Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Novelis Inc. | |
Entity Central Index Key | 1,304,280 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 2,296 | $ 2,634 |
Cost of goods sold (exclusive of depreciation and amortization) | 1,930 | 2,400 |
Selling, general and administrative expenses | 92 | 100 |
Depreciation and amortization | 89 | 87 |
Interest expense and amortization of debt issuance costs | 83 | 80 |
Research and development expenses | 13 | 13 |
Gain on assets held for sale | 1 | |
Gain on assets held for sale | (1) | 0 |
Loss on extinguishment of debt | 0 | 13 |
Restructuring and impairment, net | 2 | 15 |
Equity in net loss of non-consolidated affiliates | 0 | 1 |
Other expense (income), net | 28 | (30) |
Total expenses | 2,236 | 2,679 |
Income (loss) before income taxes | 60 | (45) |
Income tax provision | 36 | 15 |
Net income (loss) | 24 | (60) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | $ 24 | $ (60) |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 24 | $ (60) |
Other comprehensive (loss) income: | ||
Currency translation adjustment | (53) | 42 |
Net change in fair value of effective portion of cash flow hedges | (11) | 38 |
Net change in pension and other benefits | 20 | (9) |
Other comprehensive (loss) income before income tax effect | (44) | 71 |
Income tax provision related to items of other comprehensive (loss) income | 1 | 6 |
Other comprehensive (loss) income, net of tax | (45) | 65 |
Comprehensive (loss) income | (21) | 5 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 0 | (2) |
Comprehensive (loss) income attributable to our common shareholder | $ (21) | $ 7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 457 | $ 556 | $ 456 | $ 628 |
Accounts receivable, net | ||||
— third parties (net of uncollectible accounts of $4 as of June 30, 2016 and $3 as of March 31, 2016) | 998 | 956 | ||
— related parties | 57 | 59 | ||
Inventories | 1,224 | 1,180 | ||
Prepaid expenses and other current assets | 130 | 127 | ||
Fair value of derivative instruments | 131 | 88 | ||
Assets held for sale | 4 | 5 | ||
Total current assets | 3,001 | 2,971 | ||
Property, plant and equipment, net | 3,437 | 3,506 | ||
Goodwill | 607 | 607 | ||
Intangible assets, net | 505 | 523 | ||
Investment in and advances to non–consolidated affiliate | 475 | 488 | ||
Deferred income tax assets | 93 | 87 | ||
Other long–term assets | ||||
— third parties | 89 | 82 | ||
— related parties | 14 | 16 | ||
Total assets | 8,221 | 8,280 | ||
Current liabilities | ||||
Current portion of long–term debt | 48 | 47 | ||
Short–term borrowings | 630 | 579 | ||
Accounts payable | ||||
— third parties | 1,447 | 1,506 | ||
— related parties | 47 | 48 | ||
Fair value of derivative instruments | 142 | 85 | ||
Accrued expenses and other current liabilities | 457 | 569 | ||
Total current liabilities | 2,771 | 2,834 | ||
Long–term debt, net of current portion | 4,416 | 4,421 | ||
Deferred income tax liabilities | 111 | 89 | ||
Accrued postretirement benefits | 815 | 820 | ||
Other long–term liabilities | 188 | 175 | ||
Total liabilities | 8,301 | 8,339 | ||
Commitments and contingencies | ||||
Shareholder’s deficit | ||||
Common stock, no par value; unlimited number of shares authorized; 1,000 shares issued and outstanding as of June 30, 2016 and March 31, 2016 | 0 | 0 | ||
Additional paid–in capital | 1,404 | 1,404 | ||
Accumulated deficit | (939) | (963) | ||
Accumulated other comprehensive loss | (545) | (500) | $ (494) | $ (561) |
Total deficit of our common shareholder | (80) | (59) | ||
Noncontrolling interests | 0 | 0 | ||
Total deficit | (80) | (59) | ||
Total liabilities and deficit | $ 8,221 | $ 8,280 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Mar. 31, 2016 | |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 3 | $ 3 |
Common stock, par value (in usd per share) | ||
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 24 | $ (60) |
Adjustments to determine net cash provided by operating activities: | ||
Depreciation and amortization | 89 | 87 |
Gain on unrealized derivatives and other realized derivatives in investing activities, net | 0 | (32) |
Gain on assets held for sale | (1) | 0 |
Loss on sale of assets | 4 | 1 |
Impairment charges | 0 | 1 |
Loss on extinguishment of debt | 0 | 13 |
Deferred income taxes | 7 | 3 |
Amortization of fair value adjustments, net | 3 | 3 |
Equity in net loss of non-consolidated affiliates | 0 | 1 |
Gain on foreign exchange remeasurement of debt | 0 | (2) |
Amortization of debt issuance costs and carrying value adjustments | 5 | 5 |
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||
Accounts receivable | (55) | (130) |
Inventories | (59) | (75) |
Accounts payable | (39) | (29) |
Other current assets | (6) | (15) |
Other current liabilities | (100) | (66) |
Other noncurrent assets | (8) | 12 |
Other noncurrent liabilities | 29 | (5) |
Net cash used in operating activities | (107) | (288) |
INVESTING ACTIVITIES | ||
Capital expenditures | (44) | (129) |
(Outflows) proceeds from investment in and advances to affiliates, net | 2 | (1) |
Proceeds (outflows) from settlement of other undesignated derivative instruments, net | 3 | (7) |
Net cash used in investing activities | (39) | (137) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of long-term and short-term borrowings | 87 | 139 |
