Cover
Cover - shares | 6 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-32312 | |
Entity Registrant Name | Novelis Inc. | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 98-0442987 | |
Entity Address, Address Line One | 3550 Peachtree Road NE, Suite 1100 | |
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 Interactive Data Current | Yes | |
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 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,107 | $ 4,799 | $ 8,198 | $ 9,888 |
Cost of goods sold (exclusive of depreciation and amortization) | 3,477 | 4,140 | 6,978 | 8,405 |
Selling, general and administrative expenses | 182 | 181 | 356 | 345 |
Depreciation and amortization | 136 | 134 | 267 | 272 |
Interest expense and amortization of debt issuance costs | 78 | 65 | 155 | 123 |
Research and development expenses | 23 | 23 | 48 | 46 |
Loss on extinguishment of debt, net | 5 | 0 | 5 | 0 |
Restructuring and impairment expenses, net | 4 | 1 | 7 | 2 |
Equity in net income of non-consolidated affiliates | (4) | (4) | (7) | (8) |
Other (income) expenses, net | (2) | 10 | (29) | 60 |
Total expenses | 3,899 | 4,550 | 7,780 | 9,245 |
Income from continuing operations before income tax provision | 208 | 249 | 418 | 643 |
Income tax provision | 51 | 65 | 105 | 152 |
Net income from continuing operations | 157 | 184 | 313 | 491 |
Loss from discontinued operations, net of tax | 0 | (1) | 0 | (2) |
Net income | 157 | 183 | 313 | 489 |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | (1) |
Net income attributable to our common shareholder | $ 157 | $ 183 | $ 313 | $ 490 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 157 | $ 183 | $ 313 | $ 489 |
Other comprehensive (loss) income: | ||||
Currency translation adjustment | (63) | (188) | (79) | (361) |
Net change in fair value of effective portion of cash flow hedges | (251) | (110) | (84) | 803 |
Net change in pension and other benefits | (3) | 6 | (7) | 15 |
Other comprehensive (loss) income before income tax effect | (317) | (292) | (170) | 457 |
Income tax (benefit) provision related to items of other comprehensive (loss) income | (68) | (29) | (26) | 205 |
Other comprehensive (loss) income, net of tax | (249) | (263) | (144) | 252 |
Comprehensive (loss) income | (92) | (80) | 169 | 741 |
Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 0 | 0 | 0 | (1) |
Comprehensive (loss) income attributable to our common shareholder | $ (92) | $ (80) | $ 169 | $ 742 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,158 | $ 1,498 |
Accounts receivable, net | ||
Inventories | 2,761 | 2,729 |
Prepaid expenses and other current assets | 175 | 178 |
Fair value of derivative instruments | 121 | 145 |
Assets held for sale | 1 | 3 |
Total current assets | 6,162 | 6,460 |
Property, plant and equipment, net | 5,228 | 4,900 |
Goodwill | 1,073 | 1,076 |
Intangible assets, net | 568 | 589 |
Investment in and advances to non-consolidated affiliates | 873 | 877 |
Deferred income tax assets | 152 | 166 |
Other long-term assets | ||
Total assets | 14,333 | 14,364 |
Current liabilities: | ||
Current portion of long-term debt | 51 | 88 |
Short-term borrowings | 692 | 671 |
Accounts payable | ||
Fair value of derivative instruments | 213 | 130 |
Accrued expenses and other current liabilities | 593 | 633 |
Total current liabilities | 4,783 | 4,899 |
Long-term debt, net of current portion | 4,859 | 4,881 |
Deferred income tax liabilities | 271 | 288 |
Accrued postretirement benefits | 526 | 554 |
Other long-term liabilities | 271 | 288 |
Total liabilities | 10,710 | 10,910 |
Commitments and contingencies | ||
Shareholder's equity: | ||
Common stock, no par value; Unlimited number of shares authorized; 1,000 shares issued and outstanding as of September 30, 2023, and March 31, 2023 | 0 | 0 |
Additional paid-in capital | 1,208 | 1,208 |
Retained earnings | 2,785 | 2,472 |
Accumulated other comprehensive loss | (382) | (238) |
Total equity of our common shareholder | 3,611 | 3,442 |
Noncontrolling interests | 12 | 12 |
Total equity | 3,623 | 3,454 |
Total liabilities and equity | 14,333 | 14,364 |
Third Party | ||
Accounts receivable, net | ||
— third parties (net of allowance for credit losses of $7 and $5 as of September 30, 2023, and March 31, 2023, respectively) | 1,811 | 1,751 |
Other long-term assets | ||
Other long-term assets | 275 | 293 |
Accounts payable | ||
— third parties | 2,951 | 3,100 |
Related Party | ||
Accounts receivable, net | ||
— third parties (net of allowance for credit losses of $7 and $5 as of September 30, 2023, and March 31, 2023, respectively) | 135 | 156 |
Other long-term assets | ||
Other long-term assets | 2 | 3 |
Accounts payable | ||
— third parties | $ 283 | $ 277 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | |
Statement of Financial Position [Abstract] | |||
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) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
OPERATING ACTIVITIES | ||||
Net income | $ 157 | $ 183 | $ 313 | $ 489 |
Loss from discontinued operations, net of tax | 0 | (1) | 0 | (2) |
Net income from continuing operations | 157 | 184 | 313 | 491 |
Adjustments to determine net cash provided by operating activities: | ||||
Depreciation and amortization | 136 | 134 | 267 | 272 |
Loss on unrealized derivatives and other realized derivatives in investing activities, net | 10 | 18 | ||
Loss on sale of assets, net | 0 | 0 | 0 | 1 |
Impairment charges | 3 | 0 | ||
Loss on extinguishment of debt, net | (5) | 0 | (5) | 0 |
Deferred income taxes, net | 23 | 19 | ||
Equity in net income of non-consolidated affiliates | (4) | (4) | (7) | (8) |
Gain on foreign exchange remeasurement of debt | (6) | (22) | ||
Amortization of debt issuance costs and carrying value adjustments | 7 | 8 | ||
Other, net | 3 | 0 | ||
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||||
Accounts receivable | (90) | 138 | ||
Inventories | (72) | (485) | ||
Accounts payable | (110) | (309) | ||
Other assets | 21 | 18 | ||
Other liabilities | (77) | 55 | ||
Net cash provided by operating activities – continuing operations | 290 | 196 | ||
Net cash used in operating activities – discontinued operations | 0 | (6) | ||
Net cash provided by operating activities | 290 | 190 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | (285) | (174) | (618) | (284) |
Acquisition of business and other investments, net of cash acquired | 0 | (4) | ||
Proceeds (outflows) from investment in and advances to non-consolidated affiliates, net | 12 | (15) | ||
Proceeds from the settlement of derivative instruments, net | 8 | 2 | ||
Other | 8 | 11 | ||
Net cash used in investing activities | (590) | (290) | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term and short-term borrowings | 532 | 0 | ||
Principal payments of long-term and short-term borrowings | (531) | (114) | ||
Revolving credit facilities and other, net | (24) | 450 | ||
Debt issuance costs | (3) | (6) | ||
Return of capital to our common shareholder | 0 | (100) | ||
Net cash (used in) provided by financing activities | (26) | 230 | ||
Net (decrease) increase in cash, cash equivalents and restricted cash | (326) | 130 | ||
Effect of exchange rate changes on cash | (14) | (57) | ||
Cash, cash equivalents and restricted cash – beginning of period | 1,511 | 1,084 | ||
Cash, cash equivalents and restricted cash – end of period | 1,171 | 1,157 | 1,171 | 1,157 |
Cash and cash equivalents | 1,158 | 1,145 | 1,158 | 1,145 |
Restricted cash (included in other long-term assets) | $ 13 | $ 12 | 13 | 12 |
Supplemental Disclosures: | ||||
Accrued capital expenditures as of September 30 | 176 | 72 | ||
Leased assets obtained in exchange for new operating lease liabilities | $ 6 | $ 27 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholder's 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, 2022 | 1,000 | |||||
Beginning balance at Mar. 31, 2022 | $ 2,509 | $ 0 | $ 1,308 | $ 1,814 | $ (620) | $ 7 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 490 | 490 | ||||
Net loss attributable to noncontrolling interests | (1) | 1 | ||||
Currency translation adjustment included in other comprehensive (loss) income | (361) | (361) | ||||
Change in fair value of effective portion of cash flow hedges, net of tax provision (benefit) included in other comprehensive (loss) income | 601 | 601 | ||||
Change in pension and other benefits, net of tax provision included in other comprehensive (loss) income | 12 | 12 | 0 | |||
Return of capital to our common shareholder | (100) | (100) | ||||
Ending balance, shares at Sep. 30, 2022 | 1,000 | |||||
Ending balance at Sep. 30, 2022 | 3,150 | $ 0 | 1,208 | 2,304 | (368) | 6 |
Beginning balance, shares at Jun. 30, 2022 | 1,000 | |||||
Beginning balance at Jun. 30, 2022 | 3,330 | $ 0 | 1,308 | 2,121 | (105) | 6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 183 | 183 | ||||
Net loss attributable to noncontrolling interests | 0 | |||||
Currency translation adjustment included in other comprehensive (loss) income | (188) | (188) | ||||
Change in fair value of effective portion of cash flow hedges, net of tax provision (benefit) included in other comprehensive (loss) income | (80) | (80) | ||||
Change in pension and other benefits, net of tax provision included in other comprehensive (loss) income | 5 | 5 | 0 | |||
Return of capital to our common shareholder | (100) | (100) | ||||
Ending balance, shares at Sep. 30, 2022 | 1,000 | |||||
Ending balance at Sep. 30, 2022 | 3,150 | $ 0 | 1,208 | 2,304 | (368) | 6 |
Beginning balance, shares at Mar. 31, 2023 | 1,000 | |||||
Beginning balance at Mar. 31, 2023 | 3,454 | $ 0 | 1,208 | 2,472 | (238) | 12 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 313 | 313 | ||||
Net loss attributable to noncontrolling interests | 0 | |||||
Currency translation adjustment included in other comprehensive (loss) income | (79) | (79) | ||||
Change in fair value of effective portion of cash flow hedges, net of tax provision (benefit) included in other comprehensive (loss) income | (60) | (60) | ||||
Change in pension and other benefits, net of tax provision included in other comprehensive (loss) income | (5) | (5) | 0 | |||
Ending balance, shares at Sep. 30, 2023 | 1,000 | |||||
Ending balance at Sep. 30, 2023 | 3,623 | $ 0 | 1,208 | 2,785 | (382) | 12 |
Beginning balance, shares at Jun. 30, 2023 | 1,000 | |||||
Beginning balance at Jun. 30, 2023 | 3,715 | $ 0 | 1,208 | 2,628 | (133) | 12 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 157 | 157 | ||||
Net loss attributable to noncontrolling interests | 0 | |||||
Currency translation adjustment included in other comprehensive (loss) income | (63) | (63) | ||||
Change in fair value of effective portion of cash flow hedges, net of tax provision (benefit) included in other comprehensive (loss) income | (184) | (184) | ||||
Change in pension and other benefits, net of tax provision included in other comprehensive (loss) income | (2) | (2) | 0 | |||
Ending balance, shares at Sep. 30, 2023 | 1,000 | |||||
Ending balance at Sep. 30, 2023 | $ 3,623 | $ 0 | $ 1,208 | $ 2,785 | $ (382) | $ 12 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholder's Equity (unaudited) (Parenthetical) - Accumulated Other Comprehensive Loss (AOCI) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair value of effective portion of cash flow hedges, tax provision (benefit) | $ (67) | $ (30) | $ (24) | $ 202 |
Pension and other benefits, tax provision (benefit) | $ (1) | $ 1 | $ (2) | $ 3 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2023 | |
