Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2021 | Feb. 04, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2021 | |
Entity File Number | 001-32312 | |
Entity Registrant Name | Novelis Inc. | |
Entity Tax Identification Number | 98-0442987 | |
Entity Address, Address Line One | 3560 Lenox Road, Suite 2000 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 760-4000 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001304280 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Document Quarterly Report | true |
Document and Entity Informati_2
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2021 | Feb. 04, 2022 | |
Document and Entity Information [Abstract] | ||
Document Period End Date | Dec. 31, 2021 | |
Entity File Number | 001-32312 | |
Entity Registrant Name | Novelis Inc. | |
Entity Tax Identification Number | 98-0442987 | |
Entity Address, Address Line One | 3560 Lenox Road, Suite 2000 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 760-4000 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001304280 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,326 | $ 3,241 | $ 12,300 | $ 8,645 |
Cost of goods sold (exclusive of depreciation and amortization) | 3,613 | 2,578 | 10,150 | 7,063 |
Selling, general and administrative expenses | 156 | 149 | 457 | 400 |
Depreciation and amortization | 137 | 137 | 405 | 396 |
Interest expense and amortization of debt issuance costs | 54 | 66 | 173 | 206 |
Research and development expenses | 23 | 20 | 68 | 57 |
Loss on extinguishment of debt, net | 1 | 0 | 63 | 0 |
Restructuring and impairment expenses, net | 3 | 20 | 1 | 28 |
Equity in net (income) loss of non-consolidated affiliates | (7) | 3 | (8) | 1 |
Business acquisition and other related costs | 0 | 0 | 0 | 11 |
Other (income) expenses, net | (2) | (7) | (86) | 86 |
Total expenses | 3,978 | 2,966 | 11,223 | 8,248 |
Income from continuing operations before income tax provision | 348 | 275 | 1,077 | 397 |
Income tax provision | 89 | 80 | 276 | 119 |
Net income from continuing operations | 259 | 195 | 801 | 278 |
Income (loss) from discontinued operations, net of tax | 3 | (18) | (62) | (47) |
Loss on sale of discontinued operations, net of tax | 0 | 0 | 0 | (170) |
Net income (loss) from discontinued operations | 3 | (18) | (62) | (217) |
Net income | 262 | 177 | 739 | 61 |
Net income attributable to noncontrolling interests | 0 | 1 | 0 | 1 |
Net income attributable to our common shareholder | $ 262 | $ 176 | $ 739 | $ 60 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 262 | $ 177 | $ 739 | $ 61 |
Other comprehensive income (loss): | ||||
Currency translation adjustment | 6 | 170 | (28) | 321 |
Net change in fair value of effective portion of cash flow hedges | 162 | 35 | (43) | (36) |
Net change in pension and other benefits | 7 | 0 | 17 | 87 |
Other comprehensive income (loss) before income tax effect | 175 | 205 | (54) | 372 |
Income tax provision (benefit) related to items of other comprehensive income (loss) | 43 | 12 | (5) | 14 |
Other comprehensive income (loss), net of tax | 132 | 193 | (49) | 358 |
Comprehensive income | 394 | 370 | 690 | 419 |
Comprehensive income attributable to noncontrolling interests, net of tax | 1 | 2 | 1 | 5 |
Comprehensive income attributable to our common shareholder | $ 393 | $ 368 | $ 689 | $ 414 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 808,000,000 | $ 998,000,000 |
Accounts receivable, net | ||
— third parties (net of allowance for credit losses of $6 and $5 as of December 31, 2021 and March 31, 2021, respectively) | 2,247,000,000 | 1,687,000,000 |
— related parties | 260,000,000 | 166,000,000 |
Inventories | 2,912,000,000 | 1,928,000,000 |
Prepaid expenses and other current assets | 155,000,000 | 198,000,000 |
Fair value of derivative instruments | 217,000,000 | 137,000,000 |
Assets held for sale | 5,000,000 | 5,000,000 |
Current assets of discontinued operations | 6,000,000 | 15,000,000 |
Total current assets | 6,610,000,000 | 5,134,000,000 |
Property, plant and equipment, net | 4,614,000,000 | 4,687,000,000 |
Goodwill | 1,082,000,000 | 1,083,000,000 |
Intangible assets, net | 637,000,000 | 696,000,000 |
Investment in and advances to non–consolidated affiliates | 840,000,000 | 838,000,000 |
Deferred income tax assets | 125,000,000 | 130,000,000 |
Other long–term assets | ||
— third parties | 280,000,000 | 316,000,000 |
Other long–term assets — related parties | 1,000,000 | 1,000,000 |
Total assets | 14,189,000,000 | 12,885,000,000 |
Current liabilities: | ||
Current portion of long–term debt | 340,000,000 | 71,000,000 |
Short–term borrowings | 373,000,000 | 236,000,000 |
Accounts payable | ||
— third parties | 3,147,000,000 | 2,498,000,000 |
— related parties | 356,000,000 | 230,000,000 |
Fair value of derivative instruments | 407,000,000 | 280,000,000 |
Accrued expenses and other current liabilities | 727,000,000 | 670,000,000 |
Current liabilities of discontinued operations | 21,000,000 | 16,000,000 |
Total current liabilities | 5,371,000,000 | 4,001,000,000 |
Long–term debt, net of current portion | 4,984,000,000 | 5,653,000,000 |
Deferred income tax liabilities | 223,000,000 | 162,000,000 |
Accrued postretirement benefits | 841,000,000 | 878,000,000 |
Other long–term liabilities | 294,000,000 | 305,000,000 |
Total liabilities | 11,713,000,000 | 10,999,000,000 |
Commitments and contingencies | ||
Shareholder’s equity: | ||
Common stock, no par value; Unlimited number of shares authorized; 1,000 shares issued and outstanding as of December 31, 2021 and March 31, 2021 | 0 | 0 |
Additional paid–in capital | 1,304,000,000 | 1,404,000,000 |
Retained earnings | 1,603,000,000 | 864,000,000 |
Accumulated other comprehensive loss | (416,000,000) | (366,000,000) |
Total equity of our common shareholder | 2,491,000,000 | 1,902,000,000 |
Noncontrolling interests | (15,000,000) | (16,000,000) |
Total equity | 2,476,000,000 | 1,886,000,000 |
Total liabilities and equity | $ 14,189,000,000 | $ 12,885,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Financial Position [Abstract] | |||
Accounts Receivable, Allowance for Credit Loss | $ 6 | $ 5 | |
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited | |
Common stock, shares issued | 1 | 1 | |
Common stock, shares outstanding | 1 | 1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||||
Net income | $ 262 | $ 177 | $ 739 | $ 61 |
Income (loss) from discontinued operations, net of tax | 3 | (18) | (62) | (47) |
Net income from continuing operations | 259 | 195 | 801 | 278 |
Adjustments to determine net cash provided by operating activities: | ||||
Depreciation and amortization | 137 | 137 | 405 | 396 |
Loss (gain) on unrealized derivatives and other realized derivatives in investing activities, net | 17 | (8) | ||
Gain on sale of business | 0 | (15) | 0 | |
Loss on sale of assets | 3 | 2 | 5 | 0 |
Loss on extinguishment of debt, net | 1 | 0 | 63 | 0 |
Deferred income taxes, net | 75 | 1 | ||
Equity in net (income) loss of non-consolidated affiliates | (7) | 3 | (8) | 1 |
Gain on foreign exchange remeasurement of debt | (6) | (2) | ||
Amortization of debt issuance costs and carrying value adjustments | 14 | 21 | ||
Other, net | 6 | 0 | ||
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||||
Accounts receivable | (702) | (174) | ||
Inventories | (1,036) | 83 | ||
Accounts payable | 843 | 154 | ||
Other assets | 24 | 68 | ||
Other liabilities | 17 | (170) | ||
Net cash provided by operating activities - continuing operations | 503 | 648 | ||
Net cash provided by (used in) operating activities - discontinued operations | 12 | (78) | ||
Net cash provided by operating activities | 515 | 570 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | (93) | (107) | (287) | (333) |
Acquisition of business, net of cash and restricted cash acquired | 0 | (2,614) | ||
Proceeds from sales of assets, third party, net of transaction fees and hedging | 0 | 4 | ||
Proceeds from the sale of a business | 9 | 0 | ||
Proceeds from investment in and advances to non-consolidated affiliates, net | 1 | 10 | ||
Outflows from the settlement of derivative instruments, net | (11) | (3) | ||
Other | 11 | 9 | ||
Net cash used in investing activities - continuing operations | (277) | (2,927) | ||
Net cash provided by investing activities - discontinued operations | 0 | 357 | ||
Net cash used in investing activities | (277) | (2,570) | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term and short-term borrowings | 1,670 | 1,972 | ||
Principal payments of long-term and short-term borrowings | (2,034) | (589) | ||
Revolving credit facilities and other, net | 39 | (609) | ||
Debt issuance costs | (25) | (25) | ||
Contingent consideration paid in acquisition of business | 0 | (9) | ||
Return of capital to our common shareholder | (100) | 0 | ||
Net cash (used in) provided by financing activities - continuing operations | (450) | 740 | ||
Net cash used in financing activities - discontinued operations | 0 | (2) | ||
Net cash (used in) provided by financing activities | (450) | 738 | ||
Net decrease in cash, cash equivalents and restricted cash | (212) | (1,262) | ||
Effect of exchange rate changes on cash | 7 | 53 | ||
Cash, cash equivalents and restricted cash — beginning of period | 1,027 | 2,402 | ||
Cash, cash equivalents and restricted cash — end of period | 822 | 1,193 | 822 | 1,193 |
Cash and cash equivalents | 808 | 1,164 | 808 | 1,164 |
Restricted cash (Included in other long–term assets) | 14 | 15 | 14 | 15 |
Restricted cash (Included in prepaid expenses and other current assets) | $ 0 | $ 14 | 0 | 14 |
Supplemental Disclosures: | ||||
Accrued capital expenditures as of December 31 | $ 67 | $ 72 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | (Accumulated Deficit)/Retained Earnings | Accumulated Other Comprehensive Loss (AOCI) | Non- controlling Interests |
Beginning balance, shares at Mar. 31, 2020 | 1,000 | |||||
Beginning balance at Mar. 31, 2020 | $ 1,361 | $ 0 | $ 1,404 | $ 628 | $ (620) | $ (51) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 60 | 60 | ||||
Net income attributable to noncontrolling interests | 1 | 1 | ||||
Currency translation adjustment included in AOCI | 321 | 321 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (29) | (29) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (66) | (62) | (4) | |||
Ending balance, shares at Dec. 31, 2020 | 1,000 | |||||
Ending balance at Dec. 31, 2020 | 1,780 | $ 0 | 1,404 | 688 | (266) | (46) |
Beginning balance, shares at Sep. 30, 2020 | 1,000 | |||||
Beginning balance at Sep. 30, 2020 | 1,410 | $ 0 | 1,404 | 512 | (458) | (48) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 176 | 176 | ||||
Net income attributable to noncontrolling interests | 1 | 1 | ||||
Currency translation adjustment included in AOCI | 170 | 170 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 23 | 23 | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 0 | 1 | (1) | |||
Ending balance, shares at Dec. 31, 2020 | 1,000 | |||||
Ending balance at Dec. 31, 2020 | 1,780 | $ 0 | 1,404 | 688 | (266) | (46) |
Beginning balance, shares at Mar. 31, 2021 | 1,000 | |||||
Beginning balance at Mar. 31, 2021 | 1,886 | $ 0 | 1,404 | 864 | (366) | (16) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 739 | 739 | ||||
Net income attributable to noncontrolling interests | 0 | |||||
Currency translation adjustment included in AOCI | (28) | (28) | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (32) | (32) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (11) | (10) | (1) | |||
Return of capital to our common shareholder | (100) | |||||
Ending balance, shares at Dec. 31, 2021 | 1,000 | |||||
Ending balance at Dec. 31, 2021 | 2,476 | $ 0 | 1,304 | 1,603 | (416) | (15) |
Beginning balance, shares at Sep. 30, 2021 | 1,000 | |||||
Beginning balance at Sep. 30, 2021 | 2,082 | $ 0 | 1,304 | 1,341 | (547) | (16) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 262 | 262 | ||||
Net income attributable to noncontrolling interests | 0 | |||||
Currency translation adjustment included in AOCI | 6 | 6 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 120 | 120 | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (6) | (5) | (1) | |||
Return of capital to our common shareholder | (100) | |||||
Ending balance, shares at Dec. 31, 2021 | 1,000 | |||||
Ending balance at Dec. 31, 2021 | $ 2,476 | $ 0 | $ 1,304 | $ 1,603 | $ (416) | $ (15) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) (Parenthetical) - Accumulated Other Comprehensive Loss (AOCI) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | $ 42 | $ 12 | $ (11) | $ (7) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 1 | $ 0 | $ 6 | $ 21 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. 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. Organization and Description of Business We produce aluminum plate, 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, aerospace, 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 December 31, 2021, we had manufacturing operations in nine countries on four continents: North America, South America, Asia, and Europe, through 33 operating facilities, which may include any combination of hot or cold rolling, finishing, casting, or recycling capabilities. We have recycling operations in 15 of our operating facilities. The March 31, 2021 condensed consolidated balance sheet data was derived from the March 31, 2021 audited financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our 2021 Form 10-K. Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed 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 intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control but have the ability to exercise significant influence over operating and financial policies. Consolidated net income attributable to our common shareholder includes our share of net income or 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 condensed 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 (income) loss of non-consolidated affiliates. Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, 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) impairment of goodwill; (2) actuarial assumptions related to pension and other postretirement benefit plans; (3) tax uncertainties and valuation allowances; (4) assessment of loss contingencies, including environmental and litigation liabilities; (5) the fair value of derivative financial instruments; and (6) the fair value of the contingent consideration resulting from the sale of Duffel. 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 condensed 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 & Uncertainty resulting from COVID-19 Beginning late in the fourth quarter of fiscal 2020 and carrying into the current fiscal year, the COVID-19 pandemic and its unprecedented negative economic implications have affected production and sales across a range of industries around the world. Our global operations, similar to those of many other large, multi-national corporations, have felt this impact on customer demand, disruptions to our supply chain, interruptions to our production, and delays of shipments to our customers, mainly in the first quarter of fiscal 2021. While much of our customer demand and shipments recovered in the majority of our end markets, the overall extent of the impact of the COVID-19 pandemic on our operating results, cash flows, liquidity, and financial condition will depend on certain developments, including the duration and spread of the outbreak (including the emergence of variants of the virus) and its impact on our customers, employees, and vendors. We believe this will be primarily driven by the severity and duration of the pandemic, the pandemic’s impact on the U.S. and global economies, and the timing, scope, and effectiveness of federal, state, and local governmental responses, including the distribution and adoption of vaccines. Although we have made our best estimates based upon current information, the effects of the COVID-19 pandemic on our business may result in future changes to our estimates and assumptions based on its duration. Actual results could materially differ from the estimates and assumptions developed by management. If so, we may be subject to future impairment charges as well as changes to recorded reserves and valuations. Recently Issued Accounting Standards (Not yet adopted) |
Business Combination
Business Combination | 9 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
2. BUSINESS COMBINATION | 2. BUSINESS COMBINATION On April 14, 2020, Novelis completed its acquisition of 100% of the issued and outstanding shares of Aleris, a global supplier of rolled aluminum products. The Company's condensed consolidated statement of operations for the nine months ended December 31, 2020 includes the results of operations for Aleris from the acquisition date of April 14, 2020 to December 31, 2020. The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three and nine months ended December 31, 2020 as if the acquisition of Aleris had occurred on April 1, 2019. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of Aleris been completed on April 1, 2019. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies, or other synergies that may be associated with the acquisition or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Aleris. Three Months Ended December 31, Nine Months Ended December 31, in millions 2020 2020 Net sales $ 3,241 $ 8,699 Net income 97 15 The unaudited pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the acquisition had occurred on April 1, 2019 to give effect to certain events the Company believes to be directly attributable to the acquisition. These pro forma adjustments primarily include: • the elimination of Aleris historical depreciation and amortization expense and the recognition of new depreciation and amortization expense; • an adjustment to interest expense to reflect the additional borrowings of the Company in conjunction with the acquisition and the repayment of Aleris’ historical debt in conjunction with the acquisition; • an adjustment to present acquisition-related transaction costs and other one-time costs directly attributable to the acquisition as if they were incurred in the earliest period presented; and • the related income tax effects of the adjustments noted above. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
3. DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On April 14, 2020, we closed the acquisition of Aleris for $2.8 billion. As a result of the antitrust review processes in the EU, the U.S., and China required for approval of the acquisition, we were obligated to divest Aleris' European and North American automotive assets, including the Duffel and Lewisport plants. On September 30, 2020, we completed the sale of Duffel to Liberty House Group through its subsidiary, ALVANCE, the international aluminum business of the GFG Alliance. Upon closing, we received €210 million ($246 million as of September 30, 2020) in cash and a €100 million ($117 million as of September 30, 2020) receivable that was deemed to be contingent consideration. In addition, we recorded a €15 million ($18 million) receivable for net debt and working capital adjustments. As of June 30, 2021, Novelis marked all outstanding receivables related to the sale of Duffel to an estimated fair value of €45 million ($53 million), which resulted in a loss of €51 million ($61 million) recorded in loss from discontinued operations, net of tax. As of December 31, 2021, there has been no change to this fair value, and the receivable is included in other long–term assets in our condensed consolidated balance sheet as of December 31, 2021. There is no assurance as to when we expect the post-closing arbitration process to conclude or whether we will receive any of the contingent consideration. On November 8, 2020, we entered into a definitive agreement with American Industrial Partners for the sale of Lewisport and closed the sale on November 30, 2020. Upon closing, we received $180 million in cash proceeds. In addition, we received $19 million for net working capital adjustments during the third quarter of fiscal 2022. |
Restructuring and Impairment, N
Restructuring and Impairment, Net | 9 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
4. RESTRUCTURING AND IMPAIRMENT | 4. RESTRUCTURING AND IMPAIRMENT Restructuring and impairment expenses, net includes restructuring costs, impairments, and other related expenses or reversal of expenses. Restructuring and impairment expenses, net for the three months ended December 31, 2021 was $3 million primarily related to reorganization activities resulting from the Aleris acquisition. Restructuring and impairment expenses, net for the nine months ended December 31, 2021 totaled a net expense of $1 million primarily related to reorganization activities resulting from the Aleris acquisition, mostly offset by a partial release of certain restructuring liabilities as a result of changes in estimated costs. Restructuring and impairment expenses, net for the three and nine months ended December 31, 2020 totaled $20 million and $28 million in expenses, respectively, primarily related to severance and other employment costs resulting from the reorganization and right-sizing of the acquired Aleris business. The following table summarizes our restructuring liability activity. in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2020 $ 1 $ 21 $ — $ 12 $ — $ 34 Restructuring and impairment expenses, net 4 16 — — 8 28 Cash payments (3) (15) — (3) (4) (25) Foreign currency and other — 1 — — — 1 Restructuring liability balance as of December 31, 2020 $ 2 $ 23 $ — $ 9 $ 4 $ 38 in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2021 $ 3 $ 19 $ — $ 9 $ 3 $ 34 Restructuring and impairment expenses (reversal), net 2 (4) 2 1 — 1 Cash payments (3) (11) (1) (2) (3) (20) Foreign currency and other — (1) — (1) — (2) Restructuring liability balance as of December 31, 2021 (1) $ 2 $ 3 $ 1 $ 7 $ — $ 13 ____________________ (1) As of December 31, 2021, the restructuring liability totaled $13 million with $7 million included in accrued expenses and other current liabilities and the remainder is within other long–term liabilities on our accompanying condensed consolidated balance sheet. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
5. INVENTORIES | 5. INVENTORIES Inventories consists of the following. in millions December 31, March 31, Finished goods $ 697 $ 455 Work in process 1,327 874 Raw materials 667 407 Supplies 221 192 Inventories $ 2,912 $ 1,928 |
Consolidation
Consolidation | 9 Months Ended |
Dec. 31, 2021 | |
Consolidation [Abstract] | |
6. CONSOLIDATION | 6. CONSOLIDATION Variable Interest Entities 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. Logan is a consolidated joint venture in which we hold 40% ownership. Our joint venture partner is Tri-Arrows. Logan processes metal received from Novelis and Tri-Arrows and charges the respective partner a fee to cover expenses. Logan is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from Novelis and Tri-Arrows to fund its operations. Novelis is considered the primary beneficiary and consolidates Logan since it has the power to direct activities that most significantly impact Logan's economic performance, an obligation to absorb expected losses, and the right to receive benefits that could potentially be significant to the VIE. Other than the contractually required reimbursements, we do not provide other material support to Logan. Logan's creditors do not have recourse to our general credit. 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. The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets. in millions December 31, March 31, ASSETS Current assets: Cash and cash equivalents $ 3 $ 5 Accounts receivable, net 57 69 Inventories 98 81 Prepaid expenses and other current assets 4 4 Total current assets 162 159 Property, plant and equipment, net 22 19 Goodwill 12 12 Deferred income tax assets 56 57 Other long–term assets 8 8 Total assets $ 260 $ 255 LIABILITIES Current liabilities: Accounts payable $ 45 $ 38 Accrued expenses and other current liabilities 24 26 Total current liabilities 69 64 Accrued postretirement benefits 212 214 Other long–term liabilities 5 5 Total liabilities $ 286 $ 283 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 9 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
7. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | 7. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS Included in the accompanying condensed consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates. Alunorf Alunorf is a joint venture investment between Novelis Deutschland GmbH, a subsidiary of Novelis, and Hydro Aluminum Deutschland GmbH. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the production capacity of the facility. Alunorf tolls aluminum and charges the respective partner a fee to cover the associated expenses. UAL UAL is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe. UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from Novelis and Kobe. UAL is controlled by an equally represented Board of Directors in which neither entity has sole decision-making ability regarding production operations or other significant decisions. Furthermore, neither entity has the ability to take the majority share of production or associated costs over the life of the joint venture. Our risk of loss is limited to the carrying value of our investment in and inventory-related receivables from UAL. UAL's creditors do not have recourse to our general credit. Therefore, Novelis is not considered the primary beneficiary, and UAL is accounted for as an equity method investment. UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of December 31, 2021, each of the parties to the joint venture holds a 50% interest in the equity of UAL. AluInfra AluInfra is a joint venture investment between Novelis Switzerland SA, a subsidiary of Novelis, and Constellium N.V. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the facility. The following table summarizes the results of operations of our equity method affiliates in the aggregate and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Net sales $ 481 $ 307 $ 1,255 $ 872 Costs and expenses related to net sales 446 311 1,193 862 Income tax provision (benefit) 10 (2) 17 3 Net income (loss) $ 25 $ (2) $ 45 $ 7 Purchases of tolling services from Alunorf $ 87 $ 60 $ 226 $ 185 The following table describes related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. in millions December 31, March 31, Accounts receivable, net — related parties $ 260 $ 166 Other long–term assets — related parties 1 1 Accounts payable — related parties 356 230 Transactions with Hindalco We occasionally have related party transactions with Hindalco. During the three and nine months ended December 31, 2021 and 2020, we recorded net sales of less than $1 million between Novelis and Hindalco related primarily to sales of equipment and other services. As of December 31, 2021 and March 31, 2021, there was $2 million of outstanding accounts receivable, net — related parties net of accounts payable — related parties related to transactions with Hindalco. During the three and nine months ended December 31, 2021, Novelis purchased less than $1 million and $2 million in raw materials from Hindalco, respectively. Return of Capital |
Debt
Debt | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 8. DEBT Debt consists of the following. December 31, 2021 March 31, 2021 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short–term borrowings 2.65 % $ 373 $ — $ 373 $ 236 $ — $ 236 Floating rate Term Loan Facility, due June 2022 2.07 % 315 (1) 314 648 (5) 643 Floating rate Term Loan Facility, due January 2025 1.97 % 761 (11) 750 767 (15) 752 Floating rate Term Loan Facility, due March 2028 2.22 % 496 (8) 488 480 (9) 471 Zhenjiang Term Loans, due May 2024 — — — 124 2 126 5.875% Senior Notes, due September 2026 — — — 1,500 (13) 1,487 3.25% Senior Notes, due November 2026 3.25 % 750 (10) 740 — — — 3.375% Senior Notes, due April 2029 3.375 % 569 (11) 558 588 (13) 575 4.75% Senior Notes, due January 2030 4.75 % 1,600 (26) 1,574 1,600 (28) 1,572 3.875% Senior Notes, due August 2031 3.875 % 750 (10) 740 — — — China Bank loans, due August 2027 4.90 % 78 — 78 76 — 76 1.8% Brazil Loan due June 2023 1.80 % 30 — 30 — — — 1.8% Brazil Loan due December 2023 1.80 % 20 — 20 — — — Finance lease obligations and other debt, due through June 2028 (3) 2.25 % 32 — 32 22 — 22 Total debt $ 5,774 $ (77) $ 5,697 $ 6,041 $ (81) $ 5,960 Less: Short–term borrowings (373) — (373) (236) — (236) Less: Current portion of long–term debt (341) 1 (340) (71) — (71) Long–term debt, net of current portion $ 5,060 $ (76) $ 4,984 $ 5,734 $ (81) $ 5,653 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of December 31, 2021 and therefore exclude the effects of accretion and amortization of debt issuance costs related to refinancing transactions and additional borrowings. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (2) Amounts include unamortized debt issuance costs, fair value adjustments, and debt discounts. (3) During the nine months ended December 31, 2021, Novelis obtained $17 million of leased assets in exchange for new finance lease liabilities. Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of December 31, 2021 for our debt denominated in foreign currencies are as follows (in millions). As of December 31, 2021 Amount Short-term borrowings and current portion of long-term debt due within one year $ 714 2 years 81 3 years 32 4 years 758 5 years 776 Thereafter 3,413 Total $ 5,774 Short-Term Borrowings As of December 31, 2021, our short-term borrowings totaled $373 million, which consisted of $150 million in Brazil loans, $122 million of borrowings on our ABL Revolver, $100 million in China loans (CNY 640 million), and $1 million in other short-term borrowings. Term Loan Facility During the nine months ended December 31, 2021, we made $300 million in principal payments beyond our quarterly amortization payments on our Floating rate Term Loan Facility, due June 2022. As a result of these payments, we recorded a loss on extinguishment of debt of $2 million during fiscal 2022. As of December 31, 2021, we were in compliance with the covenants of our Term Loan Facility. ABL Revolver In October 2021, we entered into an amendment to our existing ABL Revolver. Prior to the USD LIBOR transition date, loans denominated in USD under the ABL Revolver will continue to bear interest at a rate of LIBOR plus a spread of 1.25% to 1.75% based on excess availability. The amendment provides that on and after the USD LIBOR transition date, loans denominated in USD will bear interest at a rate of the applicable replacement reference plus a spread of 1.25% to 1.75% as adjusted under the terms of the ABL Revolver based on excess availability. In the case of USD loans accruing interest at Daily Simple SOFR, the margin adjustment is 0.11448% so the applicable interest rate would be Daily Simple SOFR plus a spread of approximately 1.36% to 1.86% depending on availability. The USD LIBOR transition date is defined as the earlier of (a) when the ICE Benchmark Administration ceases to provide the USD LIBOR and there is no available tenor of USD LIBOR or the Financial Conduct Authority announces all available tenors of USD LIBOR are no longer representative or (b) an early opt-in effective date. The ABL Revolver also permits us to elect to borrow USD loans that accrue interest at a base rate (determined based on the greater of a prime rate or an adjusted federal funds rate) plus a prime spread of .25% to .75% based on excess availability. The amendment also provides for replacement reference rates for loans denominated in euros, British pounds, and Swiss francs upon the transition event applicable to each such currency. As of December 31, 2021, we had $122 million in borrowings under our ABL Revolver and were in compliance with debt covenants. We utilized $39 million of our ABL Revolver for letters of credit. We had availability of $1.3 billion on the ABL Revolver, including $136 million of remaining availability that can be utilized for letters of credit. Zhenjiang Term Loans In May 2021, the Zhenjiang Term Loans were repaid in full, and the covenants under the agreement are no longer in effect. As a result of this transaction, we recorded a gain on extinguishment of debt of $2 million in the first quarter of fiscal 2022. Senior Notes In August 2021, Novelis Corporation, a wholly owned subsidiary of Novelis Inc., issued $750 million in aggregate principal amount of 3.25% Senior Notes due November 2026 and $750 million in aggregate principal amount of 3.875% Senior Notes due August 2031 (together with the 3.25% Senior Notes due November 2026, the 3.375% Senior Notes due April 2029, and the 4.75% Senior Notes due January 2030, the "Senior Notes"). The 3.25% Senior Notes due November 2026 will mature on November 15, 2026 and are subject to semi-annual interest payments that will accrue at a rate of 3.25% per year. The 3.875% Senior Notes due August 2031 will mature on August 15, 2031 and are subject to semi-annual interest payments that will accrue at a rate of 3.875% per year. The net proceeds of the offering, together with cash on hand, were used to (i) fund the redemption of all of the 5.875% Senior Notes due September 2026, plus the redemption premium and accrued and unpaid interest thereon and (ii) pay certain fees and expenses in connection with the foregoing and the offering of the notes. We incurred debt issuance costs of $11 million for each of the 3.25% Senior Notes due November 2026 and the 3.875% Senior Notes due August 2031, which will be amortized as an increase to interest expense and amortization of debt issuance costs over the term of the note. As a result of this transaction, we recorded a loss on extinguishment of debt of $63 million in the second quarter of fiscal 2022, $51 million of which related to the redemption premium and was paid with cash on hand. The Senior Notes are guaranteed, jointly and severally, on a senior unsecured basis, by Novelis Inc. and certain of its subsidiaries. The Senior 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 Novelis' subsidiaries to pay dividends or make other distributions to Novelis or certain of Novelis' subsidiaries, as applicable, (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 Senior Notes and no default or event of default under the indenture has occurred and is continuing, most of the covenants will be suspended. The Senior Notes include customary events of default, including a cross-acceleration event of default. The Senior Notes also contain customary call protection provisions for our bondholders that extend through November 2023 for the 3.25% Senior Notes due November 2026, through April 2024 for the 3.375% Senior Notes due April 2029, through January 2025 for the 4.75% Senior Notes due January 2030, and through August 2026 for the 3.875% Senior Notes due August 2031. As of December 31, 2021, we were in compliance with the covenants of our Senior Notes. Brazil Loans In the third quarter of fiscal 2022, we borrowed $30 million of bank loans. These bank loans are due June 16, 2023 and are subject to 1.8% interest due in full at the maturity date. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
9. SHARE-BASED COMPENSATION | 9. SHARE-BASED COMPENSATION During the nine months ended December 31, 2021, we granted 1,768,851 Hindalco phantom RSUs and 2,394,764 Hindalco SARs. Total compensation expense was $6 million and $30 million for the three and nine months ended December 31, 2021, respectively. Total compensation expense was $13 million and $25 million for the three and nine months ended December 31, 2020, respectively. As of December 31, 2021, the outstanding liability related to share-based compensation was $26 million. The cash payments made to settle all Hindalco SAR liabilities were $22 million and $2 million in the nine months ended December 31, 2021 and 2020, respectively. Total cash payments made to settle RSUs were $17 million and $4 million in the nine months ended December 31, 2021 and 2020, respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $10 million, which is expected to be recognized over a weighted average period of 1.2 years. Unrecognized compensation expense related to the RSUs was $12 million, which will be recognized over the remaining weighted average vesting period of 1.4 years. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 9 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
