the criteria to be classified as held for sale, we report the assets and liabilities of the disposal group, if material, in the line items "Assets held for sale" and "Liabilities held for sale," respectively, in our consolidated balance sheets. See Note 5 — Assets Held for Sale for further discussion. |
Investments in and Advances to Non-Consolidated Affiliates | Investment in and Advances to Non-Consolidated Affiliates We assess the potential for other-than-temporary impairment of our equity method investments when impairment indicators are identified. We consider all available information, including the recoverability of the investment, the earnings and near-term prospects of the affiliate, factors related to the industry, conditions of the affiliate, and our ability, if any, to influence the management of the affiliate. We assess fair value based on valuation methodologies, as appropriate, including the present value of estimated future cash flows, estimates of sales proceeds, and external appraisals. If an investment is considered to be impaired and the decline in value is other than temporary, we record an appropriate write-down. See Note 9 — Investment in and Advances to Non-Consolidated Affiliates for further discussion. |
Financing Costs | Financing Costs We amortize financing costs and premiums, and accrete discounts, over the remaining life of the related debt using the effective interest amortization method. The expense is included in “Interest expense and amortization of debt issuance costs” in our consolidated statements of operations. We record discounts or premiums as a direct deduction from, or addition to, the face amount of the financing. Financing costs are included in "Other long-term assets" in our consolidated balance sheets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 also applies to measurements under other accounting pronouncements, such as ASC 825, Financial Instruments (ASC 825) that require or permit fair value measurements. ASC 825 requires disclosures of the fair value of financial instruments. Our financial instruments include: cash and cash equivalents; certificates of deposit; accounts receivable; accounts payable; foreign currency, energy and interest rate derivative instruments; cross-currency swaps; metal option and forward contracts; share-based compensation; related party notes receivable and payable; letters of credit; short-term borrowings and long-term debt. The carrying amounts of cash and cash equivalents, certificates of deposit, accounts receivable, accounts payable and current related party notes receivable and payable approximate their fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our letters of credit is deemed to be the amount of payment guaranteed on our behalf by third party financial institutions. We determine the fair value of our short-term borrowings and long-term debt based on various factors including maturity schedules, call features and current market rates. We also use quoted market prices, when available, or the present value of estimated future cash flows to determine fair value of our share-based compensation liabilities, short-term borrowings and long-term debt. When quoted market prices are not available for various types of financial instruments (such as currency, energy and interest rate derivative instruments, swaps, options and forward contracts), we use standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. See Note 17 — Fair Value Measurements for further discussion. |
Pension and Postretirement Benefits | Pensions and Postretirement Benefits Our pension obligations relate to funded defined benefit pension plans in the U.S., Canada, Switzerland and the U.K., unfunded pension plans in the U.S., Canada, and Germany, and unfunded lump sum indemnities in France, Malaysia and Italy; and partially funded lump sum indemnities in South Korea. Our other postretirement obligations include unfunded health care and life insurance benefits provided to retired employees in Canada, the U.S. and Brazil. We account for our pensions and other postretirement benefits in accordance with ASC 715, Compensation — Retirement Benefits (ASC 715). We recognize the funded status of our benefit plans as a net asset or liability, with an offsetting adjustment to accumulated other comprehensive income in shareholder’s (deficit) equity. The funded status is calculated as the difference between the fair value of plan assets and the benefit obligation. For the years ended March 31, 2016 and 2015 , we used March 31 as the measurement date. We use standard actuarial methods and assumptions to account for our pension and other postretirement benefit plans. Pension and postretirement benefit obligations are actuarially calculated using management’s best estimates of the rate used to discount the future estimated liability, the long-term rate of return on plan assets, and several assumptions related to the employee workforce (compensation increases, health care cost trend rates, expected service period, retirement age, and mortality). Pension and postretirement benefit expense includes the actuarially computed cost of benefits earned during the current service period, the interest cost on accrued obligations, the expected return on plan assets based on fair market value and the straight-line amortization of net actuarial gains and losses and adjustments due to plan amendments, curtailments, and settlements. Net actuarial gains and losses are amortized over periods of 15 years or less, which represent the group's average future service life of the employees or the group's average life expectancy. See Note 13 — Postretirement Benefit Plans for further discussion. |
Noncontrolling Interests in Consolidated Affiliates | Noncontrolling Interests in Consolidated Affiliates These financial statements reflect the application of ASC 810, Consolidations (ASC 810), which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s (deficit) equity, but separate from the parent’s (deficit) equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. Our consolidated financial statements include all assets, liabilities, revenues and expenses of less-than-100%-owned affiliates that we control or for which we are the primary beneficiary. We record a noncontrolling interest for the allocable portion of income or loss and comprehensive income or loss to which the noncontrolling interest holders are entitled based upon their ownership share of the affiliate. Distributions made to the holders of noncontrolling interests are charged to the respective noncontrolling interest balance. Losses attributable to the noncontrolling interest in an affiliate may exceed our interest in the affiliate’s equity. The excess, and any further losses attributable to the noncontrolling interest, shall be attributed to those interests. The noncontrolling interest shall continue to be attributed its share of losses even if that attribution results in a deficit noncontrolling interest balance. As of March 31, 2016 and 2015 , we have no such losses. |
Environmental Liabilities | Environmental Liabilities We record accruals for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. We adjust these accruals periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are stated at undiscounted amounts. Environmental liabilities are included in our consolidated balance sheets in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” depending on their short- or long-term nature. Any receivables for related insurance or other third party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in our consolidated balance sheets in “Prepaid expenses and other current assets.” Costs related to environmental matters are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued in the period in which such costs are determined to be probable and estimable. See Note 20 — Commitments and Contingencies for further discussion. |
Litigation Contingencies | Litigation Contingencies We accrue for loss contingencies associated with outstanding litigation, claims and assessments for which management has determined it is probable that a loss contingency exists and the amount of loss can be reasonably estimated. We expense professional fees associated with litigation claims and assessments as incurred. See Note 20 — Commitments and Contingencies for further discussion. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. This approach recognizes the amount of income taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates. Under ASC 740 Income Taxes , (ASC 740) a valuation allowance is required when it is more likely than not that some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient taxable income through various sources. We record tax benefits related to uncertain tax positions taken or expected to be taken on a tax return when such benefits meet a more than likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, the statute of limitation has expired or the appropriate taxing authority has completed their examination. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. See Note 19 — Income Taxes for further discussion. |
Share-Based Compensation | Share-Based Compensation In accordance with ASC 718, Compensation — Stock Compensation (ASC 718), we recognize compensation expense for a share-based award over an employee’s requisite service period based on the award’s grant date fair value, subject to adjustment. Our share-based awards are settled in cash and are accounted for as liability based awards. As such, liabilities for awards under these plans are required to be measured at fair value at each reporting date until the date of settlement. See Note 12 — Share-Based Compensation for further discussion. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of foreign operations, whose functional currency is other than the U.S. dollar (located in Europe and Asia), are translated to U.S. dollars at the period end exchange rates and revenues and expenses are translated at average exchange rates for the period. Differences arising from this translation are included in the currency translation adjustment (CTA) component of AOCI and Noncontrolling Interest. If there is a planned or completed sale or liquidation of our ownership in a foreign operation, the relevant CTA is recognized in our consolidated statement of operations. For all operations, the monetary items denominated in currencies other than the functional currency are remeasured at period-end exchange rates and transaction gains and losses are included in “Other (income) expense, net” in our consolidated statements of operations. Non-monetary items are remeasured at historical rates. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Effective for the first quarter of fiscal 2016, we adopted Financial Accounting Standards Board (FASB) ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity . The amendments in this update provide clarification regarding the release of a cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. Our existing accounting policy complies with this guidance; therefore, there was no impact on our financial statements. Effective for the first quarter fiscal 2016, we adopted FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendment changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the revised standard, a discontinued operation is (1) a component of an entity or group of components that has been disposed of by sale, disposed of other than by sale or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (2) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. There was no impact upon adoption; however, the accounting treatment and classification of future disposals under this new standard could differ from our previous treatment and classification of disposals. We elected to early adopt, ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. We applied the new standard prospectively to the Consolidated Balance Sheet as of March 31, 2016. The Consolidated Balance Sheet as of March 31, 2015 was not retrospectively adjusted. See Note 19 — Income Taxes for further discussion. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which, when effective, will supersede the guidance in former ASC 605, Revenue Recognition . The new guidance requires entities to recognize revenue based on the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within that year. Early adoption is not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which provides an optional one-year deferral of the effective date. In March 2016 the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross Versus Net), which amends the principal-versus-agent implementation guidance. The amendment clarifies that the principal-versus-agent evaluation should be performed for each specified good or service promised in a contract with a customer. We are currently evaluating the impact of this standard on our consolidated financial position and results of operations. In February 2015, the FASB issued ASU No. 2015-02, Consolidations (Topic 810): Amendments to the Consolidations Analysis , which when effective, will (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within that year. Early adoption is permitted. We will adopt this standard in our first quarter ending June 30, 2016. Adoption of this standard is not expected to have any impact on our consolidated financial position and results of operations. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which, when effective, will require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within that year. In August 2015, the FASB issued ASU 2015-15, a clarifying amendment, allowing for debt issuance costs related to lines of credit being presented as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet or each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Early adoption is permitted. We will adopt this standard in our first quarter ending June 30, 2016. Adoption of this standard will impact the presentation of deferred debt issuance costs on our consolidated financial position. We have determined that the adoption of the standard as of March 31, 2016 would have resulted in a decrease of approximately $29 million to "Other long-term assets" and "Long-term debt, net of current portion" on the accompanying consolidated Balance Sheet, and that we would continue to present debt issuance costs related to lines of credit as an asset. The future impact of the adoption on balance sheet classification may be impacted by future amortization and debt refinancing. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which, when effective, will remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those fiscal years. An entity should apply the amendments retrospectively to all periods presented. Early adoption is permitted. We will adopt this standard in our annual period ending March 31, 2017. Adoption of this standard may impact the presentation of certain pension plan assets in our postretirement benefit plans footnote disclosure. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which, when effective, will remove the requirement to measure inventory at the lower of cost or market whereas market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin, and require an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2016 including interim periods within those fiscal years. This update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We will adopt this standard on April 1, 2016, the start of our next fiscal year. Adoption of this standard is not expected to have any impact on our consolidated financial position and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which when effective will require organizations that lease assets (e.g., through "leases") to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. A lessee will be required to recognize assets and liabilities for leases with terms that exceed twelve months. The standard will also require disclosures to help investors and financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial position and results of operations. |
Business and Summary of Signi34
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Range of Estimated Useful Lives | The ranges of estimated useful lives are as follows: Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under capital lease obligations 5 to 15 |
Restructuring and Impairment (T
Restructuring and Impairment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring reserve activity | The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2013 $ 33 Fiscal 2014 Activity: Expenses 48 $ 3 $ 51 $ 24 $ 75 Cash payments (34 ) Balance as of March 31, 2014 47 Fiscal 2015 Activity: Expenses 30 $ 5 $ 35 $ 2 $ 37 Cash payments (32 ) Foreign currency translation and other (C) (13 ) Balance as of March 31, 2015 32 Fiscal 2016 Activity: -Provisions 23 -Reversal of expense (2 ) Expenses, net 21 $ 24 $ 45 $ 3 $ 48 Cash payments (22 ) Foreign currency translation and other (C) (4 ) Balance as of March 31, 2016 $ 27 (A) Other restructuring charges include period expenses that were not recorded through the restructuring liability and impairments related to a restructuring activity. (B) Other impairment charges not related to a restructuring activity. |
Restructuring and related costs - North America | The following table summarizes our restructuring activity for the North America segment by plan (in millions). Year Ended March 31, 2016 2015 2014 Prior to Restructuring charges - North America Saguenay Plant Closure: Severance $ — $ — $ — $ 5 Fixed asset impairment (A) — — — 28 Other exit related costs — 1 1 — Period expenses (A) 1 — 1 3 Relocation of R&D operations to Kennesaw, Georgia Severance — — 1 11 Relocation costs — — 1 — Period expenses (A) — — 1 — Total restructuring charges - North America $ 1 $ 1 $ 5 $ 47 Restructuring payments - North America Severance $ — $ (2 ) $ (4 ) Other (1 ) (1 ) (2 ) Total restructuring payments - North America $ (1 ) $ (3 ) $ (6 ) (A) These charges were not recorded through the restructuring liability. |
Restructuring and related costs - Europe | The following table summarizes our restructuring activity for the Europe segment by plan (in millions). Year Ended March 31, 2016 2015 2014 Prior to Restructuring charges - Europe Business optimization Severance $ — $ 3 $ 26 $ 16 Pension settlement loss (A) — — 1 — Corporate restructuring program Severance 4 — — — Total restructuring charges - Europe $ 4 $ 3 $ 27 $ 16 Restructuring payments - Europe Severance $ (6 ) $ (12 ) $ (18 ) Other — — (1 ) Total restructuring payments - Europe $ (6 ) $ (12 ) $ (19 ) (A) These charges were not recorded through the restructuring liability. |
Restructuring and related costs - South America | The following table summarizes our restructuring activity for the South America segment by plan (in millions). Year Ended March 31, 2016 2015 2014 Prior to Restructuring charges - South America Ouro Preto closures Severance $ 2 $ 14 $ 2 $ 3 Asset impairments (A) — 5 — 1 Environmental (reversal) charges (1 ) 6 16 — Contract termination and other exit related costs 2 5 1 5 Other past restructuring programs Severance — — — 7 Asset impairments (A) — — — 7 Contract termination and other exit related costs — 1 — 6 Total restructuring charges - South America $ 3 $ 31 $ 19 $ 29 Restructuring payments - South America Severance $ (2 ) $ (12 ) $ (4 ) Other (3 ) (4 ) (4 ) Total restructuring payments - South America $ (5 ) $ (16 ) $ (8 ) (A) These charges were not recorded through the restructuring liability. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of accounts receivable | “Accounts receivable, net” consists of the following (in millions). March 31, 2016 2015 Trade accounts receivable $ 884 $ 1,158 Other accounts receivable 75 134 Accounts receivable — third parties 959 1,292 Allowance for doubtful accounts — third parties (3 ) (3 ) Accounts receivable, net — third parties $ 956 $ 1,289 Accounts receivable, net — related parties $ 59 $ 53 |
Activity in the allowance for doubtful accounts | Activity in the allowance for doubtful accounts is as follows (in millions). Balance at Additions Accounts Foreign Balance at Year Ended March 31, 2016 $ 3 $ — $ — $ — $ 3 Year Ended March 31, 2015 $ 4 $ — $ — $ (1 ) $ 3 Year Ended March 31, 2014 $ 3 $ 2 $ (1 ) $ — $ 4 |
Summary disclosures of financial amounts | The following tables summarize amounts relating to our factoring activities (in millions). Year Ended March 31, 2016 2015 2014 Aggregated receivables factored $ 3,314 $ 1,796 $ 1,081 Factoring expense $ 19 $ 10 $ 5 March 31, 2016 2015 Factored receivables outstanding $ 626 $ 591 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | “Inventories” consists of the following (in millions). March 31, 2016 2015 Finished goods $ 295 $ 358 Work in process 416 531 Raw materials 322 419 Supplies 147 123 Inventories $ 1,180 $ 1,431 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | “Property, plant and equipment, net” consists of the following (in millions). March 31, 2016 2015 Land and property rights $ 179 $ 180 Buildings 1,325 1,183 Machinery and equipment 4,265 3,947 5,769 5,310 Accumulated depreciation and amortization (2,398 ) (2,132 ) 3,371 3,178 Construction in progress 135 364 Property, plant and equipment, net $ 3,506 $ 3,542 |
Schedule of depreciation expense | Depreciation expense related to property, plant, and equipment, net is shown in the table below (in millions). Year Ended March 31, 2016 2015 2014 Depreciation expense related to property, plant and equipment, net $ 294 $ 294 $ 279 |
Schedule of rent expense | The following table summarizes rent expense included in our consolidated statements of operations (in millions): Year Ended March 31, 2016 2015 2014 Rent expense $ 22 $ 22 $ 21 |
Schedule of future minimum lease payments for operating and capital leases | Future minimum lease payments as of March 31, 2016 , for our operating and capital leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Year Ending March 31, Operating leases Capital lease obligations 2017 $ 30 $ 11 2018 19 9 2019 17 7 2020 15 5 2021 13 — Thereafter 39 — Total minimum lease payments $ 133 $ 32 Less: interest portion on capital lease 4 Principal obligation on capital leases $ 28 |
Schedule of capital leased assets | Assets and related accumulated amortization under capital lease obligations as of March 31, 2016 and 2015 are as follows (in millions). March 31, 2016 2015 Assets under capital lease obligations: Buildings $ 11 $ 11 Machinery and equipment 77 76 88 87 Accumulated amortization (70 ) (65 ) $ 18 $ 22 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes “Goodwill” (in millions) for the years ended March 31, 2016 and 2015 . March 31, 2016 March 31, 2015 Gross Carrying Amount Accumulated Impairment Net Carrying Value Gross Accumulated Net North America $ 1,145 $ (860 ) $ 285 $ 1,145 $ (860 ) $ 285 Europe 511 (330 ) 181 511 (330 ) 181 South America 291 (150 ) 141 291 (150 ) 141 $ 1,947 $ (1,340 ) $ 607 $ 1,947 $ (1,340 ) $ 607 |
Schedule of intangible assets, net | The components of “Intangible assets, net” are as follows (in millions). March 31, 2016 March 31, 2015 Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradenames 20 years $ 142 $ (63 ) $ 79 $ 142 $ (56 ) $ 86 Technology and software 10.6 years 365 (179 ) 186 357 (149 ) 208 Customer-related intangible assets 20 years 449 (199 ) 250 444 (173 ) 271 Favorable energy supply contract 9.5 years 124 (116 ) 8 124 (105 ) 19 15.6 years $ 1,080 $ (557 ) $ 523 $ 1,067 $ (483 ) $ 584 |
Schedule of amortization expense | Amortization expense related to “Intangible assets, net” is as follows (in millions). Year Ended March 31, 2016 2015 2014 Total amortization expense related to intangible assets $ 71 $ 70 $ 67 Less: Amortization expense related to intangible assets included in “Cost of goods sold (exclusive of depreciation and amortization)” (A) (12 ) (12 ) (12 ) Amortization expense related to intangible assets included in “Depreciation and amortization” $ 59 $ 58 $ 55 (A) Relates to amortization of favorable energy supply contract. |