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. Effective September 1, 2022, Novelis Inc. and AV Metals, Inc. (which, prior to such date, was our sole shareholder and a wholly owned subsidiary of AV Minerals (Netherlands) N.V.) completed a plan of arrangement, pursuant to which AV Metals, Inc. merged with and into Novelis Inc., with Novelis Inc. surviving the merger. As of the effectiveness of the plan of arrangement, we are a direct, wholly owned subsidiary of AV Minerals (Netherlands) N.V. and indirectly by Hindalco. Prior to the effectiveness of the plan of arrangement, AV Metals, Inc. was a holding company, with its assets being comprised solely of its investment in Novelis, and without any operations. The plan of arrangement was a combination of entities under common control and resulted in a change in the reporting entity. The opening balance of additional paid-in capital has been increased and that of retained earnings reduced by $4 million in the earliest period presented. All tonnages are stated in metric tonnes. One metric tonne is equivalent to 2,204.6 pounds. One kt is 1,000 metric tonnes. Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, aerospace, electronics, architectural, and industrial product markets. As of September 30, 2023, 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 to recycle post-consumer aluminum, such as UBCs, and post-industrial aluminum, such as class scrap. Basis of Presentation The condensed consolidated balance sheet data as of March 31, 2023, was derived from the March 31, 2023, 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 2023 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 have been prepared in accordance with U.S. GAAP and 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 the net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the 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 of non-consolidated affiliates. Supplier Finance Programs The Company participates in supply chain finance programs under which participating suppliers may elect to sell some or all of their Novelis receivables to a third-party financial institution. Supplier participation in the programs is solely up to the supplier, and participating suppliers negotiate their arrangements directly with the financial institutions. The payment terms that we have with our suppliers under these programs range up to 180 days and are considered commercially reasonable. The Company has provided a guarantee in support of the obligations of certain of its subsidiaries under one of the supply chain finance programs currently in effect pursuant to which invoices receivable from Novelis originating in North America and South America are purchased and sold. In the ordinary course of business, the Company provides operating guarantees relating to the payment obligations of certain of its subsidiaries. The Company’s obligation under the guarantee referenced above is qualitatively the same as its guarantees supporting payment obligations of its subsidiaries. On September 30, 2023 and March 31, 2023, confirmed supplier invoices that are outstanding and subject to the third-party programs included in accounts payable on the condensed consolidated balance sheets were $651 million and $801 million, respectively. Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in accordance 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; and (4) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained, and 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 Adopted Accounting Standards On April 1, 2023, we adopted ASU 2022-04, which requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs, including the key terms of the program, the amount of obligations outstanding at the end of the reporting period, and a description of where those obligations are presented in the balance sheet. If presented in more than one balance sheet line item, the amount in each line item should be disclosed. Further, effective April 1, 2024, a roll-forward of such amounts during the annual period should be presented. The adoption of this guidance resulted in enhanced disclosures regarding these programs (see Supplier Finance Programs above) and did not have a material impact on our consolidated financial condition, results of operations, or cash flows. We did not adopt any other new accounting pronouncements during the six months ended September 30, 2023, that had a material impact on our consolidated financial condition, results of operations, or cash flows. Recently Issued Accounting Standards (Not Yet Adopted) |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
2. INVENTORIES | 2. INVENTORIES Inventories consists of the following. in millions September 30, March 31, Finished goods $ 745 $ 643 Work in process 1,174 1,303 Raw materials 554 505 Supplies 288 278 Inventories $ 2,761 $ 2,729 |
Consolidation
Consolidation | 6 Months Ended |
Sep. 30, 2023 | |
Consolidation [Abstract] | |
3. CONSOLIDATION | 3. CONSOLIDATION Variable Interest Entity 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 additional 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 September 30, March 31, ASSETS Current assets: Cash and cash equivalents $ 5 $ 6 Accounts receivable, net 8 6 Inventories 156 149 Prepaid expenses and other current assets 11 7 Total current assets 180 168 Property, plant and equipment, net 78 63 Goodwill 12 12 Deferred income tax assets 37 37 Other long-term assets 4 6 Total assets $ 311 $ 286 LIABILITIES Current liabilities: Accounts payable $ 130 $ 90 Accrued expenses and other current liabilities 26 28 Total current liabilities 156 118 Accrued postretirement benefits 121 130 Other long-term liabilities 4 6 Total liabilities $ 281 $ 254 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 6 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
4. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | 4. 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 Speira 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, UAL is accounted for as an equity method investment, and Novelis is not considered the primary beneficiary. UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of September 30, 2023, Novelis and Kobe both hold a 50% interest in UAL. AluInfra AluInfra is a joint venture investment between Novelis Switzerland SA, a subsidiary of Novelis, and Constellium SE. 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 non-consolidated 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 September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Net sales $ 394 $ 447 $ 790 $ 956 Costs and expenses related to net sales 381 430 762 919 Income tax provision 4 5 8 11 Net income $ 9 $ 12 $ 20 $ 26 Purchases of tolling services from Alunorf $ 81 $ 87 $ 158 $ 168 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 September 30, March 31, Accounts receivable, net — related parties $ 135 $ 156 Other long-term assets — related parties 2 3 Accounts payable — related parties 283 277 Transactions with Hindalco We occasionally have related party transactions with Hindalco. During the six months ended September 30, 2023, and 2022, we recorded net sales of $1 million and less than $1 million, respectively, between Novelis and Hindalco related primarily to sales of equipment and other services. As of September 30, 2023, and March 31, 2023, there was $1 million and $2 million, respectively, of outstanding accounts receivable, net — related parties net of accounts payable — related parties related to transactions with Hindalco. Return of Capital |
Debt
Debt | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
5. DEBT | 5. DEBT Debt consists of the following. September 30, 2023 March 31, 2023 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short-term borrowings 6.38 % $ 692 $ — $ 692 $ 671 $ — $ 671 Floating rate Term Loans, due January 2025 — — — 752 (7) 745 Floating rate Term Loans, due September 2026 7.04 % 750 (4) 746 — — — Floating rate Term Loans, due March 2028 7.54 % 488 (6) 482 490 (6) 484 3.25% Senior Notes, due November 2026 3.25 % 750 (7) 743 750 (8) 742 3.375% Senior Notes, due April 2029 3.375 % 529 (7) 522 543 (8) 535 4.75% Senior Notes, due January 2030 4.75 % 1,600 (20) 1,580 1,600 (22) 1,578 3.875% Senior Notes, due August 2031 3.875 % 750 (9) 741 750 (9) 741 China Bank Loans, due August 2027 3.90 % 58 — 58 64 — 64 1.8% Brazil Loan, due June 2023 1.80 % — — — 30 — 30 1.8% Brazil Loan, due December 2023 1.80 % 20 — 20 20 — 20 Finance lease obligations and other debt, due through June 2028 2.71 % 18 — 18 30 — 30 Total debt $ 5,655 $ (53) $ 5,602 $ 5,700 $ (60) $ 5,640 Less: Short-term borrowings (692) — (692) (671) — (671) Less: Current portion of long-term debt (51) — (51) (88) — (88) Long-term debt, net of current portion $ 4,912 $ (53) $ 4,859 $ 4,941 $ (60) $ 4,881 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of September 30, 2023, and therefore exclude the effects of related interest rate swaps and 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 our total debt over the next five years and thereafter using exchange rates as of September 30, 2023, for our debt denominated in foreign currencies are as follows (in millions). As of September 30, 2023 Amount Short-term borrowings and current portion of long-term debt due within one year $ 743 2 years 28 3 years 759 4 years 776 5 years 469 Thereafter 2,880 Total $ 5,655 Short-Term Borrowings As of September 30, 2023, our short-term borrowings totaled $692 million, which consisted of $495 million of borrowings on our ABL Revolver, $150 million in short-term Brazil loans, and $47 million in short-term China loans (CNY 336 million). The weighted average interest rate on the short-term borrowings was 6.38% and 6.67% as of September 30, 2023, and March 31, 2023, respectively. Term Loan Facility As of September 30, 2023, we were in compliance with the covenants of our Term Loan Facility. On March 31, 2023, Novelis amended the Term Loan Facility, primarily to modify the reference rate used to determine interest from LIBOR to SOFR. Term loans under the Term Loan Facility will, beginning with the interest period commencing June 30, 2023, accrue interest at SOFR plus a 0.15% credit spread adjustment plus a spread of 1.75% in the case of the 2020 Term Loans, or a spread of 2.00% in the case of the 2021 Term Loans. During fiscal 2021, the Company adopted the practical expedient for Reference Rate Reform related to its debt arrangements and as such, this amendment is treated as a continuation of the existing debt agreement and no gain or loss on the modification was recorded. The Company did not record any gains or losses on the conversion of the reference rate for the borrowings under the Term Loan Facility from LIBOR to SOFR. In September 2023, Novelis amended the Term Loan Facility and borrowed $750 million of term loans (the "2023 Term Loans"). The proceeds of the 2023 Term Loan were used to repay the previously-issued term loans due January 2025 (the "2020 Term Loans"). The 2023 Term Loans mature on September 25, 2026, are subject to 0.25% quarterly amortization payments and accrue interest at SOFR plus 1.65%. In accordance with ASC 470, Debt, the amendment was accounted for as a partial extinguishment of the 2020 Term Loans, whereby $482 million of the $750 million outstanding at the time of the transaction was deemed an extinguishment and $268 million was deemed a modification of debt. As a result of this transaction, we recorded a loss on extinguishment of debt of $5 million in the second quarter of fiscal 2024. ABL Revolver In April 2022, Novelis amended the ABL Revolver facility to increase the limit on committed letters of credit under the facility to $275 million. There were no material costs incurred or accounting impacts as a result of this amendment. In August 2022, Novelis amended the ABL Revolver facility to, among other things, increase the commitment under the ABL Revolver by $500 million to $2.0 billion and extend the maturity of the ABL Revolver until August 18, 2027. The amendment provides that new borrowings under the ABL Revolver facility made subsequent to the date of the amendment will incur interest at Term SOFR, EURIBOR, SONIA or SARON, as applicable based on the currency of the loan, plus a spread of 1.10% to 1.60% based on excess availability. The ABL Revolver facility also permits us to elect to borrow USD loans that accrue interest at a base rate (determined based on the greatest of one month Term SOFR plus 1.00%, a prime rate or an adjusted federal funds rate) plus a prime spread of 0.10% to 0.60% based on excess availability. As of September 30, 2023, we had $495 million in borrowings under the ABL Revolver and were in compliance with debt covenants. We utilized $41 million of the ABL Revolver for letters of credit. We had availability of $990 million on the ABL Revolver, including $234 million of remaining availability that can be utilized for letters of credit. Senior Notes 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 incur additional debt and provide additional guarantees; pay dividends or return capital beyond certain amounts and make other restricted payments; create or permit certain liens; make certain asset sales; use the proceeds from the sales of assets and subsidiary stock; 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; engage in certain transactions with affiliates; enter into sale and leaseback transactions; designate subsidiaries as unrestricted subsidiaries; and 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, certain 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 September 30, 2023, we were in compliance with the covenants of our Senior Notes. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
6. SHARE-BASED COMPENSATION | 6. SHARE-BASED COMPENSATION During the six months ended September 30, 2023, we granted 1,941,778 Hindalco phantom RSUs and 2,598,668 Hindalco SARs. Total share-based compensation expense was $8 million and $14 million for the three and six months ended September 30, 2023, respectively. Total share-based compensation expense was $6 million and $4 million for the three and six months ended September 30, 2022, respectively. As of September 30, 2023, the outstanding liability related to share-based compensation was $22 million. The cash payments made to settle all Hindalco SAR liabilities were $4 million and $7 million in the six months ended September 30, 2023, and 2022, respectively. Total cash payments made to settle RSUs were $13 million and $15 million in the six months ended September 30, 2023, and 2022, respectively. As of September 30, 2023, unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) and the RSUs was $9 million and $22 million, respectively. The unrecognized expense related to the non-vested Hindalco SARs and the RSUs is expected to be recognized over weighted average periods of 1.5 years and 1.6 years, respectively. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