Principal payments of long-term and short-term borrowings | (72) | (68) |
Revolving credit facilities and other, net | 35 | 182 |
Debt issuance costs | 0 | (10) |
Net cash provided by financing activities | 50 | 243 |
Net decrease in cash and cash equivalents | (96) | (182) |
Effect of exchange rate changes on cash | (3) | 10 |
Cash and cash equivalents — beginning of period | 556 | 628 |
Cash and cash equivalents — end of period | $ 457 | $ 456 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Deficit (unaudited) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($)shares | |
Increase (Decrease) in Stockholders' Equity | |
Balance | $ (59) |
Net income attributable to our common shareholder | 24 |
Currency translation adjustment included in AOCI | (53) |
Change in fair value of effective portion of cash flow hedges, net of tax benefit of $4 million included in AOCI | (7) |
Change in pension and other benefits, net of tax provision of $5 million included in AOCI | 15 |
Balance | $ (80) |
Common Stock [Member] | |
Increase (Decrease) in Stockholders' Equity | |
Balance, shares | shares | 1,000 |
Balance | $ 0 |
Balance, shares | shares | 1,000 |
Balance | $ 0 |
Additional Paid-in Capital [Member] | |
Increase (Decrease) in Stockholders' Equity | |
Balance | 1,404 |
Balance | 1,404 |
Accumulated Deficit [Member] | |
Increase (Decrease) in Stockholders' Equity | |
Balance | (963) |
Net income attributable to our common shareholder | 24 |
Balance | (939) |
Accumulated Other Comprehensive Loss (AOCI) [Member] | |
Increase (Decrease) in Stockholders' Equity | |
Balance | (500) |
Currency translation adjustment included in AOCI | (52) |
Change in fair value of effective portion of cash flow hedges, net of tax benefit of $4 million included in AOCI | (7) |
Change in pension and other benefits, net of tax provision of $5 million included in AOCI | 14 |
Balance | (545) |
Non-controlling interests [Member] | |
Increase (Decrease) in Stockholders' Equity | |
Balance | 0 |
Currency translation adjustment included in AOCI | (1) |
Change in fair value of effective portion of cash flow hedges, net of tax benefit of $4 million included in AOCI | 0 |
Change in pension and other benefits, net of tax provision of $5 million included in AOCI | 1 |
Balance | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Deficit (unaudited) (Parenthetical) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Tax provision on currency translation adjustment | $ 0 |
Tax provision on change in fair value of cash flow hedges | 2 |
Tax provision on change in pension and other benefits | $ 1 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References herein to “Novelis,” the “Company,” “we,” “our,” or “us” refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to “Hindalco” refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco Industries Limited. Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food cans and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used beverage cans and post-industrial aluminum, such as class scrap. As of June 30, 2016 , we had manufacturing operations in eleven countries on four continents: North America, South America, Asia and Europe, through 25 operating facilities, including recycling operations in eleven of these plants. The March 31, 2016 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (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 Annual Report on Form 10-K for the year-ended March 31, 2016 filed with the United States Securities and Exchange Commission (SEC) on May 10, 2016. Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant 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 where we have the ability to exercise significant influence over operating and financial policies. Consolidated " Net income (loss) attributable to our common shareholder " includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the 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 loss of non-consolidated affiliates." Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Recently Adopted Accounting Standards Effective for the first quarter fiscal 2017, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2015-02, Consolidations (Topic 810): Amendments to the Consolidations Analysis. The amendment (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, (iii) affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. There was no impact upon adoption. Effective for the first quarter of fiscal 2017, we adopted FASB ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires the debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015, the FASB issued ASU 2015-15, a clarifying amendment, allowing for debt issuance costs related to lines of credit being presented as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The impact of the adoption was a decrease in “Other long-term assets” and “Long-term debt, net of current portion” in the condensed consolidated balance sheets as of June 30, 2016 and March 31, 2016 of $27 million and $30 million , respectively. We made the policy election to continue to present debt issuance costs related to lines of credit as an asset. Effective for the first quarter of fiscal 2017, we adopted the FASB ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which removes the requirement to measure inventory at the lower of cost or market whereas market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin, and requires an entity to measure inventory at the lower of cost or net realizable value. There was no impact upon adoption. We early adopted as of March 31, 2016 and on a prospective basis, ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which required all deferred taxes and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. Effective for fiscal year 2017, we adopted ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. We will apply the amendments retrospectively to all periods presented. Early adoption is permitted. Adoption of this standard may impact the presentation of certain pension plan assets in our postretirement benefit plans footnote disclosure on Form 10-K for the year ended March 31, 2017. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which, when effective, will supersede the guidance in former ASC 605, Revenue Recognition . The new guidance requires entities to recognize revenue based on the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within that year. Early adoption is not permitted. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which provides an optional one-year deferral of the effective date. Subsequent to these amendments, further clarifying amendments have been issued. We are currently evaluating the impact of the standard on our consolidated financial position and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which when effective will require organizations that lease assets (e.g., through "leases") to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. A lessee will be required to recognize assets and liabilities for leases with terms that exceed twelve months. The standard will also require disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial position and results of operations. |
Restructuring and Impairment
Restructuring and Impairment | 3 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT | RESTRUCTURING AND IMPAIRMENT “Restructuring and impairment, net” for the three months ended June 30, 2016 and 2015 was $2 million and $15 million , respectively. The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2016 $ 27 -Provisions 2 -Reversal of expense — Expenses, net 2 $ — $ 2 $ — $ 2 Cash payments (4 ) Foreign currency (C) 2 Balance as of June 30, 2016 $ 27 (A) Other restructuring charges include period expenses that were not recorded through the restructuring liability. (B) Other impairment charges not related to a restructuring activity. (C) This primarily relates to the remeasurement of Brazilian real denominated restructuring liabilities. As of June 30, 2016 , $21 million of restructuring liabilities was included in "Accrued expenses and other current liabilities" and $6 million was included in "Other long-term liabilities" on our condensed consolidated balance sheet. As of June 30, 2016 , there was no restructuring liability for the North America segment, $1 million for the Asia segment, and $2 million for the Corporate office. There was also $1 million in payments for the Asia segment during the three months ended June 30, 2016 . The other regional restructuring activities are described in more detail on the subsequent pages. Europe The following table summarizes our restructuring activity for the Europe segment by plan (in millions). Three Months Ended June 30, Year Ended March 31, Prior to April 1, 2016 2016 2015 Restructuring charges - Europe Corporate Restructuring Program Severance 1 4 46 Total restructuring charges - Europe $ 1 $ 4 $ 46 Restructuring payments - Europe Severance $ (2 ) $ (6 ) Total restructuring payments - Europe $ (2 ) $ (6 ) T he Company implemented a series of restructuring actions at the global headquarters office and in the Europe region which include staff rationalization activities and the shutdown of facilities to improve our operations in Europe. As of June 30, 2016 , the restructuring liability for the Europe segment was $3 million , which relates to severance charges. South America The following table summarizes our restructuring activity for the South America segment by plan (in millions). Three Months Ended June 30, Year Ended March 31, Prior to April 1, 2016 2016 2015 Restructuring charges - South America Ouro Preto closures Severance $ — $ 2 $ 19 Asset impairments (A) — — 6 Environmental charges — (1 ) 22 Contract termination and other exit related costs 1 2 11 Other past restructuring programs — — 21 Total restructuring charges - South America $ 1 $ 3 $ 79 Restructuring payments - South America Severance $ (1 ) $ (2 ) Other — (3 ) Total restructuring payments - South America $ (1 ) $ (5 ) (A) These charges were not recorded through the restructuring liability. We ceased operations at the smelter in Ouro Preto, Brazil, in December 2014. This decision was made in an effort to further align our global sustainability strategy, and exit non-core operations. Certain charges associated with this closure are reflected within the "Ouro Preto closures" section above, along with our closure of a pot line in Ouro Preto, Brazil, in fiscal 2013. As of June 30, 2016 , the restructuring liability for the South America segment was $21 million and related to $13 million of environmental charges and $8 million of other contract termination and other exit related costs. For additional information on environmental charges see Note 16 – Commitments and Contingencies. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES "Inventories" consist of the following (in millions). June 30, March 31, Finished goods $ 289 $ 295 Work in process 521 416 Raw materials 264 322 Supplies 150 147 Inventories $ 1,224 $ 1,180 |