10. POSTRETIREMENT BENEFIT PLANS | 10. POSTRETIREMENT BENEFIT PLANS The Company recognizes actuarial gains and losses and prior service costs in the condensed consolidated balance sheet and recognizes changes in these amounts during the year in which changes occur through other comprehensive income (loss). The Company uses various assumptions when computing amounts relating to its defined benefit pension plan obligations and their associated expenses (including the discount rate and the expected rate of return on plan assets). During the first quarter of fiscal 2022, Novelis announced the freeze of future benefit accruals under the Canada Pension Plan, effective for union participants as of December 31, 2021 and non-union participants as of December 31, 2023. Novelis remeasured the plan’s assets and obligations as of April 30, 2021, which is the nearest calendar month-end to the announcement of this freeze. A curtailment gain of $3 million was recorded related to the Canada Pension Plan. During the second quarter of fiscal 2022, Novelis entered into an agreement to transfer the liabilities associated with a portion of the retirees and beneficiaries of the Canada Novelis Pension Plan to an insurer through a purchase of buy-out annuities. The premium payment was made to the insurer on August 10, 2021. Novelis remeasured the plan's assets and obligations as of July 31, 2021, which is the nearest calendar month-end to the premium payment for this settlement. The insurer took responsibility for the payments to these transferred members effective November 1, 2021. As a result of this transaction, a settlement gain of $4 million was recorded during the three months ended September 30, 2021. Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below. Pension Benefit Plans Other Benefit Plans Three Months Ended December 31, Three Months Ended December 31, in millions 2021 2020 2021 2020 Service cost $ 8 $ 11 $ 2 $ 3 Interest cost 14 15 2 2 Expected return on assets (19) (20) — — Amortization — losses, net 5 10 — — Amortization — prior service credit, net (1) — (1) — Net periodic benefit cost (1) $ 7 $ 16 $ 3 $ 5 Pension Benefit Plans Other Benefit Plans Nine Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Service cost $ 24 $ 35 $ 8 $ 8 Interest cost 42 45 5 6 Expected return on assets (58) (58) — — Amortization — losses, net 14 33 — — Amortization — prior service credit, net (1) — (1) — Settlement/curtailments (gain) loss (7) 1 — — Net periodic benefit cost (1) $ 14 $ 56 $ 12 $ 14 ____________________ (1) Service cost is included within cost of goods sold (exclusive of depreciation and amortization) and selling, general and administrative expenses, while all other cost components are recorded within other (income) expenses, net. Service costs of $1 million, interest cost of $1 million, and expected return on assets of $2 million included in the table above, for the three months ended December 31, 2020, relate to discontinued operations. The average expected long-term rate of return on all plan assets is 4.9% in fiscal 2022. 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, and Brazil. We contributed the following amounts to all plans. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Funded pension plans $ 5 $ 5 $ 22 $ 54 Unfunded pension plans 4 4 10 11 Savings and defined contribution pension plans 11 11 38 29 Total contributions $ 20 $ 20 $ 70 $ 94 For the nine months ended December 31, 2020, contributions to funded pension plans of $5 million and unfunded plans of $1 million were attributable to discontinued operations. During the remainder of fiscal 2022, we expect to contribute an additional $21 million to our funded pension plans, $7 million to our unfunded pension plans, and $7 million to our savings and defined contribution pension plans. |
Currency Losses (Gains)
Currency Losses (Gains) | 9 Months Ended |
Dec. 31, 2021 | |
Foreign Currency [Abstract] | |
11. CURRENCY LOSSES (GAINS) | 11. CURRENCY LOSSES (GAINS) The following currency losses (gains) are included in other (income) expenses, net in the accompanying condensed consolidated statements of operations. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Losses (gains) on remeasurement of monetary assets and liabilities, net $ 6 $ 13 $ (2) $ 5 (Gains) losses recognized on balance sheet remeasurement currency exchange contracts, net (7) (15) 1 (4) Currency (gains) losses, net $ (1) $ (2) $ (1) $ 1 The following currency losses are included in accumulated other comprehensive loss, net of tax and noncontrolling interests in the accompanying condensed consolidated balance sheets. Nine Months Ended December 31, 2021 Fiscal Year Ended March 31, 2021 in millions Cumulative currency translation adjustment — beginning of period $ (95) $ (309) Effect of changes in exchange rates (28) 244 Amounts reclassified from accumulated other comprehensive loss, net (1) — (30) Cumulative currency translation adjustment — end of period $ (123) $ (95) ____________________ (1) Amounts reclassified from accumulated other comprehensive loss are due to the sale of Duffel. |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 9 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
12. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | 12. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of the periods presented. December 31, 2021 Assets Liabilities Net Fair Value in millions Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 20 $ 2 $ (188) $ (8) $ (174) Currency exchange contracts 6 1 (25) (6) (24) Energy contracts 7 5 — — 12 Total derivatives designated as hedging instruments $ 33 $ 8 $ (213) $ (14) $ (186) Derivatives not designated as hedging instruments: Metal contracts $ 163 $ 3 $ (161) $ (2) $ 3 Currency exchange contracts 20 1 (33) (1) (13) Energy contracts 1 — — — 1 Total derivatives not designated as hedging instruments $ 184 $ 4 $ (194) $ (3) $ (9) Total derivative fair value $ 217 $ 12 $ (407) $ (17) $ (195) March 31, 2021 Assets Liabilities Net Fair Value Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 4 $ — $ (105) $ — $ (101) Currency exchange contracts 6 — (20) (4) (18) Energy contracts 1 1 (3) — (1) Total derivatives designated as hedging instruments $ 11 $ 1 $ (128) $ (4) $ (120) Derivatives not designated as hedging instruments: Metal contracts $ 104 $ 3 $ (124) $ (1) $ (18) Currency exchange contracts 22 — (28) — (6) Total derivatives not designated as hedging instruments $ 126 $ 3 $ (152) $ (1) $ (24) Total derivative fair value $ 137 $ 4 $ (280) $ (5) $ (144) ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in other long–term assets and in other long–term liabilities, respectively, in the accompanying condensed consolidated balance sheets . Metal 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 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. 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. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year. Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum 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. The average duration of undesignated contracts is less than one year. In addition to aluminum, we entered into LME copper and zinc forward contracts, as well as local market premiums forward contracts. As of December 31, 2021 and March 31, 2021, the fair value of these contracts represented an asset of $3 million and an asset of $7 million, respectively. These contracts are undesignated with an average duration of two years. The following table summarizes our metal notional amount. in kt December 31, March 31, Hedge type Purchase (sale) Cash flow purchases 12 10 Cash flow sales (939) (594) Not designated (37) (44) Total, net (964) (628) Foreign Currency We use foreign exchange forward contracts and cross-currency swaps 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 $1.2 billion and $936 million in outstanding foreign currency forwards designated as cash flow hedges as of December 31, 2021 and March 31, 2021, respectively. As of December 31, 2021 and March 31, 2021, we had outstanding foreign currency exchange contracts with a total notional amount of $1.4 billion and $1.3 billion, 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 fourth quarter of fiscal 2022 and offset the remeasurement impact. Energy During the fiscal year we owned an interest in an electricity swap contract to hedge our exposure to fluctuating electricity prices, which matured during this quarter. As of March 31, 2021, less than 1 million of notional megawatt hours were outstanding. The fair value of this swap was a liability of $2 million as of March 31, 2021. The electricity swap was designated as a cash flow hedge. We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 13 million MMBtu designated as cash flow hedges as of December 31, 2021, and the fair value was an asset of $11 million. There was a notional of 13 million MMBtu of natural gas forward contracts designated as cash flow hedges as of March 31, 2021 and the fair value was an asset of less than $1 million. As of December 31, 2021 and March 31, 2021, we had notionals of less than 1 million MMBtu forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of December 31, 2021 and March 31, 2021 were an asset of less than $1 million and a liability of less than $1 million, respectively. The average duration of undesignated contracts is less than three years in length. We use diesel fuel forward purchase contracts to manage our exposure to fluctuating fuel prices in North America and Europe. We had a notional of 5 million gallons designated as cash flow hedges as of December 31, 2021, and the fair value was an asset of $1 million. There was a notional of 5 million gallons designated as cash flow hedges as of March 31, 2021, and the fair value was an asset of $1 million. As of December 31, 2021 we had notional of less than 1 million metric tonne, and as of March 31, 2021 we had notional of less than 1 million gallons of forward contracts that were not designated as hedges. The fair value of the same as of December 31, 2021 was an asset of less than $1 million, and the average duration of those undesignated contracts was less than one year in length. 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 excluded portion of designated derivatives recognized in other (income) expenses, net. Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended December 31 Nine Months Ended December 31 in millions 2021 2020 2021 2020 Derivative instruments not designated as hedges Metal contracts $ (23) $ 11 $ (8) $ (21) Currency exchange contracts 14 14 8 3 Energy contracts (1) 1 1 7 6 Total (loss) gain recognized in other (income) expenses, net $ (8) $ 26 $ 7 $ (12) Gains (losses) recognized on balance sheet remeasurement currency exchange contracts, net $ 7 $ 15 $ (1) $ 4 Realized (losses) gains, net (41) (2) 2 (2) Unrealized gains (losses) on other derivative instruments, net 26 13 6 (14) Total (loss) gain recognized in other (income) expenses, net $ (8) $ 26 $ 7 $ (12) _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges and electricity swap settlements. The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow hedges. Within the next twelve months, we expect to reclassify $180 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive income (loss) (Effective Portion) Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Cash flow hedging derivatives Metal contracts $ 35 $ (83) $ (488) $ (142) Currency exchange contracts — 51 (19) 43 Energy contracts (7) (2) 23 3 Total $ 28 $ (34) $ (484) $ (96) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Three Months Ended December 31, Nine Months Ended December 31, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2021 2020 2021 2020 Cash flow hedging derivatives Energy contracts (1) $ 6 $ (2) $ 6 $ (9) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 4 (4) 9 (14) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (136) (54) (449) 1 Net sales Currency exchange contracts 1 (11) 4 (34) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts — (1) — (3) Selling, general and administrative expenses Currency exchange contracts (5) 3 (6) — Net sales Currency exchange contracts (1) — (2) (1) Depreciation and amortization Total $ (131) $ (69) $ (438) $ (60) Income from continuing operations before income tax provision 33 20 112 18 Income tax provision $ (98) $ (49) $ (326) $ (42) Net income from continuing operations _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gains (losses) that were reclassified from accumulated other comprehensive loss into earnings and the amount excluded from the assessment of effectiveness for the periods presented. Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of (loss) gain reclassified from accumulated other comprehensive loss into income $ (136) $ 4 $ — $ — $ — $ (449) $ 9 $ — $ — $ — Energy commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into income $ — $ 6 $ — $ — $ — $ — $ 6 $ — $ — $ — Foreign exchange contracts: Amount of (loss) gain reclassified from accumulated other comprehensive loss into income $ (5) $ 1 $ — $ (1) $ — $ (6) $ 4 $ — $ (2) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of (loss) gain reclassified from accumulated other comprehensive loss into income $ (54) $ (4) $ — $ — $ — $ 1 $ (14) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (2) $ — $ — $ — $ — $ (9) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ 3 $ (11) $ (1) $ — $ — $ — $ (34) $ (3) $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
13. ACCUMULATED OTHER COMPREHENSIVE LOSS | 13. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the change in the components o f accumulated other comprehensive loss, excluding noncontrolling interests, for the periods presented. in millions Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of September 30, 2021 $ (129) $ (285) $ (133) $ (547) Other comprehensive income before reclassifications 6 22 4 32 Amounts reclassified from accumulated other comprehensive loss, net — 98 1 99 Net current-period other comprehensive income 6 120 5 131 Balance as of December 31, 2021 $ (123) $ (165) $ (128) $ (416) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of September 30, 2020 $ (158) $ (78) $ (222) $ (458) Other comprehensive income (loss) before reclassifications 170 (26) (8) 136 Amounts reclassified from accumulated other comprehensive loss, net — 49 7 56 Net current-period other comprehensive income (loss) 170 23 (1) 192 Balance as of December 31, 2020 $ 12 $ (55) $ (223) $ (266) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2021 $ (95) $ (133) $ (138) $ (366) Other comprehensive (loss) income before reclassifications (28) (358) 9 (377) Amounts reclassified from accumulated other comprehensive loss, net — 326 1 327 Net current-period other comprehensive (loss) income (28) (32) 10 (50) Balance as of December 31, 2021 $ (123) $ (165) $ (128) $ (416) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 351 (71) 37 317 Amounts reclassified from accumulated other comprehensive loss, net (3) (30) 42 25 37 Net current-period other comprehensive income (loss) 321 (29) 62 354 Balance as of December 31, 2020 $ 12 $ (55) $ (223) $ (266) _________________________ (1) For additional information on our cash flow hedges, see Note 12 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans, see Note 10 – Postretirement Benefit Plans . (3) Amounts reclassified from accumulated other comprehensive loss for currency translation are due to the sale of Duffel. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
14. FAIR VALUE MEASUREMENTS | 14. FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our condensed 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 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, zinc, copper, 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, copper and zinc forward contracts, and 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 electricity swap, which was our only Level 3 derivative contract, represented an agreement to buy electricity at a fixed price at our Oswego, New York, facility. Forward prices were not observable for this market, so we made certain assumptions based on available information we believe to be relevant to market participants. We used 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. As of December 31, 2021 , this electricity swap has matured. 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 December 31, 2021 and March 31, 2021, 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 and classified under the appropriate level of the fair value hierarchy as of December 31, 2021 and March 31, 2021. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. December 31, 2021 March 31, 2021 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 188 $ (359) $ 111 $ (230) Currency exchange contracts 28 (65) 28 (52) Energy contracts 13 — 2 (1) Total level 2 instruments $ 229 $ (424) $ 141 $ (283) Level 3 instruments: Energy contracts — — — (2) Total level 3 instruments $ — $ — $ — $ (2) Total gross $ 229 $ (424) $ 141 $ (285) Netting adjustment (1) $ (146) $ 146 $ (81) $ 81 Total net $ 83 $ (278) $ 60 $ (204) _________________________ (1) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. There were no unrealized gains (losses) recognized in other (income) expenses, net for the nine months ended December 31, 2021 related to Level 3 financial instruments. The following table presents a reconciliation of fair value activity for Level 3 derivative contracts. in millions Level 3 – Derivative Instruments (1) Balance as of March 31, 2021 $ (2) Unrealized/realized gain included in earnings (2) 6 Unrealized/realized gain included in accumulated other comprehensive loss (3) 2 Settlements (2) (6) Balance as of December 31, 2021 $ — _________________________ (1) Represents net derivative liabilities. (2) Included in other (income) expenses, net. (3) Included in net change in fair value of effective portion of cash flow hedges in our condensed consolidated statements of comprehensive income (loss). In addition to our derivative assets and liabilities held at fair value, we have a Level 3 receivable related to the contingent consideration for the sale of Duffel to ALVANCE. Upon closing on September 30, 2020, we recorded a receivable at a fair value of €93 million ($109 million) measured based on the anticipated outcome, timeline of arbitration of greater than one year, and a discount rate of 5%. As of March 31, 2021, the fair value had been adjusted for the accretion of imputed interest to €95 million ($112 million). During the first quarter of fiscal 2022, Novelis marked all outstanding receivables related to the sale of Duffel to an estimated fair value of €45 million ($53 million), which resulted in a loss of €51 million ($61 million) recorded in loss from discontinued operations, net of tax. See Note 3 – Discontinued Operations for more information. There has been no change to this fair value, and this receivable remains outstanding and is included in other long–term assets in our condensed consolidated balance sheet as of December 31, 2021. 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. The table excludes finance leases and 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. December 31, 2021 March 31, 2021 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 1 $ 1 $ 1 $ 1 Total debt — third parties (excluding finance leases and short-term borrowings) 5,292 5,539 5,702 5,967 |