7. POSTRETIREMENT BENEFIT PLANS | 7. 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). 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 September 30, Three Months Ended September 30, in millions 2023 2022 2023 2022 Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 19 15 2 1 Expected return on assets (20) (18) — — Amortization — losses, net — 2 (1) — Amortization — prior service credit, net (1) — (1) (1) Net periodic benefit cost (1) $ 4 $ 6 $ 1 $ 1 Pension Benefit Plans Other Benefit Plans Six Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Service cost $ 11 $ 13 $ 1 $ 2 Interest cost 38 31 3 2 Expected return on assets (39) (36) — — Amortization — losses, net (1) 4 (1) — Amortization — prior service credit, net (1) — (2) (2) Net periodic benefit cost (1) $ 8 $ 12 $ 1 $ 2 ____________________ (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. The average expected long-term rate of return on all plan assets is 6.1% in fiscal 2024. 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., the U.K., Canada, Germany, Italy, Switzerland, and Brazil. We contributed the following amounts to all plans. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Funded pension plans $ 19 $ 6 $ 21 $ 8 Unfunded pension plans 3 4 7 8 Savings and defined contribution pension plans 14 13 30 27 Total contributions $ 36 $ 23 $ 58 $ 43 During the remainder of fiscal 2024, we expect to contribute an additional $8 million to our funded pension plans, $9 million to our unfunded pension plans, and $26 million to our savings and defined contribution pension plans. |
Currency Losses (Gains)
Currency Losses (Gains) | 6 Months Ended |
Sep. 30, 2023 | |
Foreign Currency [Abstract] | |
Currency Losses (Gains) | 8. CURRENCY LOSSES (GAINS) The following currency losses are included in other (income) expenses, net in the accompanying condensed consolidated statements of operations. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Gains on remeasurement of monetary assets and liabilities, net $ (16) $ (35) $ (4) $ (67) Losses recognized on balance sheet remeasurement currency exchange contracts, net 17 41 9 78 Currency losses, net $ 1 $ 6 $ 5 $ 11 |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 6 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
9. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | 9. 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. September 30, 2023 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 $ 28 $ — $ (68) $ — $ (40) Currency exchange contracts 17 1 (24) (2) (8) Energy contracts 2 — (1) — 1 Interest rate swap contracts — 1 — — 1 Total derivatives designated as hedging instruments $ 47 $ 2 $ (93) $ (2) $ (46) Derivatives not designated as hedging instruments: Metal contracts $ 59 $ 1 $ (94) $ (1) $ (35) Currency exchange contracts 14 1 (25) (2) (12) Energy contracts 1 — (1) — — Total derivatives not designated as hedging instruments $ 74 $ 2 $ (120) $ (3) $ (47) Total derivative fair value $ 121 $ 4 $ (213) $ (5) $ (93) March 31, 2023 Assets Liabilities Net Fair Value Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 37 $ — $ (31) $ — $ 6 Currency exchange contracts 26 4 (19) (1) 10 Energy contracts 3 — (4) — (1) Total derivatives designated as hedging instruments $ 66 $ 4 $ (54) $ (1) $ 15 Derivatives not designated as hedging instruments: Metal contracts $ 66 $ — $ (52) $ (2) $ 12 Currency exchange contracts 13 3 (22) (3) (9) Energy contracts — — (2) — (2) Total derivatives not designated as hedging instruments $ 79 $ 3 $ (76) $ (5) $ 1 Total derivative fair value $ 145 $ 7 $ (130) $ (6) $ 16 ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in other long-term assets and 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 the 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 LMPs 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 designated exposures do not extend beyond one year in length. The average duration of those contracts is 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 designated exposures do not extend beyond two years in length. The average duration of those contracts is less than one year. In addition to aluminum, we entered into LME copper and zinc forward contracts, as well as LMP forward contracts. As of September 30, 2023, and March 31, 2023, the fair value of these contracts represented a liability of less than $1 million and an asset of less than $1 million, respectively. These contracts are undesignated, with an average duration of one year. The following table summarizes our notional amount. in kt September 30, March 31, Hedge type Purchase (sale) Cash flow purchases — 1 Cash flow sales (730) (699) Not designated (115) (144) Total, net (845) (842) 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 $1.0 billion and $1.2 billion in outstanding foreign currency forwards designated as cash flow hedges as of September 30, 2023, and March 31, 2023, respectively. As of September 30, 2023, and March 31, 2023, we had outstanding foreign currency exchange contracts with a total notional amount of $1.4 billion and $1.7 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 by the third and fourth quarters of fiscal 2024 and offset the remeasurement impact. Interest rate We use interest rate swaps to partially manage our exposure to changes in the SOFR interest rate, which impacts our variable-rate debt. During the three months ended September 30, 2023, we entered into several interest rate swaps to convert $400 million of our variable rate exposure to a weighted average fixed rate of 4.4%. These interest rate swaps, designated as cash flow hedges, are effective from September 2023 through March 31, 2027. Energy We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 3 million MMBtu designated as cash flow hedges as of September 30, 2023, and the fair value was an asset of less than $1 million. There was a notional of 7 million MMBtu of natural gas forward purchase contracts designated as cash flow hedges as of March 31, 2023, and the fair value was a liability of less than $1 million. As of September 30, 2023, we had a notional of less than $1 million MMBtu forward contracts that were not designated as hedges, and the fair value was a liability of less than $ 1 million. As of March 31, 2023, we had a notional of less than 1 million MMBtu and the fair value was a liability of less than $1 million. The average duration for all natural gas 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 1 million gallons designated as cash flow hedges as of September 30, 2023, and the fair value was an asset of less than $1 million. There was a notional of 1 million gallons designated as cash flow hedges as of March 31, 2023, and the fair value was a liability of less than $1 million. As of September 30, 2023, we had a notional of less than 1 million metric tonnes not designated as hedges, and the fair value was an asset of less than $1 million. As of March 31, 2023, we had a notional of less than 1 million metric tonnes of forward contracts that were not designated as hedges, and the fair value was a liability of less than $1 million. The average duration for all diesel fuel contracts is 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 September 30 Six Months Ended September 30 in millions 2023 2022 2023 2022 Derivative instruments not designated as hedges Metal contracts $ (1) $ 7 $ (25) $ 49 Currency exchange contracts 18 42 7 84 Energy contracts (1) (1) — (1) (4) Loss (gain) recognized in other (income) expenses, net 16 49 (19) 129 Derivative instruments designated as hedges Gain recognized in other (income) expenses, net (2) (1) (3) (2) (5) Total loss (gain) recognized in other (income) expenses, net $ 15 $ 46 $ (21) $ 124 Losses recognized on balance sheet remeasurement currency exchange contracts, net $ 17 $ 41 $ 9 $ 78 Realized (gains) losses on change in fair value of derivative instruments, net (25) (16) (49) 67 Unrealized losses (gains) on change in fair value of derivative instruments, net 23 21 19 (21) Total loss (gain) recognized in other (income) expenses, net $ 15 $ 46 $ (21) $ 124 _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges and electricity swap settlements. (2) Amount includes forward market premium/discount excluded from hedging relationship and releases to income from accumulated other comprehensive loss on balance sheet remeasurement contracts. The following tables summarize 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 $59 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive (loss) income (Effective Portion) Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Cash flow hedging derivatives Metal contracts $ (154) $ 204 $ 72 $ 1,103 Currency exchange contracts (26) (99) (18) (177) Energy contracts — 9 (1) 16 Interest rate swap contracts 1 — 1 — Total $ (179) $ 114 $ 54 $ 942 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Three Months Ended September 30, Six Months Ended September 30, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2023 2022 2023 2022 Cash flow hedging derivatives Energy contracts (1) $ (2) $ 11 $ (3) $ 18 Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 1 (3) 2 3 Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 74 229 143 147 Net sales Currency exchange contracts 4 4 7 11 Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts 1 1 1 1 Selling, general and administrative expenses Currency exchange contracts (4) (16) (9) (28) Net sales Currency exchange contracts (1) (2) (2) (3) Depreciation and amortization Total $ 73 $ 224 $ 139 $ 149 Income from continuing operations before income tax provision (18) (53) (37) (32) Income tax provision $ 55 $ 171 $ 102 $ 117 Net income from continuing operations _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is included in other comprehensive (loss) income and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. There was no amount excluded from the assessment of effectiveness recognized in earnings for the periods ended September 30, 2023, and 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
10. ACCUMULATED OTHER COMPREHENSIVE LOSS | 10. 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 June 30, 2023 $ (309) $ 119 $ 57 $ (133) Other comprehensive (loss) income before reclassifications (63) (129) 1 (191) Amounts reclassified from accumulated other comprehensive loss, net — (55) (3) (58) Net current-period other comprehensive loss (63) (184) (2) (249) Balance as of September 30, 2023 $ (372) $ (65) $ 55 $ (382) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of June 30, 2022 $ (339) $ 246 $ (12) $ (105) Other comprehensive (loss) income before reclassifications (188) 91 5 (92) Amounts reclassified from accumulated other comprehensive loss, net — (171) — (171) Net current-period other comprehensive (loss) income (188) (80) 5 (263) Balance as of September 30, 2022 $ (527) $ 166 $ (7) $ (368) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2023 $ (293) $ (5) $ 60 $ (238) Other comprehensive (loss) income before reclassifications (79) 42 (1) (38) Amounts reclassified from accumulated other comprehensive loss, net — (102) (4) (106) Net current-period other comprehensive loss (79) (60) (5) (144) Balance as of September 30, 2023 $ (372) $ (65) $ 55 $ (382) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2022 $ (166) $ (435) $ (19) $ (620) Other comprehensive (loss) income before reclassifications (361) 718 11 368 Amounts reclassified from accumulated other comprehensive loss, net — (117) 1 (116) Net current-period other comprehensive (loss) income (361) 601 12 252 Balance as of September 30, 2022 $ (527) $ 166 $ (7) $ (368) _________________________ (1) For additional information on our cash flow hedges, see Note 9 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans, see Note 7 – Postretirement Benefit Plans . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
11. FAIR VALUE MEASUREMENTS | 11. 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 to 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. 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 September 30, 2023, and March 31, 2023, we did not have any Level 1 or Level 3 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 fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of September 30, 2023, and March 31, 2023. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. September 30, 2023 March 31, 2023 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 88 $ (163) $ 103 $ (85) Currency exchange contracts 33 (53) 46 (45) Energy contracts 3 (2) 3 (6) Interest rate swap contracts 1 — — — Total level 2 instruments $ 125 $ (218) $ 152 $ (136) Netting adjustment (1) (73) 73 (72) 72 Total net $ 52 $ (145) $ 80 $ (64) _________________________ (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. 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. September 30, 2023 March 31, 2023 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 2 $ 2 $ 3 $ 3 Total debt — third parties (excluding finance leases and short-term borrowings) 4,892 4,461 4,939 4,652 |