Assets Held For Sale
Assets Held For Sale | 3 Months Ended |
Jun. 30, 2016 | |
Assets Held-for-sale, Not Part of Disposal Group [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE We are focused on capturing the global growth we see in our premium product markets of beverage can, automotive and specialty products. We continually analyze our product portfolio to ensure we are focused on growing in attractive market segments. The following transactions relate to exiting certain non-core operations to focus on our growth strategy in the premium product markets. We made the decision to sell two hydroelectric power generation facilities in South America, with a net book value of $4 million as of June 30, 2016 and March 31, 2016 , which were classified as "Assets held for sale" in our condensed consolidated balance sheets. The contract for the sale of one power plant is subject to final regulatory approval and resolution of certain operating license issues, and the other power plant is in the process of being sold. In March 2016, we made a decision to sell properties in Ouro Preto, Brazil following the closure of our smelter facility on the property. The properties have a net book value of $1 million , which were classified as "Assets held for sale" in our condensed consolidated balance sheet as of March 31, 2016 . "Gain on assets held for sale" during the three months ended June 30, 2016 includes a $1 million gain from our sale of these assets. |
Consolidation
Consolidation | 3 Months Ended |
Jun. 30, 2016 | |
Consolidation [Abstract] | |
CONSOLIDATION | CONSOLIDATION Variable Interest Entities (VIE) The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. An entity is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We have a joint interest in Logan Aluminum Inc. (Logan) with Tri-Arrows Aluminum Inc. (Tri-Arrows). Logan processes metal received from Novelis and Tri-Arrows and charges the respective partner a fee to cover expenses. Logan is thinly capitalized and relies on the regular reimbursement of costs and expenses by Novelis and Tri-Arrows to fund its operations. This reimbursement is considered a variable interest as it constitutes a form of financing the activities of Logan. Other than these contractually required reimbursements, we do not provide other material support to Logan. Logan's creditors do not have recourse to our general credit. We have the ability to make decisions regarding Logan’s production operations. We also have the ability to take the majority share of production and associated costs. These facts qualify us as Logan’s primary beneficiary and this entity is consolidated for all periods presented. All significant intercompany transactions and balances have been eliminated. The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets (in millions). There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. June 30, March 31, Assets Current assets Cash and cash equivalents $ 5 $ 3 Accounts receivable 38 33 Inventories 56 61 Prepaid expenses and other current assets 2 2 Total current assets 101 99 Property, plant and equipment, net 20 21 Goodwill 12 12 Deferred income taxes 86 84 Other long-term assets 13 8 Total assets $ 232 $ 224 Liabilities Current liabilities Accounts payable $ 37 $ 30 Accrued expenses and other current liabilities 13 15 Total current liabilities 50 45 Accrued postretirement benefits 217 214 Other long-term liabilities 3 3 Total liabilities $ 270 $ 262 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 3 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS We have a non-consolidated affiliate, Aluminium Norf GmbH (Alunorf), which serves our Europe region with rolling and remelt tolling services. Included in the accompanying condensed consolidated financial statements are transactions and balances arising from business we conducted with this non-consolidated affiliate, which we classify as related party transactions and balances. We account for this affiliate using the equity method. The following table summarizes the results of operations of this equity method affiliate, and the nature and amounts of significant transactions we had with our non-consolidated affiliate (in millions). The amounts in the table below are disclosed at 100% of the operating results of this affiliate. Three Months Ended June 30, 2016 2015 Net sales $ 121 $ 117 Costs and expenses related to net sales 120 118 Benefit for taxes on income (1 ) (1 ) Net income $ 2 $ — Purchases of tolling services from Alunorf $ 61 $ 58 Additionally, we earned less than $1 million of interest income on a loan due from Alunorf. The following table describes the period-end account balances that we had with Alunorf, shown as related party balances in the accompanying condensed consolidated balance sheets (in millions). We had no other material related party balances with Alunorf. June 30, March 31, Accounts receivable-related parties $ 57 $ 59 Other long-term assets-related parties $ 14 $ 16 Accounts payable-related parties $ 47 $ 48 We have a loan due from Alunorf, which is presented in "Other long-term assets-related parties" during