Other (Income) Expenses, Net
Other (Income) Expenses, Net | 9 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER (INCOME) EXPENSES, NET Other (income) expenses, net consists of the following. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Currency (gains) losses, net (1) $ (1) $ (2) $ (1) $ 1 Unrealized (gains) losses on change in fair value of derivative instruments, net (2) (26) (13) (6) 14 Realized losses (gains) on change in fair value of derivative instruments, net (2) 41 2 (2) 2 Gain on sale of business (3) (15) — (15) — Loss on sale of assets, net 3 2 5 — Gain on Brazilian tax litigation, net (4) (9) — (85) — Interest income (2) (3) (6) (7) Non-operating net periodic benefit cost (5) — 7 (6) 27 Charitable contribution (6) — — — 50 Other, net (7) 7 — 30 (1) Other (income) expenses, net $ (2) $ (7) $ (86) $ 86 _________________________ (1) Includes gains (losses) recognized on balance sheet remeasurement currency exchange contracts, net. See Note 11 – Currency Losses (Gains) for further details. (2) See Note 12 – Financial Instruments and Commodity Contracts for further details. (3) During the third quarter of fiscal 2022, Novelis sold 90% of its equity ownership in Saras Micro Devices, Inc., an early stage business founded by Novelis related to the development, design, manufacturing, and sale of aluminum-integrated passive devices for use in semiconductor and electronic systems. The sale resulted in a $15 million gain on sale of business. As part of this transaction, we received $9 million in cash upon close and approximately $6 million in deferred cash receipts. (4) See Note 17 – Commitments and Contingencies for further details. (5) Represents net periodic benefit cost, exclusive of service cost for the Company's pension and other post-retirement plans. For further details, refer to Note 1 0 – Postretirement Benefit Plans . (6) Represents a charitable contribution for COVID-19 relief. (7) Other, net for the nine months ended December 31, 2021 includes $18 million from the release of certain outstanding receivables in the first quarter of fiscal 2022. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
16. INCOME TAXES | 16. INCOME TAXES For the three and nine months ended December 31, 2021, we had an effective tax rate of 26%. For the three and nine months ended December 31, 2020, we had an effective tax rate of 29% and 30%, respectively. The 26% tax rate for the three months ended December 31, 2021 was primarily driven by the full year forecasted effective tax rate that takes into account income taxed at rates that differ from the 25% Canadian rate, including withholding taxes and changes to the Brazilian real foreign exchange rate, offset by income not subject to tax, and tax credits. The 26% rate for the nine months ended December 31, 2021 was primarily driven by the full year forecasted effective tax rate that takes into account income taxed at rates that differ from the 25% Canadian rate, including withholding taxes and changes to the Brazilian real foreign exchange rate, offset by tax credits, income not subject to tax and the enacted rate change in the United Kingdom. The corporate tax rate in the United Kingdom is scheduled to increase from 19% to 25%, effective for the fiscal year beginning April 1, 2023. The impact of this change resulted in a tax benefit of approximately $8 million. As of December 31, 2021, we had a net deferred tax liability of $98 million. This amount included gross deferred tax assets of approximately $1.5 billion and a valuation allowance of $830 million. It is reasonably possible that our estimates of future taxable income may change within the next twelve months resulting in a change to the valuation allowance in one or more jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2021 | |
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. 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 $54 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. Environmental Matters We have established liabilities based on our estimates for currently anticipated costs associated with environmental matters. We estimate that the costs related to our environmental liabilities as of December 31, 2021 and March 31, 2021 were approximately $20 million and $23 million, respectively. Of the total $20 million at December 31, 2021, $4 million was associated with restructuring actions and the remaining $16 million is associated with undiscounted environmental clean-up costs. As of December 31, 2021, $4 million is included in accrued expenses and other current liabilities and the remainder is within other long–term liabilities in our accompanying condensed consolidated balance sheets. Brazilian Tax Litigation 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. Total settlement liabilities as of December 31, 2021 and March 31, 2021 were $16 million and $20 million, respectively. As of December 31, 2021, $6 million is included in accrued expenses and other current liabilities and the remainder is within other long–term liabilities in our accompanying condensed consolidated balance sheets. 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. Total liabilities for other disputes and claims were $30 million as of December 31, 2021 and $24 million as of March 31, 2021. As of December 31, 2021, $1 million is included in accrued expenses and other current liabilities and the remainder is within other long–term liabilities in our accompanying condensed consolidated balance sheets. 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. The interest cost recorded on these settlement liabilities offset by interest earned on the cash deposits is reported in other (income) expenses, net on the condensed consolidated statement of operations. During fiscal 2021, fiscal 2020, and fiscal 2019, we received multiple favorable rulings from the Brazilian court that recognized the right to exclude certain taxes from the tax base used to calculate contributions to the social integration program and social security contributions on gross revenues, also known as PIS and COFINS. As a result of these cases, we have the right to apply for tax credits for the amounts overpaid during specified tax years. These credits and corresponding interest can be used to offset various Brazilian federal taxes in future years. The Brazilian Office of the Attorney General of the National Treasury sought clarification from the Brazilian Supreme Court of certain matters, including the calculation methodology (i.e. gross or net credit amount) and timing of these credits. Since the Brazilian Supreme Court had not yet confirmed the appropriate methodology when these favorable rulings were received, Novelis recorded this benefit in the corresponding periods based on the net credit amount. However, during the first quarter of fiscal 2022, the Brazilian Supreme Court ruled that the credit should be calculated using the gross methodology for lawsuits filed prior to March 2017. As such, Novelis recorded additional income of $76 million in other (income) expenses, net, $48 million of which is principal and $29 million is interest, related to PIS and COFINS for the years 2009 to 2017, net of $1 million in litigation expense. During the third quarter of fiscal 2022, Novelis recorded $5 million of additional income in other (income) expenses, net, $2 million of which is principal and $3 million of which is interest, related to PIS and COFINS for certain periods. This income is subject to income taxes and therefore, resulted in the recognition of income of $64 million within net income. The credit amounts, interest calculation, and supporting documentation are subject to further validation and scrutiny by tax authorities for five years after the credits are utilized. Thus, credits recognized may differ from these amounts. In order to qualify for these credits, the Company is required to compile and present verifiable support validating the credits. The Company is still in process of compiling supporting documentation related to PIS and COFINS for certain periods, and therefore has not yet recorded an estimate for these periods. Novelis expects to complete this process and record the impacts of any additional credits by the end of fiscal 2022. During the second quarter of fiscal 2022, Novelis applied for and received official authorization from The Special Department of Federal Revenue of Brazil (Receita Federal) to use the PIS and COFINS credits related to the years 2015 to 2017. Novelis was able to utilize these credits to offset taxes to be paid in fiscal 2022. Subsequent to December 31, 2021, received official authorization from Receita Federal to use the PIS and COFINS credits related to certain periods. Novelis anticipates utilizing these credits in the fourth quarter of fiscal 2022. Additionally, during the third quarter of fiscal 2022, Novelis received a final favorable decision to allow the treatment of sales to the Manaus Free Trade Zone (Manaus) as equivalent to exports that qualify for the tax benefit known as the Special Regime for Reinstatement of Tax Amounts to Exporting Companies (Reintegra), which confirmed Novelis' right to calculate the benefit for these sales to Manaus since August 2011. As a result, during the third quarter of fiscal 2022, Novelis recorded a $12 million benefit, $8 million of which is principal recorded in net sales and $4 million is interest recorded in other (income) expenses, net. These credits and corresponding interest can be used to offset various Brazilian federal taxes in future years. The credit amounts, interest calculation, and supporting documentation are subject to further validation and scrutiny by tax authorities for five years after the credits are utilized. Thus, credits recognized may differ from these amounts. |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
18. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | 18. 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. We also manufacture aluminum plate products in Europe and Asia. The following is a description of our operating segments. North America. Headquartered in Atlanta, Georgia, this segment operates 17 plants, including seven with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates 10 plants, including five with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including two with recycling operations, in two countries. South America. Headquartered in Sao Paulo, Brazil, this segment operates two plants in Brazil, including one with recycling operations. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 – Business and Summary of Significant Accounting Policies shown in our 2021 Form 10-K. 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) loss on extinguishment of debt, net; (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 (reversal) expenses, 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) income tax provision (benefit); (o) cumulative effect of accounting change, net of tax; (p) metal price lag; (q) business acquisition and other related costs; (r) purchase price accounting adjustments; (s) income (loss) from discontinued operations, net of tax; and (t) loss on sale of discontinued operations, net of tax. The tables that follow show selected segment financial information. "Eliminations and Other" 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 6 – Consolidation and Note 7 – 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 December 31, 2021 North America Europe Asia South America Eliminations and Other (1) Total Investment in and advances to non–consolidated affiliates $ — $ 508 $ 332 $ — $ — $ 840 Total assets 4,780 4,172 2,524 2,016 697 14,189 March 31, 2021 North America Europe Asia South America Eliminations and Other (1) Total Investment in and advances to non–consolidated affiliates $ — $ 510 $ 328 $ — $ — $ 838 Total assets 4,084 3,974 2,423 1,797 607 12,885 Selected Operating Results Three Months Ended December 31, 2021 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 1,716 $ 1,116 $ 697 $ 698 $ 99 $ 4,326 Net sales - intersegment — 40 13 29 (82) — Net sales $ 1,716 $ 1,156 $ 710 $ 727 $ 17 $ 4,326 Depreciation and amortization $ 58 $ 41 $ 23 $ 21 $ (6) $ 137 Income tax (benefit) provision (9) 1 13 48 36 89 Capital expenditures 33 29 23 14 (6) 93 Selected Operating Results Three Months Ended December 31, 2020 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 1,173 $ 939 $ 554 $ 486 $ 89 $ 3,241 Net sales - intersegment 5 37 2 — (44) — Net sales $ 1,178 $ 976 $ 556 $ 486 $ 45 $ 3,241 Depreciation and amortization $ 61 $ 44 $ 24 $ 18 $ (10) $ 137 Income tax provision 17 9 15 33 6 80 Capital expenditures 34 22 33 21 (3) 107 Selected Operating Results Nine Months Ended December 31, 2021 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 4,843 $ 3,228 $ 2,085 $ 1,864 $ 280 $ 12,300 Net sales - intersegment — 137 25 34 (196) — Net sales $ 4,843 $ 3,365 $ 2,110 $ 1,898 $ 84 $ 12,300 Depreciation and amortization $ 171 $ 128 $ 67 $ 58 $ (19) $ 405 Income tax provision 36 24 49 134 33 276 Capital expenditures 112 62 59 63 (9) 287 Selected Operating Results Nine Months Ended December 31, 2020 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,193 $ 2,400 $ 1,533 $ 1,256 $ 263 $ 8,645 Net sales - intersegment 5 80 12 7 (104) — Net sales $ 3,198 $ 2,480 $ 1,545 $ 1,263 $ 159 $ 8,645 Depreciation and amortization $ 175 $ 125 $ 66 $ 53 $ (23) $ 396 Income tax provision (benefit) 1 1 39 87 (9) 119 Capital expenditures 124 56 85 74 (6) 333 _________________________ (1) Includes assets of discontinued operations. The table below displays the reconciliation from net income attributable to our common shareholder to segment income. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Net income attributable to our common shareholder $ 262 $ 176 $ 739 $ 60 Net income attributable to noncontrolling interests — 1 — 1 Income tax provision 89 80 276 119 (Income) loss from discontinued operations, net of tax (3) 18 62 47 Loss on sale of discontinued operations, net of tax — — — 170 Income from continuing operations before income tax provision 348 275 1,077 397 Depreciation and amortization 137 137 405 396 Interest expense and amortization of debt issuance costs 54 66 173 206 Adjustment to reconcile proportional consolidation (1) 17 13 46 42 Unrealized (gains) losses on change in fair value of derivative instruments, net (26) (13) (6) 14 Realized (gains) losses on derivative instruments not included in segment income (2) — (2) (1) 2 Gain on sale of business (3) (15) — (15) — Loss on extinguishment of debt, net 1 — 63 — Restructuring and impairment expenses, net 3 20 1 28 Loss on sale of assets, net 3 2 5 — Purchase price accounting adjustments (4) — — — 29 Metal price lag (14) — (127) 32 Business acquisition and other related costs (5) — — — 11 Other, net (6) (2) 3 (7) 52 Segment income $ 506 $ 501 $ 1,614 $ 1,209 _________________________ (1) Adjustment to reconcile proportional consolidation relates to depreciation, amortization, and income taxes of our equity method investments. Income taxes related to our equity method investments are reflected in the carrying value of the investment and not in our consolidated income tax provision. (2) Realized (gains) losses on derivative instruments not included in segment income represents foreign currency derivatives unrelated to operations. (3) Gain on sale of business relates to Novelis' sale of 90% of its equity ownership in Saras Micro Devices, Inc. See Note 15 – Other (Income) Expenses, net for further details. (4) Purchase price accounting adjustments primarily relates to the relief of the inventory step-up related to the acquired Aleris business. (5) Business acquisition and other related costs are primarily legal and professional fees associated with our acquisition of Aleris. (6) For the nine months ended December 31, 2021, other, net includes $36 million of interest income recognized as a result of Brazilian tax litigation settlements and interest income, partially offset by $18 million from the release of certain outstanding receivables. For the nine months ended December 31, 2020, other, net primarily relates to a charitable contribution for COVID-19 relief as well as interest income. The following table displays segment income by reportable segment. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 North America $ 181 $ 206 $ 580 $ 489 Europe 71 98 251 181 Asia 76 78 256 227 South America 178 129 525 317 Eliminations and other — (10) 2 (5) Segment income $ 506 $ 501 $ 1,614 $ 1,209 Information about Product Sales, Major Customers, and Primary Supplier Product Sales The following table displays our net sales by product end market. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Can $ 2,154 $ 1,596 $ 6,206 $ 4,431 Automotive 885 704 2,395 1,671 Aerospace and industrial plate 125 85 361 280 Specialty 1,162 856 3,338 2,263 Net sales $ 4,326 $ 3,241 $ 12,300 $ 8,645 Major Customers The following table displays customers representing 10% or more of our total net sales for any of the periods presented and their respective percentage of total net sales. Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Ball 17 % 15 % 16 % 15 % Primary Supplier Rio Tinto is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from Rio Tinto as a percentage of our total combined metal purchases. Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Purchases from Rio Tinto as a percentage of total combined metal purchases 8 % 8 % 8 % 7 % |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSIn January 2022, Novelis Inc. entered into a $315 million short-term credit agreement with Axis Bank Limited, IFSC Banking Unit, Gift City, as administrative agent and lender. The proceeds of the short-term loan were applied to voluntarily prepay the Floating rate Term Loan Facility, due June 2022. The short-term loan matures on November 30, 2022, is subject to 0.25% quarterly amortization payments, and accrues interest at SOFR plus 0.90%.The short-term loan is unsecured and guaranteed by certain of the Company’s direct and indirect U.S. and Canadian subsidiaries, and the agreement contains voluntary prepayment provisions, affirmative and negative covenants, and events of default substantially similar to those under our Term Loan Facility, other than changes to reflect the unsecured nature of the short-term loan.The Company is still evaluating the financial and accounting impacts of this transaction. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | Organization and Description of Business We produce aluminum plate, 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, aerospace, 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 December 31, 2021, we had manufacturing operations in nine countries on four continents: North America, South America, Asia, and Europe, through 33 operating facilities, which may include any combination of hot or cold rolling, finishing, casting, or recycling capabilities. We have recycling operations in 15 of our operating facilities. The March 31, 2021 condensed consolidated balance sheet data was derived from the March 31, 2021 audited financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our 2021 Form 10-K. Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed 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 intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control but have the ability to exercise significant influence over operating and financial policies. Consolidated net income attributable to our common shareholder includes our share of net income or 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 condensed 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 (income) loss of non-consolidated affiliates. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, 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) impairment of goodwill; (2) actuarial assumptions related to pension and other postretirement benefit plans; (3) tax uncertainties and valuation allowances; (4) assessment of loss contingencies, including environmental and litigation liabilities; (5) the fair value of derivative financial instruments; and (6) the fair value of the contingent consideration resulting from the sale of Duffel. 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 condensed 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. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards (Not yet adopted)There are no recent accounting pronouncements pending adoption that we expect will have a material impact on our consolidated financial condition, results of operations, or cash flows. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three and nine months ended December 31, 2020 as if the acquisition of Aleris had occurred on April 1, 2019. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of Aleris been completed on April 1, 2019. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies, or other synergies that may be associated with the acquisition or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Aleris. Three Months Ended December 31, Nine Months Ended December 31, in millions 2020 2020 Net sales $ 3,241 $ 8,699 Net income 97 15 |