Other (Income) Expenses, Net
Other (Income) Expenses, Net | 6 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
12. OTHER (INCOME) EXPENSES, NET | 12. OTHER (INCOME) EXPENSES, NET Other (income) expenses, net consists of the following. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Currency losses, net (1) $ 1 $ 6 $ 5 $ 11 Unrealized losses (gains) on change in fair value of derivative instruments, net (2) 23 21 19 (21) Realized (gains) losses on change in fair value of derivative instruments, net (2) (25) (16) (49) 67 Loss on sale of assets, net — — — 1 Interest income (4) (4) (11) (8) Non-operating net periodic benefit cost (3) (2) (1) (3) (1) Other, net 5 4 10 11 Other (income) expenses, net $ (2) $ 10 $ (29) $ 60 _________________________ (1) Includes losses recognized on balance sheet remeasurement currency exchange contracts, net. See Note 8 – Currency Losses (Gains) for further details. (2) See Note 9 – Financial Instruments and Commodity Contracts for further details. (3) 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 7 – Postretirement Benefit Plans |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
13. INCOME TAXES | 13. INCOME TAXES For the three months ended September 30, 2023, our effective tax rate differs from the Canadian statutory rate primarily due to the full-year forecasted effective tax rate taking into account income taxed at rates that differ from the 25% Canadian rate, including withholding taxes, offset by the availability of tax credits and income not subject to tax. For the six months ended September 30, 2023, our effective tax rate differs from the Canadian statutory rate primarily due to 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, offset by the availability of tax credits and income not subject to tax. For the three months ended September 30, 2022, our effective tax rate differs from the Canadian statutory rate primarily due to 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 the availability of tax credits and income not subject to tax. For the six months ended September 30, 2022, our effective tax rate differs from the Canadian statutory rate primarily due to the full-year forecasted effective tax rate taking into account income taxed at rates that differ from the 25% Canadian rate, including withholding taxes, changes to the Brazilian real foreign exchange rate, the availability of tax credits, and the change in valuation allowance. The change in valuation allowance is mainly attributable to the release of the full valuation allowance on temporary items and tax attributes of legacy Aleris entities in certain separate filer states and unitary filer states that require combined or separate reporting, resulting in a benefit of $11 million . As of September 30, 2023, we had a net deferred tax liability of $119 million. This amount included gross deferred tax assets of approximately $1.4 billion and a valuation allowance of $709 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. Tax Uncertainties |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
14. COMMITMENTS AND CONTINGENCIES | 14. 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 in 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 $69 million. This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company's estimates involve significant judgment. 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 September 30, 2023, and March 31, 2023, were $36 million and $37 million, respectively. Of the total $36 million as of September 30, 2023, $15 million is associated with an environmental reserve, $17 million is associated with undiscounted environmental clean-up costs, and $4 million is associated with restructuring actions. As of September 30, 2023, $20 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. In most cases, we are paying the settlement amounts over a period of 180 months, however, in some cases we pay the settlement amounts over a shorter period. Total settlement liabilities as of September 30, 2023, and March 31, 2023, were $8 million and $11 million, respectively. As of September 30, 2023, $7 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 $40 million as of September 30, 2023, and $37 million as of March 31, 2023. As of September 30, 2023, the $40 million is included 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 prior fiscal years, 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 had the right to apply for tax credits for the amounts overpaid during specified tax years. These credits and corresponding interest could 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 on 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. 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 | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
15. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | 15. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of the 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 São 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 within our 2023 Form 10-K. We measure the profitability and financial performance of our operating segments based on Adjusted EBITDA. Adjusted EBITDA provides a measure of our underlying segment results that is in line with our approach to risk management. We define Adjusted EBITDA 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 Adjusted EBITDA; (e) impairment of goodwill; (f) (gain) loss on extinguishment of debt, net; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of Adjusted EBITDA from non-consolidated affiliates to income as determined on the equity method of accounting; (i) restructuring and impairment expenses (reversals), 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 3 – Consolidation and Note 4 – 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 in millions September 30, 2023 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non-consolidated affiliates $ — $ 532 $ 341 $ — $ — $ 873 Total assets 5,406 3,934 2,245 2,017 731 14,333 in millions March 31, 2023 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non-consolidated affiliates $ — $ 540 $ 337 $ — $ — $ 877 Total assets 4,867 4,166 2,417 2,155 759 14,364 in millions Selected Operating Results Three Months Ended September 30, 2023 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 1,722 $ 1,131 $ 580 $ 564 $ 110 $ 4,107 Net sales – intersegment — 20 60 29 (109) — Net sales $ 1,722 $ 1,151 $ 640 $ 593 $ 1 $ 4,107 Depreciation and amortization $ 55 $ 40 $ 23 $ 20 $ (2) $ 136 Income tax (benefit) provision 6 13 10 11 11 51 Capital expenditures 218 34 17 19 (3) 285 in millions Selected Operating Results Three Months Ended September 30, 2022 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 1,958 $ 1,266 $ 780 $ 674 $ 121 $ 4,799 Net sales – intersegment — 49 69 77 (195) — Net sales $ 1,958 $ 1,315 $ 849 $ 751 $ (74) $ 4,799 Depreciation and amortization $ 58 $ 38 $ 21 $ 19 $ (2) $ 134 Income tax (benefit) provision 1 9 10 36 9 65 Capital expenditures 98 21 19 26 10 174 in millions Selected Operating Results Six Months Ended September 30, 2023 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 3,454 $ 2,290 $ 1,177 $ 1,064 $ 213 $ 8,198 Net sales – intersegment — 42 132 58 (232) — Net sales $ 3,454 $ 2,332 $ 1,309 $ 1,122 $ (19) $ 8,198 Depreciation and amortization $ 108 $ 81 $ 45 $ 40 $ (7) $ 267 Income tax (benefit) provision (7) 26 18 27 41 105 Capital expenditures 493 61 39 34 (9) 618 in millions Selected Operating Results Six Months Ended September 30, 2022 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 4,054 $ 2,624 $ 1,531 $ 1,444 $ 235 $ 9,888 Net sales – intersegment — 85 176 133 (394) — Net sales $ 4,054 $ 2,709 $ 1,707 $ 1,577 $ (159) $ 9,888 Depreciation and amortization $ 115 $ 78 $ 43 $ 40 $ (4) $ 272 Income tax provision (23) 5 30 73 67 152 Capital expenditures 152 43 42 37 10 284 The table below displays the reconciliation from net income attributable to our common shareholder to Adjusted EBITDA. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Net income attributable to our common shareholder $ 157 $ 183 $ 313 $ 490 Net loss attributable to noncontrolling interests — — — (1) Income tax provision 51 65 105 152 Loss from discontinued operations, net of tax — 1 — 2 Income from continuing operations before income tax provision 208 249 418 643 Depreciation and amortization 136 134 267 272 Interest expense and amortization of debt issuance costs 78 65 155 123 Adjustment to reconcile proportional consolidation (1) 11 13 25 27 Unrealized losses (gains) on change in fair value of derivative instruments, net 23 21 19 (21) Realized gains on derivative instruments not included in Adjusted EBITDA (2) (1) (1) (4) (2) Loss on extinguishment of debt, net 5 — 5 — Restructuring and impairment expenses, net 4 1 7 2 Loss on sale of assets, net — — — 1 Metal price lag 22 24 17 21 Other, net (2) — (4) 1 Adjusted EBITDA $ 484 $ 506 $ 905 $ 1,067 _________________________ (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 on derivative instruments not included in Adjusted EBITDA represents foreign currency derivatives unrelated to operations. The following table displays Adjusted EBITDA by reportable segment. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 North America $ 208 $ 191 $ 374 $ 418 Europe 100 73 188 157 Asia 82 113 169 207 South America 93 127 177 283 Eliminations and Other 1 2 (3) 2 Adjusted EBITDA $ 484 $ 506 $ 905 $ 1,067 Information about Product Sales, Major Customers, and Primary Supplier Product Sales The following table displays net sales by product end market. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Beverage packaging (1) $ 1,943 $ 2,314 $ 3,727 $ 4,802 Automotive 971 995 1,989 1,942 Aerospace and industrial plate 179 199 355 363 Specialty 1,014 1,291 2,127 2,781 Net sales $ 4,107 $ 4,799 $ 8,198 $ 9,888 _________________________ (1) Prior to the three months ended September 30, 2023, we utilized the term "can" for the beverage packaging end market. This change is solely to align the terminology with that being currently used by the Company and does not impact the amounts presented. Major Customers The following table displays customers representing 10% or more of our net sales for any of the periods presented and their respective percentage of net sales. Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Ball 14 % 15 % 13 % 16 % 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 September 30, Six Months Ended September 30, 2023 2022 2023 2022 Purchases from Rio Tinto as a percentage of total combined metal purchases 9 % 7 % 10 % 7 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
16. SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS In October 2023, the Company approved the plan to close the cold rolling and finishing plant in Clayton, New Jersey. The decision was based on the opportunity to optimize the product portfolio and simplify the manufacturing footprint by eliminating some low growth, low margin products and consolidating production at other sites. The Company expects to cease substantially all operations at this plant by the end of the third quarter of fiscal 2024 and estimates total pre-tax charges associated with this action to be in the range of $25 million to $35 million, consisting primarily of charges for accelerated depreciation and employee-related restructuring expenses, which the Company expects to record in the third quarter of fiscal 2024. Additionally, the Company will record any environmental liabilities, if applicable, when such amounts are estimable following the closure of the plant. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe condensed consolidated balance sheet data as of March 31, 2023, was derived from the March 31, 2023, 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 2023 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 | Consolidation Policy Our condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and 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 the net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the 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 of non-consolidated affiliates. |
Use of Estimates and Assumptions | Use of Estimates and AssumptionsThe preparation of our condensed consolidated financial statements in accordance 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; and (4) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained, and 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 Adopted Accounting Standards and Recently Issued Accounting Standards (Not Yet Adopted) | Recently Adopted Accounting Standards On April 1, 2023, we adopted ASU 2022-04, which requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs, including the key terms of the program, the amount of obligations outstanding at the end of the reporting period, and a description of where those obligations are presented in the balance sheet. If presented in more than one balance sheet line item, the amount in each line item should be disclosed. Further, effective April 1, 2024, a roll-forward of such amounts during the annual period should be presented. The adoption of this guidance resulted in enhanced disclosures regarding these programs (see Supplier Finance Programs above) and did not have a material impact on our consolidated financial condition, results of operations, or cash flows. We did not adopt any other new accounting pronouncements during the six months ended September 30, 2023, that had a material impact on our consolidated financial condition, results of operations, or cash flows. Recently Issued Accounting Standards (Not Yet Adopted) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consists of the following. in millions September 30, March 31, Finished goods $ 745 $ 643 Work in process 1,174 1,303 Raw materials 554 505 Supplies 288 278 Inventories $ 2,761 $ 2,729 |