each of the periods in the table above. We believe collection of the full receivable from Alunorf is probable; thus no allowance for loan loss was recorded as of June 30, 2016 and March 31, 2016 . We have guaranteed the indebtedness for a credit facility on behalf of Alunorf. The guarantee is limited to 50% of the outstanding debt, not to exceed 6 million euros. As of June 30, 2016 , there were no amounts outstanding under our guarantee with Alunorf as there were no outstanding borrowings. We have also guaranteed the payment of early retirement benefits on behalf of Alunorf. As of June 30, 2016 , this guarantee totaled $2 million . Transactions with Hindalco We occasionally have related party transactions with our indirect parent company, Hindalco. During the three months ended June 30, 2016 and 2015 , “Net sales” were less than $1 million between Novelis and Hindalco. As of June 30, 2016 and March 31, 2016 , there were less than $1 million in "Accounts receivable, net" outstanding related to transactions with Hindalco. During the three months ended June 30, 2016 , Novelis purchased $2 million in raw materials from Hindalco that were fully paid for during the quarter ended June 30, 2016 . There were no such comparable purchases in the prior year. |
Debt
Debt | 3 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in millions). June 30, 2016 March 31, 2016 Interest Rates (A) Principal Unamortized Carrying Value Adjustments Carrying Value Principal Unamortized Carrying Value Adjustments Carrying Value Third party debt: Short-term borrowings 2.80 % $ 630 $ — $ 630 $ 579 $ — $ 579 Novelis Inc. Floating rate Term Loan Facility, due through June 2022 4.00 % 1,782 (24 ) (B), (E) 1,758 1,787 (25 ) (B), (E) 1,762 8.375% Senior Notes, due December 2017 8.375 % 1,100 (5 ) (E) 1,095 1,100 (6 ) (E) 1,094 8.75% Senior Notes, due December 2020 8.75 % 1,400 (14 ) (E) 1,386 1,400 (15 ) (E) 1,385 Capital lease obligations, due through July 2017 3.64 % 4 — 4 5 — 5 Novelis Korea Limited Bank loans, due through September 2020 (KRW 226 billion) 2.66 % 194 — 194 195 — 195 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 21 million) 7.50 % 22 (1 ) (C) 21 23 (1 ) (C) 22 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 15 million) 5.94 % 5 (1 ) (D) 4 5 (1 ) (D) 4 Other Other debt, due through May 2021 4.66 % 2 — 2 1 — 1 Total debt 5,139 (45 ) 5,094 5,095 (48 ) 5,047 Less: Short-term borrowings (630 ) — (630 ) (579 ) — (579 ) Current portion of long term debt (48 ) — (48 ) (47 ) — (47 ) Long-term debt, net of current portion $ 4,461 $ (45 ) $ 4,416 $ 4,469 $ (48 ) $ 4,421 (A) I nterest rates are the fixed or variable rates as specified in the debt instruments (not the effective interest rate) as of June 30, 2016 , and therefore, exclude the effects of related interest rate swaps, accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to the debt exchange completed in fiscal 2009 and the series of refinancing transactions and additional borrowings we completed in fiscal 2011 and thereafter. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value. In connection with a series of refinancing transactions, a portion of the historical fair value adjustments was allocated to the Term Loan Facility, resulting in carrying value adjustments on this debt obligation. The unamortized carrying value also includes issuance discounts from subsequent refinancings. Additionally, the unamortized carrying value includes unamortized debt issuance costs. (C) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value resulting in carrying value adjustments to our capital lease obligations in Novelis Switzerland. (D) The unamortized carrying value includes issuance discounts related to the difference resulting from the contractual rates of interest specified in the instruments that are lower than the market rates of interest upon issuance. (E) As of June 30, 2016, we adopted ASU 2015-03 related to the presentation of debt issuance costs. For additional information, see Recently Adopted Accounting Standards within Note 1 - Business and Summary of Significant Accounting Policies. Principal repayment requirements for our total debt over the next five years and thereafter (excluding unamortized carrying value adjustments and using exchange rates as of June 30, 2016 for our debt denominated in foreign currencies) are as follows (in millions). As of June 30, 2016 Amount Short-term borrowings and current portion of long-term debt due within one year $ 678 2 years 1,203 3 years 124 4 years 22 5 years 1,421 Thereafter 1,691 Total $ 5,139 Senior Secured Credit Facilities As of June 30, 2016 , the senior secured credit facilities consisted of (i) a $1.8 billion seven -year secured term loan credit facility (Term Loan Facility), (ii) a $1.2 billion five -year asset based loan facility (ABL Revolver) and (iii) a $150 million subordinated secured lien revolving facility (Subordinated Lien Revolver). As of June 30, 2016 , $18 million of the Term Loan Facility is due within one year. In June 2015, we entered into the Subordinated Lien Revolver with a maturity date of September 10, 2016. In June 2016, we amended the Subordinated Lien Revolver to downsize the facility to $150 million and extend the maturity date to October 30, 2016. The interest rate for a loan under the Subordinated Lien Revolver is either equal to (i) a prime