Restructuring and Impairment,_2
Restructuring and Impairment, Net (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Liability Activity | The following table summarizes our restructuring liability activity. in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2020 $ 1 $ 21 $ — $ 12 $ — $ 34 Restructuring and impairment expenses, net 4 16 — — 8 28 Cash payments (3) (15) — (3) (4) (25) Foreign currency and other — 1 — — — 1 Restructuring liability balance as of December 31, 2020 $ 2 $ 23 $ — $ 9 $ 4 $ 38 in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2021 $ 3 $ 19 $ — $ 9 $ 3 $ 34 Restructuring and impairment expenses (reversal), net 2 (4) 2 1 — 1 Cash payments (3) (11) (1) (2) (3) (20) Foreign currency and other — (1) — (1) — (2) Restructuring liability balance as of December 31, 2021 (1) $ 2 $ 3 $ 1 $ 7 $ — $ 13 ____________________ (1) As of December 31, 2021, the restructuring liability totaled $13 million with $7 million included in accrued expenses and other current liabilities and the remainder is within other long–term liabilities on our accompanying condensed consolidated balance sheet. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consists of the following. in millions December 31, March 31, Finished goods $ 697 $ 455 Work in process 1,327 874 Raw materials 667 407 Supplies 221 192 Inventories $ 2,912 $ 1,928 |
Consolidation (Tables)
Consolidation (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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 condensed consolidated balance sheets. in millions December 31, March 31, ASSETS Current assets: Cash and cash equivalents $ 3 $ 5 Accounts receivable, net 57 69 Inventories 98 81 Prepaid expenses and other current assets 4 4 Total current assets 162 159 Property, plant and equipment, net 22 19 Goodwill 12 12 Deferred income tax assets 56 57 Other long–term assets 8 8 Total assets $ 260 $ 255 LIABILITIES Current liabilities: Accounts payable $ 45 $ 38 Accrued expenses and other current liabilities 24 26 Total current liabilities 69 64 Accrued postretirement benefits 212 214 Other long–term liabilities 5 5 Total liabilities $ 286 $ 283 |
Investment In and Advances to_2
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
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 and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Net sales $ 481 $ 307 $ 1,255 $ 872 Costs and expenses related to net sales 446 311 1,193 862 Income tax provision (benefit) 10 (2) 17 3 Net income (loss) $ 25 $ (2) $ 45 $ 7 Purchases of tolling services from Alunorf $ 87 $ 60 $ 226 $ 185 |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table describes related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. in millions December 31, March 31, Accounts receivable, net — related parties $ 260 $ 166 Other long–term assets — related parties 1 1 Accounts payable — related parties 356 230 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consists of the following. December 31, 2021 March 31, 2021 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short–term borrowings 2.65 % $ 373 $ — $ 373 $ 236 $ — $ 236 Floating rate Term Loan Facility, due June 2022 2.07 % 315 (1) 314 648 (5) 643 Floating rate Term Loan Facility, due January 2025 1.97 % 761 (11) 750 767 (15) 752 Floating rate Term Loan Facility, due March 2028 2.22 % 496 (8) 488 480 (9) 471 Zhenjiang Term Loans, due May 2024 — — — 124 2 126 5.875% Senior Notes, due September 2026 — — — 1,500 (13) 1,487 3.25% Senior Notes, due November 2026 3.25 % 750 (10) 740 — — — 3.375% Senior Notes, due April 2029 3.375 % 569 (11) 558 588 (13) 575 4.75% Senior Notes, due January 2030 4.75 % 1,600 (26) 1,574 1,600 (28) 1,572 3.875% Senior Notes, due August 2031 3.875 % 750 (10) 740 — — — China Bank loans, due August 2027 4.90 % 78 — 78 76 — 76 1.8% Brazil Loan due June 2023 1.80 % 30 — 30 — — — 1.8% Brazil Loan due December 2023 1.80 % 20 — 20 — — — Finance lease obligations and other debt, due through June 2028 (3) 2.25 % 32 — 32 22 — 22 Total debt $ 5,774 $ (77) $ 5,697 $ 6,041 $ (81) $ 5,960 Less: Short–term borrowings (373) — (373) (236) — (236) Less: Current portion of long–term debt (341) 1 (340) (71) — (71) Long–term debt, net of current portion $ 5,060 $ (76) $ 4,984 $ 5,734 $ (81) $ 5,653 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of December 31, 2021 and therefore exclude the effects of accretion and amortization of debt issuance costs related to refinancing transactions and additional borrowings. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (2) Amounts include unamortized debt issuance costs, fair value adjustments, and debt discounts. |
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 using exchange rates as of December 31, 2021 for our debt denominated in foreign currencies are as follows (in millions). As of December 31, 2021 Amount Short-term borrowings and current portion of long-term debt due within one year $ 714 2 years 81 3 years 32 4 years 758 5 years 776 Thereafter 3,413 Total $ 5,774 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below. Pension Benefit Plans Other Benefit Plans Three Months Ended December 31, Three Months Ended December 31, in millions 2021 2020 2021 2020 Service cost $ 8 $ 11 $ 2 $ 3 Interest cost 14 15 2 2 Expected return on assets (19) (20) — — Amortization — losses, net 5 10 — — Amortization — prior service credit, net (1) — (1) — Net periodic benefit cost (1) $ 7 $ 16 $ 3 $ 5 Pension Benefit Plans Other Benefit Plans Nine Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Service cost $ 24 $ 35 $ 8 $ 8 Interest cost 42 45 5 6 Expected return on assets (58) (58) — — Amortization — losses, net 14 33 — — Amortization — prior service credit, net (1) — (1) — Settlement/curtailments (gain) loss (7) 1 — — Net periodic benefit cost (1) $ 14 $ 56 $ 12 $ 14 ____________________ (1) Service cost is included within cost of goods sold (exclusive of depreciation and amortization) and selling, general and administrative expenses, while all other cost components are recorded within other (income) expenses, net. |
Contributions to employee benefit plans | We contributed the following amounts to all plans. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Funded pension plans $ 5 $ 5 $ 22 $ 54 Unfunded pension plans 4 4 10 11 Savings and defined contribution pension plans 11 11 38 29 Total contributions $ 20 $ 20 $ 70 $ 94 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in Other (income) expense, net | The following currency losses (gains) are included in other (income) expenses, net in the accompanying condensed consolidated statements of operations. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Losses (gains) on remeasurement of monetary assets and liabilities, net $ 6 $ 13 $ (2) $ 5 (Gains) losses recognized on balance sheet remeasurement currency exchange contracts, net (7) (15) 1 (4) Currency (gains) losses, net $ (1) $ (2) $ (1) $ 1 |
Currency losses included in AOCI, net of tax and noncontrolling interests | The following currency losses are included in accumulated other comprehensive loss, net of tax and noncontrolling interests in the accompanying condensed consolidated balance sheets. Nine Months Ended December 31, 2021 Fiscal Year Ended March 31, 2021 in millions Cumulative currency translation adjustment — beginning of period $ (95) $ (309) Effect of changes in exchange rates (28) 244 Amounts reclassified from accumulated other comprehensive loss, net (1) — (30) Cumulative currency translation adjustment — end of period $ (123) $ (95) |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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 the periods presented. December 31, 2021 Assets Liabilities Net Fair Value in millions Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 20 $ 2 $ (188) $ (8) $ (174) Currency exchange contracts 6 1 (25) (6) (24) Energy contracts 7 5 — — 12 Total derivatives designated as hedging instruments $ 33 $ 8 $ (213) $ (14) $ (186) Derivatives not designated as hedging instruments: Metal contracts $ 163 $ 3 $ (161) $ (2) $ 3 Currency exchange contracts 20 1 (33) (1) (13) Energy contracts 1 — — — 1 Total derivatives not designated as hedging instruments $ 184 $ 4 $ (194) $ (3) $ (9) Total derivative fair value $ 217 $ 12 $ (407) $ (17) $ (195) March 31, 2021 Assets Liabilities Net Fair Value Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 4 $ — $ (105) $ — $ (101) Currency exchange contracts 6 — (20) (4) (18) Energy contracts 1 1 (3) — (1) Total derivatives designated as hedging instruments $ 11 $ 1 $ (128) $ (4) $ (120) Derivatives not designated as hedging instruments: Metal contracts $ 104 $ 3 $ (124) $ (1) $ (18) Currency exchange contracts 22 — (28) — (6) Total derivatives not designated as hedging instruments $ 126 $ 3 $ (152) $ (1) $ (24) Total derivative fair value $ 137 $ 4 $ (280) $ (5) $ (144) ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in other long–term assets and in other long–term liabilities, respectively, in the accompanying condensed consolidated balance sheets . |
Summary of notional amount | The following table summarizes our metal notional amount. in kt December 31, March 31, Hedge type Purchase (sale) Cash flow purchases 12 10 Cash flow sales (939) (594) Not designated (37) (44) Total, net (964) (628) |
Derivative instruments, 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 excluded portion of designated derivatives recognized in other (income) expenses, net. Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended December 31 Nine Months Ended December 31 in millions 2021 2020 2021 2020 Derivative instruments not designated as hedges Metal contracts $ (23) $ 11 $ (8) $ (21) Currency exchange contracts 14 14 8 3 Energy contracts (1) 1 1 7 6 Total (loss) gain recognized in other (income) expenses, net $ (8) $ 26 $ 7 $ (12) Gains (losses) recognized on balance sheet remeasurement currency exchange contracts, net $ 7 $ 15 $ (1) $ 4 Realized (losses) gains, net (41) (2) 2 (2) Unrealized gains (losses) on other derivative instruments, net 26 13 6 (14) Total (loss) gain recognized in other (income) expenses, net $ (8) $ 26 $ 7 $ (12) _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges and electricity swap settlements. |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow hedges. Within the next twelve months, we expect to reclassify $180 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive income (loss) (Effective Portion) Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Cash flow hedging derivatives Metal contracts $ 35 $ (83) $ (488) $ (142) Currency exchange contracts — 51 (19) 43 Energy contracts (7) (2) 23 3 Total $ 28 $ (34) $ (484) $ (96) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Three Months Ended December 31, Nine Months Ended December 31, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2021 2020 2021 2020 Cash flow hedging derivatives Energy contracts (1) $ 6 $ (2) $ 6 $ (9) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 4 (4) 9 (14) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (136) (54) (449) 1 Net sales Currency exchange contracts 1 (11) 4 (34) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts — (1) — (3) Selling, general and administrative expenses Currency exchange contracts (5) 3 (6) — Net sales Currency exchange contracts (1) — (2) (1) Depreciation and amortization Total $ (131) $ (69) $ (438) $ (60) Income from continuing operations before income tax provision 33 20 112 18 Income tax provision $ (98) $ (49) $ (326) $ (42) Net income from continuing operations _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gains (losses) that were reclassified from accumulated other comprehensive loss into earnings and the amount excluded from the assessment of effectiveness for the periods presented. Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of (loss) gain reclassified from accumulated other comprehensive loss into income $ (136) $ 4 $ — $ — $ — $ (449) $ 9 $ — $ — $ — Energy commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into income $ — $ 6 $ — $ — $ — $ — $ 6 $ — $ — $ — Foreign exchange contracts: Amount of (loss) gain reclassified from accumulated other comprehensive loss into income $ (5) $ 1 $ — $ (1) $ — $ (6) $ 4 $ — $ (2) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income, net of tax | The following tables summarize the change in the components o f accumulated other comprehensive loss, excluding noncontrolling interests, for the periods presented. in millions Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of September 30, 2021 $ (129) $ (285) $ (133) $ (547) Other comprehensive income before reclassifications 6 22 4 32 Amounts reclassified from accumulated other comprehensive loss, net — 98 1 99 Net current-period other comprehensive income 6 120 5 131 Balance as of December 31, 2021 $ (123) $ (165) $ (128) $ (416) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of September 30, 2020 $ (158) $ (78) $ (222) $ (458) Other comprehensive income (loss) before reclassifications 170 (26) (8) 136 Amounts reclassified from accumulated other comprehensive loss, net — 49 7 56 Net current-period other comprehensive income (loss) 170 23 (1) 192 Balance as of December 31, 2020 $ 12 $ (55) $ (223) $ (266) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2021 $ (95) $ (133) $ (138) $ (366) Other comprehensive (loss) income before reclassifications (28) (358) 9 (377) Amounts reclassified from accumulated other comprehensive loss, net — 326 1 327 Net current-period other comprehensive (loss) income (28) (32) 10 (50) Balance as of December 31, 2021 $ (123) $ (165) $ (128) $ (416) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 351 (71) 37 317 Amounts reclassified from accumulated other comprehensive loss, net (3) (30) 42 25 37 Net current-period other comprehensive income (loss) 321 (29) 62 354 Balance as of December 31, 2020 $ 12 $ (55) $ (223) $ (266) _________________________ (1) For additional information on our cash flow hedges, see Note 12 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans, see Note 10 – Postretirement Benefit Plans . (3) Amounts reclassified from accumulated other comprehensive loss for currency translation are due to the sale of Duffel. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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 and classified under the appropriate level of the fair value hierarchy as of December 31, 2021 and March 31, 2021. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. December 31, 2021 March 31, 2021 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 188 $ (359) $ 111 $ (230) Currency exchange contracts 28 (65) 28 (52) Energy contracts 13 — 2 (1) Total level 2 instruments $ 229 $ (424) $ 141 $ (283) Level 3 instruments: Energy contracts — — — (2) Total level 3 instruments $ — $ — $ — $ (2) Total gross $ 229 $ (424) $ 141 $ (285) Netting adjustment (1) $ (146) $ 146 $ (81) $ 81 Total net $ 83 $ (278) $ 60 $ (204) _________________________ (1) 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 (1) Balance as of March 31, 2021 $ (2) Unrealized/realized gain included in earnings (2) 6 Unrealized/realized gain included in accumulated other comprehensive loss (3) 2 Settlements (2) (6) Balance as of December 31, 2021 $ — _________________________ (1) Represents net derivative liabilities. (2) Included in other (income) expenses, net. (3) Included in net change in fair value of effective portion of cash flow hedges in our condensed consolidated statements of comprehensive income (loss). |
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. The table excludes finance leases and 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. December 31, 2021 March 31, 2021 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 1 $ 1 $ 1 $ 1 Total debt — third parties (excluding finance leases and short-term borrowings) 5,292 5,539 5,702 5,967 |
Other (Income) Expenses, Net (T