Consolidation (Tables)
Consolidation (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
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 September 30, March 31, ASSETS Current assets: Cash and cash equivalents $ 5 $ 6 Accounts receivable, net 8 6 Inventories 156 149 Prepaid expenses and other current assets 11 7 Total current assets 180 168 Property, plant and equipment, net 78 63 Goodwill 12 12 Deferred income tax assets 37 37 Other long-term assets 4 6 Total assets $ 311 $ 286 LIABILITIES Current liabilities: Accounts payable $ 130 $ 90 Accrued expenses and other current liabilities 26 28 Total current liabilities 156 118 Accrued postretirement benefits 121 130 Other long-term liabilities 4 6 Total liabilities $ 281 $ 254 |
Investment In and Advances to_2
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
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 non-consolidated 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 September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Net sales $ 394 $ 447 $ 790 $ 956 Costs and expenses related to net sales 381 430 762 919 Income tax provision 4 5 8 11 Net income $ 9 $ 12 $ 20 $ 26 Purchases of tolling services from Alunorf $ 81 $ 87 $ 158 $ 168 |
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 September 30, March 31, Accounts receivable, net — related parties $ 135 $ 156 Other long-term assets — related parties 2 3 Accounts payable — related parties 283 277 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consists of the following. September 30, 2023 March 31, 2023 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short-term borrowings 6.38 % $ 692 $ — $ 692 $ 671 $ — $ 671 Floating rate Term Loans, due January 2025 — — — 752 (7) 745 Floating rate Term Loans, due September 2026 7.04 % 750 (4) 746 — — — Floating rate Term Loans, due March 2028 7.54 % 488 (6) 482 490 (6) 484 3.25% Senior Notes, due November 2026 3.25 % 750 (7) 743 750 (8) 742 3.375% Senior Notes, due April 2029 3.375 % 529 (7) 522 543 (8) 535 4.75% Senior Notes, due January 2030 4.75 % 1,600 (20) 1,580 1,600 (22) 1,578 3.875% Senior Notes, due August 2031 3.875 % 750 (9) 741 750 (9) 741 China Bank Loans, due August 2027 3.90 % 58 — 58 64 — 64 1.8% Brazil Loan, due June 2023 1.80 % — — — 30 — 30 1.8% Brazil Loan, due December 2023 1.80 % 20 — 20 20 — 20 Finance lease obligations and other debt, due through June 2028 2.71 % 18 — 18 30 — 30 Total debt $ 5,655 $ (53) $ 5,602 $ 5,700 $ (60) $ 5,640 Less: Short-term borrowings (692) — (692) (671) — (671) Less: Current portion of long-term debt (51) — (51) (88) — (88) Long-term debt, net of current portion $ 4,912 $ (53) $ 4,859 $ 4,941 $ (60) $ 4,881 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of September 30, 2023, and therefore exclude the effects of related interest rate swaps and 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 September 30, 2023, for our debt denominated in foreign currencies are as follows (in millions). As of September 30, 2023 Amount Short-term borrowings and current portion of long-term debt due within one year $ 743 2 years 28 3 years 759 4 years 776 5 years 469 Thereafter 2,880 Total $ 5,655 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
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 September 30, Three Months Ended September 30, in millions 2023 2022 2023 2022 Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 19 15 2 1 Expected return on assets (20) (18) — — Amortization — losses, net — 2 (1) — Amortization — prior service credit, net (1) — (1) (1) Net periodic benefit cost (1) $ 4 $ 6 $ 1 $ 1 Pension Benefit Plans Other Benefit Plans Six Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Service cost $ 11 $ 13 $ 1 $ 2 Interest cost 38 31 3 2 Expected return on assets (39) (36) — — Amortization — losses, net (1) 4 (1) — Amortization — prior service credit, net (1) — (2) (2) Net periodic benefit cost (1) $ 8 $ 12 $ 1 $ 2 ____________________ (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 September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Funded pension plans $ 19 $ 6 $ 21 $ 8 Unfunded pension plans 3 4 7 8 Savings and defined contribution pension plans 14 13 30 27 Total contributions $ 36 $ 23 $ 58 $ 43 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in Other (income) expense, net | The following currency losses are included in other (income) expenses, net in the accompanying condensed consolidated statements of operations. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Gains on remeasurement of monetary assets and liabilities, net $ (16) $ (35) $ (4) $ (67) Losses recognized on balance sheet remeasurement currency exchange contracts, net 17 41 9 78 Currency losses, net $ 1 $ 6 $ 5 $ 11 |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
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. September 30, 2023 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 $ 28 $ — $ (68) $ — $ (40) Currency exchange contracts 17 1 (24) (2) (8) Energy contracts 2 — (1) — 1 Interest rate swap contracts — 1 — — 1 Total derivatives designated as hedging instruments $ 47 $ 2 $ (93) $ (2) $ (46) Derivatives not designated as hedging instruments: Metal contracts $ 59 $ 1 $ (94) $ (1) $ (35) Currency exchange contracts 14 1 (25) (2) (12) Energy contracts 1 — (1) — — Total derivatives not designated as hedging instruments $ 74 $ 2 $ (120) $ (3) $ (47) Total derivative fair value $ 121 $ 4 $ (213) $ (5) $ (93) March 31, 2023 Assets Liabilities Net Fair Value Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 37 $ — $ (31) $ — $ 6 Currency exchange contracts 26 4 (19) (1) 10 Energy contracts 3 — (4) — (1) Total derivatives designated as hedging instruments $ 66 $ 4 $ (54) $ (1) $ 15 Derivatives not designated as hedging instruments: Metal contracts $ 66 $ — $ (52) $ (2) $ 12 Currency exchange contracts 13 3 (22) (3) (9) Energy contracts — — (2) — (2) Total derivatives not designated as hedging instruments $ 79 $ 3 $ (76) $ (5) $ 1 Total derivative fair value $ 145 $ 7 $ (130) $ (6) $ 16 ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in other long-term assets and other long-term liabilities, respectively, in the accompanying condensed consolidated balance sheets . |
Summary of notional amount | The following table summarizes our notional amount. in kt September 30, March 31, Hedge type Purchase (sale) Cash flow purchases — 1 Cash flow sales (730) (699) Not designated (115) (144) Total, net (845) (842) |
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 September 30 Six Months Ended September 30 in millions 2023 2022 2023 2022 Derivative instruments not designated as hedges Metal contracts $ (1) $ 7 $ (25) $ 49 Currency exchange contracts 18 42 7 84 Energy contracts (1) (1) — (1) (4) Loss (gain) recognized in other (income) expenses, net 16 49 (19) 129 Derivative instruments designated as hedges Gain recognized in other (income) expenses, net (2) (1) (3) (2) (5) Total loss (gain) recognized in other (income) expenses, net $ 15 $ 46 $ (21) $ 124 Losses recognized on balance sheet remeasurement currency exchange contracts, net $ 17 $ 41 $ 9 $ 78 Realized (gains) losses on change in fair value of derivative instruments, net (25) (16) (49) 67 Unrealized losses (gains) on change in fair value of derivative instruments, net 23 21 19 (21) Total loss (gain) recognized in other (income) expenses, net $ 15 $ 46 $ (21) $ 124 _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges and electricity swap settlements. (2) Amount includes forward market premium/discount excluded from hedging relationship and releases to income from accumulated other comprehensive loss on balance sheet remeasurement contracts. |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following tables summarize 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 $59 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive (loss) income (Effective Portion) Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Cash flow hedging derivatives Metal contracts $ (154) $ 204 $ 72 $ 1,103 Currency exchange contracts (26) (99) (18) (177) Energy contracts — 9 (1) 16 Interest rate swap contracts 1 — 1 — Total $ (179) $ 114 $ 54 $ 942 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Three Months Ended September 30, Six Months Ended September 30, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2023 2022 2023 2022 Cash flow hedging derivatives Energy contracts (1) $ (2) $ 11 $ (3) $ 18 Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 1 (3) 2 3 Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 74 229 143 147 Net sales Currency exchange contracts 4 4 7 11 Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts 1 1 1 1 Selling, general and administrative expenses Currency exchange contracts (4) (16) (9) (28) Net sales Currency exchange contracts (1) (2) (2) (3) Depreciation and amortization Total $ 73 $ 224 $ 139 $ 149 Income from continuing operations before income tax provision (18) (53) (37) (32) Income tax provision $ 55 $ 171 $ 102 $ 117 Net income from continuing operations _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
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 June 30, 2023 $ (309) $ 119 $ 57 $ (133) Other comprehensive (loss) income before reclassifications (63) (129) 1 (191) Amounts reclassified from accumulated other comprehensive loss, net — (55) (3) (58) Net current-period other comprehensive loss (63) (184) (2) (249) Balance as of September 30, 2023 $ (372) $ (65) $ 55 $ (382) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of June 30, 2022 $ (339) $ 246 $ (12) $ (105) Other comprehensive (loss) income before reclassifications (188) 91 5 (92) Amounts reclassified from accumulated other comprehensive loss, net — (171) — (171) Net current-period other comprehensive (loss) income (188) (80) 5 (263) Balance as of September 30, 2022 $ (527) $ 166 $ (7) $ (368) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2023 $ (293) $ (5) $ 60 $ (238) Other comprehensive (loss) income before reclassifications (79) 42 (1) (38) Amounts reclassified from accumulated other comprehensive loss, net — (102) (4) (106) Net current-period other comprehensive loss (79) (60) (5) (144) Balance as of September 30, 2023 $ (372) $ (65) $ 55 $ (382) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2022 $ (166) $ (435) $ (19) $ (620) Other comprehensive (loss) income before reclassifications (361) 718 11 368 Amounts reclassified from accumulated other comprehensive loss, net — (117) 1 (116) Net current-period other comprehensive (loss) income (361) 601 12 252 Balance as of September 30, 2022 $ (527) $ 166 $ (7) $ (368) _________________________ (1) For additional information on our cash flow hedges, see Note 9 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans, see Note 7 – Postretirement Benefit Plans . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Derivative assets and liabilities measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy | The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of September 30, 2023, and March 31, 2023. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. September 30, 2023 March 31, 2023 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 88 $ (163) $ 103 $ (85) Currency exchange contracts 33 (53) 46 (45) Energy contracts 3 (2) 3 (6) Interest rate swap contracts 1 — — — Total level 2 instruments $ 125 $ (218) $ 152 $ (136) Netting adjustment (1) (73) 73 (72) 72 Total net $ 52 $ (145) $ 80 $ (64) _________________________ (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. |
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. September 30, 2023 March 31, 2023 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 2 $ 2 $ 3 $ 3 Total debt — third parties (excluding finance leases and short-term borrowings) 4,892 4,461 4,939 4,652 |
Other (Income) Expenses, Net (T
Other (Income) Expenses, Net (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | Other (income) expenses, net consists of the following. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Currency losses, net (1) $ 1 $ 6 $ 5 $ 11 Unrealized losses (gains) on change in fair value of derivative instruments, net (2) 23 21 19 (21) Realized (gains) losses on change in fair value of derivative instruments, net (2) (25) (16) (49) 67 Loss on sale of assets, net — — — 1 Interest income (4) (4) (11) (8) Non-operating net periodic benefit cost (3) (2) (1) (3) (1) Other, net 5 4 10 11 Other (income) expenses, net $ (2) $ 10 $ (29) $ 60 _________________________ (1) Includes losses recognized on balance sheet remeasurement currency exchange contracts, net. See Note 8 – Currency Losses (Gains) for further details. (2) See Note 9 – Financial Instruments and Commodity Contracts for further details. (3) 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 7 – Postretirement Benefit Plans |