rate plus a spread of 2.5% or 2.25% depending on the total net leverage ratio then in effect or (ii) the higher of LIBOR and 0.75% plus a spread of 3.50% or 3.25% depending on the total net leverage ratio then in effect. As of June 30, 2016, the Subordinated Lien Revolver requires us to maintain a secured net leverage ratio of 4 to 1 . Pursuant to the terms of the Term Loan Facility, such secured net leverage maintenance covenant will automatically apply to the Term Loan Facility as well for so long as the Subordinated Lien Revolver is in effect. The Subordinated Lien Revolver was subsequently extinguished in July 2016. In June 2015, we entered into a Refinancing Amendment Agreement with respect to our Term Loan Facility. The Amendment increases the principal amount of the Term Loan Facility from $1.7 billion to $1.8 billion and extends the final maturity from December 17, 2017 to June 2, 2022; provided that, in the event that any series of our senior unsecured notes remain outstanding 92 days prior to its maturity date, then the Term Loan Facility will mature on such date, subject to limited exceptions. The loans under the Term Loan Facility accrue interest at the higher of LIBOR and 0.75% plus a 3.25% spread. The Amendment eliminates the senior secured net leverage covenant that requires us to maintain a minimum senior secured net leverage ratio (subject to the terms disclosed in the preceding paragraph). In addition, certain negative covenants were amended to increase the Company’s operational flexibility and incur other debt. In October 2014, we amended and extended our ABL Revolver by entering into a $1.2 billion , five -year, senior secured ABL Revolver. The interest rate for a loan under the ABL Revolver is either (i) prime rate plus a spread of 0.50% to 1.00% based on excess availability or (ii) of LIBOR plus a spread of 1.50% to 2.00% based on excess availability. The ABL Revolver has a provision that allows the facility to be increased by an additional $500 million . The ABL Revolver has various customary covenants including maintaining a minimum fixed charge coverage ratio of 1.25 to 1 if excess availability is less than the greater of (1) $110 million and (2) 12.5% of the lesser of (a) the maximum size of the ABL Revolver and (b) the borrowing base. The fixed charge coverage ratio will be equal to the ratio of (1) (a) ABL Revolver defined Earnings Before Interest, Taxes, Depreciation and Amortization less (b) maintenance capital expenditures less (c) cash taxes; to (2) (a) interest expense plus (b) scheduled principal payments plus (c) dividends to the Company's direct holding company to pay certain taxes, operating expenses and management fees and repurchases of equity interests from employees, officers and directors. The ABL Revolver matures on October 6, 2019; provided that, in the event that any of the Notes, the Term Loan Facility, or certain other indebtedness are outstanding (and not refinanced with a maturity date later than April 6, 2020) 90 days prior to their respective maturity dates, then the ABL Revolver will mature 90 days prior to the maturity date for the Notes, the Term Loan Facility or such other indebtedness, as applicable; unless excess availability under the ABL Revolver is at least (i) 25% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base and (ii) 20% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base, and a minimum fixed charge ratio test of at least 1.25 to 1 is met. The senior secured credit facilities contain various affirmative covenants, including covenants with respect to our financial statements, litigation and other reporting requirements, insurance, payment of taxes, employee benefits and (subject to certain limitations) causing new subsidiaries to pledge collateral and guarantee our obligations. The senior secured credit facilities also include various customary negative covenants and events of default, including limitations on our ability to (1) make certain restricted payments, (2) incur additional indebtedness, (3) sell certain assets, (4) enter into sale and leaseback transactions, (5) make investments, loans and advances, (6) pay dividends or returns of capital and distributions beyond certain amounts, (7) engage in mergers, amalgamations or consolidations, (8) engage in certain transactions with affiliates, and (9) prepay certain indebtedness. The senior secured credit facilities include a cross-default provision under which lenders could accelerate repayment of the loans if a payment or non-payment default arises under any other indebtedness with an aggregate principal amount of more than $100 million (or, in the case of the Term Loan Facility and Subordinated Lien Revolver, under the ABL Revolver regardless of the amount outstanding). Substantially all of our assets are pledged as collateral under the senior secured credit facilities. As of June 30, 2016 , we were in compliance with the covenants in the Term Loan Facility, ABL Revolver and Subordinated Lien Revolver. Short-Term Borrowings As of June 30, 2016 , our short-term borrowings were $630 million , consisting of $431 million of loans under our ABL Revolver, $103 million in Novelis Brazil loans, $48 million (CNY 321 million ) in Novelis China loans, $37 million (KRW 44 billion ) in Novelis Korea loans, $10 million (VND 230 billion ) in Novelis Vietnam loans