Other (Income) Expenses, Net (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | Other (income) expenses, net consists of the following. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Currency (gains) losses, net (1) $ (1) $ (2) $ (1) $ 1 Unrealized (gains) losses on change in fair value of derivative instruments, net (2) (26) (13) (6) 14 Realized losses (gains) on change in fair value of derivative instruments, net (2) 41 2 (2) 2 Gain on sale of business (3) (15) — (15) — Loss on sale of assets, net 3 2 5 — Gain on Brazilian tax litigation, net (4) (9) — (85) — Interest income (2) (3) (6) (7) Non-operating net periodic benefit cost (5) — 7 (6) 27 Charitable contribution (6) — — — 50 Other, net (7) 7 — 30 (1) Other (income) expenses, net $ (2) $ (7) $ (86) $ 86 _________________________ (1) Includes gains (losses) recognized on balance sheet remeasurement currency exchange contracts, net. See Note 11 – Currency Losses (Gains) for further details. (2) See Note 12 – Financial Instruments and Commodity Contracts for further details. (3) During the third quarter of fiscal 2022, Novelis sold 90% of its equity ownership in Saras Micro Devices, Inc., an early stage business founded by Novelis related to the development, design, manufacturing, and sale of aluminum-integrated passive devices for use in semiconductor and electronic systems. The sale resulted in a $15 million gain on sale of business. As part of this transaction, we received $9 million in cash upon close and approximately $6 million in deferred cash receipts. (4) See Note 17 – Commitments and Contingencies for further details. (5) Represents net periodic benefit cost, exclusive of service cost for the Company's pension and other post-retirement plans. For further details, refer to Note 1 0 – Postretirement Benefit Plans . (6) Represents a charitable contribution for COVID-19 relief. (7) Other, net for the nine months ended December 31, 2021 includes $18 million from the release of certain outstanding receivables in the first quarter of fiscal 2022. |
Segment, Major Customer and M_2
Segment, Major Customer and Major Supplier Information (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected segment financial information | The following table displays segment income by reportable segment. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 North America $ 181 $ 206 $ 580 $ 489 Europe 71 98 251 181 Asia 76 78 256 227 South America 178 129 525 317 Eliminations and other — (10) 2 (5) Segment income $ 506 $ 501 $ 1,614 $ 1,209 The following table displays our net sales by product end market. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Can $ 2,154 $ 1,596 $ 6,206 $ 4,431 Automotive 885 704 2,395 1,671 Aerospace and industrial plate 125 85 361 280 Specialty 1,162 856 3,338 2,263 Net sales $ 4,326 $ 3,241 $ 12,300 $ 8,645 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The table below displays the reconciliation from net income attributable to our common shareholder to segment income. Three Months Ended December 31, Nine Months Ended December 31, in millions 2021 2020 2021 2020 Net income attributable to our common shareholder $ 262 $ 176 $ 739 $ 60 Net income attributable to noncontrolling interests — 1 — 1 Income tax provision 89 80 276 119 (Income) loss from discontinued operations, net of tax (3) 18 62 47 Loss on sale of discontinued operations, net of tax — — — 170 Income from continuing operations before income tax provision 348 275 1,077 397 Depreciation and amortization 137 137 405 396 Interest expense and amortization of debt issuance costs 54 66 173 206 Adjustment to reconcile proportional consolidation (1) 17 13 46 42 Unrealized (gains) losses on change in fair value of derivative instruments, net (26) (13) (6) 14 Realized (gains) losses on derivative instruments not included in segment income (2) — (2) (1) 2 Gain on sale of business (3) (15) — (15) — Loss on extinguishment of debt, net 1 — 63 — Restructuring and impairment expenses, net 3 20 1 28 Loss on sale of assets, net 3 2 5 — Purchase price accounting adjustments (4) — — — 29 Metal price lag (14) — (127) 32 Business acquisition and other related costs (5) — — — 11 Other, net (6) (2) 3 (7) 52 Segment income $ 506 $ 501 $ 1,614 $ 1,209 _________________________ (1) Adjustment to reconcile proportional consolidation relates to depreciation, amortization, and income taxes of our equity method investments. Income taxes related to our equity method investments are reflected in the carrying value of the investment and not in our consolidated income tax provision. (2) Realized (gains) losses on derivative instruments not included in segment income represents foreign currency derivatives unrelated to operations. (3) Gain on sale of business relates to Novelis' sale of 90% of its equity ownership in Saras Micro Devices, Inc. See Note 15 – Other (Income) Expenses, net for further details. (4) Purchase price accounting adjustments primarily relates to the relief of the inventory step-up related to the acquired Aleris business. (5) Business acquisition and other related costs are primarily legal and professional fees associated with our acquisition of Aleris. (6) For the nine months ended December 31, 2021, other, net includes $36 million of interest income recognized as a result of Brazilian tax litigation settlements and interest income, partially offset by $18 million from the release of certain outstanding receivables. For the nine months ended December 31, 2020, other, net primarily relates to a charitable contribution for COVID-19 relief as well as interest income. |
Net sales to largest customers, as a percentage of total Net sales | Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Ball 17 % 15 % 16 % 15 % |
Percentage of total combined metal purchases | The table below shows our purchases from Rio Tinto as a percentage of our total combined metal purchases. Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Purchases from Rio Tinto as a percentage of total combined metal purchases 8 % 8 % 8 % 7 % |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2021continentplantcountry | Dec. 31, 2021plantcountrycontinent | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of Countries in which Entity Operates | country | 9 | 9 |
Number of continents Company operates in | continent | 4 | 4 |
Number of Operating Plants | plant | 33 | 33 |
Number of plants with recycling operations | plant | 15 | 15 |
Number of operating segments | continent | 4 | |
Risks and Uncertainties in Entity's Business | Risks & Uncertainty resulting from COVID-19Beginning late in the fourth quarter of fiscal 2020 and carrying into the current fiscal year, the COVID-19 pandemic and its unprecedented negative economic implications have affected production and sales across a range of industries around the world.Our global operations, similar to those of many other large, multi-national corporations, have felt this impact on customer demand, disruptions to our supply chain, interruptions to our production, and delays of shipments to our customers, mainly in the first quarter of fiscal 2021. While much of our customer demand and shipments recovered in the majority of our end markets, the overall extent of the impact of the COVID-19 pandemic on our operating results, cash flows, liquidity, and financial condition will depend on certain developments, including the duration and spread of the outbreak (including the emergence of variants of the virus) and its impact on our customers, employees, and vendors. We believe this will be primarily driven by the severity and duration of the pandemic, the pandemic’s impact on the U.S. and global economies, and the timing, scope, and effectiveness of federal, state, and local governmental responses, including the distribution and adoption of vaccines.Although we have made our best estimates based upon current information, the effects of the COVID-19 pandemic on our business may result in future changes to our estimates and assumptions based on its duration. Actual results could materially differ from the estimates and assumptions developed by management. If so, we may be subject to future impairment charges as well as changes to recorded reserves and valuations. |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Apr. 14, 2020 | |
Business Acquisition [Line Items] | |||
Business Acquisition, Pro Forma Revenue | $ 3,241 | $ 8,699 | |
Business Acquisition, Pro Forma Net Income (Loss) | $ 97 | $ 15 | |
Aleris Corporation | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Discontinued Operations (Detail
Discontinued Operations (Details) € in Millions, $ in Millions | Apr. 14, 2020USD ($) | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2021EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Nov. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Loss on sale of discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (170) | |||||||||||
Aleris Corporation | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Business Combination, Consideration Transferred | $ 2,800 | ||||||||||||||
Duffel [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Gain Contingency, Unrecorded Amount | $ 117 | € 100 | |||||||||||||
Contingent Consideration Receivable | $ 45 | € 53 | $ 95 | € 112 | $ 93 | € 109 | |||||||||
Loss on sale of discontinued operations, net of tax | $ 61 | € 51 | |||||||||||||
Cash and Cash Equivalents [Member] | Duffel [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 246 | 210 | |||||||||||||
Cash and Cash Equivalents [Member] | Lewisport [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 180 | ||||||||||||||
Prepaid Expenses and Other Current Assets [Member] | Duffel [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 18 | € 15 | |||||||||||||
Prepaid Expenses and Other Current Assets [Member] | Lewisport [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 19 | $ 19 |
Restructuring and Impairment,_3
Restructuring and Impairment, Net - Restructuring Liability Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total restructuring liabilities | ||||
Balance, beginning of period | $ 34 | $ 34 | ||
Restructuring and impairment expenses, net | $ 3 | $ 20 | 1 | 28 |
Cash payments | (20) | (25) | ||
Foreign currency and other | (2) | 1 | ||
Balance, end of period | 13 | 38 | 13 | 38 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 13 | 38 | 13 | 38 |
Restructuring and impairment expenses, net | 3 | 20 | 1 | 28 |
Cash payments | 20 | 25 | ||
Foreign currency and other | (2) | 1 | ||
Operating Segments [Member] | North America | ||||
Total restructuring liabilities | ||||
Balance, beginning of period | 3 | 1 | ||
Restructuring and impairment expenses, net | 2 | 4 | ||
Cash payments | (3) | (3) | ||
Balance, end of period | 2 | 2 | 2 | 2 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 2 | 2 | 2 | 2 |
Restructuring and impairment expenses, net | 2 | 4 | ||
Cash payments | 3 | 3 | ||
Operating Segments [Member] | Europe | ||||
Total restructuring liabilities | ||||
Balance, beginning of period | 19 | 21 | ||
Restructuring and impairment expenses, net | (4) | 16 | ||
Cash payments | (11) | (15) | ||
Foreign currency and other | (1) | 1 | ||
Balance, end of period | 3 | 23 | 3 | 23 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 3 | 23 | 3 | 23 |
Restructuring and impairment expenses, net | (4) | 16 | ||
Cash payments | 11 | 15 | ||
Foreign currency and other | (1) | 1 | ||
Operating Segments [Member] | Asia | ||||
Total restructuring liabilities | ||||
Balance, beginning of period | 0 | 0 | ||
Restructuring and impairment expenses, net | 2 | |||
Cash payments | (1) | |||
Balance, end of period | 1 | 0 | 1 | 0 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 1 | 0 | 1 | 0 |
Restructuring and impairment expenses, net | 2 | |||
Cash payments | 1 | |||
Operating Segments [Member] | South America | ||||
Total restructuring liabilities | ||||
Balance, beginning of period | 9 | 12 | ||
Restructuring and impairment expenses, net | 1 | |||
Cash payments | (2) | (3) | ||
Foreign currency and other | (1) | 0 | ||
Balance, end of period | 7 | 9 | 7 | 9 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 7 | 9 | 7 | 9 |
Restructuring and impairment expenses, net | 1 | |||
Cash payments | 2 | 3 | ||
Foreign currency and other | (1) | 0 | ||
Corporate, Non-Segment [Member] | ||||
Total restructuring liabilities | ||||
Balance, beginning of period | 3 | 0 | ||
Restructuring and impairment expenses, net | 8 | |||
Cash payments | (3) | (4) | ||
Balance, end of period | 0 | 4 | 0 | 4 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 0 | $ 4 | 0 | 4 |
Restructuring and impairment expenses, net | 8 | |||
Cash payments | $ 3 | $ 4 |
Restructuring and Impairment,_4
Restructuring and Impairment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and impairment expenses, net | $ 3 | $ 20 | $ 1 | $ 28 | ||
Restructuring Reserve | 13 | $ 38 | 13 | $ 38 | $ 34 | $ 34 |
Other Current Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 13 | 13 | ||||
Other Liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 7 | $ 7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Schedule of inventories | ||
Finished goods | $ 697 | $ 455 |
Work in process | 1,327 | 874 |
Raw materials | 667 | 407 |
Supplies | 221 | 192 |
Inventories | $ 2,912 | $ 1,928 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 808 | $ 998 | $ 1,164 |
Accounts receivable, net | 2,247 | 1,687 | |
Inventories | 2,912 | 1,928 | |
Prepaid expenses and other current assets | 155 | 198 | |
Total current assets | 6,610 | 5,134 | |
Property, plant and equipment, net | 4,614 | 4,687 | |
Goodwill | 1,082 | 1,083 | |
Deferred income tax assets | 125 | 130 | |
Other long–term assets | 280 | 316 | |
Total assets | 14,189 | 12,885 | |
Current liabilities: | |||
Accounts payable | 3,147 | 2,498 | |
Accrued expenses and other current liabilities | 727 | 670 | |
Total current liabilities | 5,371 | 4,001 | |
Accrued postretirement benefits | 841 | 878 | |
Other long–term liabilities | 294 | 305 | |
Total liabilities | 11,713 | 10,999 | |
Primary Beneficiary | |||
Current assets: | |||
Cash and cash equivalents | 3 | 5 | |
Accounts receivable, net | 57 | 69 | |
Inventories | 98 | 81 | |
Prepaid expenses and other current assets | 4 | 4 | |
Total current assets | 162 | 159 | |
Property, plant and equipment, net | 22 | 19 | |
Goodwill | 12 | 12 | |
Deferred income tax assets | 56 | 57 | |
Other long–term assets | 8 | 8 | |
Total assets | 260 | 255 | |
Current liabilities: | |||
Accounts payable | 45 | 38 | |
Accrued expenses and other current liabilities | 24 | 26 | |
Total current liabilities | 69 | 64 | |
Accrued postretirement benefits | 212 | 214 | |
Other long–term liabilities | 5 | 5 | |
Total liabilities | $ 286 | $ 283 | |
Logan Aluminum Inc. | |||
Current liabilities: | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% |
Investment In and Advances to_3
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Accounts receivable, net-related parties net of Accounts payable-related parties (less than) | $ 260 | $ 260 | $ 166 | ||
Return of capital to our common shareholder | 100 | ||||
Additional Paid-in Capital [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Return of capital to our common shareholder | 100 | ||||
Parent Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue from related parties (less than) | 1 | ||||
Accounts receivable, net-related parties net of Accounts payable-related parties (less than) | $ 2 | $ 2 | $ 2 | ||
Purchases of raw materials (less than) | $ 1 | $ 2 | |||
Aluminum Norf GmbH | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Ulsan Aluminum, Ltd. [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
AluInfra Services SA | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% |
Investment In and Advances to_4
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Summary of Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income tax provision | $ 89 | $ 80 | $ 276 | $ 119 |
Net income | 262 | 177 | 739 | 61 |
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | 481 | 307 | 1,255 | 872 |
Costs and expenses related to net sales | 446 | 311 | 1,193 | 862 |
Income tax provision | 10 | (2) | 17 | 3 |
Net income | 25 | (2) | 45 | 7 |
Purchases of tolling services from Alunorf | $ 87 | $ 60 | $ 226 | $ 185 |
Investment In and Advances to_5
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Period End Account Balances (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | |||
Accounts receivable, net — related parties | $ 260 | $ 166 | |
Other long–term assets — related parties | 1 | 1 | $ 1 |
Accounts payable — related parties | $ 356 | $ 230 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Instrument | ||
Long-term debt, principal | $ 5,060,000,000 | $ 5,734,000,000 |
Long-term debt, Carrying Value | 5,292,000,000 | 5,702,000,000 |
Total debt, Unamortized Carrying Value Adjustment | (77,000,000) | (81,000,000) |
Current portion of long-term debt | (340,000,000) | (71,000,000) |
Long-term debt, net of current portion, Carrying Value | 4,984,000,000 | 5,653,000,000 |
Total debt | 5,774,000,000 | 6,041,000,000 |
Short-term Debt | (373,000,000) | (236,000,000) |
Total debt, carrying value | 5,697,000,000 | 5,960,000,000 |
Long-term debt, Gross, Current Portion | $ (341,000,000) | (71,000,000) |
Floating Rate Term Loan Facility, due through June 2022 | ||
Debt Instrument | ||
Stated rate | 2.07% | |
Long-term debt, principal | $ 315,000,000 | 648,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (1,000,000) | (5,000,000) |
Long-term debt, Carrying Value | $ 314,000,000 | 643,000,000 |
Floating rate incremental term loan facility, due January 2025 | ||
Debt Instrument | ||
Stated rate | 1.97% | |
Long-term debt, principal | $ 761,000,000 | 767,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (11,000,000) | (15,000,000) |
Long-term debt, Carrying Value | $ 750,000,000 | 752,000,000 |
Floating rate incremental term loan facility, due March 2028 | ||
Debt Instrument | ||
Stated rate | 2.22% | |
Long-term debt, principal | $ 496,000,000 | 480,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (8,000,000) | (9,000,000) |
Long-term debt, Carrying Value | 488,000,000 | 471,000,000 |
Zhenjiang Term Loans | ||
Debt Instrument | ||
Long-term debt, principal | 0 | 124,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 2,000,000 |
Long-term debt, Carrying Value | $ 0 | 126,000,000 |
Senior Notes due September 2026 | ||
Debt Instrument | ||
Stated rate | 5.875% | |
Long-term debt, principal | $ 0 | 1,500,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | (13,000,000) |
Long-term debt, Carrying Value | $ 0 | 1,487,000,000 |
Senior Notes due November 2026 | ||
Debt Instrument | ||
Stated rate | 3.25% | |