Schedule of finite-lived intangible assets, future amortization expense | Estimated total amortization expense related to “Intangible assets, net” for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions and other events. Fiscal Year Ending March 31, 2017 $ 72 2018 64 2019 64 2020 64 2021 64 |
Consolidation (Tables)
Consolidation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Consolidation [Abstract] | |
Schedule of variable interest entity | The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our consolidated balance sheets (in millions). There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. March 31, 2016 2015 Assets Current assets Cash and cash equivalents $ 3 $ 2 Accounts receivable 33 40 Inventories 61 52 Prepaid expenses and other current assets 2 1 Total current assets 99 95 Property, plant and equipment, net 21 20 Goodwill 12 12 Deferred income taxes 84 65 Other long-term assets 8 4 Total assets $ 224 $ 196 Liabilities Current liabilities Accounts payable $ 30 $ 33 Accrued expenses and other current liabilities 15 12 Total current liabilities 45 45 Accrued postretirement benefits 214 166 Other long-term liabilities 3 2 Total liabilities $ 262 $ 213 |
Investment in and Advances to41
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | |
Schedule of equity method investments, ownership percentage | The following table summarizes the ownership structure and our ownership percentage of the non-consolidated affiliate in which we have an investment as of March 31, 2016 and 2015 , and which we account for using the equity method. We do not control our non-consolidated affiliate, but have the ability to exercise significant influence over the operating and financial policies. We have no material investments that we account for using the cost method. Affiliate Name Ownership Structure Ownership Percentage Aluminium Norf GmbH (Alunorf) Corporation 50% |
Period-end account balances with non-consolidated affiliates, shown as related party balances | Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with Alunorf, which we classify as related party transactions and balances. The following table describes the period-end account balances that we had with Norf, shown as related party balances in the accompanying consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates. March 31, 2016 2015 Accounts receivable-related parties $ 59 $ 53 Other long-term assets-related parties $ 16 $ 15 Accounts payable-related parties $ 48 $ 44 The following table summarizes the assets, liabilities and equity of our equity method affiliate in the aggregate as of March 31, 2016 and 2015 (in millions). March 31, 2016 2015 Assets: Current assets $ 148 $ 145 Non-current assets 394 357 Total assets $ 542 $ 502 Liabilities: Current liabilities $ 55 $ 51 Non-current liabilities 337 232 Total liabilities 392 283 Equity: Total equity 150 219 Total liabilities and equity $ 542 $ 502 |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2016 , 2015 and 2014 ; and the nature and amounts of significant transactions that we had with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Year Ended March 31, 2016 2015 2014 Net sales $ 464 $ 524 $ 550 Costs and expenses related to net sales 463 527 543 Provision for taxes on income 2 — 4 Net (loss) income $ (1 ) $ (3 ) $ 3 Purchase of tolling services from Aluminium Norf GmbH (Alunorf) $ 232 $ 261 $ 275 |
Accrued Expenses and Other Cu42
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued liabilities | “Accrued expenses and other current liabilities” consists of the following (in millions). March 31, 2016 2015 Accrued compensation and benefits $ 174 $ 172 Accrued interest payable 66 67 Accrued income taxes 13 11 Other current liabilities 316 322 Accrued expenses and other current liabilities — third parties $ 569 $ 572 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consists of the following (in millions). March 31, 2016 March 31, 2015 Interest Rates (A) Principal Unamortized Carrying Value Adjustments Carrying Value Principal Unamortized Carrying Value Adjustments Carrying Value Third party debt: Short term borrowings 2.84 % $ 579 $ — $ 579 $ 846 $ — $ 846 Novelis Inc. Floating rate Term Loan Facility, due June 2022 4.00 % 1,787 (16 ) (B) 1,771 1,731 (13 ) (B) 1,718 8.375% Senior Notes, due December 2017 8.375 % 1,100 — 1,100 1,100 — 1,100 8.75% Senior Notes, due December 2020 8.75 % 1,400 — 1,400 1,400 — 1,400 Capital lease obligations, due through July 2017 3.64 % 5 — 5 9 — 9 Novelis Korea Limited Bank loans, due through September 2020 (KRW 226 billion) 2.79 % 195 — 195 192 — 192 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 23 million) 7.50 % 23 (1 ) (C) 22 28 (1 ) (C) 27 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 16 million) 5.93 % 5 (1 ) (D) 4 7 (1 ) (D) 6 Other Other debt, due through December 2020 3.64 % 1 — 1 5 — 5 Total debt 5,095 (18 ) 5,077 5,318 (15 ) 5,303 Less: Short term borrowings (579 ) — (579 ) (846 ) — (846 ) Current portion of long-term debt (47 ) — (47 ) (108 ) — (108 ) Long-term debt, net of current portion: $ 4,469 $ (18 ) $ 4,451 $ 4,364 $ (15 ) $ 4,349 (A) I nterest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of March 31, 2016 , and therefore, exclude the effects of related interest rate swaps and accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to the debt exchange completed in fiscal 2009 and the series of refinancing transactions and additional borrowings we completed in fiscal 2011 through 2016. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value. In connection with a series of refinancing transactions, a portion of the historical fair value adjustments were allocated to the Term Loan Facility, resulting in carrying value adjustments on this debt obligation. The unamortized carrying value also includes issuance discounts from subsequent refinancings. (C) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value resulting in carrying value adjustments to our capital lease obligations in Novelis Switzerland. (D) The unamortized carrying value balance includes issuance discounts related to the difference resulting from the contractual rates of interest specified in the instruments that are lower than the market rates of interest upon issuance. |
Principal repayment requirements for total debt over the next five years and thereafter | Principal repayment requirements for our total debt over the next five years and thereafter (excluding unamortized carrying value adjustments and using exchange rates as of March 31, 2016 for our debt denominated in foreign currencies) are as follows (in millions). As of March 31, 2016 Amount Short-term borrowings and Current portion of long term debt due within one year $ 626 2 years 1,204 3 years 125 4 years 23 5 years 1,421 Thereafter 1,696 Total $ 5,095 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total compensation expense related to SARs and RSUs under the long term incentive plans | Total compensation expense related to Hindalco SARs, Novelis SARs, and RSUs under the plans for the respective periods is presented in the table below (in millions). These amounts are included in “Selling, general and administrative expenses” in our consolidated statements of operations. As the performance criteria for fiscal years 2017, 2018 and 2019 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. Year Ended March 31, 2016 2015 2014 Total compensation (income) expense $ (2 ) $ 9 $ 27 |
RSUs activity and SARs activity under LTIP | The table below shows the RSUs activity for the year ended March 31, 2016 . Number of RSUs Grant Date Fair Value (in Indian Rupees) Aggregate Intrinsic Value (USD in millions) RSUs outstanding as of March 31, 2015 5,338,612 120.77 $ 12 Granted 2,193,752 123.69 — Exercised (2,160,299 ) 132.82 5 Forfeited/Cancelled (789,340 ) 130.44 — RSUs outstanding as of March 31, 2016 4,582,725 124.52 $ 7 The table below shows Hindalco SARs activity for the year ended March 31, 2016 . Number of Hindalco SARs Weighted Average Exercise Price (in Indian Rupees) Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2015 21,176,557 126.77 4.4 $ 6 Granted 7,643,528 123.69 6.1 — Exercised (1,543,314 ) 94.85 — 1 Forfeited/Cancelled (5,783,059 ) 135.49 — — SARs outstanding as of March 31, 2016 21,493,712 125.65 4.4 — SARs exercisable as of March 31, 2016 7,958,423 127.22 2.8 $ — The table below shows the Novelis SARs activity for the year ended March 31, 2016 . Number of Weighted Weighted Average Aggregate SARs outstanding as of March 31, 2015 1,033,735 $ 92.85 5.2 $ 3 Granted 673,677 65.35 6.1 — Exercised (49,534 ) 83.26 — 1 Forfeited/Cancelled (315,995 ) 90.29 — — SARs outstanding as of March 31, 2016 1,341,883 80.00 5.1 — SARs exercisable as of March 31, 2016 322,151 $ 91.08 3.7 $ — |
Assumptions used in estimating fair value of each SAR under LTIP | The fair value of each unvested Hindalco SAR was estimated using the following assumptions: Year ended March 31, 2016 2015 2014 Risk-free interest rate 7.23% - 7.68% 7.75% - 7.79% 8.67% - 8.96% Dividend yield 1.14 % 0.78 % 0.99 % Volatility 43% - 44% 39% - 46% 37% - 51% The fair value of each unvested Novelis SAR was estimated using the following assumptions: Year ended March 31, 2016 2015 2014 Risk-free interest rate 0.89% - 1.39% 0.96% - 1.59% 0.96% - 2.05% Dividend yield — % — % — % Volatility 38% - 41% 27% - 34% 28% - 41% |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Contributions to employee benefit plans | We contributed the following amounts (in millions) to all plans. Year Ended March 31, 2016 2015 2014 Funded pension plans $ 28 $ 28 $ 31 Unfunded pension plans 12 13 13 Savings and defined contribution pension plans 24 18 20 Total contributions $ 64 $ 59 $ 64 |
Schedule of changes in projected benefit obligations | The following tables present the change in benefit obligation, change in fair value of plan assets and the funded status for pension and other benefits (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2016 2015 2016 2015 Benefit obligation at beginning of period $ 1,863 $ 1,672 $ 139 $ 135 Service cost 47 43 5 5 Interest cost 59 66 5 5 Members’ contributions 5 5 — — Benefits paid (65 ) (56 ) (10 ) (10 ) Amendments — (3 ) — 11 Curtailments, settlements and special termination benefits (1 ) (16 ) — (1 ) Actuarial (gains) losses (43 ) 296 11 (4 ) Other (1 ) (2 ) — — Currency losses (gains) 4 (142 ) 1 (2 ) Benefit obligation at end of period $ 1,868 $ 1,863 $ 151 $ 139 Benefit obligation of funded plans $ 1,578 $ 1,558 $ — $ — Benefit obligation of unfunded plans 290 305 151 139 Benefit obligation at end of period $ 1,868 $ 1,863 $ 151 $ 139 |
Schedule of changes in fair value of plan assets | Pension Benefits Year Ended March 31, 2016 2015 Change in fair value of plan assets Fair value of plan assets at beginning of period $ 1,233 $ 1,163 Actual return on plan assets (21 ) 159 Members’ contributions 5 5 Benefits paid (65 ) (56 ) Company contributions 39 41 Settlements (1 ) (14 ) Other (1 ) (2 ) Currency (12 ) (63 ) Fair value of plan assets at end of period $ 1,177 $ 1,233 |
Schedule of net funded status | March 31, 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Funded status Funded status at end of period: Assets less the benefit obligation of funded plans $ (401 ) $ — $ (325 ) $ — Benefit obligation of unfunded plans (290 ) (151 ) (305 ) (139 ) $ (691 ) $ (151 ) $ (630 ) $ (139 ) As included in our consolidated balance sheets within Total assets / (Total liabilities) Other non- current assets $ — $ — $ 1 $ — Accrued expenses and other current liabilities (13 ) (9 ) (12 ) (10 ) Accrued postretirement benefits (678 ) (142 ) (619 ) (129 ) $ (691 ) $ (151 ) $ (630 ) $ (139 ) |
Schedule of amounts recognized in other comprehensive income (loss) | The postretirement amounts recognized in “Accumulated other comprehensive loss,” before tax effects, are presented in the table below (in millions), and includes the impact related to our equity method investments. Amounts are amortized to net periodic benefit cost over the group’s average future service life of the employees or the group's average life expectancy. March 31, 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Net actuarial losses $ (444 ) $ (22 ) $ (450 ) $ (14 ) Prior service credit 9 6 11 32 Total postretirement amounts recognized in Accumulated other comprehensive (loss) income $ (435 ) $ (16 ) $ (439 ) $ 18 |
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss) | The postretirement changes recognized in “Accumulated other comprehensive loss,” before tax effects, are presented in the table below (in millions), and include the impact related to our equity method investments. March 31, 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Beginning balance in Accumulated other comprehensive (loss) income $ (439 ) $ 18 $ (268 ) $ 56 Plan amendment — — 3 (11 ) Net actuarial (loss) gain (25 ) (11 ) (249 ) 5 Amortization of: Prior service credits (2 ) (27 ) (2 ) (37 ) Actuarial losses 41 4 24 5 Effect of currency exchange (10 ) — 53 — Total postretirement amounts recognized in Accumulated other comprehensive (loss) income $ (435 ) $ (16 ) $ (439 ) $ 18 |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets are presented in the table below (in millions). March 31, 2016 2015 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans: Projected benefit obligation $ 1,868 $ 1,863 Accumulated benefit obligation $ 1,692 $ 1,689 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 1,868 $ 1,760 Fair value of plan assets $ 1,177 $ 1,129 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 1,567 $ 1,563 Fair value of plan assets $ 1,039 $ 1,093 Pension plans with projected benefit obligations less than plan assets: Projected benefit obligation $ — $ 103 Fair value of plan assets $ — $ 104 |
Schedule of expected benefit payments | Expected benefit payments to be made during the next ten fiscal years are listed in the table below (in millions). Pension Benefits Other Benefits 2017 $ 66 $ 9 2018 68 8 2019 72 6 2020 77 7 2021 81 8 2021 through 2025 465 50 Total $ 829 $ 88 |
Components of net periodic benefit cost for all significant postretirement benefit plans | The components of net periodic benefit cost for the respective periods are listed in the table below (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2016 2015 2014 2016 2015 2014 Net periodic benefit costs Service cost $ 47 $ 43 $ 48 $ 5 $ 5 $ 8 Interest cost 59 66 63 5 5 7 Expected return on assets (67 ) (69 ) (67 ) — — — Amortization — losses 37 22 30 4 5 7 Amortization — prior service credit (2 ) (2 ) (2 ) (27 ) (37 ) (24 ) Curtailment/settlement/special termination losses (gains) — 1 1 — (1 ) — Net periodic benefit cost (income) $ 74 $ 61 $ 73 $ (13 ) $ (23 ) $ (2 ) Proportionate share of non-consolidated affiliates’ pension costs 9 7 7 — — — Total net periodic benefit costs (income) recognized $ 83 $ 68 $ 80 $ (13 ) $ (23 ) $ (2 ) |
Schedule of assumptions used | The weighted average assumptions used to determine benefit obligations and net periodic benefit costs for the respective periods are listed in the table below. Pension Benefits Other Benefits Year Ended March 31, Year Ended March 31, 2016 2015 2014 2016 2015 2014 Weighted average assumptions used to determine benefit obligations Discount rate 3.3 % 3.1 % 4.0 % 4.0 % 3.6 % 4.1 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Weighted average assumptions used to determine net periodic benefit cost Discount rate 3.1 % 4.0 % 3.9 % 3.6 % 4.1 % 3.8 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Expected return on plan assets 5.6 % 6.1 % 6.3 % — % — % — % |
Schedule of effect of one-percentage-point change in assumed health care cost trend rates | A change of one percentage point in the assumed health care cost trend rates would have the following effects on our other benefits (in millions). 1% Increase 1% Decrease Sensitivity Analysis Effect on service and interest costs $ 1 $ (1 ) Effect on benefit obligation $ 14 $ (13 ) |
Target and actual allocation of plan assets | The targeted allocation ranges by asset class, and the actual allocation percentages for each class are listed in the table below. Asset Category Target Allocation Ranges Allocation in Aggregate as of March 31, 2016 2015 Equity 15-53% 32% 36% Fixed income 47-68% 62% 60% Real estate 0-15% 2% 1% Other 0-16% 5% 3% |
Schedule of fair value of pension and postretirement plan assets table | The following pension plan assets are measured and recognized at fair value on a recurring basis (in millions). Please see Note 17— Fair value measurements for a description of the fair value hierarchy. The U.S. and Canadian pension plan assets are invested exclusively in commingled funds and classified in Level 2, and the U.K., Switzerland, and South Korea pension plan assets are invested in both direct investments (Levels 1 and 2) and commingled funds (Level 2). Pension Plan Assets March 31, 2016 March 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equity $ — $ 375 $ — $ 375 $ 85 $ 361 $ — $ 446 Fixed income 131 592 — 723 135 608 — 743 Real estate — 25 — 25 — 15 — 15 Cash and cash equivalents 9 — 9 8 — — 8 Other — 45 — 45 — 21 — 21 Total $ 140 $ 1,037 $ — $ 1,177 $ 228 $ 1,005 $ — $ 1,233 |
Currency (Gains) Losses (Tables
Currency (Gains) Losses (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in "Other (income) expense, net" | The following currency (gains) losses are included in “Other (income) expense, net” in the accompanying consolidated statements of operations (in millions). Year Ended March 31, 2016 2015 2014 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (55 ) $ 14 $ (26 ) Loss released from accumulated other comprehensive loss 1 3 2 Loss recognized on balance sheet remeasurement currency exchange contracts, net 52 10 17 Currency (gains) losses, net $ (2 ) $ 27 $ (7 ) |
Currency gains (losses) included in "AOCI," net of tax and "Noncontrolling interests" | The following currency (losses) gains are included in Accumulated other comprehensive loss (“AOCI”) and “Noncontrolling interests” in the accompanying consolidated balance sheets (in millions). Year Ended March 31, 2016 2015 2014 Cumulative currency translation adjustment — beginning of period $ (214 ) $ 90 $ (30 ) Effect of changes in exchange rates 17 (304 ) 120 Cumulative currency translation adjustment — end of period $ (197 ) $ (214 ) $ 90 |
Financial Instruments and Com47
Financial Instruments and Commodity Contracts (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of financial instruments and commodity contracts | The following tables summarize the gross fair values of our financial instruments and commodity contracts as of March 31, 2016 and 2015 (in millions): March 31, 2016 Assets Liabilities Net Fair Value Current Noncurrent(A) Current Noncurrent(A) Assets/(Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 10 $ — $ (2 ) $ — $ 8 Currency exchange contracts 15 5 (3 ) (5 ) 12 Energy contracts — — (4 ) — (4 ) Interest rate swaps — — — (1 ) (1 ) Net Investment hedges Currency exchange contracts — — (1 ) — (1 ) Total derivatives designated as hedging instruments 25 5 (10 ) (6 ) 14 Derivatives not designated as hedging instruments Aluminum contracts 24 — (26 ) — (2 ) Currency exchange contracts 39 — (39 ) (1 ) (1 ) Energy contracts — 1 (10 ) — (9 ) Total derivatives not designated as hedging instruments 63 1 (75 ) (1 ) (12 ) Total derivative fair value $ 88 $ 6 $ (85 ) $ (7 ) $ 2 March 31, 2015 Assets Liabilities Net Fair Value Current Noncurrent(A) Current Noncurrent(A) Assets/(Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 15 $ — $ (5 ) $ — $ 10 Currency exchange contracts 4 — (42 ) (15 ) (53 ) Energy contracts — — (6 ) (2 ) (8 ) Interest rate swaps — — (1 ) — (1 ) Net Investment hedges Currency exchange contracts 5 — — — 5 Total derivatives designated as hedging instruments 24 — (54 ) (17 ) (47 ) Derivatives not designated as hedging instruments Aluminum contracts 24 — (26 ) — (2 ) Currency exchange contracts 26 — (54 ) — (28 ) Energy contracts 3 — (15 ) (7 ) (19 ) Total derivatives not designated as hedging instruments 53 — (95 ) (7 ) (49 ) Total derivative fair value $ 77 $ — $ (149 ) $ (24 ) $ (96 ) (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying consolidated balance sheets. |
Summary of gains (losses) associated with the change in the fair value derivative instruments recognized in "Other (income) expense, net" | The following table summarizes the amount of gain (loss) recognized on fair value hedges of metal price risk (in millions): Amount of Gain (Loss) Recognized on Changes in Fair Value Year Ended March 31, 2016 2015 Fair Value Hedges of Metal Price Risk Derivative contracts $ (2 ) $ — Designated hedged items 2 — Net ineffectiveness (A) $ — $ — (A) Effective portion is recorded in "Net sales" and net ineffectiveness in "Other (income) expense, net". There was no amount excluded from the assessment of hedge effectiveness related to Fair Value Hedges. The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the ineffectiveness of designated derivatives recognized in “Other (income) expense, net” (in millions). Gains (losses) recognized in other line items in the consolidated statement of operations are separately disclosed within this footnote. Year Ended March 31, 2016 2015 2014 Derivative instruments not designated as hedges Aluminum contracts $ 47 $ (31 ) $ (4 ) Currency exchange contracts (60 ) (5 ) (15 ) Energy contracts (A) 3 2 14 Loss recognized in "Other (income) expense, net" (10 ) (34 ) (5 ) Derivative instruments designated as hedges Gain recognized in "Other (income) expense, net" (B) 17 19 38 Total gain (loss) recognized in "Other (income) expense, net" $ 7 $ (15 ) $ 33 Balance sheet remeasurement currency exchange contract losses $ (53 ) $ (13 ) $ (19 ) Realized gains (losses), net (C) 64 (2 ) 62 Unrealized losses on other derivative instruments, net (4 ) — (10 ) Total gain (loss) recognized in "Other (income) expense, net" $ 7 $ (15 ) $ 33 (A) Includes amounts related to de-designated electricity swap and natural gas swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capex contracts; releases to income from AOCI on balance sheet remeasurement contracts; and ineffectiveness of fair value hedges involving aluminum derivatives. (C) During the year ended March 31, 2016 , the level of undesignated aluminum derivatives was higher due to the recent volatility in the local market premium component of our net selling prices, forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capex contracts. |