and $1 million in other loans. As of June 30, 2016 , $11 million of the ABL Revolver availability was utilized for letters of credit, and we had $240 million in remaining availability under the ABL Revolver. As of June 30, 2016 , $150 million under the Subordinated Lien Revolver was available. In fiscal years 2015 and 2016, Novelis Korea has entered into various short-term facilities, including revolving loan facilities and committed credit lines. As of June 30, 2016 , we had $203 million (KRW 236 billion ) in remaining availability under these facilities. In fiscal year 2016, Novelis Middle East and Africa entered into various short-term facilities, including revolving facility agreements totaling $40 million . As of June 30, 2016 , we had $40 million in remaining availability under these facilities. In fiscal year 2015, Novelis China entered into a committed facility. As of June 30, 2016 , we had no remaining availability under this facility. Senior Notes On December 17, 2010, we issued $1.1 billion in aggregate principal amount of 8.375% Senior Notes Due 2017 (the 2017 Notes) and $1.4 billion in aggregate principal amount of 8.75% Senior Notes Due 2020 (the 2020 Notes, and together with the 2017 Notes, the Notes). The Notes contain customary covenants and events of default that will limit our ability and, in certain instances, the ability of certain of our subsidiaries to (1) incur additional debt and provide additional guarantees, (2) pay dividends or return capital beyond certain amounts and make other restricted payments, (3) create or permit certain liens, (4) make certain asset sales, (5) use the proceeds from the sales of assets and subsidiary stock, (6) create or permit restrictions on the ability of certain of the Company's subsidiaries to pay dividends or make other distributions to the Company, (7) engage in certain transactions with affiliates, (8) enter into sale and leaseback transactions, (9) designate subsidiaries as unrestricted subsidiaries and (10) consolidate, merge or transfer all or substantially all of our assets and the assets of certain of our subsidiaries. During any future period in which either Standard & Poor's Ratings Group, Inc. or Moody's Investors Service, Inc. have assigned an investment grade credit rating to the Notes and no default or event of default under the indenture has occurred and is continuing, most of the covenants will be suspended. The Notes include a cross-acceleration event of default triggered if any other indebtedness with an aggregate principal amount of more than $100 million is (1) accelerated prior to its maturity or (2) not repaid at its maturity. As of June 30, 2016 , we were in compliance with the covenants in the Notes. The Notes also contain customary call protection provisions for our bond holders that extend through December 2016 for the 2017 Notes and through December 2018 for the 2020 Notes. Korean Bank Loans As of June 30, 2016 , Novelis Korea had $18 million (KRW 21 billion ) of outstanding long-term loans with various banks due within one year. The loans have variable interest rates with base rates tied to Korea's 91-day CD rate plus an applicable spread ranging from 0.91% to 1.58% . Brazil BNDES Loans Novelis Brazil entered into loan agreements with Brazil’s National Bank for Economic and Social Development (the BNDES long-term loans) related to the plant expansion in Pindamonhangaba, Brazil (Pinda). As of June 30, 2016 there are $2 million of BNDES long-term loans due within one year. Other Long-term debt In December 2004, we entered into a 15 -year capital lease obligation with Alcan Inc. for assets in Sierre, Switzerland, which has an interest rate of 7.5% and fixed quarterly payments of CHF 1.7 million , (USD $1.8 million ). During fiscal 2013 and 2014, Novelis Inc. entered into various capital lease arrangements to upgrade and expand our information technology infrastructure. As of June 30, 2016 , we had $2 million of other debt, including certain capital lease obligations, with due dates through May 2021. Interest Rate Swaps We use interest rate swaps to manage our exposure to changes in benchmark interest rates which impact our variable-rate debt. See Note 11- Financial Instruments and Commodity Contracts for further information about these interest rate swaps. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company's board of directors has authorized long term incentive plans (LTIPs), under which Hindalco stock appreciation rights (Hindalco SARs), Novelis stock appreciation rights (Novelis SARs), phantom restricted stock units (RSUs), and Novelis Performance Units (Novelis PUs) are granted to certain executive officers and key employees. The Hindalco SARs vest at the rate of 25% or 33% per year, subject to the achievement of an annual performance target, and expire seven years from their original grant date. The performance criterion for vesting of the Hindalco SARs is based on the actual overall Novelis operating EBITDA compared to the target established and approved each fiscal year. The RSUs are based on Hindalco's stock price. The RSUs vest either in full three years from the grant date or 33% per year over three years, subject to continued employment with the Company, but are not subject to performance criteria. In May 2016, the Company's board of directors approved the issuance of Novelis PUs