Long-term debt, principal | $ 750,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | (10,000,000) | 0 |
Long-term debt, Carrying Value | $ 740,000,000 | 0 |
Senior Notes due April 2029 | ||
Debt Instrument | ||
Stated rate | 3.375% | |
Long-term debt, principal | $ 569,000,000 | 588,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (11,000,000) | (13,000,000) |
Long-term debt, Carrying Value | $ 558,000,000 | 575,000,000 |
Senior Notes Due 2030 | ||
Debt Instrument | ||
Stated rate | 4.75% | |
Long-term debt, principal | $ 1,600,000,000 | 1,600,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (26,000,000) | (28,000,000) |
Long-term debt, Carrying Value | $ 1,574,000,000 | 1,572,000,000 |
Senior Notes due August 2031 | ||
Debt Instrument | ||
Stated rate | 3.875% | |
Long-term debt, principal | $ 750,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | (10,000,000) | 0 |
Long-term debt, Carrying Value | $ 740,000,000 | 0 |
Bank Loans, Due Through June 2027 | ||
Debt Instrument | ||
Stated rate | 4.90% | |
Long-term debt, principal | $ 78,000,000 | 76,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | 78,000,000 | 76,000,000 |
Brazil loan, due June 2023 | ||
Debt Instrument | ||
Long-term debt, principal | 30,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | 30,000,000 | 0 |
Brazil loan, due December 2023 | ||
Debt Instrument | ||
Long-term debt, principal | 20,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 20,000,000 | 0 |
Other Debt, due through June 2028 | ||
Debt Instrument | ||
Stated rate | 2.25% | |
Long-term debt, principal | $ 32,000,000 | 22,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | 32,000,000 | 22,000,000 |
Leased assets | 17,000,000 | |
Long-term debt, net of current portion | ||
Debt Instrument | ||
Total debt, Unamortized Carrying Value Adjustment | $ (76,000,000) | |
Short-term borrowings | ||
Debt Instrument | ||
Stated rate | 2.65% | |
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | 0 |
Short-term Debt | $ (373,000,000) | (236,000,000) |
Brazil loan, due June 2023 | ||
Debt Instrument | ||
Stated rate | 1.80% | |
Short-term Debt | $ (30,000,000) | |
Brazil loan, due December 2023 | ||
Debt Instrument | ||
Stated rate | 1.80% | |
Short-term Debt | $ (20,000,000) | |
Current portion of long term debt | ||
Debt Instrument | ||
Long-term debt, Unamortized Carrying Value Adjustments | $ 1,000,000 | |
Current portion of long-term debt | $ 0 |
Debt - Principal Repayments (De
Debt - Principal Repayments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 714 | |
2 years | 81 | |
3 years | 32 | |
4 years | 758 | |
5 years | 776 | |
Thereafter | 3,413 | |
Total debt | $ 5,774 | $ 6,041 |
Debt - Additional Information (
Debt - Additional Information (Details) ¥ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | |
Debt Instrument | ||||||
Short-term borrowings | $ 373,000,000 | $ 373,000,000 | $ 236,000,000 | |||
Loss on extinguishment of debt, net | 1,000,000 | $ 0 | 63,000,000 | $ 0 | ||
Long-term debt, principal | 5,060,000,000 | 5,060,000,000 | 5,734,000,000 | |||
Debt issuance costs | 25,000,000 | $ 25,000,000 | ||||
Brazil Loans | ||||||
Debt Instrument | ||||||
Short-term borrowings | 150,000,000 | 150,000,000 | ||||
ABL Revolver | ||||||
Debt Instrument | ||||||
Short-term borrowings | 122,000,000 | 122,000,000 | ||||
China Revolver | ||||||
Debt Instrument | ||||||
Short-term borrowings | 100,000,000 | 100,000,000 | ¥ 640 | |||
Other Short-term Debt | ||||||
Debt Instrument | ||||||
Short-term borrowings | 1,000,000 | 1,000,000 | ||||
Brazil loan, due June 2023 | ||||||
Debt Instrument | ||||||
Short-term borrowings | $ 30,000,000 | $ 30,000,000 | ||||
Stated rate | 1.80% | 1.80% | 1.80% | |||
Brazil loan, due December 2023 | ||||||
Debt Instrument | ||||||
Short-term borrowings | $ 20,000,000 | $ 20,000,000 | ||||
Stated rate | 1.80% | 1.80% | 1.80% | |||
Floating Rate Term Loan Facility, due through June 2022 | ||||||
Debt Instrument | ||||||
Principal payment | $ 300,000,000 | |||||
Loss on extinguishment of debt, net | $ 2,000,000 | |||||
Stated rate | 2.07% | 2.07% | 2.07% | |||
Long-term debt, principal | $ 315,000,000 | $ 315,000,000 | 648,000,000 | |||
Zhenjiang Term Loans | ||||||
Debt Instrument | ||||||
Loss on extinguishment of debt, net | $ 2,000,000 | |||||
Long-term debt, principal | $ 0 | $ 0 | 124,000,000 | |||
Senior Notes due November 2026 | ||||||
Debt Instrument | ||||||
Stated rate | 3.25% | 3.25% | 3.25% | |||
Long-term debt, principal | $ 750,000,000 | $ 750,000,000 | 0 | |||
Debt issuance costs | $ 11,000,000 | |||||
Senior Notes due August 2031 | ||||||
Debt Instrument | ||||||
Stated rate | 3.875% | 3.875% | 3.875% | |||
Long-term debt, principal | $ 750,000,000 | $ 750,000,000 | 0 | |||
Debt issuance costs | $ 11,000,000 | |||||
Senior Notes due September 2026 | ||||||
Debt Instrument | ||||||
Loss on extinguishment of debt, net | $ 63,000,000 | |||||
Stated rate | 5.875% | 5.875% | 5.875% | |||
Long-term debt, principal | $ 0 | $ 0 | $ 1,500,000,000 | |||
Redemption premium | $ 51,000,000 | |||||
ABL Revolver | Daily Simple SOFR | ||||||
Debt Instrument | ||||||
Stated rate | 0.11448% | 0.11448% | 0.11448% | |||
ABL Revolver | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate | 1.25% | 1.25% | 1.25% | |||
ABL Revolver | Minimum | Daily Simple SOFR | ||||||
Debt Instrument | ||||||
Basis spread on variable rate | 1.36% | 1.36% | 1.36% | |||
ABL Revolver | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate | 1.75% | 1.75% | 1.75% | |||
ABL Revolver | Maximum | Daily Simple SOFR | ||||||
Debt Instrument | ||||||
Basis spread on variable rate | 1.86% | 1.86% | 1.86% | |||
ABL Revolver | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity | $ 1,300,000,000 | $ 1,300,000,000 | ||||
ABL Revolver | Letter of Credit | ||||||
Debt Instrument | ||||||
Amount outstanding | 39,000,000 | 39,000,000 | ||||
Letter of Credit | ABL Revolver | ||||||
Debt Instrument | ||||||
Remaining borrowing capacity | $ 136,000,000 | $ 136,000,000 | ||||
Base Rate | ABL Revolver | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate | 0.25% | 0.25% | 0.25% | |||
Base Rate | ABL Revolver | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate | 0.75% | 0.75% | 0.75% |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation by Award [Line Items] | ||||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ 26 | $ 26 | ||
2010 LTIP [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Total compensation expense | 6 | $ 13 | $ 30 | $ 25 |
SARs [Member] | Hindalco SARs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of SARs granted (in shares) | 2,394,764 | |||
Unrecognized compensation expense | $ 10 | $ 10 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 2 months 12 days | |||
RSUs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of RSUs granted (in shares) | 1,768,851 | |||
Cash payments to settle liabilities | $ 17 | $ 4 | ||
Unrecognized compensation expense | $ 12 | $ 12 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 4 months 24 days | |||
Cash [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Cash payments to settle liabilities | $ 22 | $ 2 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of net periodic benefit cost for postretirement benefit plans | ||||||
Net periodic benefit cost(1) | $ 0 | $ (7) | $ 6 | $ (27) | ||
Discontinued Operations, Disposed of by Sale [Member] | ||||||
Components of net periodic benefit cost for postretirement benefit plans | ||||||
Service cost | 1 | |||||
Interest cost | 1 | |||||
Expected return on assets | 2 | |||||
Pension Benefit Plans [Member] | ||||||
Components of net periodic benefit cost for postretirement benefit plans | ||||||
Service cost | 8 | 11 | 24 | 35 | ||
Interest cost | 14 | 15 | 42 | 45 | ||
Expected return on assets | (19) | (20) | (58) | (58) | ||
Amortization — losses, net | 5 | 10 | 14 | 33 | ||
Amortization — prior service credit, net | (1) | 0 | (1) | 0 | ||
Settlement/curtailments (gain) loss | $ (4) | $ (3) | (7) | 1 | ||
Net periodic benefit cost(1) | 7 | 16 | 14 | 56 | ||
Other Benefit Plans [member] | ||||||
Components of net periodic benefit cost for postretirement benefit plans | ||||||
Service cost | 2 | 3 | 8 | 8 | ||
Interest cost | 2 | 2 | 5 | 6 | ||
Expected return on assets | 0 | 0 | 0 | 0 | ||
Amortization — losses, net | 0 | 0 | 0 | 0 | ||
Amortization — prior service credit, net | (1) | 0 | (1) | 0 | ||
Settlement/curtailments (gain) loss | 0 | 0 | ||||
Net periodic benefit cost(1) | $ 3 | $ 5 | $ 12 | $ 14 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Employer Contributions to Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contributions to employee benefit plans | ||||
Funded pension plans | $ 5 | $ 5 | $ 22 | $ 54 |
Unfunded pension plans | 4 | 4 | 10 | 11 |
Savings and defined contribution pension plans | 11 | 11 | 38 | 29 |
Total contributions | $ 20 | $ 20 | $ 70 | $ 94 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||||||
Expected long-term rate of return on plan assets | 4.90% | |||||
Maximum amortization period of unfunded actuarial liability | 15 years | |||||
Expected additional contribution to funded pension plan | $ 21 | |||||
Expected additional contribution to unfunded pension plan | 7 | |||||
Expected additional contribution to savings and defined contribution plans | $ 7 | |||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.90% | |||||
Unfunded Actuarial Liability, Maximum Amortization Period | 15 years | |||||
Payment for Pension and Other Postretirement Benefits | $ 20 | $ 20 | $ 70 | $ 94 | ||
Additional Contributions To Funded Pension Plan | 21 | |||||
Additional Contributions To Unfunded Pension Plan | 7 | |||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 7 | |||||
Pension Plan [Member] | ||||||
Retirement Benefits [Abstract] | ||||||
Defined Benefit Plan, Service Cost | 8 | 11 | 24 | 35 | ||
Defined Benefit Plan, Interest Cost | 14 | 15 | 42 | 45 | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (19) | (20) | (58) | (58) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Settlement/curtailments (gain) loss | $ (4) | $ (3) | (7) | 1 | ||
Defined Benefit Plan, Service Cost | 8 | 11 | 24 | 35 | ||
Defined Benefit Plan, Interest Cost | 14 | 15 | 42 | 45 | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 19 | $ 20 | $ 58 | $ 58 | ||
Discontinued Operations, Disposed of by Sale [Member] | ||||||
Retirement Benefits [Abstract] | ||||||
Defined Benefit Plan, Service Cost | 1 | |||||
Defined Benefit Plan, Interest Cost | 1 | |||||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Service Cost | 1 | |||||
Defined Benefit Plan, Interest Cost | 1 | |||||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (2) | |||||
Discontinued Operations, Disposed of by Sale [Member] | Defined Benefit Plan, Funded Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Payment for Pension and Other Postretirement Benefits | 5 | |||||
Discontinued Operations, Disposed of by Sale [Member] | Defined Benefit Plan, Unfunded Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Payment for Pension and Other Postretirement Benefits | $ 1 |
Currency Losses (Gains) - Inclu
Currency Losses (Gains) - Included in Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Currency (gains) losses included in other income expense | ||||
Losses (gains) on remeasurement of monetary assets and liabilities, net | $ 6 | $ 13 | $ (2) | $ 5 |
(Gains) losses recognized on balance sheet remeasurement currency exchange contracts, net | (7) | (15) | 1 | (4) |
Currency (gains) losses, net | $ (1) | $ (2) | $ (1) | $ 1 |
Currency Losses (Gains) - Inc_2
Currency Losses (Gains) - Included in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative currency translation adjustment — beginning of period | $ (366) | $ (458) | $ (620) | ||||
Currency translation adjustment | $ 6 | $ 170 | $ (28) | $ 321 | |||
Amounts reclassified from accumulated other comprehensive loss, net(1) | 0 | (30) | |||||
Cumulative currency translation adjustment — end of period | (366) | ||||||
Currency Translation [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative currency translation adjustment — beginning of period | (123) | (123) | (95) | $ (309) | |||
Currency translation adjustment | (28) | 244 | |||||
Cumulative currency translation adjustment — end of period | $ (123) | $ (123) | $ (95) |
Financial Instruments and Com_3
Financial Instruments and Commodity Contracts - Summary of Gross Fair Values of Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Assets | ||
Derivative Assets, Current | $ 217 | $ 137 |
Derivative Asset, Noncurrent | 12 | 4 |
Liabilities | ||
Derivative Liabilities, Current | (407) | (280) |
Derivative Liabilities, Noncurrent | (17) | (5) |
Net Fair Value Assets/Liabilities | (195) | (144) |
Forward Contracts [Member] | ||
Liabilities | ||
Fair value of derivative, asset | 3 | |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 33 | 11 |
Derivative Asset, Noncurrent | 8 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (213) | (128) |
Derivative Liabilities, Noncurrent | (14) | (4) |
Net Fair Value Assets/Liabilities | (186) | (120) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 20 | 4 |
Derivative Asset, Noncurrent | 2 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (188) | (105) |
Derivative Liabilities, Noncurrent | (8) | 0 |
Net Fair Value Assets/Liabilities | (174) | (101) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 6 | 6 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (25) | (20) |
Derivative Liabilities, Noncurrent | (6) | (4) |
Net Fair Value Assets/Liabilities | (24) | (18) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 7 | 1 |
Derivative Asset, Noncurrent | 5 | 1 |
Liabilities | ||
Derivative Liabilities, Current | 0 | (3) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | 12 | (1) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 184 | 126 |
Derivative Asset, Noncurrent | 4 | 3 |
Liabilities | ||
Derivative Liabilities, Current | (194) | (152) |
Derivative Liabilities, Noncurrent | (3) | (1) |
Net Fair Value Assets/Liabilities | (9) | (24) |
Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 163 | 104 |
Derivative Asset, Noncurrent | 3 | 3 |
Liabilities | ||
Derivative Liabilities, Current | (161) | (124) |
Derivative Liabilities, Noncurrent | (2) | (1) |
Net Fair Value Assets/Liabilities | 3 | (18) |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 20 | 22 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (33) | (28) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Net Fair Value Assets/Liabilities | (13) | $ (6) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 1 | |
Derivative Asset, Noncurrent | 0 | |
Liabilities | ||
Derivative Liabilities, Current | 0 | |
Derivative Liabilities, Noncurrent | 0 | |
Net Fair Value Assets/Liabilities | $ 1 |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts - Summary of Notional Amount (Details) - Metal Contracts [Member] - kt kt in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Long [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 12,000 | 10,000 |
Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 964,000 | 628,000 |
Short [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 939,000 | 594,000 |
Short [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 37,000 | 44,000 |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts - Gain (Loss) Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in other (income) expenses, net | $ (17) | $ 8 | ||
Other Operating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized on balance sheet remeasurement currency exchange contracts, net | $ 7 | $ 15 | (1) | 4 |
Realized (losses) gains, net | (41) | (2) | 2 | (2) |
Unrealized gains (losses) on other derivative instruments, net | 26 | 13 | 6 | (14) |
Total (loss) gain recognized in other (income) expenses, net | (8) | 26 | 7 | (12) |
Other Operating Income (Expense) [Member] | Metal Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in other (income) expenses, net | (23) | 11 | (8) | (21) |
Other Operating Income (Expense) [Member] | Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in other (income) expenses, net | 14 | 14 | 8 | 3 |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in other (income) expenses, net | $ 1 | $ 1 | $ 7 | $ 6 |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts - Summary of the Impact on AOCI and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | $ 28 | $ (34) | $ (484) | $ (96) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | 35 | (83) | (488) | (142) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | 0 | 51 | (19) | 43 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | $ (7) | $ (2) | $ 23 | $ 3 |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | $ 28 | $ (34) | $ (484) | $ (96) |
Income Tax Expense (Benefit) | (89) | (80) | (276) | (119) |
Net income | $ 262 | $ 177 | $ 739 | $ 61 |
Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (131) | (69) | (438) | (60) |
Income Tax Expense (Benefit) | $ (33) | $ (20) | $ 112 | $ 18 |
Net income | (98) | (49) | (326) | (42) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | $ (7) | $ (2) | $ 23 | $ 3 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 6 | (2) | 6 | (9) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | $ 35 | $ (83) | $ (488) | $ (142) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 4 | (4) | 9 | (14) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (136) | (54) | (449) | 1 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | $ 0 | $ 51 | $ (19) | $ 43 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 1 | (11) | 4 | (34) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | — | (1) | — | (3) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (5) | 3 | (6) | — |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (1) | — | (2) | (1) |
Financial Instruments and Com_8
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification Summarization (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Metal Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | $ (136) | $ (54) | $ (449) | $ 1 |
Metal Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 4 | (4) | 9 | (14) |
Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Metal Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 6 | (2) | 6 | (9) |
Energy Related Derivative [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (5) | 3 | (6) | 0 |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 1 | (11) | 4 | (34) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | (1) | 0 | (3) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (1) | 0 | (2) | (1) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | 0 | 0 |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments and Com_9