Summary of notional amount | The following table summarizes our notional amount (in kt). March 31, 2016 2015 Hedge Type Purchase (Sale) Cash flow purchases 1 1 Cash flow sales (301 ) (285 ) Fair value — 2 Not designated (76 ) (36 ) Total, net (376 ) (318 ) |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow and net investment hedges (in millions). Within the next twelve months, we expect to reclassify $8 million of gains from “AOCI” to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Recognized in “Other (Income) Expense, net” (Ineffective and Excluded Portion) Year Ended March 31, Year Ended March 31, 2016 2015 2014 2016 2015 2014 Cash flow hedging derivatives Aluminum contracts $ 84 $ (26 ) $ 35 $ 17 $ 24 $ 39 Currency exchange contracts (7 ) (44 ) (16 ) 1 (2 ) 1 Energy contracts (5 ) (12 ) 1 (1 ) — — Interest Rate Swaps (1 ) (1 ) — — — — Total cash flow hedging derivatives 71 (83 ) 20 17 22 40 Net Investment derivatives Currency exchange contracts (2 ) 11 (3 ) — — — Total $ 69 $ (72 ) $ 17 $ 17 $ 22 $ 40 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Year Ended March 31, Location of Gain (Loss) Reclassified from AOCI into Earnings Cash flow hedging derivatives 2016 2015 2014 Energy contracts (A) $ (5 ) $ (5 ) $ (5 ) Other (income) expense, net Energy contracts (C) (10 ) — — Cost of goods sold (B) Aluminum contracts 83 (40 ) 53 Cost of goods sold (B) Aluminum contracts — — 7 Net sales Currency exchange contracts (44 ) (14 ) (14 ) Cost of goods sold (B) Currency exchange contracts (4 ) (1 ) (1 ) Selling, general and administrative expenses Currency exchange contracts (9 ) 18 3 Net sales Currency exchange contracts (1 ) (3 ) (2 ) Other (income) expense, net Currency exchange contracts — 7 — Gain on assets held for sale, net Currency exchange contracts (1 ) (1 ) — Depreciation and amortization Interest rate swaps (1 ) — — Interest expense Total 8 (39 ) 41 Income (loss) before income taxes (19 ) 8 (16 ) Income tax (provision) benefit $ (11 ) $ (31 ) $ 25 Net income (loss) (A) Includes amounts related to de-designated electricity swap. AOCI related to this swap is amortized to income over the remaining term of the hedged item. (B) "Cost of goods sold" is exclusive of depreciation and amortization. (C) Includes amounts related to natural gas swaps. |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the change in the components of accumulated other comprehensive loss net of tax and "Noncontrolling interests", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of March 31, 2013 $ (33 ) $ (2 ) $ (233 ) $ (268 ) Other comprehensive income before reclassifications 122 7 64 193 Amounts reclassified from AOCI, net — (25 ) 9 (16 ) Net current-period other comprehensive income (loss) 122 (18 ) 73 177 Balance as of March 31, 2014 89 (20 ) (160 ) (91 ) Other comprehensive loss before reclassifications (302 ) (74 ) (118 ) (494 ) Amounts reclassified from AOCI, net — 31 (7 ) 24 Net current-period other comprehensive loss (302 ) (43 ) (125 ) (470 ) Balance as of March 31, 2015 (213 ) (63 ) (285 ) (561 ) Other comprehensive income (loss) before reclassifications 17 41 (15 ) 43 Amounts reclassified from AOCI, net — 11 7 18 Net current-period other comprehensive income (loss) 17 52 (8 ) 61 Balance as of March 31, 2016 $ (196 ) $ (11 ) $ (293 ) $ (500 ) (A) For additional information on our cash flow hedges see Note 15 - Financial Instruments and Commodity Contracts. (B) For additional information on our postretirement benefit plans see Note 13 - Postretirement Benefit Plans. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Derivative assets and liabilities measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy | The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of March 31, 2016 and March 31, 2015 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. March 31, 2016 2015 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 34 $ (28 ) $ 39 $ (31 ) Currency exchange contracts 59 (49 ) 35 (111 ) Energy contracts — (5 ) 3 (14 ) Interest rate swaps — (1 ) — (1 ) Total level 2 instruments 93 (83 ) 77 (157 ) Level 3 instruments Energy contracts 1 (9 ) — (16 ) Total level 3 instruments 1 (9 ) — (16 ) Total gross $ 94 $ (92 ) $ 77 $ (173 ) Netting adjustment (A) $ (31 ) $ 31 $ (28 ) $ 28 Total net $ 63 $ (61 ) $ 49 $ (145 ) (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. |
Reconciliation of fair value activity for Level 3 derivative contracts | The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2014 $ (19 ) Unrealized gain included in earnings (B) 10 Settlements (7 ) Balance as of March 31, 2015 $ (16 ) Unrealized/realized gain included in earnings (B) 9 Settlements (1 ) Balance as of March 31, 2016 $ (8 ) (A) Represents net derivative liabilities. (B) Included in “Other (income) expense, net.” |
Estimated fair value of certain financial instruments that are not recorded at fair value on a recurring basis | The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis (in millions). The table excludes short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term receivables and long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. March 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 16 $ 17 $ 15 $ 15 Liabilities Total debt — third parties (excluding short term borrowings) $ 4,498 $ 4,659 $ 4,457 $ 4,659 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | “Other (income) expense, net” is comprised of the following (in millions). Year Ended March 31, 2016 2015 2014 Foreign currency remeasurement (gains) losses, net (A) $ (2 ) $ 27 $ (7 ) Loss on change in fair value of other unrealized derivative instruments, net (B) 4 — 10 (Gain) loss on change in fair value of other realized derivative instruments, net (B) (64 ) 2 (62 ) Loss on sale of assets, net 4 5 9 Loss on Brazilian tax litigation, net (C) 5 7 6 Interest income (13 ) (7 ) (6 ) Gain on business interruption insurance recovery (D) (10 ) (19 ) — Other, net 8 2 9 Other (income) expense, net $ (68 ) $ 17 $ (41 ) (A) Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” (B) See Note 15 - Financial Instruments and Commodity Contracts for further details. (C) See Note 20 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. (D) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before income taxes, domestic and foreign | The domestic (Canada) and foreign components of our "Income before income taxes" (and after removing our "Equity in net loss of non-consolidated affiliates") are as follows (in millions). Year Ended March 31, 2016 2015 2014 Domestic (Canada) $ (313 ) $ (267 ) $ (294 ) Foreign (all other countries) 324 434 421 Pre-tax income before equity in net loss of non-consolidated affiliates $ 11 $ 167 $ 127 |
Schedule of components of income tax provision | The components of the "Income tax provision" are as follows (in millions). Year Ended March 31, 2016 2015 2014 Current provision: Domestic (Canada) $ 5 $ 4 $ 12 Foreign (all other countries) 134 98 128 Total current 139 102 140 Deferred provision (benefit): Domestic (Canada) — — — Foreign (all other countries) (93 ) (88 ) (129 ) Total deferred (93 ) (88 ) (129 ) Income tax provision $ 46 $ 14 $ 11 |
Reconciliation of Canadian statutory tax rates to effective tax rates | The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below (in millions, except percentages). Year Ended March 31, 2016 2015 2014 Pre-tax income before equity in net loss on non-consolidated affiliates $ 11 $ 167 $ 127 Canadian Statutory tax rate 25 % 25 % 25 % Provision at the Canadian statutory rate $ 3 $ 42 $ 32 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 16 (22 ) — Exchange remeasurement of deferred income taxes (8 ) (31 ) (20 ) Change in valuation allowances 104 95 94 Tax credits and other allowances (22 ) (22 ) (38 ) Income items not subject to tax — 2 (6 ) State tax benefit, net (10 ) (7 ) (7 ) Dividends not subject to tax (52 ) (52 ) (52 ) Enacted tax rate changes 5 (1 ) 3 Tax rate differences on foreign earnings 4 7 (4 ) Uncertain tax positions 7 10 8 Prior year adjustments (2 ) 2 (1 ) Income tax settlements — (6 ) — Other — net 1 (3 ) 2 Income tax provision $ 46 $ 14 $ 11 Effective tax rate 411 % 8 % 9 % |
Schedule of deferred tax assets and liabilities | Our deferred income tax assets and deferred income tax liabilities are as follows (in millions). March 31, 2016 2015 Deferred income tax assets: Provisions not currently deductible for tax purposes $ 396 $ 366 Tax losses/benefit carryforwards, net 741 627 Depreciation and amortization 41 38 Other assets (1 ) 4 Total deferred income tax assets 1,177 1,035 Less: valuation allowance (613 ) (528 ) Net deferred income tax assets $ 564 $ 507 Deferred income tax liabilities: Depreciation and amortization $ 457 $ 477 Inventory valuation reserves 64 102 Monetary exchange gains, net 15 9 Other liabilities 30 26 Total deferred income tax liabilities $ 566 $ 614 Net deferred income tax liabilities $ 2 $ 107 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year Ended March 31, 2016 2015 2014 Beginning balance $ 37 $ 39 $ 30 Additions based on tax positions related to the current period 6 7 7 Additions based on tax positions of prior years 3 3 1 Reductions based on tax positions of prior years (6 ) (1 ) — Settlements (10 ) (3 ) — Foreign exchange 4 (8 ) 1 Ending Balance $ 34 $ 37 $ 39 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The assets and liabilities related to these settlements are presented in the table below (in millions). March 31, 2016 2015 Cash deposits (A) $ 2 $ 3 Short-term settlement liability (B) $ 7 $ 7 Long-term settlement liability (B) 57 66 Total settlement liability $ 64 $ 73 Liability for other disputes and claims (C) $ 17 $ 12 (A) We have maintain these cash deposits as a result of legal proceedings with Brazil's tax authorities. These deposits, which are included in “Other long-term assets — third parties” in our accompanying consolidated balance sheets, will be expended toward these legal proceedings. (B) The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying consolidated balance sheets. (C) In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying consolidated balance sheets. The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposits is included in the table below (in millions). Year Ended March 31, 2016 2015 2014 Loss on Brazilian tax litigation, net $ 5 $ 7 $ 6 |
Segment, Geographical Area, M53
Segment, Geographical Area, Major Customer and Major Supplier Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Selected segment financial information | Selected Segment Financial Information Selected Operating Results Year Ended March 31, 2016 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,262 $ 3,055 $ 1,879 $ 1,482 $ 194 $ 9,872 Net sales - intersegment 4 168 113 93 (378 ) — Net sales $ 3,266 $ 3,223 $ 1,992 $ 1,575 $ (184 ) $ 9,872 Depreciation and amortization $ 143 $ 106 $ 61 $ 61 $ (18 ) $ 353 Income tax (benefit) provision $ (53 ) $ (11 ) $ 12 $ 81 $ 17 $ 46 Capital expenditures $ 143 $ 146 $ 35 $ 39 $ 7 $ 370 March 31, 2016 Investment in and advances to non–consolidated affiliates $ — $ 488 $ — $ — $ — $ 488 Total assets $ 2,370 $ 2,687 $ 1,516 $ 1,584 $ 153 $ 8,310 Selected Operating Results Year Ended March 31, 2015 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,465 $ 3,609 $ 2,139 $ 1,749 $ 185 $ 11,147 Net sales - intersegment 18 174 201 101 (494 ) — Net sales $ 3,483 $ 3,783 $ 2,340 $ 1,850 $ (309 ) $ 11,147 Depreciation and amortization $ 137 $ 103 $ 71 $ 63 $ (22 ) $ 352 Income tax (benefit) provision $ (27 ) $ 12 $ 16 $ (1 ) $ 14 $ 14 Capital expenditures $ 122 $ 257 $ 85 $ 53 $ 1 $ 518 March 31, 2015 Investment in and advances to non–consolidated affiliates $ — $ 447 $ — $ — $ — $ 447 Total assets $ 2,744 $ 2,952 $ 1,663 $ 1,588 $ 155 $ 9,102 Selected Operating Results Year Ended March 31, 2014 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,042 $ 3,145 $ 1,849 $ 1,543 $ 188 $ 9,767 Net sales - intersegment 8 135 27 45 (215 ) — Net sales $ 3,050 $ 3,280 $ 1,876 $ 1,588 $ (27 ) $ 9,767 Depreciation and amortization $ 126 $ 103 $ 68 $ 69 $ (32 ) $ 334 Income tax provision $ (34 ) $ 6 $ 16 $ 6 $ 17 $ 11 Capital expenditures $ 147 $ 241 $ 198 $ 117 $ 14 $ 717 |
Reconciliation from income from reportable segments to net income attributable to out common shareholder | The following table shows the reconciliation from income from reportable segments to “Net income attributable to our common shareholder” (in millions). Year Ended March 31, 2016 2015 2014 North America $ 258 $ 273 $ 229 Europe 116 250 265 Asia 135 141 160 South America 282 240 231 Intersegment eliminations — (2 ) — Depreciation and amortization (353 ) (352 ) (334 ) Interest expense and amortization of debt issuance costs (327 ) (326 ) (304 ) Adjustment to eliminate proportional consolidation (30 ) (33 ) (40 ) Unrealized losses on change in fair value of derivative instruments, net (4 ) — (10 ) Realized (losses) gains on derivative instruments not included in segment income (1 ) (6 ) 5 Gain on assets held for sale — 22 6 Loss on extinguishment of debt (13 ) — — Restructuring and impairment, net (48 ) (37 ) (75 ) Loss on sale of fixed assets (4 ) (5 ) (9 ) Other costs, net (3 ) (3 ) (9 ) Income before income taxes 8 162 115 Income tax provision 46 14 11 Net (loss) income (38 ) 148 104 Net income attributable to noncontrolling interests — — — Net (loss) income attributable to our common shareholder $ (38 ) $ 148 $ 104 |
Schedule of revenue from external customers attributed to foreign countries by geographic area | The tables below present “Net sales” and “Long-lived assets and other intangible assets” by geographical area (in millions). “Net sales” are attributed to geographical areas based on the origin of the sale. “Long-lived assets and other intangible assets” are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill. Year Ended March 31, 2016 2015 2014 Net sales: United States $ 3,334 $ 3,507 $ 3,021 Asia and Other Pacific 1,879 2,139 1,845 Brazil 1,482 1,750 1,544 Canada 121 144 209 Germany 2,506 2,976 2,449 Other Europe 550 631 699 Total Net sales $ 9,872 $ 11,147 $ 9,767 |
Schedule of disclosure on geographic areas, long-lived assets in individual foreign countries by country | March 31, 2016 2015 Long-lived assets and other intangibles: United States $ 1,483 $ 1,518 Asia and Other Pacific 784 840 Brazil 840 866 Canada 70 78 Germany 287 251 United Kingdom 43 45 Other Europe 522 528 Total long-lived assets $ 4,029 $ 4,126 |
Net sales to largest customers, as a percentage of total net sales | The table below shows our net sales to Rexam Plc (Rexam) and Affiliates of Ball Corporation (Ball Corporation), our two largest customers, as a percentage of total “Net sales.” Year Ended March 31, 2016 2015 2014 Rexam (A) 19 % 18 % 17 % Ball Corporation (A) 11 % 10 % 10 % (A) In February of 2015, Ball Corporation made an offer to acquire Rexam. This acquisition will be subject to regulatory and shareholder approval. |
Percentage of total combined metal purchases | The table below shows our purchases from RT as a percentage of our total combined metal purchases. Year Ended March 31, 2016 2015 2014 Purchases from RT as a percentage of total combined metal purchases 12 % 15 % 17 % |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information is as follows (in millions). Year Ended March 31, 2016 2015 2014 Supplemental disclosures of cash flow information: Interest paid $ 308 $ 303 $ 278 Income taxes paid $ 123 $ 131 $ 120 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The tables below present select operating results (in millions) by period: (Unaudited) Quarter Ended June 30, September 30, December 31, March 31, Net sales $ 2,634 $ 2,482 $ 2,354 $ 2,402 Cost of goods sold (exclusive of depreciation and amortization) 2,400 2,241 2,051 2,035 Selling, general and administrative expenses 100 100 104 103 Depreciation and amortization 87 89 88 89 Interest expense and amortization of debt issuance costs 80 82 82 83 Research and development expenses 13 13 13 15 Loss on extinguishment of debt 13 — — — Restructuring and impairment, net 15 4 10 19 Equity in net loss of non-consolidated affiliates 1 1 — 1 Other (income) expense, net (30 ) (32 ) (16 ) 10 Income tax provision (benefit) 15 (3 ) 16 18 Net (loss) income (60 ) (13 ) 6 29 Net income attributable to noncontrolling interests — — — — Net (loss) income attributable to our common shareholder $ (60 ) $ (13 ) $ 6 $ 29 (Unaudited) Quarter Ended June 30, September 30, December 31, March 31, Net sales $ 2,680 $ 2,831 $ 2,847 $ 2,789 Cost of goods sold (exclusive of depreciation and amortization) 2,329 2,483 2,498 2,483 Selling, general and administrative expenses 108 103 108 108 Depreciation and amortization 89 90 87 86 Interest expense and amortization of debt issuance costs 81 82 85 78 Research and development expenses 12 12 14 12 (Gain) loss on assets held for sale (11 ) — (12 ) 1 Restructuring and impairment, net 6 7 25 (1 ) Equity in net loss of non-consolidated affiliates 2 — 2 1 Other expense (income), net 5 18 (9 ) 3 Income tax provision (benefit) 24 (2 ) 3 (11 ) Net income 35 38 46 29 Net income attributable to noncontrolling interests — — — — Net income attributable to our common shareholder $ 35 $ 38 $ 46 $ 29 |
Supplemental Guarantor Inform56
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Supplemental Guarantor Information [Abstract] | |
Consolidating statement of operations | CONSOLIDATING STATEMENT OF OPERATIONS (In millions) Year Ended March 31, 2016 Parent Guarantors Non- Eliminations Consolidated Net sales $ 648 $ 8,519 $ 2,386 $ (1,681 ) $ 9,872 Cost of goods sold (exclusive of depreciation and amortization) 655 7,582 2,169 (1,679 ) 8,727 Selling, general and administrative expenses 32 315 60 — 407 Depreciation and amortization 19 269 65 — 353 Research and development expenses — 53 1 — 54 Interest expense and amortization of debt issuance costs 318 121 11 (123 ) 327 Loss on extinguishment of debt 13 — — — 13 Restructuring and impairment, net 14 30 4 — 48 Equity in net loss of non-consolidated affiliates — 3 — — 3 Equity in net income of consolidated subsidiaries (263 ) (44 ) — 307 — Other (income) expense, net (106 ) (105 ) 20 123 (68 ) 682 8,224 2,330 (1,372 ) 9,864 (Loss) income before income taxes (34 ) 295 56 (309 ) 8 Income tax provision 4 25 17 — 46 Net (loss) income (38 ) 270 39 (309 ) (38 ) Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to our common shareholder $ (38 ) $ 270 $ 39 $ (309 ) $ (38 ) Comprehensive (loss) income $ 23 $ 302 $ (6 ) $ (307 ) $ 12 Less: Comprehensive loss attributable to noncontrolling interest — — (11 ) — (11 ) Comprehensive income attributable to our common shareholder $ 23 $ 302 $ 5 $ (307 ) $ 23 CONSOLIDATING STATEMENT OF OPERATIONS (In millions) Year Ended March 31, 2015 Parent Guarantors Non- Eliminations Consolidated Net sales $ 665 $ 9,525 $ 2,743 $ (1,786 ) $ 11,147 Cost of goods sold (exclusive of depreciation and amortization) 650 8,413 2,514 (1,784 ) 9,793 Selling, general and administrative expenses 6 344 77 — 427 Depreciation and amortization 18 258 76 — 352 Research and development expenses — 49 1 — 50 Interest expense and amortization of debt issuance costs 319 127 7 (127 ) 326 Gain on assets held for sale, net (5 ) (17 ) — — (22 ) Restructuring and impairment, net 1 33 3 — 37 Equity in net loss of non-consolidated affiliates — 5 — — 5 Equity in net income of consolidated subsidiaries (403 ) (30 ) — 433 — Other (income) expense, net (71 ) (46 ) 7 127 17 515 9,136 2,685 (1,351 ) 10,985 Income before income taxes 150 389 58 (435 ) 162 Income tax provision (benefit) 2 (8 ) 20 — 14 Net income 148 397 38 (435 ) 148 Net income attributable to noncontrolling interests — — — — — Net income attributable to our common shareholder $ 148 $ 397 $ 38 $ (435 ) $ 148 Comprehensive (loss) income $ (322 ) $ 138 $ (7 ) $ (146 ) $ (337 ) Less: Comprehensive loss attributable to noncontrolling interest — — (15 ) — (15 ) Comprehensive (loss) income attributable to our common shareholder $ (322 ) $ 138 $ 8 $ (146 ) $ (322 ) CONSOLIDATING STATEMENT OF OPERATIONS (In millions) Year Ended March 31, 2014 Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ 693 $ 8,080 $ 2,416 $ (1,422 ) $ 9,767 Cost of goods sold (exclusive of depreciation and amortization) 677 7,055 2,158 (1,422 ) 8,468 Selling, general and administrative expenses 48 338 75 — 461 Depreciation and amortization 16 246 72 — 334 Research and development expenses 1 43 1 — 45 Interest expense and amortization of debt issuance costs 315 87 1 (99 ) 304 Gain on assets held for sale — (6 ) — — (6 ) Restructuring and impairment, net 8 59 8 — 75 Equity in net loss of non-consolidated affiliates — 12 — — 12 Equity in net income of consolidated subsidiaries (389 ) (99 ) — 488 — Other (income) expense, net (94 ) (57 ) 11 99 (41 ) 582 7,678 2,326 (934 ) 9,652 Income before income taxes 111 402 90 (488 ) 115 Income tax provision (benefit) 7 16 (12 ) — 11 Net income 104 386 102 (488 ) 104 Net income attributable to noncontrolling interests — — — — — Net income attributable to our common shareholder $ 104 $ 386 $ 102 $ (488 ) $ 104 Comprehensive income $ 281 $ 480 $ 153 $ (635 ) $ 279 Less: Comprehensive loss attributable to noncontrolling interest — — (2 ) — (2 ) Comprehensive income attributable to our common shareholder $ 281 $ 480 $ 155 $ (635 ) $ 281 |
Consolidating balance sheet | CONSOLIDATING BALANCE SHEET (In millions) As of March 31, 2016 Parent Guarantors Non- Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 2 $ 301 $ 253 $ — $ 556 Accounts receivable, net of allowances — third parties 23 716 217 — 956 — related parties 188 139 175 (443 ) 59 Inventories 46 873 264 (3 ) 1,180 Prepaid expenses and other current assets 5 91 31 — 127 Fair value of derivative instruments 26 49 16 (3 ) 88 Assets held for sale — 5 — — 5 Total current assets 290 2,174 956 (449 ) 2,971 Property, plant and equipment, net 81 2,581 844 — 3,506 Goodwill — 596 11 — 607 Intangible assets, net 17 503 3 — 523 Investments in and advances to non-consolidated affiliates — 488 — — 488 Investments in consolidated subsidiaries 2,667 619 — (3,286 ) — Deferred income tax assets — 18 69 — 87 Other long-term assets — third parties 45 48 19 — 112 — related parties 1,752 16 — (1,752 ) 16 Total assets $ 4,852 $ 7,043 $ 1,902 $ (5,487 ) $ 8,310 LIABILITIES AND (DEFICIT) EQUITY Current liabilities Current portion of long-term debt $ 21 $ 8 $ 18 $ — $ 47 Short-term borrowings — third parties 337 149 93 — 579 — related parties 20 (71 ) — 51 — Accounts payable — third parties 43 958 505 — 1,506 — related parties 69 322 39 (382 ) 48 Fair value of derivative instruments 19 58 11 (3 ) 85 Accrued expenses and other current liabilities — third parties 95 398 76 — 569 — related parties — 102 10 (112 ) — Total current liabilities 604 1,924 752 (446 ) 2,834 Long-term debt, net of current portion — third parties 4,253 20 178 — 4,451 — related parties — 1,697 55 (1,752 ) — Deferred income tax liabilities — 87 2 — 89 Accrued postretirement benefits 32 557 231 — 820 Other long-term liabilities 22 143 10 — 175 Total liabilities 4,911 4,428 1,228 (2,198 ) 8,369 Commitments and contingencies Temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (963 ) 1,329 754 (2,083 ) (963 ) Accumulated other comprehensive loss (500 ) (395 ) (80 ) 475 (500 ) Total (deficit) equity of our common shareholder (59 ) 934 674 (1,608 ) (59 ) Noncontrolling interests — — — — — Total (deficit) equity (59 ) 934 674 (1,608 ) (59 ) Total liabilities and (deficit) equity $ 4,852 $ 7,043 $ 1,902 $ (5,487 ) $ 8,310 CONSOLIDATING BALANCE SHEET (In millions) As of March 31, 2015 Parent Guarantors Non- Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 4 $ 365 $ 259 $ — $ 628 Accounts receivable, net of allowances — third parties 23 1,034 232 — 1,289 — related parties 385 154 158 (644 ) 53 Inventories 55 1,084 294 (2 ) 1,431 Prepaid expenses and other current assets 6 89 17 — 112 Fair value of derivative instruments 19 55 9 (6 ) 77 Deferred income tax assets — 70 9 — 79 Assets held for sale — 6 — — 6 Total current assets 492 2,857 978 (652 ) 3,675 Property, plant and equipment, net 95 2,549 898 — 3,542 Goodwill — 596 11 — 607 Intangible assets, net 19 562 3 — 584 Investments in and advances to non-consolidated affiliates — 447 — — 447 Investments in consolidated subsidiaries 2,442 597 — (3,039 ) — Deferred income tax assets — 47 48 — 95 Other long-term assets — third parties 57 70 10 — 137 — related parties 1,836 64 — (1,885 ) 15 Total assets $ 4,941 $ 7,789 $ 1,948 $ (5,576 ) $ 9,102 LIABILITIES AND EQUITY Current liabilities Current portion of long-term debt $ 22 $ 8 $ 78 $ — $ 108 Short-term borrowings — third parties 394 381 71 — 846 — related parties — 122 — (122 ) — Accounts payable — third parties 27 1,195 632 — 1,854 — related parties 78 393 42 (469 ) 44 Fair value of derivative instruments 83 62 10 (6 ) 149 Accrued expenses and other current liabilities — third parties 99 412 61 — 572 — related parties — 47 6 (53 ) — Deferred income tax liabilities — 20 — — 20 Total current liabilities 703 2,640 900 (650 ) 3,593 Long-term debt, net of current portion — third parties 4,205 28 116 — 4,349 — related parties 49 1,780 56 (1,885 ) — Deferred income tax liabilities — 254 7 — 261 Accrued postretirement benefits 30 534 184 — 748 Other long-term liabilities 36 175 10 — 221 Total liabilities 5,023 5,411 1,273 (2,535 ) 9,172 Commitments and contingencies Temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (925 ) 1,122 711 (1,833 ) (925 ) Accumulated other comprehensive loss (561 ) (425 ) (48 ) 473 (561 ) Total (deficit) equity of our common shareholder (82 ) 697 663 (1,360 ) (82 ) Noncontrolling interests — — 12 — 12 Total (deficit) equity (82 ) 697 675 (1,360 ) (70 ) Total liabilities and (deficit) equity $ 4,941 $ 7,789 $ 1,948 $ (5,576 ) $ 9,102 |