Segment, Major Customer and M_2
Segment, Major Customer and Major Supplier Information (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Selected segment financial information | The following table displays Adjusted EBITDA by reportable segment. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 North America $ 208 $ 191 $ 374 $ 418 Europe 100 73 188 157 Asia 82 113 169 207 South America 93 127 177 283 Eliminations and Other 1 2 (3) 2 Adjusted EBITDA $ 484 $ 506 $ 905 $ 1,067 The following table displays net sales by product end market. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Beverage packaging (1) $ 1,943 $ 2,314 $ 3,727 $ 4,802 Automotive 971 995 1,989 1,942 Aerospace and industrial plate 179 199 355 363 Specialty 1,014 1,291 2,127 2,781 Net sales $ 4,107 $ 4,799 $ 8,198 $ 9,888 _________________________ (1) Prior to the three months ended September 30, 2023, we utilized the term "can" for the beverage packaging end market. This change is solely to align the terminology with that being currently used by the Company and does not impact the amounts presented. |
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 Adjusted EBITDA. Three Months Ended September 30, Six Months Ended September 30, in millions 2023 2022 2023 2022 Net income attributable to our common shareholder $ 157 $ 183 $ 313 $ 490 Net loss attributable to noncontrolling interests — — — (1) Income tax provision 51 65 105 152 Loss from discontinued operations, net of tax — 1 — 2 Income from continuing operations before income tax provision 208 249 418 643 Depreciation and amortization 136 134 267 272 Interest expense and amortization of debt issuance costs 78 65 155 123 Adjustment to reconcile proportional consolidation (1) 11 13 25 27 Unrealized losses (gains) on change in fair value of derivative instruments, net 23 21 19 (21) Realized gains on derivative instruments not included in Adjusted EBITDA (2) (1) (1) (4) (2) Loss on extinguishment of debt, net 5 — 5 — Restructuring and impairment expenses, net 4 1 7 2 Loss on sale of assets, net — — — 1 Metal price lag 22 24 17 21 Other, net (2) — (4) 1 Adjusted EBITDA $ 484 $ 506 $ 905 $ 1,067 _________________________ (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 on derivative instruments not included in Adjusted EBITDA represents foreign currency derivatives unrelated to operations. |
Net sales to largest customers, as a percentage of total Net sales | The following table displays customers representing 10% or more of our net sales for any of the periods presented and their respective percentage of net sales. Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Ball 14 % 15 % 13 % 16 % |
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 September 30, Six Months Ended September 30, 2023 2022 2023 2022 Purchases from Rio Tinto as a percentage of total combined metal purchases 9 % 7 % 10 % 7 % |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 USD ($) plant segement country | Mar. 31, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Decrease in retained earnings | $ | $ 4 | |
Number of countries Company operates in | country | 9 | |
Number of continents Company operates in | segement | 4 | |
Number of operating segments | segement | 4 | |
Number of operating plants | plant | 33 | |
Number of plants with recycling operations | plant | 15 | |
Supplier finance program, obligation | $ | $ 651 | $ 801 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Schedule of inventories | ||
Finished goods | $ 745 | $ 643 |
Work in process | 1,174 | 1,303 |
Raw materials | 554 | 505 |
Supplies | 288 | 278 |
Inventories | $ 2,761 | $ 2,729 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 1,158 | $ 1,498 | $ 1,145 |
Inventories | 2,761 | 2,729 | |
Prepaid expenses and other current assets | 175 | 178 | |
Total current assets | 6,162 | 6,460 | |
Property, plant and equipment, net | 5,228 | 4,900 | |
Goodwill | 1,073 | 1,076 | |
Deferred income tax assets | 152 | 166 | |
Total assets | 14,333 | 14,364 | |
Current liabilities: | |||
Accrued expenses and other current liabilities | 593 | 633 | |
Total current liabilities | 4,783 | 4,899 | |
Accrued postretirement benefits | 526 | 554 | |
Other long-term liabilities | 271 | 288 | |
Total liabilities | 10,710 | 10,910 | |
Primary Beneficiary | |||
Current assets: | |||
Cash and cash equivalents | 5 | 6 | |
Accounts receivable, net | 8 | 6 | |
Inventories | 156 | 149 | |
Prepaid expenses and other current assets | 11 | 7 | |
Total current assets | 180 | 168 | |
Property, plant and equipment, net | 78 | 63 | |
Goodwill | 12 | 12 | |
Deferred income tax assets | 37 | 37 | |
Other long-term assets | 4 | 6 | |
Total assets | 311 | 286 | |
Current liabilities: | |||
Accounts payable | 130 | 90 | |
Accrued expenses and other current liabilities | 26 | 28 | |
Total current liabilities | 156 | 118 | |
Accrued postretirement benefits | 121 | 130 | |
Other long-term liabilities | 4 | 6 | |
Total liabilities | $ 281 | $ 254 | |
Logan Aluminum Inc. | |||
Current liabilities: | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40% |
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 | 6 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 01, 2023 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Net sales | $ 4,107 | $ 4,799 | $ 8,198 | $ 9,888 | ||
Return of capital payable | $ 100 | |||||
Return of capital to our common shareholder | 100 | 100 | ||||
Additional Paid-in Capital | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Return of capital to our common shareholder | $ 100 | 100 | ||||
Parent Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net sales | 1 | $ 1 | ||||
Accounts receivable, net | $ 1 | $ 1 | $ 2 | |||
Aluminum Norf GmbH | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% | 50% | ||||
Ulsan Aluminum, Ltd. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% | 50% | ||||
AluInfra Services SA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% | 50% |
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 | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income tax provision | $ 51 | $ 65 | $ 105 | $ 152 |
Net income | 157 | 183 | 313 | 489 |
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | 394 | 447 | 790 | 956 |
Costs and expenses related to net sales | 381 | 430 | 762 | 919 |
Income tax provision | 4 | 5 | 8 | 11 |
Net income | 9 | 12 | 20 | 26 |
Purchases of tolling services from Alunorf | $ 81 | $ 87 | $ 158 | $ 168 |
Investment In and Advances to_5
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Period End Account Balances (Details) - Related Party - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable, net — related parties | $ 135 | $ 156 |
Other long-term assets — related parties | 2 | 3 |
Accounts payable — related parties | $ 283 | $ 277 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Debt Instrument | ||
Stated rate | 6.38% | 6.67% |
Short-term Debt | $ (692) | $ (671) |
Long-term debt, principal | 4,912 | 4,941 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | 0 |
Long-term debt, Carrying Value | 4,892 | 4,939 |
Total debt, Unamortized Carrying Value Adjustment | (53) | (60) |
Current portion of long-term debt | (51) | (88) |
Long-term debt, net of current portion, Carrying Value | 4,859 | 4,881 |
Total debt | 5,655 | 5,700 |
Total debt, carrying value | 5,602 | 5,640 |
Floating rate incremental term loan facility, due January 2025 | ||
Debt Instrument | ||
Long-term debt, principal | 0 | 752 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | (7) |
Long-term debt, Carrying Value | $ 0 | 745 |
Floating rate Term Loans, due September 2026 | ||
Debt Instrument | ||
Stated rate | 7.04% | |
Long-term debt, principal | $ 750 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | (4) | 0 |
Long-term debt, Carrying Value | $ 746 | 0 |
Floating rate incremental term loan facility, due March 2028 | ||
Debt Instrument | ||
Stated rate | 7.54% | |
Long-term debt, principal | $ 488 | 490 |
Long-term debt, Unamortized Carrying Value Adjustments | (6) | (6) |
Long-term debt, Carrying Value | 482 | 484 |
Senior Notes due November 2026 | ||
Debt Instrument | ||
Long-term debt, principal | 750 | 750 |
Long-term debt, Unamortized Carrying Value Adjustments | (7) | (8) |
Long-term debt, Carrying Value | 743 | 742 |
Senior Notes due April 2029 | ||
Debt Instrument | ||
Long-term debt, principal | 529 | 543 |
Long-term debt, Unamortized Carrying Value Adjustments | (7) | (8) |
Long-term debt, Carrying Value | 522 | 535 |
Senior Notes Due 2030 | ||
Debt Instrument | ||
Long-term debt, principal | 1,600 | 1,600 |
Long-term debt, Unamortized Carrying Value Adjustments | (20) | (22) |
Long-term debt, Carrying Value | 1,580 | 1,578 |
Senior Notes due August 2031 | ||
Debt Instrument | ||
Long-term debt, principal | 750 | 750 |
Long-term debt, Unamortized Carrying Value Adjustments | (9) | (9) |
Long-term debt, Carrying Value | $ 741 | 741 |
Bank Loans, Due Through June 2027 | ||
Debt Instrument | ||
Stated rate | 3.90% | |
Long-term debt, principal | $ 58 | 64 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 58 | 64 |
Brazil loan, due June 2023 | ||
Debt Instrument | ||
Stated rate | 1.80% | |
Long-term debt, principal | $ 0 | 30 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 0 | 30 |
Brazil loan, due December 2023 | ||
Debt Instrument | ||
Stated rate | 1.80% | |
Long-term debt, principal | $ 20 | 20 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 20 | 20 |
Other Debt, due through June 2028 | ||
Debt Instrument | ||
Stated rate | 2.71% | |
Long-term debt, principal | $ 18 | 30 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 18 | $ 30 |
Debt - Principal Repayments (De
Debt - Principal Repayments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 743 | |
2 years | 28 | |
3 years | 759 | |
4 years | 776 | |
5 years | 469 | |
Thereafter | 2,880 | |
Total debt | $ 5,655 | $ 5,700 |
Debt - Additional Information (
Debt - Additional Information (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Aug. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) | |
Debt Instrument | ||||||||
Short-term borrowings | $ 671 | $ 692 | $ 692 | $ 692 | ||||
Proceeds from issuance of long-term and short-term borrowings | 532 | $ 0 | ||||||
Long-term debt, principal | $ 4,941 | $ 4,912 | 4,912 | 4,912 | ||||
Loss on extinguishment of debt, net | $ (5) | $ 0 | $ (5) | $ 0 | ||||
Stated rate | 6.67% | 6.38% | 6.38% | 6.38% | 6.38% | |||
2020 Term Loans | ||||||||
Debt Instrument | ||||||||
Extinguishment of debt | $ 482 | |||||||
Modification of debt | $ 268 | 268 | $ 268 | |||||
Long-term debt, principal | 750 | 750 | $ 750 | |||||
Loss on extinguishment of debt, net | $ 5 | |||||||
2023 Term Loans | ||||||||
Debt Instrument | ||||||||
Proceeds from issuance of long-term and short-term borrowings | $ 750 | |||||||
Quarterly amortization payments | 0.25% | |||||||
Senior Notes due November 2026 | ||||||||
Debt Instrument | ||||||||
Stated rate | 3.25% | 3.25% | 3.25% | 3.25% | ||||
Senior Notes due April 2029 | ||||||||
Debt Instrument | ||||||||
Stated rate | 3.375% | 3.375% | 3.375% | 3.375% | ||||
Senior Notes Due 2030 | ||||||||
Debt Instrument | ||||||||
Stated rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||
Senior Notes due August 2031 | ||||||||
Debt Instrument | ||||||||
Stated rate | 3.875% | 3.875% | 3.875% | 3.875% | ||||
Letter of Credit | ||||||||
Debt Instrument | ||||||||
Unused commitments to extend credit | $ 275 | $ 275 | $ 275 | |||||
Remaining borrowing capacity | $ 234 | 234 | 234 | |||||
ABL Revolver | ||||||||
Debt Instrument | ||||||||
ABL revolver facility, current amount | $ 500 | |||||||
ABL revolver facility, maximum capacity | $ 2,000 | |||||||
SOFR | Term Loan Facility | ||||||||
Debt Instrument | ||||||||
Brazil loan | 0.15% | |||||||
SOFR | Term Loan Facility | 2020 Term Loans | ||||||||
Debt Instrument | ||||||||
Brazil loan | 1.75% | |||||||
SOFR | Term Loan Facility | 2021 Term Loans | ||||||||
Debt Instrument | ||||||||
Brazil loan | 2% | |||||||
SOFR | 2023 Term Loans | ||||||||
Debt Instrument | ||||||||
Brazil loan | 1.65% | |||||||
SOFR | Minimum | ABL Revolver | ||||||||
Debt Instrument | ||||||||
Brazil loan | 1.10% | |||||||
SOFR | Maximum | ABL Revolver | ||||||||
Debt Instrument | ||||||||
Brazil loan | 1.60% | |||||||
Term SOFR | ABL Revolver | ||||||||
Debt Instrument | ||||||||
Stated rate | 1% | |||||||
Prime Rate | Minimum | ABL Revolver | ||||||||
Debt Instrument | ||||||||
Brazil loan | 0.10% | |||||||
Prime Rate | Maximum | ABL Revolver | ||||||||
Debt Instrument | ||||||||
Brazil loan | 0.60% | |||||||
ABL Revolver | ||||||||
Debt Instrument | ||||||||
Short-term borrowings | $ 495 | 495 | 495 | |||||