Financial Instruments and Commodity Contracts - Additional Information (Details) MWh in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021USD ($)MWhMMBTUgallon | Dec. 31, 2021USD ($)MWhMMBTUgallon | Mar. 31, 2021USD ($)MMBTUgallon | Dec. 31, 2020USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expected reclassification from AOCI to earnings | $ 180,000,000 | |||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 1 year | |||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Maximum | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 1,400,000,000 | $ 1,400,000,000 | $ 1,300,000,000 | |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 1,200,000,000 | $ 1,200,000,000 | 936,000,000 | |
Electricity Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | 2,000,000 | |||
Derivative, Nonmonetary Notional Amount | MWh | (1) | (1) | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 3 years | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | 1,000,000 | |
Derivative, Nonmonetary Notional Amount | MMBTU | (1,000,000) | (1,000,000) | ||
Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 11,000,000 | $ 11,000,000 | $ 1,000,000 | |
Derivative, Nonmonetary Notional Amount | MMBTU | (13,000,000) | (13,000,000) | (13,000,000) | |
Diesel Fuel Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 1 year | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | ||
Derivative, Nonmonetary Notional Amount | MMBTU | (1,000,000) | (1,000,000) | (1,000,000) | |
Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | ||
Derivative, Nonmonetary Notional Amount | gallon | (5,000,000) | (5,000,000) | (5,000,000) | |
Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, asset | $ 3,000,000 | $ 3,000,000 | ||
Fair value of derivative, liability (less than) | $ 7,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | $ (547) | $ (366) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 32 | $ 136 | (377) | $ 317 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 99 | 56 | 327 | 37 |
Other comprehensive income, net of tax | 131 | 192 | (50) | 354 |
Balance as of end of period | (416) | (266) | (416) | (266) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | (458) | (366) | (620) | |
Currency Translation [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (129) | (158) | (95) | (309) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 6 | 170 | (28) | 351 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | (30) |
Other comprehensive income, net of tax | 6 | 170 | (28) | 321 |
Balance as of end of period | (123) | 12 | (123) | 12 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | (95) | (309) | ||
Cash Flow Hedges [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (285) | (78) | (133) | (26) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 22 | (26) | (358) | (71) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 98 | 49 | 326 | 42 |
Other comprehensive income, net of tax | 120 | 23 | (32) | (29) |
Balance as of end of period | (165) | (55) | (165) | (55) |
Postretirement Benefit Plans [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (133) | (222) | (138) | (285) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 4 | (8) | 9 | 37 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 7 | 1 | 25 |
Other comprehensive income, net of tax | 5 | (1) | 10 | 62 |
Balance as of end of period | $ (128) | $ (223) | $ (128) | $ (223) |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | $ 229 | $ 141 |
Derivative Asset, Master Netting Adjustment | (146) | (81) |
Fair value of derivative, asset | 83 | 60 |
Liabilities | (424) | (285) |
Derivative Liability, Master Netting Adjustment | 146 | 81 |
Derivative Liability | (278) | (204) |
Level 2 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 229 | 141 |
Liabilities | (424) | (283) |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 188 | 111 |
Liabilities | (359) | (230) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 28 | 28 |
Liabilities | (65) | (52) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 13 | 2 |
Liabilities | 0 | (1) |
Level 3 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | (2) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | $ 0 | $ (2) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Fair Value Activity for Level 3 Contracts (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2021USD ($) | |
Level 3 Derivative Instruments [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Balance as of beginning of period | $ (2) |
Realized/unrealized gain included in earnings | 6 |
Settlements | (6) |
Balance as of end of period | 0 |
Accumulated Other Comprehensive Loss (AOCI) [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Realized/unrealized gain included in earnings | $ 2 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | $ 5,292 | $ 5,702 |
Total debt - third parties (excluding short term borrowings), fair value | 5,539 | 5,967 |
Due from Other Related Parties | 1 | 1 |
Other Assets, Fair Value Disclosure | $ 1 | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) € in Millions, $ in Millions | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | $ 0 | ||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate | 5.00% | 5.00% | |||||
Duffel [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||
Contingent Consideration Receivable | $ 45 | € 53 | $ 95 | € 112 | $ 93 | € 109 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | ||||
Foreign Currency Transaction Gain (Loss), before Tax | $ (1) | $ (2) | $ (1) | $ 1 |
Unrealized (gains) losses on change in fair value of derivative instruments, net(2) | 26 | 13 | 6 | (14) |
Realized losses (gains) on change in fair value of derivative instruments, net(2) | 41 | 2 | (2) | 2 |
Gain on sale of business | 0 | 15 | 0 | |
Loss on sale of assets, net | 3 | 2 | 5 | 0 |
Gain (Loss) Related to Litigation Settlement | (9) | 0 | (85) | 0 |
Interest income | (2) | (3) | (6) | (7) |
Non-operating net periodic benefit cost(5) | 0 | 7 | (6) | 27 |
Charitable contribution(6) | 0 | 0 | 0 | 50 |
Other, net(7) | 7 | 0 | 30 | (1) |
Other (income) expenses, net | 2 | 7 | 86 | (86) |
Gain on sale of business | $ 0 | 15 | $ 0 | |
Other nonrecurring expense | $ 18 | |||
Sara Micro Devices, Inc. | ||||
Other Income and Expenses [Abstract] | ||||
Gain on sale of business | $ (15) | |||
Ownership percentage | 90.00% | 90.00% | ||
Gain on sale of business | $ (15) | |||
Cash proceeds from sale | 9 | |||
Cash proceeds from the sale, deferred | $ 6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Net deferred tax liability | $ (98) | $ (98) | ||
Deferred Tax Assets, Valuation Allowance | $ 830 | $ 830 | ||
Effective tax rate | 26.00% | 29.00% | 26.00% | 30.00% |
Deferred Tax Assets, Gross | $ 1,500 | $ 1,500 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 8 | |||
Income Tax Contingency [Line Items] | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 8 | |||
Deferred Tax Assets, Gross | $ 1,500 | $ 1,500 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | ||
Effective tax rate | 26.00% | 29.00% | 26.00% | 30.00% |
Minimum | UNITED KINGDOM | ||||
Income Tax Disclosure [Abstract] | ||||
Foreign Statutory Tax Rate | 19.00% | |||
Income Tax Contingency [Line Items] | ||||
Foreign Statutory Tax Rate | 19.00% | |||
Maximum | UNITED KINGDOM | ||||
Income Tax Disclosure [Abstract] | ||||
Foreign Statutory Tax Rate | 25.00% | |||
Income Tax Contingency [Line Items] | ||||
Foreign Statutory Tax Rate | 25.00% |
Income Taxes (Details)_2
Income Taxes (Details) $ in Millions | Dec. 31, 2021USD ($) |
Income Tax Contingency [Line Items] | |
Deferred Tax Assets, Valuation Allowance | $ 830 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Loss Contingencies | ||||||
Accrual for environmental loss contingencies, noncurrent | $ 20 | $ 20 | $ 23 | |||
Gain (Loss) Related to Litigation Settlement | 9 | $ 0 | 85 | $ 0 | ||
Litigation settlement interest | (36) | |||||
PIS and COFINS | ||||||
Loss Contingencies | ||||||
Gain (Loss) Related to Litigation Settlement | 5 | $ 76 | ||||
Principal amount awarded | 2 | 48 | ||||
Litigation settlement, expense | 1 | |||||
Gain on litigation settlement, net of tax | 64 | |||||
Litigation settlement interest | (3) | 29 | ||||
Reintegra | ||||||
Loss Contingencies | ||||||
Gain (Loss) Related to Litigation Settlement | $ 12 | |||||
Principal amount awarded | 8 | |||||
Litigation settlement interest | (4) | |||||
Accrued expenses and other current liabilities | ||||||
Loss Contingencies | ||||||
Accrual for environmental loss contingencies, noncurrent | 4 | 4 | ||||
BRAZIL | ||||||
Loss Contingencies | ||||||
Accrual for environmental loss contingencies, current | 16 | 16 | 20 | |||
BRAZIL | Accrued expenses and other current liabilities | ||||||
Loss Contingencies | ||||||
Accrual for environmental loss contingencies, noncurrent | 1 | 1 | ||||
Accrual for environmental loss contingencies, current | 6 | 6 | ||||
BRAZIL | Other long-term liabilities | ||||||
Loss Contingencies | ||||||
Accrual for environmental loss contingencies, noncurrent | 30 | 30 | $ 24 | |||
Minimum | ||||||
Loss Contingencies | ||||||
Range of possible loss | 0 | 0 | ||||
Maximum | ||||||
Loss Contingencies | ||||||
Range of possible loss | 54 | 54 | ||||
Restructuring Action | ||||||
Loss Contingencies | ||||||
Accrual for environmental loss contingencies | 4 | 4 | ||||
Undiscounted Environmental Clean-Up Costs | ||||||
Loss Contingencies | ||||||
Accrual for environmental loss contingencies | $ 16 | $ 16 |
Segment, Major Customer and M_3
Segment, Major Customer and Major Supplier Information - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2021continentplantcountry | Dec. 31, 2021USD ($)plantcountry | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | continent | 4 | |
Number of operating plants | 33 | 33 |
Number of plants with recycling operations | 15 | 15 |
Number of countries Company operates in | country | 9 | 9 |
Litigation Settlement Interest | $ | $ 36 | |
North America | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 17 | 17 |
Number of plants with recycling operations | 7 | 7 |
Number of countries Company operates in | country | 2 | 2 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 10 | 10 |
Number of plants with recycling operations | 5 | 5 |
Number of countries Company operates in | country | 4 | 4 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 4 | 4 |
Number of plants with recycling operations | 2 | 2 |
Number of countries Company operates in | country | 2 | 2 |
South America | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 2 | 2 |
Number of plants with recycling operations | 1 | 1 |
Segment, Major Customer and M_4
Segment, Major Customer and Major Supplier Information - Selected Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | $ 840 | $ 840 | $ 838 | ||
Total assets | 14,189 | 14,189 | 12,885 | ||
Net sales | 4,326 | $ 3,241 | 12,300 | $ 8,645 | |
Depreciation and amortization | 137 | 137 | 405 | 396 | |
Income tax provision | 89 | 80 | 276 | 119 | |
Capital expenditures | 93 | 107 | 287 | 333 | |
Operating Segments [Member] | North America | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 4,780 | 4,780 | 4,084 | ||
Net sales | 1,716 | 1,178 | 4,843 | 3,198 | |
Depreciation and amortization | 58 | ||||
Income tax provision | (9) | ||||
Capital expenditures | 33 | ||||
Operating Segments [Member] | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 508 | 508 | 510 | ||
Total assets | 4,172 | 4,172 | 3,974 | ||
Net sales | 1,156 | 976 | 3,365 | 2,480 | |
Depreciation and amortization | 41 | ||||
Income tax provision | 1 | ||||
Capital expenditures | 29 | ||||
Operating Segments [Member] | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 332 | 332 | 328 | ||
Total assets | 2,524 | 2,524 | 2,423 | ||
Net sales | 710 | 556 | 2,110 | 1,545 | |
Depreciation and amortization | 23 | ||||
Income tax provision | 13 | ||||
Capital expenditures | 23 | ||||
Operating Segments [Member] | South America | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 2,016 | 2,016 | 1,797 | ||
Net sales | 727 | 486 | 1,898 | 1,263 | |
Depreciation and amortization | 21 | ||||
Income tax provision | 48 | ||||
Capital expenditures | 14 | ||||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 697 | 697 | $ 607 | ||
Net sales | 17 | 45 | 84 | 159 | |
Depreciation and amortization | (6) | ||||
Income tax provision | 36 | ||||
Capital expenditures | (6) | ||||
Net sales - third party | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 4,326 | 3,241 | 12,300 | 8,645 | |
Net sales - third party | Operating Segments [Member] | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,716 | 1,173 | 4,843 | 3,193 | |
Depreciation and amortization | 61 | 171 | 175 | ||
Income tax provision | 17 | 36 | 1 | ||
Capital expenditures | 34 | 112 | 124 | ||
Net sales - third party | Operating Segments [Member] | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,116 | 939 | 3,228 | 2,400 | |
Depreciation and amortization | 44 | 128 | 125 | ||
Income tax provision | 9 | 24 | 1 | ||
Capital expenditures | 22 | 62 | 56 | ||
Net sales - third party | Operating Segments [Member] | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 697 | 554 | 2,085 | 1,533 | |
Depreciation and amortization | 24 | 67 | 66 | ||
Income tax provision | 15 | 49 | 39 | ||
Capital expenditures | 33 | 59 | 85 | ||
Net sales - third party | Operating Segments [Member] | South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 698 | 486 | 1,864 | 1,256 | |
Depreciation and amortization | 18 | 58 | 53 | ||
Income tax provision | 33 | 134 | 87 | ||
Capital expenditures | 21 | 63 | 74 | ||
Net sales - third party | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 99 | 89 | 280 | 263 | |
Depreciation and amortization | (10) | (19) | (23) | ||
Income tax provision | 6 | 33 | (9) | ||
Capital expenditures | (3) | (9) | (6) | ||
Net sales - intersegment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Net sales - intersegment | Operating Segments [Member] | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 5 | 0 | 5 | |
Net sales - intersegment | Operating Segments [Member] | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 40 | 37 | 137 | 80 | |
Net sales - intersegment | Operating Segments [Member] | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 13 | 2 | 25 | 12 | |
Net sales - intersegment | Operating Segments [Member] | South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 29 | 0 | 34 | 7 | |
Net sales - intersegment | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (82) | $ (44) | $ (196) | $ (104) |
Segment, Major Customer and M_5
Segment, Major Customer and Major Supplier Information - Reconciliation from Segment Income to Consolidated Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||||
Net income attributable to our common shareholder | $ 262 | $ 176 | $ 739 | $ 60 |
Income Tax Expense (Benefit) | 89 | 80 | 276 | 119 |
Depreciation, Depletion and Amortization | (137) | (137) | (405) | (396) |
Interest Expense | (54) | (66) | (173) | (206) |
Adjustment To Eliminate Proportional Consolidation | 17 | 13 | 46 | 42 |
Unrealized (gains) losses on change in fair value of derivative instruments, net(2) | 26 | 13 | 6 | (14) |
Realized Gain (Loss) on Derivative Instruments, Not Included in Segment Income | 0 | (2) | (1) | 2 |
Restructuring Costs and Asset Impairment Charges | (3) | (20) | (1) | (28) |
Loss on sale of assets | 3 | 2 | 5 | 0 |
Recognized cost of inventory step-up | 0 | 0 | 0 | 29 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (3) | 18 | 62 | 47 |
Metal Price Lag | (14) | 0 | (127) | 32 |
Business acquisition and other integration related costs | 0 | 0 | 0 | (11) |
Other costs, net | (2) | 3 | (7) | 52 |
Operating Income (Loss) | 506 | 501 | 1,614 | 1,209 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | 0 | 170 |
Net income attributable to noncontrolling interests | 0 | 1 | 0 | 1 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 348 | 275 | 1,077 | 397 |
Loss on extinguishment of debt, net | 1 | 0 | 63 | 0 |
Revenue, Major Customer [Line Items] | ||||
Gain on sale of business | $ 0 | $ (15) | $ 0 | |
Sara Micro Devices, Inc. | ||||
Revenue, Major Customer [Line Items] | ||||
Gain on sale of business | $ 15 | |||
Ownership percentage | 90.00% | 90.00% |
Segment, Major Customer and M_6
Segment, Major Customer and Major Supplier Information - Income from Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 506 | $ 501 | $ 1,614 | $ 1,209 |
Operating Segments [Member] | South America | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 178 | 129 | 525 | 317 |
Operating Segments [Member] | Asia | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 76 | 78 | 256 | 227 |
Operating Segments [Member] | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 71 | 98 | 251 | 181 |
Operating Segments [Member] | North America | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 181 | 206 | 580 | 489 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 0 | $ (10) | $ 2 | $ (5) |
Segment, Major Customer and M_7
Segment, Major Customer and Major Supplier Information - Net Sales by Value Stream (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,326 | $ 3,241 | $ 12,300 | $ 8,645 |
Can Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,154 | 1,596 | 6,206 | 4,431 |
Automotive Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 885 | 704 | 2,395 | 1,671 |
Aerospace Products [Domain] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 125 | 85 | 361 | 280 |
Specialty And Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,162 | $ 856 | $ 3,338 | $ 2,263 |
Segment, Major Customer and M_8
Segment, Major Customer and Major Supplier Information - Information About Major Customers and Primary Supplier (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cost of Goods Sold [Member] | Rio Tinto Alcan [Member] | Supplier Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 8.00% | 8.00% | 8.00% | 7.00% |
Ball [Member] | Net Sales [Member] | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 17.00% | 15.00% | 16.00% | 15.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 01, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | |||
Short-term borrowings | $ 373,000,000 | $ 236,000,000 | |
Subsequent Event | Axis Bank Limited | |||
Subsequent Event [Line Items] | |||
Short-term borrowings | $ 315,000,000 | ||
Debt Instrument, Quarterly Amortization Payment, Percentage | 0.25% | ||
Subsequent Event | Daily Simple SOFR | Axis Bank Limited | |||
Subsequent Event [Line Items] | |||
Stated rate | 0.90% |