Consolidating statement of cash flows | CONSOLIDATING STATEMENT OF CASH FLOWS (In millions) Year Ended March 31, 2016 Parent Guarantors Non- Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (6 ) $ 728 $ 85 $ (266 ) $ 541 INVESTING ACTIVITIES Capital expenditures (10 ) (314 ) (46 ) (370 ) Proceeds from sales of assets, net of transaction fees and hedging — third parties 1 2 — — 3 Proceeds (outflows) from investment in and advances to affiliates, net 180 47 (65 ) (164 ) (2 ) (Outflows) proceeds from settlement of other undesignated derivative instruments, net (107 ) 117 (19 ) — (9 ) Net cash provided by (used in) investing activities 64 (148 ) (130 ) (164 ) (378 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties 59 48 67 — 174 — related parties 140 (140 ) — Principal payments of long-term and short-term borrowings — third parties (18 ) (141 ) (57 ) — (216 ) — related parties (49 ) (82 ) — 131 — Short-term borrowings, net — third parties (57 ) (158 ) 28 — (187 ) — related parties 20 (193 ) — 173 — Dividends, noncontrolling interest and intercompany — (265 ) (2 ) 266 (1 ) Debt issuance costs (15 ) — — — (15 ) Net cash (used in) provided by financing activities (60 ) (651 ) 36 430 (245 ) Net decrease in cash and cash equivalents (2 ) (71 ) (9 ) — (82 ) Effect of exchange rate changes on cash — 7 3 — 10 Cash and cash equivalents — beginning of period 4 365 259 — 628 Cash and cash equivalents — end of period $ 2 $ 301 $ 253 $ — $ 556 CONSOLIDATING STATEMENT OF CASH FLOWS (In millions) Year Ended March 31, 2015 Parent Guarantors Non- Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities $ 29 $ 606 $ 161 $ (192 ) $ 604 INVESTING ACTIVITIES Capital expenditures (17 ) (404 ) (97 ) — (518 ) Proceeds from the sale of assets, net of transaction fees — third parties 29 88 — — 117 Proceeds (outflows) from investment in and advances to affiliates, net 250 5 — (275 ) (20 ) (Outflows) proceeds from settlement of other undesignated derivative instruments, net (19 ) 23 1 — 5 Net cash provided by (used in) investing activities 243 (288 ) (96 ) (275 ) (416 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties — 315 47 — 362 — related parties — 500 3 (503 ) — Principal payments of long-term and short-term borrowings — third parties (21 ) (266 ) (37 ) — (324 ) — related parties — (80 ) — 80 — Short-term borrowings, net — third parties 27 97 36 — 160 — related parties (25 ) (686 ) — 711 — Return of capital to our common shareholder (250 ) — 13 (13 ) (250 ) Dividends, noncontrolling interests and intercompany — (191 ) (2 ) 192 (1 ) Debt issuance costs (3 ) — — — (3 ) Net cash (used in) provided by financing activities (272 ) (311 ) 60 467 (56 ) Net decrease in cash and cash equivalents — 7 125 132 Effect of exchange rate changes on cash — (14 ) 1 — (13 ) Cash and cash equivalents — beginning of period 4 372 133 — 509 Cash and cash equivalents — end of period $ 4 $ 365 $ 259 $ — $ 628 CONSOLIDATING STATEMENT OF CASH FLOWS (In millions) Year Ended March 31, 2014 Parent Guarantors Non- Guarantors Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities $ 144 $ 834 $ 233 $ (509 ) $ 702 INVESTING ACTIVITIES Capital expenditures (22 ) (492 ) (203 ) — (717 ) Proceeds from the sale of assets, net of transaction fees — third parties — 7 1 — 8 — related parties — 8 — — 8 Outflows from investment in and advances to affiliates, net (261 ) (41 ) — 286 (16 ) (Outflow) proceeds from settlement of undesignated derivative instruments, net (21 ) 21 15 — 15 Net cash used in investing activities (304 ) (497 ) (187 ) 286 (702 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties — 147 22 — 169 — related parties — — 56 (56 ) — Principal payments of long-term and short-term borrowings — third parties (19 ) (143 ) (2 ) — (164 ) Short-term borrowings, net — third parties 162 44 2 — 208 — related parties 25 208 — (233 ) — Return of capital — — (3 ) 3 — Dividends, noncontrolling interests — (420 ) (89 ) 509 — Debt issuance costs (8 ) — — — (8 ) Net cash provided by (used in) financing activities 160 (164 ) (14 ) 223 205 Net increase in cash and cash equivalents — 173 32 — 205 Effect of exchange rate changes on cash — 3 — — 3 Cash and cash equivalents — beginning of period 4 196 101 — 301 Cash and cash equivalents — end of period $ 4 $ 372 $ 133 $ — $ 509 |
Business and Summary of Signi57
Business and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended |
Mar. 31, 2016countrycontinentplant | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries Company operates in | country | 11 |
Numer of continents Company operates in | continent | 4 |
Number of operating plants | 25 |
Number of plants with recycling operations | 11 |
Maximum amortization period of unfunded actuarial liability | 15 years |
Business and Summary of Signi58
Business and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Mar. 31, 2016 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Equipment under Capital Lease Obligations [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Equipment under Capital Lease Obligations [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Large Scale Machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Large Scale Machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Supporting Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Supporting Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Restructuring and Impairment (R
Restructuring and Impairment (Restructuring Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring Reserve, Provisions | $ 23 | |||||||||||
Restructuring Reserve, Accrual Adjustment | (2) | |||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||
Balance as of beginning of period | $ 32 | $ 47 | 32 | $ 47 | $ 33 | |||||||
Expenses | 21 | 30 | $ 48 | |||||||||
Other restructuring charges | 24 | 5 | 3 | |||||||||
Expenses | 45 | 35 | 51 | |||||||||
Other impairments | 3 | 2 | 24 | |||||||||
Total restructuring and impairments, net | $ 19 | $ 10 | $ 4 | $ 15 | $ (1) | $ 25 | $ 7 | $ 6 | 48 | 37 | 75 | |
Cash payments | (22) | (32) | (34) | |||||||||
Foreign currency translation and other | (4) | (13) | ||||||||||
Balance as of end of period | 27 | $ 32 | 27 | 32 | 47 | |||||||
South America [Member] | ||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||
Expenses | 3 | 31 | 19 | $ 29 | ||||||||
Cash payments | (5) | (16) | (8) | |||||||||
South America [Member] | Contract Termination [Member] | ||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||
Balance as of end of period | 7 | 7 | ||||||||||
South America [Member] | Severance [Member] | ||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||
Cash payments | (2) | (12) | (4) | |||||||||
Asia [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring liabilities, short-term | 2 | 2 | ||||||||||
Corporate Segment [Member] | ||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||
Cash payments | (10) | 0 | 0 | |||||||||
Corporate Segment [Member] | Severance [Member] | ||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||
Cash payments | (10) | $ 0 | $ 0 | |||||||||
Balance as of end of period | $ 2 | $ 2 |
Restructuring and Impairment 60
Restructuring and Impairment (Restructuring Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | |||||
Impairment charges | $ 25 | $ 7 | $ 24 | ||
Restructuring Reserve | 27 | 32 | 47 | $ 33 | |
Restructuring charges | 45 | 35 | 51 | ||
Restructuring payments | (22) | (32) | (34) | ||
Corporate Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring payments | (10) | 0 | 0 | ||
Corporate Segment [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 2 | ||||
Restructuring payments | (10) | 0 | 0 | ||
Corporate Segment [Member] | Corporate Restructuring Program [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 12 | 0 | 0 | $ 0 | |
Corporate Segment [Member] | Corporate Restructuring Program [Member] | Fixed Asset Impairment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 21 | 0 | 0 | ||
North America [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1 | 1 | 5 | 47 | |
Restructuring payments | (1) | (3) | (6) | ||
North America [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring payments | 0 | (2) | (4) | ||
North America [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring payments | (1) | (1) | (2) | ||
North America [Member] | Saguenay Plant Closure [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 0 | 5 | |
North America [Member] | Saguenay Plant Closure [Member] | Fixed Asset Impairment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 0 | 28 | |
North America [Member] | Saguenay Plant Closure [Member] | Other Exit Related Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 1 | 1 | 0 | |
North America [Member] | Saguenay Plant Closure [Member] | Period Expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1 | 0 | 1 | 3 | |
North America [Member] | Relocation of R&D Operations to Kennesaw, Georgia [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 1 | 11 | |
North America [Member] | Relocation of R&D Operations to Kennesaw, Georgia [Member] | Employee Relocation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 1 | 0 | |
North America [Member] | Relocation of R&D Operations to Kennesaw, Georgia [Member] | Period Expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 1 | 0 | |
Europe [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 4 | 3 | 27 | 16 | |
Restructuring payments | (6) | (12) | (19) | ||
Europe [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 4 | ||||
Restructuring payments | (6) | (12) | (18) | ||
Europe [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring payments | 0 | 0 | (1) | ||
Europe [Member] | Business Optimization [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 3 | 26 | 16 | |
Europe [Member] | Business Optimization [Member] | Pension Curtailment Loss [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 1 | 0 | |
Europe [Member] | Corporate Optimization [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 4 | 0 | 0 | 0 | |
South America [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 3 | 31 | 19 | 29 | |
Restructuring payments | (5) | (16) | (8) | ||
South America [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring payments | (2) | (12) | (4) | ||
South America [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring payments | (3) | (4) | (4) | ||
South America [Member] | Contract Termination [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 7 | ||||
South America [Member] | Ouro Preto Smelter Closures [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2 | 14 | 2 | 3 | |
South America [Member] | Ouro Preto Smelter Closures [Member] | Fixed Asset Impairment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 5 | 0 | 1 | |
South America [Member] | Ouro Preto Smelter Closures [Member] | Environmental Restoration Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | (1) | 6 | 16 | 0 | |
South America [Member] | Ouro Preto Smelter Closures [Member] | Contract Termination [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2 | 5 | 1 | 5 | |
South America [Member] | Other Past Restructuring Programs [Member] | Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 0 | 7 | |
South America [Member] | Other Past Restructuring Programs [Member] | Fixed Asset Impairment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 0 | 7 | |
South America [Member] | Other Past Restructuring Programs [Member] | Other Exit Related Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | 1 | $ 0 | $ 6 | |
Assets [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment charges | $ 2 |
Restructuring and Impairment (D
Restructuring and Impairment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment, net | $ 19 | $ 10 | $ 4 | $ 15 | $ (1) | $ 25 | $ 7 | $ 6 | $ 48 | $ 37 | $ 75 | |
Impairment charges | 25 | 7 | 24 | |||||||||
Payments for outstanding lease termination costs | 22 | 32 | 34 | |||||||||
Restructuring liability | 27 | $ 32 | 27 | 32 | 47 | $ 33 | ||||||
Accrued Expenses and Other Current Liabilities [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring liabilities, short-term | 23 | 23 | ||||||||||
Other Long-term Liabilities [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring liabilities, long-term | 4 | 4 | ||||||||||
Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 10 | 0 | 0 | |||||||||
Corporate Segment [Member] | Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 10 | 0 | 0 | |||||||||
Restructuring liability | 2 | 2 | ||||||||||
North America [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 1 | 3 | 6 | |||||||||
North America [Member] | Other Restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 1 | 1 | 2 | |||||||||
North America [Member] | Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 0 | 2 | 4 | |||||||||
Europe [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 6 | 12 | 19 | |||||||||
Europe [Member] | Other Restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 0 | 0 | 1 | |||||||||
Europe [Member] | Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 6 | 12 | 18 | |||||||||
Restructuring liability | 4 | 4 | ||||||||||
South America [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 5 | 16 | 8 | |||||||||
South America [Member] | Other Restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 3 | 4 | 4 | |||||||||
South America [Member] | Environmental, Contract Termination and Other Exit Related Costs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring liability | 19 | 19 | ||||||||||
South America [Member] | Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for outstanding lease termination costs | 2 | 12 | $ 4 | |||||||||
South America [Member] | Contract Termination [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring liability | 7 | 7 | ||||||||||
Capitalized Software Assets [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Impairment charges | 3 | 5 | ||||||||||
Non-core Assets [Member] | South America [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring liability | $ 12 | $ 12 | ||||||||||
Non-core Assets [Member] | Brazil [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Impairment charges | 17 | |||||||||||
Long-lived Assets [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Impairment charges | $ 2 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2012 |
Receivables [Abstract] | ||||
Trade accounts receivable | $ 884 | $ 1,158 | ||
Other accounts receivable | 75 | 134 | ||
Accounts receivable — third parties | 959 | 1,292 | ||
Allowance for doubtful accounts — third parties | (3) | (3) | $ (4) | $ (3) |
Accounts receivable, net — third parties | 956 | 1,289 | ||
Accounts receivable, net — related parties | $ 59 | $ 53 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Period | $ 3 | $ 4 | |
Additions Charged to Expense | 0 | 0 | $ 2 |
Accounts Recovered/ (Written- Off) | 0 | 0 | (1) |
Foreign Exchange and Other | 0 | (1) | 0 |
Balance at End of Period | $ 3 | $ 3 | $ 4 |
Accounts Receivable (Factoring
Accounts Receivable (Factoring Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Receivables [Abstract] | |||
Receivables factored | $ 3,314 | $ 1,796 | $ 1,081 |
Factoring expense | 19 | 10 | $ 5 |
Factored receivables outstanding | $ 626 | $ 591 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) | Mar. 31, 2016 | Mar. 31, 2015 |
Receivables [Abstract] | ||
Allowance as a percentage of gross accounts receivable | 0.30% | 0.20% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Schedule of inventories | ||
Finished goods | $ 295 | $ 358 |
Work in process | 416 | 531 |
Raw materials | 322 | 419 |
Supplies | 147 | 123 |
Inventories | $ 1,180 | $ 1,431 |
Assets Held For Sale (Details T
Assets Held For Sale (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2016 | |
Assets Held-for-sale [Line Items] | ||||||||
Assets held for sale | $ 6 | $ 6 | $ 5 | |||||
Gain on assets held for sale | (1) | $ 12 | $ 0 | $ 11 | 22 | $ 6 | ||
Consorcio Candonga [Member] | ||||||||
Assets Held-for-sale [Line Items] | ||||||||
Gain on assets held for sale | 23 | |||||||
South America [Member] | ||||||||
Assets Held-for-sale [Line Items] | ||||||||
Assets held for sale | 1 | 1 | ||||||
Gain on assets held for sale, net | $ 6 | |||||||
North America [Member] | ||||||||
Assets Held-for-sale [Line Items] | ||||||||
Gain on assets held for sale, net | $ 7 | |||||||
Hydroelectric Assets [Member] | ||||||||
Assets Held-for-sale [Line Items] | ||||||||
Loss on sale of assets | $ 14 | |||||||
Hydroelectric Assets [Member] | ||||||||
Assets Held-for-sale [Line Items] | ||||||||
Assets held for sale | $ 4 |
Property, Plant and Equipment68
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Land and property rights | $ 179 | $ 180 |
Buildings | 1,325 | 1,183 |
Machinery and equipment | 4,265 | 3,947 |
Property, plant and equipment, gross | 5,769 | 5,310 |
Accumulated depreciation and amortization | (2,398) | (2,132) |
Property, pant and equipment, net excluding construction in progress | 3,371 | 3,178 |
Construction in progress | 135 | 364 |
Property, plant and equipment, net | $ 3,506 | $ 3,542 |
Property, Plant and Equipment69
Property, Plant and Equipment (Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Fully depreciated assets | $ 1 | $ 756 | |
Depreciation expense related to property, plant and equipment, net | $ 294 | $ 294 | $ 279 |
Property, Plant and Equipment70
Property, Plant and Equipment (Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Rent expense | $ 22 | $ 22 | $ 21 |
Property, Plant and Equipment71
Property, Plant and Equipment (Future Minimum Lease Payment) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Operating leases | |
2,016 | $ 30 |
2,017 | 19 |
2,018 | 17 |
2,019 | 15 |
2,020 | 13 |
Thereafter | 39 |
Total minimum lease payments | 133 |
Capital lease obligations | |
2,016 | 11 |
2,017 | 9 |
2,018 | 7 |
2,019 | 5 |
2,020 | 0 |
Thereafter | 0 |
Total minimum lease payments | 32 |
Less: interest portion on capital lease | 4 |
Principal obligation on capital leases | $ 28 |
Property, Plant and Equipment72
Property, Plant and Equipment (Capital Lease Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | $ 88 | $ 87 |
Accumulated amortization | (70) | (65) |
Assets under capital lease obligations, net | 18 | 22 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | 11 | 11 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | $ 77 | $ 76 |
Property, Plant and Equipment73
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Fully depreciated assets | $ 1 | $ 756 | |
Capitalized interest costs | $ 14 | $ 20 | $ 33 |
Capital leases, term of contract | 15 years |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 1,947 | $ 1,947 |
Accumulated Impairment | (1,340) | (1,340) |
Net Carrying Value | 607 | 607 |
North America [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 1,145 | 1,145 |
Accumulated Impairment | (860) | (860) |
Net Carrying Value | 285 | 285 |
Europe [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 511 | 511 |
Accumulated Impairment | (330) | (330) |
Net Carrying Value | 181 | 181 |
South America [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 291 | 291 |
Accumulated Impairment | (150) | (150) |
Net Carrying Value | $ 141 | $ 141 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets (Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 15 years 7 months | |
Gross Carrying Amount | $ 1,080 | $ 1,067 |
Accumulated Amortization | (557) | (483) |
Net Carrying Amount | $ 523 | 584 |
Tradenames [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 20 years | |
Gross Carrying Amount | $ 142 | 142 |
Accumulated Amortization | (63) | (56) |
Net Carrying Amount | $ 79 | 86 |
Technology and Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 10 years 7 months | |
Gross Carrying Amount | $ 365 | 357 |
Accumulated Amortization | (179) | (149) |
Net Carrying Amount | $ 186 | 208 |
Customer-related Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 20 years | |
Gross Carrying Amount | $ 449 | 444 |
Accumulated Amortization | (199) | (173) |
Net Carrying Amount | $ 250 | 271 |
Favorable Energy Supply Contract [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 9 years 6 months | |
Gross Carrying Amount | $ 124 | 124 |
Accumulated Amortization | (116) | (105) |
Net Carrying Amount | $ 8 | $ 19 |
Goodwill and Intangible Asset76
Goodwill and Intangible Assets (Amortization of Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Intangible Asset Amortization Expense [Line Items] | |||
Amortization expense related to intangible assets | $ (71) | $ (70) | $ (67) |
Amortization of Intangibles, Cost of Goods Sold [Member] | |||
Intangible Asset Amortization Expense [Line Items] | |||
Amortization expense related to intangible assets | (12) | (12) | (12) |
Amortization of Intangibles, Depreciation and Amortization [Member] | |||
Intangible Asset Amortization Expense [Line Items] | |||
Amortization expense related to intangible assets | $ (59) | $ (58) | $ (55) |
Goodwill and Intangible Asset77
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 72 |
2,017 | 64 |
2,018 | 64 |
2,019 | 64 |
2,020 | $ 64 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Current assets | |||||
Cash and cash equivalents | $ 556 | $ 628 | $ 509 | $ 301 | $ 301 |
Inventories | 1,180 | 1,431 | |||
Prepaid expenses and other current assets | 127 | 112 | |||
Total current assets | 2,971 | 3,675 | |||
Property, plant and equipment, net | 3,506 | 3,542 | |||
Goodwill | 607 | 607 | |||
Deferred income taxes | 87 | 95 | |||
Other long-term assets | 112 | 137 | |||
Total assets | 8,310 | 9,102 | |||
Current liabilities | |||||
Accounts payable | 1,506 | 1,854 | |||
Accrued expenses and other current liabilities | 569 | 572 | |||
Total current liabilities | 2,834 | 3,593 | |||
Accrued postretirement benefits | 820 | 748 | |||
Other long–term liabilities | 175 | 221 | |||
Total liabilities | 8,369 | 9,172 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 3 | 2 | |||
Accounts receivable | 33 | 40 | |||
Inventories | 61 | 52 | |||
Prepaid expenses and other current assets | 2 | 1 | |||
Property, plant and equipment, net | 21 | 20 | |||
Goodwill | 12 | 12 | |||
Deferred income taxes | 84 | 65 | |||
Other long-term assets | 8 | 4 | |||
Current liabilities | |||||
Accounts payable | 30 | 33 | |||
Accrued expenses and other current liabilities | 15 | 12 | |||
Accrued postretirement benefits | 214 | 166 | |||
Other long–term liabilities | 3 | 2 | |||
Logan [Member] | |||||
Current assets | |||||
Total current assets | 99 | 95 | |||
Total assets | 224 | 196 | |||
Current liabilities | |||||
Total current liabilities | 45 | 45 | |||
Total liabilities | $ 262 | $ 213 |
Investment in and Advances to79
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Ownership Structure and Percentage of Non-consolidated Affiliates) (Details) | Mar. 31, 2016 |
Aluminium Norf GmbH (Alunorf) [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership Percentage | 50.00% |