Amount outstanding | 41 | 41 | 41 | |||||
Remaining borrowing capacity | 990 | 990 | 990 | |||||
Brazil Loans | ||||||||
Debt Instrument | ||||||||
Short-term borrowings | 150 | 150 | 150 | |||||
China Revolver | ||||||||
Debt Instrument | ||||||||
Short-term borrowings | $ 47 | $ 47 | $ 47 | ¥ 336 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation by Award [Line Items] | ||||
Total compensation expense | $ 8 | $ 6 | $ 14 | $ 4 |
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | 22 | $ 22 | ||
SARs | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of SARs granted (in shares) | 2,598,668 | |||
Unrecognized compensation expense | $ 9 | $ 9 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 6 months | |||
RSUs | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of RSUs granted (in shares) | 1,941,778 | |||
Cash payments to settle liabilities | $ 13 | 15 | ||
Unrecognized compensation expense | $ 22 | 22 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 7 months 6 days | |||
Cash | ||||
Share-based Compensation by Award [Line Items] | ||||
Cash payments to settle liabilities | $ 4 | $ 7 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of net periodic benefit cost for postretirement benefit plans | ||||
Net periodic benefit cost(1) | $ 2 | $ 1 | $ 3 | $ 1 |
Pension Benefit Plans | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 6 | 7 | 11 | 13 |
Interest cost | 19 | 15 | 38 | 31 |
Expected return on assets | (20) | (18) | (39) | (36) |
Amortization — losses, net | 0 | 2 | (1) | 4 |
Amortization — prior service credit, net | (1) | 0 | (1) | 0 |
Net periodic benefit cost(1) | 4 | 6 | 8 | 12 |
Other Benefit Plans | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 1 | 1 | 1 | 2 |
Interest cost | 2 | 1 | 3 | 2 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization — losses, net | (1) | 0 | (1) | 0 |
Amortization — prior service credit, net | (1) | (1) | (2) | (2) |
Net periodic benefit cost(1) | $ 1 | $ 1 | $ 1 | $ 2 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Employer Contributions to Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Contributions to employee benefit plans | ||||
Funded pension plans | $ 19 | $ 6 | $ 21 | $ 8 |
Unfunded pension plans | 3 | 4 | 7 | 8 |
Savings and defined contribution pension plans | 14 | 13 | 30 | 27 |
Total contributions | $ 36 | $ 23 | $ 58 | $ 43 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Retirement Benefits [Abstract] | ||
Expected long-term rate of return on plan assets | 6.10% | |
Maximum amortization period of unfunded actuarial liability | 15 years | |
Expected additional contribution to funded pension plan | $ 8 | |
Expected additional contribution to unfunded pension plan | 9 | |
Expected additional contribution to savings and defined contribution plans | $ 26 |
Currency Losses (Gains) - Inclu
Currency Losses (Gains) - Included in Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Currency (gains) losses included in other income expense | ||||
Gains on remeasurement of monetary assets and liabilities, net | $ (16) | $ (35) | $ (4) | $ (67) |
Losses recognized on balance sheet remeasurement currency exchange contracts, net | 17 | 41 | 9 | 78 |
Currency losses, net | $ 1 | $ 6 | $ 5 | $ 11 |
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 | Sep. 30, 2023 | Mar. 31, 2023 |
Assets | ||
Derivative Assets, Current | $ 121 | $ 145 |
Derivative Asset, Noncurrent | 4 | 7 |
Liabilities | ||
Derivative Liabilities, Current | (213) | (130) |
Derivative Liabilities, Noncurrent | (5) | (6) |
Net Fair Value Assets/Liabilities | (93) | 16 |
Designated as Hedging Instrument | ||
Assets | ||
Derivative Assets, Current | 47 | 66 |
Derivative Asset, Noncurrent | 2 | 4 |
Liabilities | ||
Derivative Liabilities, Current | (93) | (54) |
Derivative Liabilities, Noncurrent | (2) | (1) |
Net Fair Value Assets/Liabilities | (46) | 15 |
Designated as Hedging Instrument | Cash Flow Hedges | Metal Contracts | ||
Assets | ||
Derivative Assets, Current | 28 | 37 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (68) | (31) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | (40) | 6 |
Designated as Hedging Instrument | Cash Flow Hedges | Currency Exchange Contracts | ||
Assets | ||
Derivative Assets, Current | 17 | 26 |
Derivative Asset, Noncurrent | 1 | 4 |
Liabilities | ||
Derivative Liabilities, Current | (24) | (19) |
Derivative Liabilities, Noncurrent | (2) | (1) |
Net Fair Value Assets/Liabilities | (8) | 10 |
Designated as Hedging Instrument | Cash Flow Hedges | Energy Contracts | ||
Assets | ||
Derivative Assets, Current | 2 | 3 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (1) | (4) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | 1 | (1) |
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate Swap | ||
Assets | ||
Derivative Assets, Current | 0 | |
Derivative Asset, Noncurrent | 1 | |
Liabilities | ||
Derivative Liabilities, Current | 0 | |
Derivative Liabilities, Noncurrent | 0 | |
Net Fair Value Assets/Liabilities | 1 | |
Not Designated as Hedging Instrument | ||
Assets | ||
Derivative Assets, Current | 74 | 79 |
Derivative Asset, Noncurrent | 2 | 3 |
Liabilities | ||
Derivative Liabilities, Current | (120) | (76) |
Derivative Liabilities, Noncurrent | (3) | (5) |
Net Fair Value Assets/Liabilities | (47) | 1 |
Not Designated as Hedging Instrument | Metal Contracts | ||
Assets | ||
Derivative Assets, Current | 59 | 66 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (94) | (52) |
Derivative Liabilities, Noncurrent | (1) | (2) |
Net Fair Value Assets/Liabilities | (35) | 12 |
Not Designated as Hedging Instrument | Currency Exchange Contracts | ||
Assets | ||
Derivative Assets, Current | 14 | 13 |
Derivative Asset, Noncurrent | 1 | 3 |
Liabilities | ||
Derivative Liabilities, Current | (25) | (22) |
Derivative Liabilities, Noncurrent | (2) | (3) |
Net Fair Value Assets/Liabilities | (12) | (9) |
Not Designated as Hedging Instrument | Energy Contracts | ||
Assets | ||
Derivative Assets, Current | 1 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (1) | (2) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | $ 0 | $ (2) |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts - Additional Information (Details) | 3 Months Ended | |
Sep. 30, 2023 USD ($) MMBTU gallon | Mar. 31, 2023 USD ($) MMBTU gallon | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (93,000,000) | $ 16,000,000 |
Expected reclassification from AOCI to earnings | 59,000,000 | |
Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (46,000,000) | 15,000,000 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (47,000,000) | 1,000,000 |
Aluminum Forward Sales Contracts | Designated as Hedging Instrument | Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative remaining maturity (in years) | 2 years | |
Aluminum Forward Sales Contracts | Not Designated as Hedging Instrument | Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative remaining maturity (in years) | 1 year | |
Aluminum Forward Sales Contracts | Cash Flow Hedges | Designated as Hedging Instrument | Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative remaining maturity (in years) | 1 year | |
Copper Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative remaining maturity (in years) | 1 year | |
Fair value of derivative, liability (less than) | $ 1,000,000 | |
Fair value of derivative, asset | 1,000,000 | |
Currency Exchange Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | 1,400,000,000 | 1,700,000,000 |
Derivative Assets (Liabilities), at Fair Value, Net | (12,000,000) | (9,000,000) |
Currency Exchange Contracts | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | 1,000,000,000 | 1,200,000,000 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (8,000,000) | 10,000,000 |
Interest Rate Swap | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, fixed interest rate | 4.40% | |
Notional amount | $ 400,000,000 | |
Derivative Assets (Liabilities), at Fair Value, Net | 1,000,000 | |
Natural Gas Swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 |
Derivative, Nonmonetary Notional Amount | MMBTU | 1,000,000 | 1,000,000 |
Natural Gas Swaps | Not Designated as Hedging Instrument | Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative remaining maturity (in years) | 3 years | |
Natural Gas Swaps | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative, liability (less than) | $ 1,000,000 | |
Fair value of derivative, asset | $ 1,000,000 | |
Derivative, Nonmonetary Notional Amount | MMBTU | 3,000,000 | 7,000,000 |
Diesel Fuel Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative remaining maturity (in years) | 1 year | |
Derivative, Nonmonetary Notional Amount | MMBTU | 1,000,000 | 1,000,000 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (1,000,000) | $ (1,000,000) |
Diesel Fuel Forward Contracts | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 |
Derivative, Nonmonetary Notional Amount | gallon | 1,000,000 | 1,000,000 |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts - Summary of Notional Amount (Details) - Metal Contracts - kt kt in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Short | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 845,000 | 842,000 |
Designated as Hedging Instrument | Cash Flow Hedges | Long | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 1,000 |
Designated as Hedging Instrument | Cash Flow Hedges | Short | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 730,000 | 699,000 |
Not Designated as Hedging Instrument | Short | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 115,000 | 144,000 |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts - Gain (Loss) Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total loss (gain) recognized in other (income) expenses, net | $ 15 | $ 46 | $ (21) | $ 124 |
Other Operating Income (Expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses recognized on balance sheet remeasurement currency exchange contracts, net | 17 | 41 | 9 | 78 |
Realized (gains) losses on change in fair value of derivative instruments, net | (25) | (16) | (49) | 67 |
Unrealized losses (gains) on change in fair value of derivative instruments, net | 23 | 21 | 19 | (21) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total loss (gain) recognized in other (income) expenses, net | 16 | 49 | (19) | 129 |
Not Designated as Hedging Instrument | Metal Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total loss (gain) recognized in other (income) expenses, net | (1) | 7 | (25) | 49 |
Not Designated as Hedging Instrument | Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total loss (gain) recognized in other (income) expenses, net | 18 | 42 | 7 | 84 |
Not Designated as Hedging Instrument | Energy Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total loss (gain) recognized in other (income) expenses, net | (1) | 0 | (1) | (4) |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total loss (gain) recognized in other (income) expenses, net | $ (1) | $ (3) | $ (2) | $ (5) |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts - Summary of the Impact on AOCI and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total cash flow hedging derivatives | $ (179) | $ 114 | $ 54 | $ 942 |
Cash Flow Hedges | Metal Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total cash flow hedging derivatives | (154) | 204 | 72 | 1,103 |
Cash Flow Hedges | Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total cash flow hedging derivatives | (26) | (99) | (18) | (177) |
Cash Flow Hedges | Energy Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total cash flow hedging derivatives | 0 | 9 | (1) | 16 |
Cash Flow Hedges | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total cash flow hedging derivatives | $ 1 | $ 0 | $ 1 | $ 0 |
Financial Instruments and Com_8
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income tax provision | $ (51) | $ (65) | $ (105) | $ (152) |
Net income | 157 | 183 | 313 | 489 |
Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | 73 | 224 | 139 | 149 |
Income tax provision | (18) | (53) | (37) | (32) |
Net income | 55 | 171 | 102 | 117 |
Cash Flow Hedges | Energy Contracts | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | (2) | 11 | (3) | 18 |
Cash Flow Hedges | Metal Contracts | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | 1 | (3) | 2 | 3 |
Cash Flow Hedges | Metal Contracts | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | 74 | 229 | 143 | 147 |
Cash Flow Hedges | Currency Exchange Contracts | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | 4 | 4 | 7 | 11 |
Cash Flow Hedges | Currency Exchange Contracts | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | (4) | (16) | (9) | (28) |
Cash Flow Hedges | Currency Exchange Contracts | Selling, General and Administrative Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | 1 | 1 | 1 | 1 |
Cash Flow Hedges | Currency Exchange Contracts | Depreciation and Amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income from continuing operations before income tax provision | $ (1) | $ (2) | $ (2) | $ (3) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | $ (133) | $ (105) | $ (238) | $ (620) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (191) | (92) | (38) | 368 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (58) | (171) | (106) | (116) |