Investment in and Advances to80
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Assets, Liabilities and Equity of Equity Method Affiliates) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||
Current assets | $ 148 | $ 145 |
Non-current assets | 394 | 357 |
Total assets | 542 | 502 |
Current liabilities | 55 | 51 |
Non-current liabilities | 337 | 232 |
Total liabilities | 392 | 283 |
Total equity | 150 | 219 |
Total liabilities and equity | $ 542 | $ 502 |
Investment in and Advances to81
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Results of Operations of Equity Method Affiliates) (Details) - Equity Method Investments [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of the share of the condensed results of operations of equity method affiliates | |||
Net sales | $ 464 | $ 524 | $ 550 |
Costs and expenses related to net sales | 463 | 527 | 543 |
Provision for taxes on income | 2 | 0 | 4 |
Net (loss) income | (1) | (3) | 3 |
Purchase of tolling services from Aluminium Norf GmbH (Alunorf) | $ 232 | $ 261 | $ 275 |
Investment in and Advances to82
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Period-end Account Balances with Non-consolidated Affiliates) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts receivable - related parties | $ 59 | $ 53 |
Other long-term assets-related parties | 16 | 15 |
Accounts payable-related parties | 48 | 44 |
Equity Method Investee [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - related parties | 59 | 53 |
Other long-term assets-related parties | 16 | 15 |
Accounts payable-related parties | $ 48 | $ 44 |
Investment in and Advances to83
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Details Textual) € in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2014USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2016EUR (€) | |
Schedule of Equity Method Investments [Line Items] | |||||
Difference between carrying amount and underlying equity | $ 413,000,000 | ||||
Accounts receivable - related parties | 59,000,000 | $ 53,000,000 | |||
Purchases from related party | 0 | ||||
Return of capital to shareholder | $ 0 | ||||
Alunorf [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest income on loan (less than) | 1,000,000 | ||||
Allowance for loan loss | $ 0 | ||||
Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Guarantee as percentage of outstanding debt | 50.00% | ||||
Maximum exposure for gauranteed obligation | € | € 6 | ||||
Accounts receivable - related parties | $ 59,000,000 | 53,000,000 | |||
Equity Method Investee [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Maximum exposure for gauranteed obligation | 2,000,000 | ||||
Hindalco [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue from related party | 1,000,000 | 1,000,000 | $ 1,000,000 | ||
Proceeds from sale of bauxite mining rights and certain alumina assets and liabilities | 8,000,000 | ||||
Parent [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts receivable - related parties | 1,000,000 | $ 1,000,000 | |||
Purchases from related party | $ 5,000,000 | ||||
Return of capital to shareholder | $ 250,000,000 |
Accrued Expenses and Other Cu84
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued compensation and benefits | $ 174 | $ 172 |
Accrued interest payable | 66 | 67 |
Accrued income taxes | 13 | 11 |
Other current liabilities | 316 | 322 |
Accrued expenses and other current liabilities — third parties | $ 569 | $ 572 |
Debt (Details)
Debt (Details) SFr in Millions, BRL in Millions, $ in Millions, ₩ in Billions | Mar. 31, 2016USD ($) | Mar. 31, 2016KRW (₩) | Mar. 31, 2016BRL | Mar. 31, 2016CHF (SFr) | Mar. 31, 2015USD ($) | Dec. 17, 2010USD ($) |
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 579 | $ 846 | ||||
Total debt | 5,095 | 5,318 | ||||
Long-term debt | 4,498 | 4,457 | ||||
Total debt, carrying value | 5,077 | 5,303 | ||||
Debt instrument, unamortized carrying value adjustment | (18) | (15) | ||||
Current portion of long-term debt | (47) | (108) | ||||
Long-term debt, net of current portion, principal | 4,469 | 4,364 | ||||
Long–term debt, net of current portion | 4,451 | 4,349 | ||||
Principal obligation on capital leases | $ 28 | |||||
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 4.00% | 4.00% | 4.00% | 4.00% | ||
Long-term debt, principal | $ 1,787 | 1,731 | ||||
Long-term debt, unamortized carrying value adjustments | (16) | (13) | ||||
Long-term debt | $ 1,771 | 1,718 | ||||
8.375% Senior Notes, due December 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 8.375% | 8.375% | 8.375% | 8.375% | ||
Long-term debt, principal | $ 1,100 | 1,100 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 1,100 | 1,100 | ||||
Principal amount | $ 1,100 | |||||
8.75% Senior Notes, due December 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 8.75% | 8.75% | 8.75% | 8.75% | ||
Long-term debt, principal | $ 1,400 | 1,400 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 1,400 | 1,400 | ||||
Principal amount | $ 1,400 | |||||
Capital Lease Obligations, due through July 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 3.64% | 3.64% | 3.64% | 3.64% | ||
Long-term debt, principal | $ 5 | 9 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 5 | 9 | ||||
Loans due November 2015 to September 2020 [Member] | Korea [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 2.79% | 2.79% | 2.79% | 2.79% | ||
Long-term debt, principal | $ 195 | 192 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 195 | 192 | ||||
Principal amount | ₩ | ₩ 226 | |||||
Capital Lease Obligation, due December 2019 [Member] | Switzerland [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 7.50% | 7.50% | 7.50% | 7.50% | ||
Capital lease obligations, principal | $ 23 | 28 | ||||
Capital lease obligations, carrying value adjustment | (1) | (1) | ||||
Capital lease obligations, carrying value | $ 22 | 27 | ||||
Principal obligation on capital leases | SFr | SFr 23 | |||||
BNDES Loans due February 2015 through April 2021 [Member] | Brazil [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 5.93% | 5.93% | 5.93% | 5.93% | ||
Long-term debt, principal | $ 5 | 7 | ||||
Long-term debt, unamortized carrying value adjustments | (1) | (1) | ||||
Long-term debt | $ 4 | 6 | ||||
Principal amount | BRL | BRL 16 | |||||
Other Debt, due through December 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 3.64% | 3.64% | 3.64% | 3.64% | ||
Long-term debt, principal | $ 1 | 5 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 1 | 5 | ||||
Short-term Borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 2.84% | 2.84% | 2.84% | 2.84% | ||
Short-term borrowings | $ 579 | 846 | ||||
Long-term debt, unamortized carrying value adjustments | $ 0 | $ 0 |
Debt (Principal Payment Require
Debt (Principal Payment Requirements) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and Current portion of long term debt due within one year | $ 626 | |
2 years | 1,204 | |
3 years | 125 | |
4 years | 23 | |
5 years | 1,421 | |
Thereafter | 1,696 | |
Total debt | $ 5,095 | $ 5,318 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Oct. 31, 2014USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2014USD ($) | |
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount (more than) | $ 100,000,000 | |||
ABL Revolver [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 5 years | |||
Current borrowing capacity | $ 1,200,000,000 | |||
Potential additional borrowing capacity | $ 500,000,000 | |||
Description of variable rate basis | LIBOR | |||
Debt covenant, minimum fixed charge coverage ratio | 1.25 | |||
Covenant, minimum amount for excess availability under ABL Revolver | $ 110,000,000 | |||
Covenant, percentage applied on lesser of ABL Revolver commitment and applicable borrowing base | 12.50% | |||
Number of days preceding maturity date | 90 days | |||
Percentage of the lesser of total revolver commitment to applicable borrowing base | 20.00% | |||
ABL Revolver [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of the lesser of total revolver commitment to applicable borrowing base | 25.00% | |||
ABL Revolver [Member] | LIBOR [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
ABL Revolver [Member] | LIBOR [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
ABL Revolver [Member] | Prime Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
ABL Revolver [Member] | Prime Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Seven-year Secured Term Loan Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 1,800,000,000 | |||
Basis spread on variable rate | 0.75% | |||
Number of days preceding maturity date | 92 days | |||
Seven-year Secured Term Loan Credit Facility [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
Description of variable rate basis | LIBOR | |||
Four-year Secured Term Loan Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 1,700,000,000 | |||
ABL Facility [Member] | Seven-year Secured Term Loan Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 1,800,000,000 | |||
Debt term | 7 years | |||
Long-term debt, current | $ 18,000,000 | |||
Subordinated Lien Revolver [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Subordinated Lien Revolver [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Description of variable rate basis | LIBOR | |||
Subordinated Lien Revolver [Member] | LIBOR [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
Subordinated Lien Revolver [Member] | LIBOR [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
Subordinated Lien Revolver [Member] | 15 - Month Subordinated Secured Revolving Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 200,000,000 | |||
Debt term | 15 months | |||
ABL Revolver [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 5 years | |||
Current borrowing capacity | $ 1,200,000,000 |
Debt (Short-term Borrowings (De
Debt (Short-term Borrowings (Details) ¥ in Millions, $ in Millions, ₫ in Billions, ₩ in Billions | Mar. 31, 2016USD ($) | Mar. 31, 2016KRW (₩) | Mar. 31, 2016VND (₫) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 579 | $ 846 | |||
China [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 4 | ¥ 23 | |||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding amount | 12 | ||||
Remaining borrowing capacity | 204 | ||||
Revolving Credit Facility [Member] | Korea [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 204 | ₩ 236 | |||
Short-term Loan [Member] | ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 394 | ||||
Bank Loan Obligations [Member] | Korea [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 38 | ₩ 44 | |||
Bank Loan Obligations [Member] | China [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 46 | ¥ 296 | |||
Bank Loan Obligations [Member] | Middle East [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 12 | ||||
Bank Loan Obligations [Member] | Brazil [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 77 | ||||
Bank Loan Obligations [Member] | VIET NAM | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 9 | ₫ 203 | |||
Other Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 3 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) | Dec. 17, 2010USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount (more than) | $ 100,000,000 |
8.375% Senior Notes, due December 2017 [Member] | |
Debt Instrument [Line Items] | |
Principal amount | $ 1,100,000,000 |
Stated interest rate | 8.375% |
8.75% Senior Notes, due December 2020 [Member] | |
Debt Instrument [Line Items] | |
Principal amount | $ 1,400,000,000 |
Stated interest rate | 8.75% |
Debt (Bank Loans) (Details)
Debt (Bank Loans) (Details) - 12 months ended Mar. 31, 2016 $ in Millions, ₩ in Billions | USD ($) | KRW (₩) |
BNDES Loans due February 2015 through April 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, current | $ 1 | |
Korea [Member] | Loans due November 2015 to September 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, current | $ 17 | ₩ 20 |
Korea [Member] | Loans due November 2015 to September 2020 [Member] | Korea 91-day Certificate of Deposit Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.91% | |
Korea [Member] | Loans due November 2015 to September 2020 [Member] | Korea 91-day Certificate of Deposit Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.58% |
Debt (Other Long-term Debt) (De
Debt (Other Long-term Debt) (Details) SFr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2004USD ($) | Dec. 31, 2004CHF (SFr) | Mar. 31, 2016USD ($) | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Capital leases, term of contract | 15 years | |||
Quarterly capital lease payments | SFr | SFr 1.7 | |||
Principal obligation on capital leases | $ 28 | |||
Information Technology [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital leases, term of contract | 5 years | |||
Other Capital Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal obligation on capital leases | $ 1 | |||
Alcan [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital leases, term of contract | 15 years | 15 years | ||
Interest rate | 7.50% | 7.50% | ||
Quarterly capital lease payments | $ 1.8 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
2010 LTIP [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Total compensation (income) expense | $ (2) | $ 9 | $ 27 |
Share-Based Compensation (RSUs
Share-Based Compensation (RSUs Activity) (Details) - RSUs [Member] $ in Millions | 12 Months Ended | ||
Mar. 31, 2016USD ($)shares | Mar. 31, 2016USD ($)₨ / shares | Mar. 31, 2015USD ($) | |
Number of RSUs | |||
Outstanding, beginning of period (shares) | shares | 5,338,612 | ||
Granted (shares) | shares | 2,193,752 | ||
Exercised (shares) | shares | (2,160,299) | ||
Forteited/Cancelled (shares) | shares | (789,340) | ||
Outstanding, end of period (shares) | shares | 4,582,725 | ||
Grant Date Fair Value | |||
Outstanding, beginning of period (Indian Rupees per share) | ₨ / shares | ₨ 120.77 | ||
Granted (Indian Rupees per share) | ₨ / shares | 123.69 | ||
Exercised (Indian Rupees per share) | ₨ / shares | 132.82 | ||
Forfeited/Cancelled (Indian Rupees per share) | ₨ / shares | 130.44 | ||
Outstanding, end of period (Indian Rupees per share) | ₨ / shares | ₨ 124.52 | ||
Aggregate Intrinsic Value, Outstanding | $ | $ 7 | ₨ 7 | $ 12 |
Aggregate Intrinsic Value, Exercised | $ | $ 5 |
Share-Based Compensation (SARs
Share-Based Compensation (SARs Activity) (Details) - SARs [Member] $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / shares₨ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($)₨ / sharesshares | Mar. 31, 2016₨ / shares | |
Weighted Average Exercise Price | |||||
Weighted Average Remaining Contractual Term, Granted | 0 | ||||
Hindalco SARs [Member] | |||||
Number of SARs | |||||
Outstanding, beginning of period (shares) | 21,176,557 | ||||
Granted (shares) | 7,643,528 | ||||
Exercised (shares) | (1,543,314) | ||||
Forfeited/Cancelled (shares) | (5,783,059) | ||||
Outstanding, end of period (shares) | 21,493,712 | 21,176,557 | 21,176,557 | ||
Number of Shares, Exercisable | 7,958,423 | 7,958,423 | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning of period (Indian Rupees/USD per share) | ₨ / shares | ₨ 126.77 | ||||
Granted (Indian Rupees/USD per share) | ₨ / shares | 123.69 | ||||
Exercised (Indian Rupees/USD per share) | ₨ / shares | 94.85 | ||||
Forfeited/Cancelled (Indian Rupees/USD per share) | ₨ / shares | 135.49 | ||||
Outstanding, end of period (Indian Rupees/USD per share) | ₨ / shares | ₨ 125.65 | ₨ 126.77 | |||
Weighted Average Exercise Price (Indian Rupees/USD per share), Exercisable | ₨ / shares | ₨ 127.22 | ||||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 5 months | 4 years 5 months | 4 years 5 months | ||
Weighted Average Remaining Contractual Term, Granted | P6Y1M6D | ||||
Weighted Average Remaining Contractual Term, Exercisable | 2 years 9 months 24 days | ||||
Aggregate Intrinsic Value, Outstanding | $ | $ 0 | ₨ 0 | $ 6 | ₨ 6 | |
Aggregate Intrinsic Value, Exercised | $ | 1 | ||||
Aggregate Intrinsic Value, Exercisable | $ | $ 0 | ₨ 0 | |||
Novelis SARs [Member] | |||||
Number of SARs | |||||
Outstanding, beginning of period (shares) | 1,033,735 | ||||
Granted (shares) | 673,677 | ||||
Exercised (shares) | (49,534) | ||||
Forfeited/Cancelled (shares) | (315,995) | ||||
Outstanding, end of period (shares) | 1,341,883 | 1,033,735 | 1,033,735 | ||
Number of Shares, Exercisable | 322,151 | 322,151 | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning of period (Indian Rupees/USD per share) | $ / shares | $ 92.85 | ||||
Granted (Indian Rupees/USD per share) | $ / shares | 65.35 | ||||
Exercised (Indian Rupees/USD per share) | $ / shares | 83.26 | ||||
Forfeited/Cancelled (Indian Rupees/USD per share) | $ / shares | 90.29 | ||||
Outstanding, end of period (Indian Rupees/USD per share) | $ / shares | 80 | $ 92.85 | |||
Weighted Average Exercise Price (Indian Rupees/USD per share), Exercisable | $ / shares | $ 91.08 | ₨ 91.08 | |||
Weighted Average Remaining Contractual Term, Outstanding | 5 years 1 month 24 days | 5 years 2 months | 5 years 2 months | ||
Weighted Average Remaining Contractual Term, Granted | 6.1 | ||||
Weighted Average Remaining Contractual Term, Exercisable | 3 years 8 months 24 days | ||||
Aggregate Intrinsic Value, Outstanding | $ | $ 0 | ₨ 0 | $ 3 | ₨ 3 | |
Aggregate Intrinsic Value, Exercised | $ | 1 | ||||
Aggregate Intrinsic Value, Exercisable | $ | $ 0 | ₨ 0 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value Assumptions) (Details) - SARs [Member] | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Hindalco SARs [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Dividend yield | 1.14% | 0.78% | 0.99% |
Hindalco SARs [Member] | Minimum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 7.23% | 7.75% | 8.67% |
Volatility | 43.00% | 39.00% | 37.00% |
Hindalco SARs [Member] | Maximum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 7.68% | 7.79% | 8.96% |
Volatility | 44.00% | 46.00% | 51.00% |
Novelis SARs [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Novelis SARs [Member] | Minimum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 0.89% | 0.96% | 0.96% |
Volatility | 38.00% | 27.00% | 28.00% |
Novelis SARs [Member] | Maximum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 1.39% | 1.59% | 2.05% |
Volatility | 41.00% | 34.00% | 41.00% |
Share-Based Compensation (Det96
Share-Based Compensation (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation by Award [Line Items] | |||
Total share-based liabilities paid | $ 2 | $ 8 | $ 15 |
Minimum [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award target payout multiple | 2.5 | ||
SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award vesting percentage | 25.00% | ||
Award expiration period | 7 years | ||
SARs [Member] | Hindalco SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Unrecognized compensation expense | $ 4 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 2 years 8 months 24 days | ||
SARs [Member] | Novelis SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Unrecognized compensation expense | $ 10 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 2 years 8 months 24 days | ||
SARs [Member] | Minimum [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award vesting rate based on targeted EBITDA | 75.00% | ||
SARs [Member] | Maximum [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award target payout multiple | 3 | ||
RSUs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Total share-based liabilities paid | $ 5 | $ 3 | $ 2 |
Unrecognized compensation expense | $ 3 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 3 months 24 days | ||
RSUs [Member] | Maximum [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award target payout multiple | 3 |
Postretirement Benefit Plans (E
Postretirement Benefit Plans (Employer Contributions to Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Contributions to employee benefit plans | |||
Funded pension plans | $ 28 | $ 28 | $ 31 |
Unfunded pension plans | 12 | 13 | 13 |
Savings and defined contribution pension plans | 24 | 18 | 20 |
Total contributions | $ 64 | $ 59 | $ 64 |
(Change in Benefit Obligation)
(Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 5 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Amendments | $ 97 | $ 11 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 1,863 | $ 1,672 | ||
Service cost | 47 | 43 | $ 48 | |
Interest cost | 59 | 66 | 63 | |
Members’ contributions | 5 | 5 | ||
Benefits paid | (65) | (56) | ||
Amendments | 0 | (3) | ||
Curtailments, settlements and special termination benefits | (1) | (16) | ||
Actuarial (gains) losses | (43) | 296 | ||
Other | (1) | (2) | ||
Currency losses (gains) | 4 | (142) | ||
Benefit obligation at end of period | 1,868 | 1,863 | 1,672 | |
Pension Benefits [Member] | Funded Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 1,558 | |||
Benefit obligation at end of period | 1,578 | 1,558 | ||
Pension Benefits [Member] | Unfunded Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 305 | |||
Benefit obligation at end of period | 290 | 305 | ||
Other Benefits [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 139 | 135 | ||
Service cost | 5 | 5 | 8 | |
Interest cost | 5 | 5 | 7 | |
Members’ contributions | 0 | 0 | ||
Benefits paid | (10) | (10) | (9) | |
Amendments | 0 | 11 | ||
Curtailments, settlements and special termination benefits | 0 | (1) | ||
Actuarial (gains) losses | 11 | (4) | ||
Other | 0 | 0 | ||
Currency losses (gains) | 1 | (2) | ||
Benefit obligation at end of period | 151 | 139 | $ 135 | |
Other Benefits [Member] | Funded Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 0 | |||
Benefit obligation at end of period | 0 | 0 | ||
Other Benefits [Member] | Unfunded Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 139 | |||
Benefit obligation at end of period | $ 151 | $ 139 |
Postretirement Benefit Plans (C
Postretirement Benefit Plans (Change in Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 1,233 | |
Fair value of plan assets at end of period | 1,177 | $ 1,233 |
Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 1,233 | 1,163 |
Actual return on plan assets | (21) | 159 |
Members’ contributions | 5 | 5 |
Benefits paid | (65) | (56) |
Company contributions | 39 | 41 |
Settlements | (1) | (14) |
Other | (1) | (2) |
Currency | (12) | (63) |
Fair value of plan assets at end of period | $ 1,177 | $ 1,233 |
Postretirement Benefit Plans (F
Postretirement Benefit Plans (Funded Status and Amounts Recognized) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued postretirement benefits | $ (820) | $ (748) | |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | (691) | (630) | |
Benefit obligation of unfunded plans | (1,868) | (1,863) | $ (1,672) |
Other non- current assets | 0 | 1 | |
Accrued expenses and other current liabilities | (13) | (12) | |
Accrued postretirement benefits | (678) | (619) | |
As included in our consolidated balance sheets within Total assets / (Total liabilities) | (691) | (630) | |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | (151) | (139) | |
Benefit obligation of unfunded plans | (151) | (139) | $ (135) |
Other non- current assets | 0 | 0 | |
Accrued expenses and other current liabilities | (9) | (10) | |
Accrued postretirement benefits | (142) | (129) | |
As included in our consolidated balance sheets within Total assets / (Total liabilities) | (151) | (139) | |
Funded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | (401) | (325) | |
Benefit obligation of unfunded plans | (1,578) | (1,558) | |
Funded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | 0 | 0 | |
Benefit obligation of unfunded plans | 0 | 0 | |
Unfunded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | (290) | (305) | |
Unfunded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | $ (151) | $ (139) |
Postretirement Benefit Plans (P
Postretirement Benefit Plans (Postretirement Amounts Recognized in AOCI) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial losses | $ (444) | $ (450) | |
Prior service credit | 9 | 11 | |
Total postretirement amounts recognized in Accumulated other comprehensive (loss) income | (435) | (439) | $ (268) |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial losses | (22) | (14) | |
Prior service credit | 6 | 32 | |
Total postretirement amounts recognized in Accumulated other comprehensive (loss) income | $ (16) | $ 18 | $ 56 |
Postretirement Benefit Plans102
Postretirement Benefit Plans (Postretirement Changes Recognized in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance in Accumulated other comprehensive (loss) income | $ (439) | $ (268) |
Plan amendment | 0 | 3 |
Net actuarial (loss) gain | (25) | (249) |
Amortization of prior service credits | (2) | (2) |
Amortization of actuarial loss | 41 | 24 |
Effect of currency exchange | (10) | 53 |
Total postretirement amounts recognized in Accumulated other comprehensive (loss) income | (435) | (439) |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance in Accumulated other comprehensive (loss) income | 18 | 56 |
Plan amendment | 0 | (11) |
Net actuarial (loss) gain | (11) | 5 |
Amortization of prior service credits | (27) | (37) |
Amortization of actuarial loss | 4 | 5 |
Effect of currency exchange | 0 | 0 |
Total postretirement amounts recognized in Accumulated other comprehensive (loss) income | $ (16) | $ 18 |
Postretirement Benefit Plans103
Postretirement Benefit Plans (Pension Plan Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 1,868 | $ 1,863 | $ 1,672 |
Accumulated benefit obligation | 1,692 | 1,689 | |
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 1,567 | 1,563 | |
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets | 1,039 | 1,093 | |
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plans with projected benefit obligations in excess of plan assets, projected benefit obligation | 1,868 | 1,760 | |
Pension plans with projected benefit obligations in excess of plan assets, fair value of plan assets | 1,177 | 1,129 | |
Pension plans with accumulated benefit obligations in excess of plan assets, projected benefit obligation | 0 | 103 | |
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets | $ 0 | $ 104 |
Postretirement Benefit Plans104
Postretirement Benefit Plans (Future Benefit Payments) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | $ 829 |
Pension Benefits [Member] | 2016 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 66 |
Pension Benefits [Member] | 2017 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 68 |
Pension Benefits [Member] | 2018 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 72 |
Pension Benefits [Member] | 2019 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 77 |
Pension Benefits [Member] | 2020 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 81 |
Pension Benefits [Member] | 2021 through 2025 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 465 |
Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 88 |
Other Benefits [Member] | 2016 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 9 |
Other Benefits [Member] | 2017 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 8 |
Other Benefits [Member] | 2018 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 6 |
Other Benefits [Member] | 2019 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 7 |
Other Benefits [Member] | 2020 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 8 |
Other Benefits [Member] | 2021 through 2025 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | $ 50 |
Postretirement Benefit Plans105
Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 47 | $ 43 | $ 48 |
Interest cost | 59 | 66 | 63 |
Expected return on assets | (67) | (69) | (67) |
Amortization — losses | 37 | 22 | 30 |
Amortization — prior service credit | (2) | (2) | (2) |
Curtailment/settlement/special termination losses (gains) | 0 | 1 | 1 |
Net periodic benefit cost (income) | 74 | 61 | 73 |
Proportionate share of non-consolidated affiliates’ pension costs | 9 | 7 | 7 |
Total net periodic benefit costs (income) recognized | 83 | 68 | 80 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 5 | 8 |
Interest cost | 5 | 5 | 7 |
Expected return on assets | 0 | 0 | 0 |
Amortization — losses | 4 | 5 | 7 |
Amortization — prior service credit | (27) | (37) | (24) |
Curtailment/settlement/special termination losses (gains) | 0 | (1) | 0 |
Net periodic benefit cost (income) | (13) | (23) | (2) |
Proportionate share of non-consolidated affiliates’ pension costs | 0 | 0 | 0 |
Total net periodic benefit costs (income) recognized | $ (13) | $ (23) | $ (2) |
Postretirement Benefit Plans (A
Postretirement Benefit Plans (Actuarial Assumptions and Sensitivity Analysis) (Details) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 5.40% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 3.30% | 3.10% | 4.00% |
Weighted average assumptions used to determine benefit obligations, Average compensation growth | 3.10% | 3.10% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Discount rate | 3.10% | 4.00% | 3.90% |
Weighted average assumptions used to determine net periodic benefit cost, Average compensation growth | 3.10% | 3.10% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 5.60% | 6.10% | 6.30% |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 4.00% | 3.60% | 4.10% |
Weighted average assumptions used to determine benefit obligations, Average compensation growth | 3.50% | 3.50% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost, Discount rate | 3.60% | 4.10% | 3.80% |
Weighted average assumptions used to determine net periodic benefit cost, Average compensation growth | 3.50% | 3.50% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Postretirement Benefit Plans107
Postretirement Benefit Plans (Change of One Percentage Point) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Effect on service and interest costs, 1% Increase | $ 1 |
Effect on benefit obligation, 1% Increase | 14 |
Effect on service and interest costs, 1% Decrease | (1) |
Effect on benefit obligation, 1% Decrease | $ (13) |
Postretirement Benefit Plans108
Postretirement Benefit Plans (Target and Actual Allocation Percentages) (Details) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 15-53% | |
Target allocation ranges, minimum | 15.00% | |
Target allocation ranges, maximum | 53.00% | |
Allocation in aggregate | 32.00% | 36.00% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 47-68% | |
Target allocation ranges, minimum | 47.00% | |
Target allocation ranges, maximum | 68.00% | |
Allocation in aggregate | 62.00% | 60.00% |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0-15% | |
Target allocation ranges, minimum | 0.00% | |
Target allocation ranges, maximum | 15.00% | |
Allocation in aggregate | 2.00% | 1.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | 0-16% | |
Target allocation ranges, minimum | 0.00% | |
Target allocation ranges, maximum | 16.00% | |
Allocation in aggregate | 5.00% | 3.00% |
Postretirement Benefit Plans109
Postretirement Benefit Plans (Pension Plan Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 1,177 | $ 1,233 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 140 | 228 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 1,037 | 1,005 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 375 | 446 |
Equity [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 85 |
Equity [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 375 | 361 |
Equity [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 723 | 743 |
Fixed Income [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 131 | 135 |
Fixed Income [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 592 | 608 |
Fixed Income [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 25 | 15 |
Real Estate [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Real Estate [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 25 | 15 |
Real Estate [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 9 | 8 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 9 | 8 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 0 | 0 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 45 | 21 |
Other [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 45 | 21 |
Other [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 0 | $ 0 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 5 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Aug. 31, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of foreign benefit obligation to total benefit obligation | 94.00% | ||||
Defined benefit plan, plan amendments | $ 97 | $ 11 | |||
Credit balance in AOCI resulting from negative plan amendment | $ 70 | ||||
Maximum amortization period of unfunded actuarial liability | 15 years | ||||
Expected additional contribution to funded pension plan | $ 23 | ||||
Expected additional contribution to unfunded pension plan | 13 | ||||
Employer discretionary contribution amount | $ 23 | ||||
Expected long-term rate of return on plan assets | 5.40% | ||||
Health care cost trend rate assumed for fiscal 2015 | 7.10% | ||||
Ultimate health care cost trend rate in 2019 | 5.00% | ||||
Long-term Growth Assets [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation | 50.00% | ||||
Near-term Benefit Payments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation | 50.00% | ||||
Other Long-term Liabilities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Postemployment benefits liability, noncurrent | $ 12 | $ 10 | |||
Accrued Expenses and Other Current Liabilities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Postemployment benefits lability, current | 5 | 4 | |||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefits that were transferred out | 11 | ||||
Settlements resulting from restructuring initiatives and other factors | 1 | 14 | |||
Defined benefit plan, plan amendments | 0 | $ (3) | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 38 | ||||
Future amortization of net actuarial losses | 40 | ||||
Future amortization of prior service costs (credits) | $ 2 | ||||
Expected long-term rate of return on plan assets | 5.60% | 6.10% | 6.30% | ||
Benefits paid | $ 65 | $ 56 | |||
Other Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlements resulting from restructuring initiatives and other factors | 3 | ||||
U.S. Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase in benefit obligation and net actuarial loss | $ 33 | ||||
Other Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan amendments | 0 | $ 11 | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 6 | ||||
Future amortization of net actuarial losses | 4 | ||||
Future amortization of prior service costs (credits) | $ 2 | ||||
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% | ||
Benefits paid | $ 10 | $ 10 | $ 9 |
Currency (Gains) Losses (Includ
Currency (Gains) Losses (Included in Other Expense (Income), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Currency (gains) losses included in other income expense | |||
(Gain) loss on remeasurement of monetary assets and liabilities, net | $ (55) | $ 14 | $ (26) |
Loss recognized on balance sheet remeasurement currency exchange contracts, net | 1 | 3 | 2 |
Loss released from accumulated other comprehensive loss | 52 | 10 | 17 |
Currency (gains) losses, net | $ (2) | $ 27 | $ (7) |
Currency (Gains) Losses (Inc112
Currency (Gains) Losses (Included in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Currency gains included in AOCI, net of tax and Non controlling interests | |||
Cumulative currency translation adjustment — beginning of period | $ (214) | $ 90 | $ (30) |
Effect of changes in exchange rates | 17 | (304) | 120 |
Cumulative currency translation adjustment — end of period | $ (197) | $ (214) | $ 90 |
Financial Instruments and Co113
Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Assets | ||
Derivative Assets, Current | $ 88 | $ 77 |
Derivative Asset, Noncurrent | 6 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (85) | (149) |
Derivative Liabilities, Noncurrent | (7) | (24) |
Derivative Assets (Liabilities), at Fair Value, Net | 2 | (96) |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 25 | 24 |
Derivative Asset, Noncurrent | 5 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (10) | (54) |
Derivative Liabilities, Noncurrent | (6) | (17) |
Derivative Assets (Liabilities), at Fair Value, Net | 14 | (47) |
Designated as Hedging Instrument [Member] | Natural Gas Swaps [Member] | ||
Liabilities | ||
Derivative Assets (Liabilities), at Fair Value, Net | (4) | (8) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 10 | 15 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (2) | (5) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 8 | 10 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 15 | 4 |
Derivative Asset, Noncurrent | 5 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (3) | (42) |
Derivative Liabilities, Noncurrent | (5) | (15) |
Derivative Assets (Liabilities), at Fair Value, Net | 12 | (53) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (4) | (6) |
Derivative Liabilities, Noncurrent | 0 | (2) |
Derivative Assets (Liabilities), at Fair Value, Net | (4) | (8) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | 0 | (1) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (1) | (1) |
Designated as Hedging Instrument [Member] | Net Investment Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 5 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (1) | 0 |
Derivative Liabilities, Noncurrent | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (1) | 5 |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 63 | 53 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (75) | (95) |
Derivative Liabilities, Noncurrent | (1) | (7) |
Derivative Assets (Liabilities), at Fair Value, Net | (12) | (49) |
Not Designated as Hedging Instrument [Member] | Natural Gas Swaps [Member] | ||
Liabilities | ||
Derivative Assets (Liabilities), at Fair Value, Net | (1) | (3) |
Not Designated as Hedging Instrument [Member] | Fuel [Member] | ||
Liabilities | ||
Derivative Assets (Liabilities), at Fair Value, Net | (1) | |
Not Designated as Hedging Instrument [Member] | Aluminium Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 24 | 24 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (26) | (26) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (2) | (2) |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 39 | 26 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (39) | (54) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (1) | (28) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 3 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (10) | (15) |
Derivative Liabilities, Noncurrent | 0 | (7) |
Derivative Assets (Liabilities), at Fair Value, Net | $ (9) | $ (19) |
Financial Instruments and Co114
Financial Instruments and Commodity Contracts (Gain (Loss) Recognized on Fair Value Hedges of Metal Price Risk) (Details) - Designated as Hedging Instrument [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Contracts | $ (2) | $ 0 |
Designated Hedged Items | 2 | 0 |
Aluminum Forward Purchase Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Ineffectiveness | $ 0 | $ 0 |
Financial Instruments and Co115
Financial Instruments and Commodity Contracts (Notional Amount (in kt)) (Details) - Mg Mg in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Aluminum Forward Sales Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 301 | 285 |
Aluminium Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | (376) | (318) |
Aluminium Contracts [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 0 | 2 |
Aluminium Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 76 | 36 |
Financial Instruments and Co116
Financial Instruments and Commodity Contracts (Gain (Loss) Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | $ 27 | $ (39) | $ 3 |
Other Expense (Income), Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Balance sheet remeasurement currency exchange contract losses | (53) | (13) | (19) |
Realized gains (losses), net | 64 | (2) | 62 |
Unrealized losses on other derivative instruments, net | (4) | 0 | (10) |
Total gain (loss) recognized | 7 | (15) | 33 |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (10) | (34) | (5) |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | Aluminium Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 47 | (31) | (4) |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (60) | (5) | (15) |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 3 | 2 | 14 |
Other Expense (Income), Net [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | $ 17 | $ 19 | $ 38 |
Financial Instruments and Co117
Financial Instruments and Commodity Contracts (Impact on AOCI and Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | $ 69 | $ (72) | $ 17 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 17 | 22 | 40 |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | 71 | (83) | 20 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 17 | 22 | 40 |
Cash Flow Hedging [Member] | Aluminium Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | 84 | (26) | 35 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 17 | 24 | 39 |
Cash Flow Hedging [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (7) | (44) | (16) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 1 | (2) | 1 |
Cash Flow Hedging [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (5) | (12) | 1 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (1) | 0 | 0 |
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (1) | (1) | 0 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | 0 | 0 |
Net Investment Hedging [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (2) | 11 | (3) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | $ 0 | $ 0 | $ 0 |
Financial Instruments and Co118
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other (income) expense, net | $ 10 | $ (16) | $ (32) | $ (30) | $ 3 | $ (9) | $ 18 | $ 5 | $ (68) | $ 17 | $ (41) |
Cost of goods sold | (2,035) | (2,051) | (2,241) | (2,400) | (2,483) | (2,498) | (2,483) | (2,329) | (8,727) | (9,793) | (8,468) |
Net sales | 2,402 | 2,354 | 2,482 | 2,634 | 2,789 | 2,847 | 2,831 | 2,680 | 9,872 | 11,147 | 9,767 |
Selling, general and administrative expenses | (103) | (104) | (100) | (100) | (108) | (108) | (103) | (108) | (407) | (427) | (461) |
Depreciation and amortization | (89) | (88) | (89) | (87) | (86) | (87) | (90) | (89) | (353) | (352) | (334) |
Interest Expense | (83) | (82) | (82) | (80) | (78) | (85) | (82) | (81) | (327) | (326) | (304) |
Income (loss) before income taxes | 8 | 162 | 115 | ||||||||
Income tax provision (benefit) | (18) | (16) | 3 | (15) | 11 | (3) | 2 | (24) | (46) | (14) | (11) |
Net (loss) income | $ 29 | $ 6 | $ (13) | $ (60) | $ 29 | $ 46 | $ 38 | $ 35 | (38) | 148 | 104 |
Cash Flow Hedging [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Income (loss) before income taxes | 8 | (39) | 41 | ||||||||
Income tax provision (benefit) | (19) | 8 | (16) | ||||||||
Net (loss) income | (11) | (31) | 25 | ||||||||
Cash Flow Hedging [Member] | Energy Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other (income) expense, net | (5) | (5) | (5) | ||||||||
Cost of goods sold | (10) | 0 | 0 | ||||||||
Cash Flow Hedging [Member] | Aluminium Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Cost of goods sold | 83 | (40) | 53 | ||||||||
Net sales | 0 | 0 | 7 | ||||||||
Cash Flow Hedging [Member] | Currency Exchange Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other (income) expense, net | (1) | (3) | (2) | ||||||||
Cost of goods sold | (44) | (14) | (14) | ||||||||
Net sales | (9) | 18 | 3 | ||||||||
Selling, general and administrative expenses | (4) | (1) | (1) | ||||||||
Gain on assets held for sale, net | 0 | 7 | 0 | ||||||||
Depreciation and amortization | (1) | (1) | 0 | ||||||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest Expense | $ (1) | $ 0 | $ 0 |
Financial Instruments and Co119
Financial Instruments and Commodity Contracts (Details Textual) Mg in Thousands, MMBTU in Millions, $ in Millions, ₩ in Billions | 12 Months Ended | |||
Mar. 31, 2016USD ($)MgMMBTU | Mar. 31, 2016KRW (₩)MgMMBTU | Mar. 31, 2015USD ($)MgMMBTU | Mar. 31, 2015KRW (₩)MgMMBTU | |
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ 2 | $ (96) | ||
Expected reclassification of gains (losses) from AOCI to earnings | (8) | |||
Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | 14 | (47) | ||
Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ (12) | $ (49) | ||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 6 months | |||
Aluminium Contracts [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | (376) | (376) | (318) | (318) |
Aluminium Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 76 | 76 | 36 | 36 |
Derivative asset (liability) | $ (2) | $ (2) | ||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 636 | 868 | ||
Derivative asset (liability) | (1) | (28) | ||
Electricity Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 1 | |||
Derivative asset (liability) | (9) | $ (16) | ||
Extended Electricity Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 1 | |||
Derivative asset (liability) | $ 1 | |||
Derivative extended period | 5 years | |||
Natural Gas Swaps [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Natural Gas Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 5 | 5 | 7 | 7 |
Derivative asset (liability) | $ (4) | $ (8) | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 1 | 1 | 2 | 2 |
Derivative asset (liability) | $ (1) | $ (3) | ||
Fuel [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 1 year | |||
Fuel [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 4 | 4 | ||
Derivative asset (liability) | $ (1) | |||
Fair Value Hedging [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Notional amount (in tons) | Mg | 1 | 1 | 2 | 2 |
Fair Value Hedging [Member] | Aluminium Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 0 | 0 | 2 | 2 |
Cash Flow Hedges [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Notional amount (in tons) | Mg | 1 | 1 | 1 | 1 |
Cash Flow Hedges [Member] | Aluminum Forward Sales Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Notional amount (in tons) | Mg | 301 | 301 | 285 | 285 |
Cash Flow Hedges [Member] | Aluminium Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ 8 | $ 10 | ||
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 601 | 590 | ||
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | 12 | (53) | ||
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | (1) | (1) | ||
Net Investment Hedging [Member] | Currency Exchange Contracts [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 36 | 28 | ||
Net Investment Hedging [Member] | Currency Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | (1) | 5 | ||
Long-term Debt [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 115 | ₩ 133 | $ 78 | ₩ 86 |
Interest rate swaps, hedged amount | $ 115 | ₩ 133 | ||
Derivative, fixed interest rate | 2.92% | 2.92% |
Accumulated Other Comprehens120
Accumulated Other Comprehensive Loss (Components of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | $ (561) | $ (91) | $ (268) |
Other comprehensive income (loss) before reclassifications | 43 | (494) | 193 |
Amounts reclassified from AOCI, net | 18 | 24 | (16) |
Net current-period other comprehensive income (loss) | 61 | (470) | 177 |
Accumulated other comprehensive income (loss), end of period | (500) | (561) | (91) |
Currency Translation [Member] | |||
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | (213) | 89 | (33) |
Other comprehensive income (loss) before reclassifications | 17 | (302) | 122 |
Amounts reclassified from AOCI, net | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 17 | (302) | 122 |