Other comprehensive income, net of tax | (249) | (263) | (144) | 252 |
Balance as of end of period | (382) | (368) | (382) | (368) |
Currency Translation | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (309) | (339) | (293) | (166) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (63) | (188) | (79) | (361) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 |
Other comprehensive income, net of tax | (63) | (188) | (79) | (361) |
Balance as of end of period | (372) | (527) | (372) | (527) |
Cash Flow Hedges [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | 119 | 246 | (5) | (435) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (129) | 91 | 42 | 718 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (55) | (171) | (102) | (117) |
Other comprehensive income, net of tax | (184) | (80) | (60) | 601 |
Balance as of end of period | (65) | 166 | (65) | 166 |
Postretirement Benefit Plans [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | 57 | (12) | 60 | (19) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | 5 | (1) | 11 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3) | 0 | (4) | 1 |
Other comprehensive income, net of tax | (2) | 5 | (5) | 12 |
Balance as of end of period | $ 55 | $ (7) | $ 55 | $ (7) |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Derivative Asset, Master Netting Adjustment | $ (73) | $ (72) |
Fair value of derivative, asset | 52 | 80 |
Derivative Liability, Master Netting Adjustment | 73 | 72 |
Derivative Liability | (145) | (64) |
Level 2 Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 125 | 152 |
Liabilities | (218) | (136) |
Level 2 Instruments | Aluminum Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 88 | 103 |
Liabilities | (163) | (85) |
Level 2 Instruments | Currency Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 33 | 46 |
Liabilities | (53) | (45) |
Level 2 Instruments | Energy Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 3 | 3 |
Liabilities | (2) | (6) |
Level 2 Instruments | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 1 | 0 |
Liabilities | $ 0 | $ 0 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Total debt - third parties (excluding short term borrowings), fair value | $ 4,461 | $ 4,652 |
Total debt - third parties (excluding short term borrowings), carrying value | 4,892 | 4,939 |
Other Assets, Fair Value Disclosure | 2 | 3 |
Related Party | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | $ 2 | $ 3 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Transfers out of Level 2 | $ 0 |
Notes receivable | $ 42 |
Other (Income) Expenses, Net (D
Other (Income) Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Currency losses, net | $ 1 | $ 6 | $ 5 | $ 11 |
Unrealized losses (gains) on change in fair value of derivative instruments, net | 23 | 21 | 19 | (21) |
Realized (gains) losses on change in fair value of derivative instruments, net | (25) | (16) | (49) | 67 |
Loss on sale of assets, net | 0 | 0 | 0 | 1 |
Interest income | (4) | (4) | (11) | (8) |
Non-operating net periodic benefit cost | (2) | (1) | (3) | (1) |
Other, net | 5 | 4 | 10 | 11 |
Other (income) expenses, net | $ (2) | $ 10 | $ (29) | $ 60 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Income tax benefit | $ (11) |
Net deferred tax liability | 119 |
Gross deferred tax assets | 1,400 |
Valuation allowance | $ 709 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | |
Loss Contingencies | ||||
Accrual for environmental loss contingencies | $ 36 | $ 37 | ||
Accrual for environmental loss contingencies, current | 20 | |||
SEC Schedule, 12-09, Reserve, Environmental Cost | ||||
Loss Contingencies | ||||
Accrual for environmental loss contingencies | 15 | |||
PIS and COFINS | ||||
Loss Contingencies | ||||
Gain (Loss) Related to Litigation Settlement | $ (5) | $ 76 | ||
Principal amount awarded | 2 | 48 | ||
Litigation settlement interest | $ 3 | 29 | ||
Litigation settlement, expense | $ 1 | |||
BRAZIL | ||||
Loss Contingencies | ||||
Settlement Liabilities, Current | 8 | 11 | ||
Estimated Litigation Liability | 40 | $ 37 | ||
BRAZIL | Other Current Liabilities [Member] | ||||
Loss Contingencies | ||||
Settlement Liabilities, Current | 7 | |||
Minimum | ||||
Loss Contingencies | ||||
Range of possible loss | 0 | |||
Maximum | ||||
Loss Contingencies | ||||
Range of possible loss | 69 | |||
Restructuring Action | ||||
Loss Contingencies | ||||
Accrual for environmental loss contingencies | 4 | |||
Undiscounted Environmental Clean-Up Costs | ||||
Loss Contingencies | ||||
Accrual for environmental loss contingencies | $ 17 |
Segment, Major Customer and M_3
Segment, Major Customer and Major Supplier Information - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2023 plant country segement | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segement | 4 |
Number of operating plants | 33 |
Number of plants with recycling operations | 15 |
Number of countries Company operates in | country | 9 |
Number of continents Company operates in | segement | 4 |
North America | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 17 |
Number of plants with recycling operations | 7 |
Number of countries Company operates in | country | 2 |
Europe | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 10 |
Number of plants with recycling operations | 5 |
Number of countries Company operates in | country | 4 |
Asia | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 4 |
Number of plants with recycling operations | 2 |
Number of countries Company operates in | country | 2 |
South America | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 2 |
Number of plants with recycling operations | 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 | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non-consolidated affiliates | $ 873 | $ 873 | $ 877 | ||
Total assets | 14,333 | 14,333 | 14,364 | ||
Net sales | 4,107 | $ 4,799 | 8,198 | $ 9,888 | |
Depreciation and amortization | 136 | 134 | 267 | 272 | |
Income tax provision | 51 | 65 | 105 | 152 | |
Capital expenditures | 285 | 174 | 618 | 284 | |
Operating Segments [Member] | North America | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non-consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 5,406 | 5,406 | 4,867 | ||
Net sales | 1,722 | 1,958 | 3,454 | 4,054 | |
Depreciation and amortization | 55 | 58 | |||
Income tax provision | 6 | 1 | |||
Capital expenditures | 218 | 98 | |||
Operating Segments [Member] | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non-consolidated affiliates | 532 | 532 | 540 | ||
Total assets | 3,934 | 3,934 | 4,166 | ||
Net sales | 1,151 | 1,315 | 2,332 | 2,709 | |
Depreciation and amortization | 40 | 38 | |||
Income tax provision | 13 | 9 | |||
Capital expenditures | 34 | 21 | |||
Operating Segments [Member] | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non-consolidated affiliates | 341 | 341 | 337 | ||
Total assets | 2,245 | 2,245 | 2,417 | ||
Net sales | 640 | 849 | 1,309 | 1,707 | |
Depreciation and amortization | 23 | 21 | |||
Income tax provision | 10 | 10 | |||
Capital expenditures | 17 | 19 | |||
Operating Segments [Member] | South America | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non-consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 2,017 | 2,017 | 2,155 | ||
Net sales | 593 | 751 | 1,122 | 1,577 | |
Depreciation and amortization | 20 | 19 | |||
Income tax provision | 11 | 36 | |||
Capital expenditures | 19 | 26 | |||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non-consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 731 | 731 | $ 759 | ||
Net sales | 1 | (74) | (19) | (159) | |
Depreciation and amortization | (2) | (2) | |||
Income tax provision | 11 | 9 | |||
Capital expenditures | (3) | 10 | |||
Net sales – third party | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 4,107 | 4,799 | 8,198 | 9,888 | |
Net sales – third party | Operating Segments [Member] | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,722 | 1,958 | 3,454 | 4,054 | |
Depreciation and amortization | 108 | 115 | |||
Income tax provision | (7) | (23) | |||
Capital expenditures | 493 | 152 | |||
Net sales – third party | Operating Segments [Member] | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,131 | 1,266 | 2,290 | 2,624 | |
Depreciation and amortization | 81 | 78 | |||
Income tax provision | 26 | 5 | |||
Capital expenditures | 61 | 43 | |||
Net sales – third party | Operating Segments [Member] | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 580 | 780 | 1,177 | 1,531 | |
Depreciation and amortization | 45 | 43 | |||
Income tax provision | 18 | 30 | |||
Capital expenditures | 39 | 42 | |||
Net sales – third party | Operating Segments [Member] | South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 564 | 674 | 1,064 | 1,444 | |
Depreciation and amortization | 40 | 40 | |||
Income tax provision | 27 | 73 | |||
Capital expenditures | 34 | 37 | |||
Net sales – third party | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 110 | 121 | 213 | 235 | |
Depreciation and amortization | (7) | (4) | |||
Income tax provision | 41 | 67 | |||
Capital expenditures | (9) | 10 | |||
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 | 0 | 0 | 0 | |
Net sales – intersegment | Operating Segments [Member] | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 20 | 49 | 42 | 85 | |
Net sales – intersegment | Operating Segments [Member] | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 60 | 69 | 132 | 176 | |
Net sales – intersegment | Operating Segments [Member] | South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 29 | 77 | 58 | 133 | |
Net sales – intersegment | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (109) | $ (195) | $ (232) | $ (394) |
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 | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Net income attributable to our common shareholder | $ 157 | $ 183 | $ 313 | $ 490 |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | (1) |
Income tax provision | 51 | 65 | 105 | 152 |
Loss from discontinued operations, net of tax | 0 | 1 | 0 | 2 |
Income from continuing operations before income tax provision | 208 | 249 | 418 | 643 |
Depreciation and amortization | 136 | 134 | 267 | 272 |
Interest expense and amortization of debt issuance costs | 78 | 65 | 155 | 123 |
Adjustment to reconcile proportional consolidation | 11 | 13 | 25 | 27 |
Unrealized losses (gains) on change in fair value of derivative instruments, net | 23 | 21 | 19 | (21) |
Realized gains on derivative instruments not included in Adjusted EBITDA | (1) | (1) | (4) | (2) |
Loss on extinguishment of debt, net | 5 | 0 | 5 | 0 |
Restructuring and impairment expenses, net | 4 | 1 | 7 | 2 |
Loss on sale of assets, net | 0 | 0 | 0 | 1 |
Metal price lag | 22 | 24 | 17 | 21 |
Other, net | (2) | 0 | (4) | 1 |
Adjusted EBITDA | $ 484 | $ 506 | $ 905 | $ 1,067 |
Segment, Major Customer and M_6
Segment, Major Customer and Major Supplier Information - Income from Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 484 | $ 506 | $ 905 | $ 1,067 |
Operating Segments [Member] | South America | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 93 | 127 | 177 | 283 |
Operating Segments [Member] | Asia | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 82 | 113 | 169 | 207 |
Operating Segments [Member] | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 100 | 73 | 188 | 157 |
Operating Segments [Member] | North America | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 208 | 191 | 374 | 418 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 1 | $ 2 | $ (3) | $ 2 |
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 | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,107 | $ 4,799 | $ 8,198 | $ 9,888 |
Beverage packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,943 | 2,314 | 3,727 | 4,802 |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 971 | 995 | 1,989 | 1,942 |
Aerospace and industrial plate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 179 | 199 | 355 | 363 |
Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,014 | $ 1,291 | $ 2,127 | $ 2,781 |
Segment, Major Customer and M_8
Segment, Major Customer and Major Supplier Information - Information About Major Customers and Primary Supplier (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cost of Goods Sold | Rio Tinto Alcan [Member] | Supplier Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9% | 7% | 10% | 7% |
Ball [Member] | Net Sales [Member] | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 14% | 15% | 13% | 16% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Facility Closing $ in Millions | Oct. 31, 2023 USD ($) |
Minimum | |
Subsequent Event [Line Items] | |
Expected pre-tax charges | $ 25 |
Maximum | |
Subsequent Event [Line Items] | |
Expected pre-tax charges | $ 35 |
Uncategorized Items - nvl-20230
Label | Element | Value |
Nonrelated Party [Member] | ||
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | $ 7,000,000 |
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | $ 5,000,000 |