Accumulated other comprehensive income (loss), end of period | (196) | (213) | 89 |
Cash Flow Hedges [Member] | |||
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | (63) | (20) | (2) |
Other comprehensive income (loss) before reclassifications | 41 | (74) | 7 |
Amounts reclassified from AOCI, net | 11 | 31 | (25) |
Net current-period other comprehensive income (loss) | 52 | (43) | (18) |
Accumulated other comprehensive income (loss), end of period | (11) | (63) | (20) |
Postretirement Benefit Plans [Member] | |||
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | (285) | (160) | (233) |
Other comprehensive income (loss) before reclassifications | (15) | (118) | 64 |
Amounts reclassified from AOCI, net | 7 | (7) | 9 |
Net current-period other comprehensive income (loss) | (8) | (125) | 73 |
Accumulated other comprehensive income (loss), end of period | $ (293) | $ (285) | $ (160) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | $ 94 | $ 77 |
Assets, Netting Adjustment | (31) | (28) |
Assets, Total Net | 63 | 49 |
Liabilities | (92) | (173) |
Liabilities, Netting Adjustment | 31 | 28 |
Liabilities, Total Net | (61) | (145) |
Level 2 Instruments [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 93 | 77 |
Liabilities | (83) | (157) |
Level 2 Instruments [Member] | Aluminium Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 34 | 39 |
Liabilities | (28) | (31) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 59 | 35 |
Liabilities | (49) | (111) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 0 | 3 |
Liabilities | (5) | (14) |
Level 2 Instruments [Member] | Interest Rate Swaps [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 0 | 0 |
Liabilities | (1) | (1) |
Level 3 Instruments [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 1 | 0 |
Liabilities | (9) | (16) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 1 | 0 |
Liabilities | $ (9) | $ (16) |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Fair Value Activity for Level 3) (Details) - Level 3 Instruments [Member] - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of fair value activity for Level 3 derivative contracts | ||
Balance as of beginning of period | $ (16) | $ (19) |
Realized/unrealized gain included in earnings | 9 | 10 |
Settlements | (1) | (7) |
Balance as of end of period | $ (8) | $ (16) |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Assets | ||
Long-term receivables from related parties, carrying value | $ 16 | $ 15 |
Long-term receivables from related parties, fair value | 17 | 15 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | 4,498 | 4,457 |
Total debt - third parties (excluding short term borrowings), fair value | $ 4,659 | $ 4,659 |
Fair Value Measurements (Det124
Fair Value Measurements (Details Textual) $ in Millions | 12 Months Ended |
Mar. 31, 2016USD ($)$ / MWh | |
Level 3 Instruments [Member] | |
Fair Value Measurements [Abstract] | |
Unrealized losses related to financial instruments | $ | $ (2) |
Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Average forward price (per megawatt hour) | 41 |
Premium over forward prices in nearby observable market (per megawatt hour) | 2 |
Actual swap settlement price (per megawatt hour) | 25 |
Change in valuation per a dollar per megawatt hour decline in price (less than) | $ | $ 1 |
Extended Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Average forward price (per megawatt hour) | 46 |
Premium over forward prices in nearby observable market (per megawatt hour) | 3 |
Actual swap settlement price (per megawatt hour) | 25 |
Change in valuation per a dollar per megawatt hour decline in price (less than) | $ | $ 1 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Foreign currency remeasurement losses (gains), net | $ (2) | $ 27 | $ (7) | ||||||||
Loss on change in fair value of other unrealized derivative instruments, net (B) | 4 | 0 | 10 | ||||||||
(Gain) loss on change in fair value of other realized derivative instruments, net (B) | (64) | 2 | (62) | ||||||||
Loss on sale of assets, net | 4 | 5 | 9 | ||||||||
Loss on Brazilian tax litigation, net | 5 | 7 | 6 | ||||||||
Interest income | (13) | (7) | (6) | ||||||||
Gain on business interruption insurance recovery, net | $ (5) | $ (5) | $ (13) | (10) | (19) | 0 | |||||
Other, net | 8 | 2 | 9 | ||||||||
Other (income) expense, net | $ 10 | $ (16) | $ (32) | $ (30) | $ 3 | $ (9) | $ 18 | $ 5 | $ (68) | 17 | $ (41) |
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain from insurance settlement | $ 6 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic (Canada) | $ (313) | $ (267) | $ (294) |
Foreign (all other countries) | 324 | 434 | 421 |
Pre-tax income before equity in net loss of non-consolidated affiliates | $ 11 | $ 167 | $ 127 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Current provision: | |||||||||||
Domestic (Canada) | $ 5 | $ 4 | $ 12 | ||||||||
Foreign (all other countries) | 134 | 98 | 128 | ||||||||
Total current | 139 | 102 | 140 | ||||||||
Deferred provision (benefit): | |||||||||||
Domestic (Canada) | 0 | 0 | 0 | ||||||||
Foreign (all other countries) | (93) | (88) | (129) | ||||||||
Total deferred | (93) | (88) | (129) | ||||||||
Income tax provision (benefit) | $ 18 | $ 16 | $ (3) | $ 15 | $ (11) | $ 3 | $ (2) | $ 24 | $ 46 | $ 14 | $ 11 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Tax Rates) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation of Canadian statutory tax rates | |||||||||||
Pre-tax income before equity in net loss on non-consolidated affiliates | $ 11 | $ 167 | $ 127 | ||||||||
Canadian Statutory tax rate | 25.00% | 25.00% | 25.00% | ||||||||
Provision at the Canadian statutory rate | $ 3 | $ 42 | $ 32 | ||||||||
Increase (decrease) for taxes on income (loss) resulting from: | |||||||||||
Exchange translation items | 16 | (22) | 0 | ||||||||
Exchange remeasurement of deferred income taxes | (8) | (31) | (20) | ||||||||
Change in valuation allowances | 104 | 95 | 94 | ||||||||
Tax credits and other allowances | (22) | (22) | (38) | ||||||||
Income items not subject to tax | 0 | 2 | (6) | ||||||||
State tax benefit, net | (10) | (7) | (7) | ||||||||
Dividends not subject to tax | (52) | (52) | (52) | ||||||||
Enacted tax rate changes | 5 | (1) | 3 | ||||||||
Tax rate differences on foreign earnings | 4 | 7 | (4) | ||||||||
Uncertain tax positions | 7 | 10 | 8 | ||||||||
Prior year adjustments | (2) | 2 | (1) | ||||||||
Income tax settlements | 0 | (6) | 0 | ||||||||
Other — net | 1 | (3) | 2 | ||||||||
Income tax provision (benefit) | $ 18 | $ 16 | $ (3) | $ 15 | $ (11) | $ 3 | $ (2) | $ 24 | $ 46 | $ 14 | $ 11 |
Effective tax rate | 411.00% | 8.00% | 9.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred income tax assets: | ||
Provisions not currently deductible for tax purposes | $ 396 | $ 366 |
Tax losses/benefit carryforwards, net | 741 | 627 |
Depreciation and amortization | 41 | 38 |
Other assets | (1) | 4 |
Total deferred income tax assets | 1,177 | 1,035 |
Less: valuation allowance | (613) | (528) |
Net deferred income tax assets | 564 | 507 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 457 | 477 |
Inventory valuation reserves | 64 | 102 |
Monetary exchange gains, net | 15 | 9 |
Other liabilities | 30 | 26 |
Total deferred income tax liabilities | 566 | 614 |
Net deferred income tax liabilities | $ 2 | $ 107 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 37 | $ 39 | |
Additions based on tax positions related to the current period | 6 | 7 | $ 7 |
Additions based on tax positions of prior years | 3 | 3 | 1 |
Reductions based on tax positions of prior years | (6) | (1) | 0 |
Settlements | (10) | (3) | 0 |
Foreign exchange | 4 | (8) | 1 |
Ending Balance | $ 34 | $ 37 | $ 39 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2012 | |
Income Tax Details [Line Items] | ||||
Increase in income tax provision related to tax losses | $ 104 | $ 95 | $ 94 | |
Impact on income tax provision of the credits | 22 | 22 | 38 | |
Income tax holiday, amount | 10 | |||
Deferred tax assets, valuation allowance | (613) | (528) | ||
Net operating loss carryforwards | 638 | |||
Tax credit carryforward | 103 | 112 | ||
Operating loss carryforwards, valuation allowance | 468 | 381 | ||
Tax credit carryforward, valuation allowance | 88 | 99 | ||
Operating loss carryforwards | 515 | |||
Undistributed earnings of foreign subsidiaries (outside Canada) | 3,000 | |||
Unrecognized tax benefits | 34 | 37 | 39 | $ 30 |
Maximum amount by which reserves for interest and penalties for unrecognized tax benefits may decrease in the next 12 months | 14 | |||
Accrued income tax penalties and interest | 4 | 5 | 4 | |
Income tax penalties and interest expense | 2 | 1 | ||
Settlement with taxing authorities including interest | $ 1 | |||
Taxes payable | 42 | 14 | ||
Taxes payable, current | 13 | 11 | ||
Deferred Tax Assets, Other [Member] | ||||
Income Tax Details [Line Items] | ||||
Deferred tax assets, valuation allowance | (57) | $ (48) | ||
New York [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 7 | |||
United Kingdom [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 11 | |||
Canada [Member] | ||||
Income Tax Details [Line Items] | ||||
Deferred tax assets, valuation allowance | (538) | |||
Tax credit carryforward | 47 | |||
Operating loss carryforwards | $ 443 |
Commitments and Contingencie132
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Estimated range of loss, minimum | $ 0 | ||
Estimated range of loss, maximum | 70 | ||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies, noncurrent | 17 | ||
Accrual for environmental loss contingencies | $ 4 | ||
Loss Contingency Accrual [Abstract] | |||
Settlement agreement, term | 180 months | ||
Loss on Brazilian tax litigation, net | $ 5 | $ 7 | $ 6 |
Obligation to Repurchase Inventories Sold [Member] | |||
Loss Contingencies [Line Items] | |||
Outstanding repurchase obligations | 22 | 218 | |
Accrued Expenses and Other Current Liabilities [Member] | |||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies, current | 10 | 4 | |
Other Long-term Liabilities [Member] | |||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies, noncurrent | 7 | 18 | |
Brazilian Tax Authorities and Other Third Parties [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 17 | 12 | |
Brazil [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 64 | 73 | |
Brazil [Member] | Settlement with Taxing Authority [Member] | Other Long-term Assets - Third Parties [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Cash deposits | 2 | 3 | |
Brazil [Member] | Settlement with Taxing Authority [Member] | Accrued Expenses and Other Current Liabilities [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 7 | 7 | |
Brazil [Member] | Settlement with Taxing Authority [Member] | Other Long-term Liabilities [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 57 | $ 66 | |
Restructuring Action [Member] | |||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies | $ 13 |
Segment, Geographical Area, 133
Segment, Geographical Area, Major Customer and Major Supplier Information (Details Textual) | 12 Months Ended |
Mar. 31, 2016countryplantsegmentCustomers | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 4 |
Number of operating plants | 25 |
Number of plants with recycling operations | 11 |
Number of countries Company operates in | country | 11 |
Number of largest customers | Customers | 2 |
North America [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 8 |
Number of fully dedicated recycling facilities | 2 |
Number of plants with recycling operations | 1 |
Number of countries Company operates in | country | 2 |
Europe [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 10 |
Number of fully dedicated recycling facilities | 2 |
Number of plants with recycling operations | 2 |
Number of countries Company operates in | country | 4 |
Asia [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 5 |
Number of plants with recycling operations | 3 |
Number of countries Company operates in | country | 4 |
South America [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 2 |
Segment, Geographical Area, 134
Segment, Geographical Area, Major Customer and Major Supplier Information (Selected Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | $ 9,872 | $ 11,147 | $ 9,767 | ||||||||
Net sales - intersegment | 0 | 0 | 0 | ||||||||
Net sales | $ 2,402 | $ 2,354 | $ 2,482 | $ 2,634 | $ 2,789 | $ 2,847 | $ 2,831 | $ 2,680 | 9,872 | 11,147 | 9,767 |
Depreciation and amortization | 89 | 88 | 89 | 87 | 86 | 87 | 90 | 89 | 353 | 352 | 334 |
Income tax provision (benefit) | 18 | $ 16 | $ (3) | $ 15 | (11) | $ 3 | $ (2) | $ 24 | 46 | 14 | 11 |
Capital expenditures | 370 | 518 | 717 | ||||||||
Investment in and advances to non–consolidated affiliate | 488 | 447 | 488 | 447 | |||||||
Total assets | 8,310 | 9,102 | 8,310 | 9,102 | |||||||
Operating Segments [Member] | North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 3,262 | 3,465 | 3,042 | ||||||||
Net sales - intersegment | 4 | 18 | 8 | ||||||||
Net sales | 3,266 | 3,483 | 3,050 | ||||||||
Depreciation and amortization | 143 | 137 | 126 | ||||||||
Income tax provision (benefit) | (53) | (27) | (34) | ||||||||
Capital expenditures | 143 | 122 | 147 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | 2,370 | 2,744 | 2,370 | 2,744 | |||||||
Operating Segments [Member] | Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 3,055 | 3,609 | 3,145 | ||||||||
Net sales - intersegment | 168 | 174 | 135 | ||||||||
Net sales | 3,223 | 3,783 | 3,280 | ||||||||
Depreciation and amortization | 106 | 103 | 103 | ||||||||
Income tax provision (benefit) | (11) | 12 | 6 | ||||||||
Capital expenditures | 146 | 257 | 241 | ||||||||
Investment in and advances to non–consolidated affiliate | 488 | 447 | 488 | 447 | |||||||
Total assets | 2,687 | 2,952 | 2,687 | 2,952 | |||||||
Operating Segments [Member] | Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 1,879 | 2,139 | 1,849 | ||||||||
Net sales - intersegment | 113 | 201 | 27 | ||||||||
Net sales | 1,992 | 2,340 | 1,876 | ||||||||
Depreciation and amortization | 61 | 71 | 68 | ||||||||
Income tax provision (benefit) | 12 | 16 | 16 | ||||||||
Capital expenditures | 35 | 85 | 198 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | 1,516 | 1,663 | 1,516 | 1,663 | |||||||
Operating Segments [Member] | South America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 1,482 | 1,749 | 1,543 | ||||||||
Net sales - intersegment | 93 | 101 | 45 | ||||||||
Net sales | 1,575 | 1,850 | 1,588 | ||||||||
Depreciation and amortization | 61 | 63 | 69 | ||||||||
Income tax provision (benefit) | 81 | (1) | 6 | ||||||||
Capital expenditures | 39 | 53 | 117 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | 1,584 | 1,588 | 1,584 | 1,588 | |||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 194 | 185 | 188 | ||||||||
Net sales - intersegment | (378) | (494) | (215) | ||||||||
Net sales | (184) | (309) | (27) | ||||||||
Depreciation and amortization | (18) | (22) | (32) | ||||||||
Income tax provision (benefit) | 17 | 14 | 17 | ||||||||
Capital expenditures | 7 | 1 | $ 14 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | $ 153 | $ 155 | $ 153 | $ 155 |
Segment, Geographical Area, 135
Segment, Geographical Area, Major Customer and Major Supplier Information (Income Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||||||||||
Depreciation and amortization | $ (89) | $ (88) | $ (89) | $ (87) | $ (86) | $ (87) | $ (90) | $ (89) | $ (353) | $ (352) | $ (334) |
Interest expense and amortization of debt issuance costs | (83) | (82) | (82) | (80) | (78) | (85) | (82) | (81) | (327) | (326) | (304) |
Adjustment to eliminate proportional consolidation | (30) | (33) | (40) | ||||||||
Unrealized losses on change in fair value of derivative instruments, net | (4) | 0 | (10) | ||||||||
Realized (losses) gains on derivative instruments not included in segment income | (1) | (6) | 5 | ||||||||
Gain on assets held for sale | 0 | 22 | 6 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | (13) | (13) | 0 | 0 | ||||
Restructuring and impairment, net | (19) | (10) | (4) | (15) | 1 | (25) | (7) | (6) | (48) | (37) | (75) |
Loss on sale of fixed assets | (4) | (5) | (9) | ||||||||
Other costs, net | (3) | (3) | (9) | ||||||||
Income before income taxes | 8 | 162 | 115 | ||||||||
Income tax provision | 18 | 16 | (3) | 15 | (11) | 3 | (2) | 24 | 46 | 14 | 11 |
Net (loss) income | 29 | 6 | (13) | (60) | 29 | 46 | 38 | 35 | (38) | 148 | 104 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net (loss) income attributable to our common shareholder | $ 29 | $ 6 | $ (13) | $ (60) | $ 29 | $ 46 | $ 38 | $ 35 | (38) | 148 | 104 |
Intersegment Eliminations [Member] | |||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||||||||||
Gross profit | 0 | (2) | 0 | ||||||||
Depreciation and amortization | 18 | 22 | 32 | ||||||||
Income tax provision | 17 | 14 | 17 | ||||||||
North America [Member] | Operating Segments [Member] | |||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||||||||||
Gross profit | 258 | 273 | 229 | ||||||||
Depreciation and amortization | (143) | (137) | (126) | ||||||||
Income tax provision | (53) | (27) | (34) | ||||||||
Europe [Member] | Operating Segments [Member] | |||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||||||||||
Gross profit | 116 | 250 | 265 | ||||||||
Depreciation and amortization | (106) | (103) | (103) | ||||||||
Income tax provision | (11) | 12 | 6 | ||||||||
Asia [Member] | Operating Segments [Member] | |||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||||||||||
Gross profit | 135 | 141 | 160 | ||||||||
Depreciation and amortization | (61) | (71) | (68) | ||||||||
Income tax provision | 12 | 16 | 16 | ||||||||
South America [Member] | Operating Segments [Member] | |||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||||||||||
Gross profit | 282 | 240 | 231 | ||||||||
Depreciation and amortization | (61) | (63) | (69) | ||||||||
Income tax provision | $ 81 | $ (1) | $ 6 |
Segment, Geographical Area, 136
Segment, Geographical Area, Major Customer and Major Supplier Information (Geographical Information - Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 2,402 | $ 2,354 | $ 2,482 | $ 2,634 | $ 2,789 | $ 2,847 | $ 2,831 | $ 2,680 | $ 9,872 | $ 11,147 | $ 9,767 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 3,334 | 3,507 | 3,021 | ||||||||
Asia and Other Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,879 | 2,139 | 1,845 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,482 | 1,750 | 1,544 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 121 | 144 | 209 | ||||||||
Germany [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,506 | 2,976 | 2,449 | ||||||||
Other Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 550 | $ 631 | $ 699 |
Segment, Geographical Area, 137
Segment, Geographical Area, Major Customer and Major Supplier Information (Geographical Information - Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 4,029 | $ 4,126 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,483 | 1,518 |
Asia and Other Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 784 | 840 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 840 | 866 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 70 | 78 |
Germany [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 287 | 251 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 43 | 45 |
Other Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 522 | $ 528 |
Segment, Geographical Area, 138
Segment, Geographical Area, Major Customer and Major Supplier Information (3 Largest Customers) (Details) - Sales Revenue, Net [Member] | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Rexam Plc [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 19.00% | 18.00% | 17.00% |
Affiliates of Ball Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 11.00% | 10.00% | 10.00% |
Beverage and Food Can [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 55.00% | 56.00% | 55.00% |
Automotive Products [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 20.00% | 13.00% | 11.00% |
Segment, Geographical Area, 139
Segment, Geographical Area, Major Customer and Major Supplier Information (Purchases - RTA) (Details) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Cost of Goods Sold [Member] | RTA [Member] | |||
Purchases from primary supplier | |||
Purchases from RT as a percentage of total combined metal purchases | 12.00% | 15.00% | 17.00% |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Supplemental cash flow information | |||
Interest paid | $ 308 | $ 303 | $ 278 |
Income taxes paid | $ 123 | $ 131 | $ 120 |
Supplemental Information (De141
Supplemental Information (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 53,000,000 | ||
Capital lease obligations incurred (less than) | $ 0 | $ 1,000,000 | $ 1,000,000 |
Quarterly Results (Unaudited142
Quarterly Results (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,402 | $ 2,354 | $ 2,482 | $ 2,634 | $ 2,789 | $ 2,847 | $ 2,831 | $ 2,680 | $ 9,872 | $ 11,147 | $ 9,767 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,035 | 2,051 | 2,241 | 2,400 | 2,483 | 2,498 | 2,483 | 2,329 | 8,727 | 9,793 | 8,468 |
Selling, general and administrative expenses | 103 | 104 | 100 | 100 | 108 | 108 | 103 | 108 | 407 | 427 | 461 |
Depreciation and amortization | 89 | 88 | 89 | 87 | 86 | 87 | 90 | 89 | 353 | 352 | 334 |
Research and development expenses | 15 | 13 | 13 | 13 | 12 | 14 | 12 | 12 | 54 | 50 | 45 |
Interest expense and amortization of debt issuance costs | 83 | 82 | 82 | 80 | 78 | 85 | 82 | 81 | 327 | 326 | 304 |
(Gain) loss on assets held for sale | 1 | (12) | 0 | (11) | (22) | (6) | |||||
Restructuring and impairment, net | 19 | 10 | 4 | 15 | (1) | 25 | 7 | 6 | 48 | 37 | 75 |
Equity in net loss of non-consolidated affiliates | 1 | 0 | 1 | 1 | 1 | 2 | 0 | 2 | 3 | 5 | 12 |
Other expense (income), net | 10 | (16) | (32) | (30) | 3 | (9) | 18 | 5 | (68) | 17 | (41) |
Income tax provision | 18 | 16 | (3) | 15 | (11) | 3 | (2) | 24 | 46 | 14 | 11 |
Net (loss) income | 29 | 6 | (13) | (60) | 29 | 46 | 38 | 35 | (38) | 148 | 104 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net (loss) income attributable to our common shareholder | $ 29 | $ 6 | $ (13) | $ (60) | $ 29 | $ 46 | $ 38 | $ 35 | $ (38) | $ 148 | $ 104 |
Supplemental Guarantor Infor143
Supplemental Guarantor Information (Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Supplemental guarantor information statements of operation | |||||||||||
Net sales | $ 2,402 | $ 2,354 | $ 2,482 | $ 2,634 | $ 2,789 | $ 2,847 | $ 2,831 | $ 2,680 | $ 9,872 | $ 11,147 | $ 9,767 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,035 | 2,051 | 2,241 | 2,400 | 2,483 | 2,498 | 2,483 | 2,329 | 8,727 | 9,793 | 8,468 |
Selling, general and administrative expenses | 103 | 104 | 100 | 100 | 108 | 108 | 103 | 108 | 407 | 427 | 461 |
Depreciation and amortization | 89 | 88 | 89 | 87 | 86 | 87 | 90 | 89 | 353 | 352 | 334 |
Research and development expenses | 15 | 13 | 13 | 13 | 12 | 14 | 12 | 12 | 54 | 50 | 45 |
Interest expense and amortization of debt issuance costs | 83 | 82 | 82 | 80 | 78 | 85 | 82 | 81 | 327 | 326 | 304 |
Gain on assets held for sale, net | 1 | (12) | 0 | (11) | (22) | (6) | |||||
Loss on extinguishment of debt | 0 | 0 | 0 | 13 | 13 | 0 | 0 | ||||
Restructuring and impairment, net | 19 | 10 | 4 | 15 | (1) | 25 | 7 | 6 | 48 | 37 | 75 |
Equity in net loss of non-consolidated affiliates | 1 | 0 | 1 | 1 | 1 | 2 | 0 | 2 | 3 | 5 | 12 |
Equity in net income of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other (income) expense, net | 10 | (16) | (32) | (30) | 3 | (9) | 18 | 5 | (68) | 17 | (41) |
Total expenses | 9,864 | 10,985 | 9,652 | ||||||||
Income before income taxes | 8 | 162 | 115 | ||||||||
Income tax provision (benefit) | 18 | 16 | (3) | 15 | (11) | 3 | (2) | 24 | 46 | 14 | 11 |
Net (loss) income | 29 | 6 | (13) | (60) | 29 | 46 | 38 | 35 | (38) | 148 | 104 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net (loss) income attributable to our common shareholder | $ 29 | $ 6 | $ (13) | $ (60) | $ 29 | $ 46 | $ 38 | $ 35 | (38) | 148 | 104 |
Comprehensive (loss) income | 12 | (337) | 279 | ||||||||
Less: Comprehensive loss attributable to noncontrolling interest, net of tax | (11) | (15) | (2) | ||||||||
Comprehensive income attributable to our common shareholder | 23 | (322) | 281 | ||||||||
Parent [Member] | |||||||||||
Supplemental guarantor information statements of operation | |||||||||||
Net sales | 648 | 665 | 693 | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 655 | 650 | 677 | ||||||||
Selling, general and administrative expenses | 32 | 6 | 48 | ||||||||
Depreciation and amortization | 19 | 18 | 16 | ||||||||
Research and development expenses | 0 | 0 | 1 | ||||||||
Interest expense and amortization of debt issuance costs | 318 | 319 | 315 | ||||||||
Gain on assets held for sale, net | (5) | 0 | |||||||||
Loss on extinguishment of debt | 13 | ||||||||||
Restructuring and impairment, net | 14 | 1 | 8 | ||||||||
Equity in net loss of non-consolidated affiliates | 0 | 0 | 0 | ||||||||
Equity in net income of consolidated subsidiaries | (263) | (403) | (389) | ||||||||
Other (income) expense, net | (106) | (71) | (94) | ||||||||
Total expenses | 682 | 515 | 582 | ||||||||
Income before income taxes | (34) | 150 | 111 | ||||||||
Income tax provision (benefit) | 4 | 2 | 7 | ||||||||
Net (loss) income | (38) | 148 | 104 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net (loss) income attributable to our common shareholder | (38) | 148 | 104 | ||||||||
Comprehensive (loss) income | 23 | (322) | 281 | ||||||||
Less: Comprehensive loss attributable to noncontrolling interest, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to our common shareholder | 23 | (322) | 281 | ||||||||
Guarantors [Member] | |||||||||||
Supplemental guarantor information statements of operation | |||||||||||
Net sales | 8,519 | 9,525 | 8,080 | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 7,582 | 8,413 | 7,055 | ||||||||
Selling, general and administrative expenses | 315 | 344 | 338 | ||||||||
Depreciation and amortization | 269 | 258 | 246 | ||||||||
Research and development expenses | 53 | 49 | 43 | ||||||||
Interest expense and amortization of debt issuance costs | 121 | 127 | 87 | ||||||||
Gain on assets held for sale, net | (17) | (6) | |||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Restructuring and impairment, net | 30 | 33 | 59 | ||||||||
Equity in net loss of non-consolidated affiliates | 3 | 5 | 12 | ||||||||
Equity in net income of consolidated subsidiaries | (44) | (30) | (99) | ||||||||
Other (income) expense, net | (105) | (46) | (57) | ||||||||
Total expenses | 8,224 | 9,136 | 7,678 | ||||||||
Income before income taxes | 295 | 389 | 402 | ||||||||
Income tax provision (benefit) | 25 | (8) | 16 | ||||||||
Net (loss) income | 270 | 397 | 386 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net (loss) income attributable to our common shareholder | 270 | 397 | 386 | ||||||||
Comprehensive (loss) income | 302 | 138 | 480 | ||||||||
Less: Comprehensive loss attributable to noncontrolling interest, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to our common shareholder | 302 | 138 | 480 | ||||||||
Non-Guarantors [Member] | |||||||||||
Supplemental guarantor information statements of operation | |||||||||||
Net sales | 2,386 | 2,743 | 2,416 | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 2,169 | 2,514 | 2,158 | ||||||||
Selling, general and administrative expenses | 60 | 77 | 75 | ||||||||
Depreciation and amortization | 65 | 76 | 72 | ||||||||
Research and development expenses | 1 | 1 | 1 | ||||||||
Interest expense and amortization of debt issuance costs | 11 | 7 | 1 | ||||||||
Gain on assets held for sale, net | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Restructuring and impairment, net | 4 | 3 | 8 | ||||||||
Equity in net loss of non-consolidated affiliates | 0 | 0 | 0 | ||||||||
Equity in net income of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other (income) expense, net | 20 | 7 | 11 | ||||||||
Total expenses | 2,330 | 2,685 | 2,326 | ||||||||
Income before income taxes | 56 | 58 | 90 | ||||||||
Income tax provision (benefit) | 17 | 20 | (12) | ||||||||
Net (loss) income | 39 | 38 | 102 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net (loss) income attributable to our common shareholder | 39 | 38 | 102 | ||||||||
Comprehensive (loss) income | (6) | (7) | 153 | ||||||||
Less: Comprehensive loss attributable to noncontrolling interest, net of tax | (11) | (15) | (2) | ||||||||
Comprehensive income attributable to our common shareholder | 5 | 8 | 155 | ||||||||
Eliminations [Member] | |||||||||||
Supplemental guarantor information statements of operation | |||||||||||
Net sales | (1,681) | (1,786) | (1,422) | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | (1,679) | (1,784) | (1,422) | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||
Interest expense and amortization of debt issuance costs | (123) | (127) | (99) | ||||||||
Gain on assets held for sale, net | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Restructuring and impairment, net | 0 | 0 | 0 | ||||||||
Equity in net loss of non-consolidated affiliates | 0 | 0 | 0 | ||||||||
Equity in net income of consolidated subsidiaries | 307 | 433 | 488 | ||||||||
Other (income) expense, net | 123 | 127 | 99 | ||||||||
Total expenses | (1,372) | (1,351) | (934) | ||||||||
Income before income taxes | (309) | (435) | (488) | ||||||||
Income tax provision (benefit) | 0 | 0 | 0 | ||||||||
Net (loss) income | (309) | (435) | (488) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net (loss) income attributable to our common shareholder | (309) | (435) | (488) | ||||||||
Comprehensive (loss) income | (307) | (146) | (635) | ||||||||
Less: Comprehensive loss attributable to noncontrolling interest, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to our common shareholder | $ (307) | $ (146) | $ (635) |
Supplemental Guarantor Infor144
Supplemental Guarantor Information (Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Current assets | |||||
Cash and cash equivalents | $ 556 | $ 628 | $ 509 | $ 301 | $ 301 |
Accounts receivable, net | |||||
— third parties | 956 | 1,289 | |||
— related parties | 59 | 53 | |||
Inventories | 1,180 | 1,431 | |||
Prepaid expenses and other current assets | 127 | 112 | |||
Fair value of derivative instruments | 88 | 77 | |||
Deferred income tax assets | 0 | 79 | |||
Assets held for sale | 5 | 6 | |||
Total current assets | 2,971 | 3,675 | |||
Property, plant and equipment, net | 3,506 | 3,542 | |||
Goodwill | 607 | 607 | |||
Intangible assets, net | 523 | 584 | |||
Investment in and advances to non–consolidated affiliate | 488 | 447 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Deferred income tax assets | 87 | 95 | |||
Other long–term assets | |||||
— third parties | 112 | 137 | |||
— related parties | 16 | 15 | |||
Total assets | 8,310 | 9,102 | |||
Current liabilities | |||||
Current portion of long–term debt | 47 | 108 | |||
Short-term borrowings | |||||
— third parties | 579 | 846 | |||
— related parties | 0 | 0 | |||
Accounts payable | |||||
— third parties | 1,506 | 1,854 | |||
— related parties | 48 | 44 | |||
Fair value of derivative instruments | 85 | 149 | |||
Accrued expenses and other current liabilities | |||||
— third parties | 569 | 572 | |||
— related parties | 0 | 0 | |||
Deferred income tax liabilities | 0 | 20 | |||
Total current liabilities | 2,834 | 3,593 | |||
Long-term debt, net of current portion | |||||
— third parties | 4,451 | 4,349 | |||
— related parties | 0 | 0 | |||
Deferred income tax liabilities | 89 | 261 | |||
Accrued postretirement benefits | 820 | 748 | |||
Other long–term liabilities | 175 | 221 | |||
Total liabilities | $ 8,369 | $ 9,172 | |||
Commitments and contingencies | |||||
Temporary equity - intercompany | $ 0 | $ 0 | |||
Shareholder’s deficit | |||||
Common stock | 0 | 0 | |||
Additional paid–in capital | 1,404 | 1,404 | |||
(Accumulated deficit) retained earnings | (963) | (925) | |||
Accumulated other comprehensive loss | (500) | (561) | (91) | (268) | |
Total deficit of our common shareholder | (59) | (82) | |||
Noncontrolling interests | 0 | 12 | |||
Total deficit | (59) | (70) | 268 | $ 239 | |
Total liabilities and deficit | 8,310 | 9,102 | |||
Parent [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 2 | 4 | 4 | 4 | |
Accounts receivable, net | |||||
— third parties | 23 | 23 | |||
— related parties | 188 | 385 | |||
Inventories | 46 | 55 | |||
Prepaid expenses and other current assets | 5 | 6 | |||
Fair value of derivative instruments | 26 | 19 | |||
Deferred income tax assets | 0 | ||||
Assets held for sale | 0 | 0 | |||
Total current assets | 290 | 492 | |||
Property, plant and equipment, net | 81 | 95 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 17 | 19 | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |||
Investments in consolidated subsidiaries | 2,667 | 2,442 | |||
Deferred income tax assets | 0 | 0 | |||
Other long–term assets | |||||
— third parties | 45 | 57 | |||
— related parties | 1,752 | 1,836 | |||
Total assets | 4,852 | 4,941 | |||
Current liabilities | |||||
Current portion of long–term debt | 21 | 22 | |||
Short-term borrowings | |||||
— third parties | 337 | 394 | |||
— related parties | 20 | 0 | |||
Accounts payable | |||||
— third parties | 43 | 27 | |||
— related parties | 69 | 78 | |||
Fair value of derivative instruments | 19 | 83 | |||
Accrued expenses and other current liabilities | |||||
— third parties | 95 | 99 | |||
— related parties | 0 | 0 | |||
Deferred income tax liabilities | 0 | ||||
Total current liabilities | 604 | 703 | |||
Long-term debt, net of current portion | |||||
— third parties | 4,253 | 4,205 | |||
— related parties | 0 | 49 | |||
Deferred income tax liabilities | 0 | 0 | |||
Accrued postretirement benefits | 32 | 30 | |||
Other long–term liabilities | 22 | 36 | |||
Total liabilities | $ 4,911 | $ 5,023 | |||
Commitments and contingencies | |||||
Temporary equity - intercompany | $ 0 | $ 0 | |||
Shareholder’s deficit | |||||
Common stock | 0 | 0 | |||
Additional paid–in capital | 1,404 | 1,404 | |||
(Accumulated deficit) retained earnings | (963) | (925) | |||
Accumulated other comprehensive loss | (500) | (561) | |||
Total deficit of our common shareholder | (59) | (82) | |||
Noncontrolling interests | 0 | 0 | |||
Total deficit | (59) | (82) | |||
Total liabilities and deficit | 4,852 | 4,941 | |||
Guarantors [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 301 | 365 | 372 | 196 | |
Accounts receivable, net | |||||
— third parties | 716 | 1,034 | |||
— related parties | 139 | 154 | |||
Inventories | 873 | 1,084 | |||
Prepaid expenses and other current assets | 91 | 89 | |||
Fair value of derivative instruments | 49 | 55 | |||
Deferred income tax assets | 70 | ||||
Assets held for sale | 5 | 6 | |||
Total current assets | 2,174 | 2,857 | |||
Property, plant and equipment, net | 2,581 | 2,549 | |||
Goodwill | 596 | 596 | |||
Intangible assets, net | 503 | 562 | |||
Investment in and advances to non–consolidated affiliate | 488 | 447 | |||
Investments in consolidated subsidiaries | 619 | 597 | |||
Deferred income tax assets | 18 | 47 | |||
Other long–term assets | |||||
— third parties | 48 | 70 | |||
— related parties | 16 | 64 | |||
Total assets | 7,043 | 7,789 | |||
Current liabilities | |||||
Current portion of long–term debt | 8 | 8 | |||
Short-term borrowings | |||||
— third parties | 149 | 381 | |||
— related parties | (71) | 122 | |||
Accounts payable | |||||
— third parties | 958 | 1,195 | |||
— related parties | 322 | 393 | |||
Fair value of derivative instruments | 58 | 62 | |||
Accrued expenses and other current liabilities | |||||
— third parties | 398 | 412 | |||
— related parties | 102 | 47 | |||
Deferred income tax liabilities | 20 | ||||
Total current liabilities | 1,924 | 2,640 | |||
Long-term debt, net of current portion | |||||
— third parties | 20 | 28 | |||
— related parties | 1,697 | 1,780 | |||
Deferred income tax liabilities | 87 | 254 | |||
Accrued postretirement benefits | 557 | 534 | |||
Other long–term liabilities | 143 | 175 | |||
Total liabilities | $ 4,428 | $ 5,411 | |||
Commitments and contingencies | |||||
Temporary equity - intercompany | $ 1,681 | $ 1,681 | |||
Shareholder’s deficit | |||||
Common stock | 0 | 0 | |||
Additional paid–in capital | 0 | 0 | |||
(Accumulated deficit) retained earnings | 1,329 | 1,122 | |||
Accumulated other comprehensive loss | (395) | (425) | |||
Total deficit of our common shareholder | 934 | 697 | |||
Noncontrolling interests | 0 | 0 | |||
Total deficit | 934 | 697 | |||
Total liabilities and deficit | 7,043 | 7,789 | |||
Non-Guarantors [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 253 | 259 | 133 | 101 | |
Accounts receivable, net | |||||
— third parties | 217 | 232 | |||
— related parties | 175 | 158 | |||
Inventories | 264 | 294 | |||
Prepaid expenses and other current assets | 31 | 17 | |||
Fair value of derivative instruments | 16 | 9 | |||
Deferred income tax assets | 9 | ||||
Assets held for sale | 0 | 0 | |||
Total current assets | 956 | 978 | |||
Property, plant and equipment, net | 844 | 898 | |||
Goodwill | 11 | 11 | |||
Intangible assets, net | 3 | 3 | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Deferred income tax assets | 69 | 48 | |||
Other long–term assets | |||||
— third parties | 19 | 10 | |||
— related parties | 0 | 0 | |||
Total assets | 1,902 | 1,948 | |||
Current liabilities | |||||
Current portion of long–term debt | 18 | 78 | |||
Short-term borrowings | |||||
— third parties | 93 | 71 | |||
— related parties | 0 | 0 | |||
Accounts payable | |||||
— third parties | 505 | 632 | |||
— related parties | 39 | 42 | |||
Fair value of derivative instruments | 11 | 10 | |||
Accrued expenses and other current liabilities | |||||
— third parties | 76 | 61 | |||
— related parties | 10 | 6 | |||
Deferred income tax liabilities | 0 | ||||
Total current liabilities | 752 | 900 | |||
Long-term debt, net of current portion | |||||
— third parties | 178 | 116 | |||
— related parties | 55 | 56 | |||
Deferred income tax liabilities | 2 | 7 | |||
Accrued postretirement benefits | 231 | 184 | |||
Other long–term liabilities | 10 | 10 | |||
Total liabilities | $ 1,228 | $ 1,273 | |||
Commitments and contingencies | |||||
Temporary equity - intercompany | $ 0 | $ 0 | |||
Shareholder’s deficit | |||||
Common stock | 0 | 0 | |||
Additional paid–in capital | 0 | 0 | |||
(Accumulated deficit) retained earnings | 754 | 711 | |||
Accumulated other comprehensive loss | (80) | (48) | |||
Total deficit of our common shareholder | 674 | 663 | |||
Noncontrolling interests | 0 | 12 | |||
Total deficit | 674 | 675 | |||
Total liabilities and deficit | 1,902 | 1,948 | |||
Eliminations [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Accounts receivable, net | |||||
— third parties | 0 | 0 | |||
— related parties | (443) | (644) | |||
Inventories | (3) | (2) | |||
Prepaid expenses and other current assets | 0 | 0 | |||
Fair value of derivative instruments | (3) | (6) | |||
Deferred income tax assets | 0 | ||||
Assets held for sale | 0 | 0 | |||
Total current assets | (449) | (652) | |||
Property, plant and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |||
Investments in consolidated subsidiaries | (3,286) | (3,039) | |||
Deferred income tax assets | 0 | 0 | |||
Other long–term assets | |||||
— third parties | 0 | 0 | |||
— related parties | (1,752) | (1,885) | |||
Total assets | (5,487) | (5,576) | |||
Current liabilities | |||||
Current portion of long–term debt | 0 | 0 | |||
Short-term borrowings | |||||
— third parties | 0 | 0 | |||
— related parties | 51 | (122) | |||
Accounts payable | |||||
— third parties | 0 | 0 | |||
— related parties | (382) | (469) | |||
Fair value of derivative instruments | (3) | (6) | |||
Accrued expenses and other current liabilities | |||||
— third parties | 0 | 0 | |||
— related parties | (112) | (53) | |||
Deferred income tax liabilities | 0 | ||||
Total current liabilities | (446) | (650) | |||
Long-term debt, net of current portion | |||||
— third parties | 0 | 0 | |||
— related parties | (1,752) | (1,885) | |||
Deferred income tax liabilities | 0 | 0 | |||
Accrued postretirement benefits | 0 | 0 | |||
Other long–term liabilities | 0 | 0 | |||
Total liabilities | $ (2,198) | $ (2,535) | |||
Commitments and contingencies | |||||
Temporary equity - intercompany | $ (1,681) | $ (1,681) | |||
Shareholder’s deficit | |||||
Common stock | 0 | 0 | |||
Additional paid–in capital | 0 | 0 | |||
(Accumulated deficit) retained earnings | (2,083) | (1,833) | |||
Accumulated other comprehensive loss | 475 | 473 | |||
Total deficit of our common shareholder | (1,608) | (1,360) | |||
Noncontrolling interests | 0 | 0 | |||
Total deficit | (1,608) | (1,360) | |||
Total liabilities and deficit | $ (5,487) | $ (5,576) |
Supplemental Guarantor Infor145
Supplemental Guarantor Information (Cash Flow Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | $ 541 | $ 604 | $ 702 |
INVESTING ACTIVITIES | |||
Capital expenditures | (370) | (518) | (717) |
Proceeds from sales of assets, net - third parties | 3 | 117 | 8 |
Proceeds from the sale of assets, net - related parties | 0 | 0 | 8 |
Proceeds (outflows) from investment in and advances to affiliates, net | (2) | (20) | (16) |
(Outflow) proceeds from settlement of undesignated derivative instruments, net | (9) | 5 | 15 |
Net cash used in investing activities | (378) | (416) | (702) |
Proceeds from issuance of debt | |||
— third parties | 174 | 362 | 169 |
— related parties | 0 | 0 | 0 |
Principal payments | |||
— third parties | (216) | (324) | (164) |
— related parties | 0 | 0 | |
Short-term borrowings, net | |||
— third parties | (187) | 160 | 208 |
— related parties | 0 | 0 | 0 |
Return of capital | 0 | ||
Return of capital to our common shareholder | 0 | (250) | 0 |
Dividends, noncontrolling interests | (1) | (1) | 0 |
Debt issuance costs | (15) | (3) | (8) |
Net cash (used in) provided by financing activities | (245) | (56) | 205 |
Net (decrease) increase in cash and cash equivalents | (82) | 132 | 205 |
Effect of exchange rate changes on cash | 10 | (13) | 3 |
Cash and cash equivalents — beginning of period | 628 | 509 | 301 |
Cash and cash equivalents — end of period | 556 | 628 | 509 |
Parent [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | (6) | 29 | 144 |
INVESTING ACTIVITIES | |||
Capital expenditures | (10) | (17) | (22) |
Proceeds from sales of assets, net - third parties | 1 | 29 | 0 |
Proceeds from the sale of assets, net - related parties | 0 | ||
Proceeds (outflows) from investment in and advances to affiliates, net | 180 | 250 | (261) |
(Outflow) proceeds from settlement of undesignated derivative instruments, net | (107) | (19) | (21) |
Net cash used in investing activities | 64 | 243 | (304) |
Proceeds from issuance of debt | |||
— third parties | $ 59 | 0 | 0 |
— related parties | 0 | 0 | |
Principal payments | |||
— third parties | $ (18) | (21) | (19) |
— related parties | (49) | 0 | |
Short-term borrowings, net | |||
— third parties | (57) | 27 | 162 |
— related parties | 20 | (25) | 25 |
Return of capital | 0 | ||
Return of capital to our common shareholder | (250) | ||
Dividends, noncontrolling interests | 0 | 0 | 0 |
Debt issuance costs | (15) | (3) | (8) |
Net cash (used in) provided by financing activities | (60) | (272) | 160 |
Net (decrease) increase in cash and cash equivalents | (2) | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Cash and cash equivalents — beginning of period | 4 | 4 | |
Cash and cash equivalents — end of period | 2 | 4 | 4 |
Guarantors [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | 728 | 606 | 834 |
INVESTING ACTIVITIES | |||
Capital expenditures | (314) | (404) | (492) |
Proceeds from sales of assets, net - third parties | 2 | 88 | 7 |
Proceeds from the sale of assets, net - related parties | 8 | ||
Proceeds (outflows) from investment in and advances to affiliates, net | 47 | 5 | (41) |
(Outflow) proceeds from settlement of undesignated derivative instruments, net | 117 | 23 | 21 |
Net cash used in investing activities | (148) | (288) | (497) |
Proceeds from issuance of debt | |||
— third parties | 48 | 315 | 147 |
— related parties | 140 | 500 | 0 |
Principal payments | |||
— third parties | (141) | (266) | (143) |
— related parties | (82) | (80) | |
Short-term borrowings, net | |||
— third parties | (158) | 97 | 44 |
— related parties | (193) | (686) | 208 |
Return of capital | 0 | ||
Return of capital to our common shareholder | 0 | ||
Dividends, noncontrolling interests | (265) | (191) | (420) |
Debt issuance costs | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (651) | (311) | (164) |
Net (decrease) increase in cash and cash equivalents | (71) | 7 | 173 |
Effect of exchange rate changes on cash | 7 | (14) | 3 |
Cash and cash equivalents — beginning of period | 365 | 372 | |
Cash and cash equivalents — end of period | 301 | 365 | 372 |
Non-Guarantors [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | 85 | 161 | 233 |
INVESTING ACTIVITIES | |||
Capital expenditures | (46) | (97) | (203) |
Proceeds from sales of assets, net - third parties | 0 | 0 | 1 |
Proceeds from the sale of assets, net - related parties | 0 | ||
Proceeds (outflows) from investment in and advances to affiliates, net | (65) | 0 | 0 |
(Outflow) proceeds from settlement of undesignated derivative instruments, net | (19) | 1 | 15 |
Net cash used in investing activities | (130) | (96) | (187) |
Proceeds from issuance of debt | |||
— third parties | $ 67 | 47 | 22 |
— related parties | 3 | 56 | |
Principal payments | |||
— third parties | $ (57) | (37) | (2) |
— related parties | 0 | 0 | |
Short-term borrowings, net | |||
— third parties | 28 | 36 | 2 |
— related parties | 0 | 0 | 0 |
Return of capital | (3) | ||
Return of capital to our common shareholder | 13 | ||
Dividends, noncontrolling interests | (2) | (2) | (89) |
Debt issuance costs | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 36 | 60 | (14) |
Net (decrease) increase in cash and cash equivalents | (9) | 125 | 32 |
Effect of exchange rate changes on cash | 3 | 1 | 0 |
Cash and cash equivalents — beginning of period | 259 | 133 | |
Cash and cash equivalents — end of period | 253 | 259 | 133 |
Eliminations [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | $ (266) | (192) | (509) |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | |
Proceeds from sales of assets, net - third parties | $ 0 | 0 | 0 |
Proceeds from the sale of assets, net - related parties | 0 | ||
Proceeds (outflows) from investment in and advances to affiliates, net | (164) | (275) | 286 |
(Outflow) proceeds from settlement of undesignated derivative instruments, net | 0 | 0 | 0 |
Net cash used in investing activities | (164) | (275) | 286 |
Proceeds from issuance of debt | |||
— third parties | 0 | 0 | 0 |
— related parties | (140) | (503) | (56) |
Principal payments | |||
— third parties | 0 | 0 | 0 |
— related parties | 131 | 80 | |
Short-term borrowings, net | |||
— third parties | 0 | 0 | 0 |
— related parties | 173 | 711 | (233) |
Return of capital | 3 | ||
Return of capital to our common shareholder | (13) | ||
Dividends, noncontrolling interests | 266 | 192 | 509 |
Debt issuance costs | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 430 | $ 467 | 223 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | |
Effect of exchange rate changes on cash | 0 | $ 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 | |
Cash and cash equivalents — end of period | $ 0 | $ 0 | $ 0 |