which have a fixed $100 value per unit and will vest in full three years from the grant date, subject to specific performance criteria compared to the established target. The Company made a voluntary offer to the participants with outstanding Novelis SARs granted for fiscal years 2012 through 2016 to exchange their Novelis SARs for an equivalently valued number of Novelis PUs. During the quarter, the voluntary exchange resulted in 1,050,682 Novelis SARs being modified into PUs which are not based on Novelis' nor Hindalco's fair values and are accounted for outside the scope of ASC 718, Compensation - Stock Compensation . This exchange was accounted for as a modification. There were 177,743 of Novelis SARs that remain outstanding as of June 30, 2016 . During the three months ended June 30, 2016 , we granted 5,280,005 RSUs, 3,596,564 Hindalco SARs, and no Novelis SARs. Total compensation benefit related to these plans for the respective periods was $1 million and $7 million for the three months ended June 30, 2016 and 2015 , respectively. These amounts are included in “Selling, general and administrative expenses” in our condensed consolidated statements of operations. As the performance criteria for fiscal years 2018 , 2019 and 2020 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. As of June 30, 2016 , the outstanding liability related to share-based compensation was $7 million . The cash payments made to settle SAR liabilities were less than $1 million and $1 million in the three months ended June 30, 2016 and 2015 , respectively. Total cash payments made to settle Hindalco RSUs were $2 million and $5 million in the three months ended June 30, 2016 and 2015 , respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $8 million , which is expected to be recognized over a weighted average period of 1.9 years . Unrecognized compensation expense related to the non-vested Novelis SARs (assuming all future performance criteria are met) was $1 million , which is expected to be recognized over a weighted average period of 1.8 years . Unrecognized compensation expense related to the RSUs was $4 million , which will be recognized over the remaining weighted average vesting period of 1.9 years . |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS Our pension obligations relate to: (1) funded defined benefit pension plans in the U.S., Canada, Switzerland and the U.K.; (2) unfunded defined benefit pension plans in Germany; (3) unfunded lump sum indemnities payable upon retirement to employees in France, Malaysia and Italy; and (4) partially funded lump sum indemnities in South Korea. Our other postretirement obligations (Other Benefits, as shown in certain tables below) include unfunded health care and life insurance benefits provided to retired employees in the U.S., Canada and Brazil. Components of net periodic benefit cost (credit) for all of our postretirement benefit plans are shown in the tables below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 Service cost $ 11 $ 12 $ 2 $ 1 Interest cost 15 15 1 1 Expected return on assets (16 ) (17 ) — — Amortization — losses, net 11 9 1 1 Amortization — prior service credit, net — (1 ) — (7 ) Net periodic benefit cost (credit) $ 21 $ 18 $ 4 $ (4 ) The average expected long-term rate of return on plan assets is 5.4% in fiscal 2017 . Employer Contributions to Plans For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to date, and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., U.K., Canada, Germany, Italy, Switzerland, Malaysia and Brazil. We contributed the following amounts to all plans (in millions). Three Months Ended June 30, 2016 2015 Funded pension plans $ 3 $ 3 Unfunded pension plans 3 2 Savings and defined contribution pension plans 6 7 Total contributions $ 12 $ 12 During the remainder of fiscal 2017 , we expect to contribute an additional $18 million to our funded pension plans, $9 million to our unfunded pension plans and $17 million to our savings and defined contribution plans. |
Currency Gains
Currency Gains | 3 Months Ended |
Jun. 30, 2016 | |
Foreign Currency [Abstract] | |
CURRENCY GAINS | CURRENCY GAINS The following currency losses (gains) are included in “Other expense (income), net” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended June 30, 2016 2015 Loss (gain) on remeasurement of monetary assets and liabilities, net $ 11 $ (5 ) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net (8 ) 1 Currency losses (gains), net $ 3 $ (4 ) The following currency losses are included in “Accumulated other comprehensive loss, net of tax” and “Noncontrolling interests” in the accompanying condensed consolidated balance sheets (in millions). Three Months Ended June 30, 2016 Year Ended March 31, 2016 Cumulative currency translation adjustment — beginning of period $ (197 ) $ (214 ) Effect of changes in exchange rates (53 ) 17 Cumulative currency translation adjustment — end of period $ (250 ) $ (197 ) |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of June 30, 2016 and March 31, 2016 (in millions). June 30, 2016 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ — $ — $ (31 ) $ — $ (31 ) Currency exchange contracts 29 2 (1 ) (4 ) 26 Energy contracts — — (1 ) (3 ) (4 ) Interest rate swaps — — (1 ) — (1 ) Total derivatives designated as hedging instruments 29 2 (34 ) (7 ) (10 ) Derivatives not designated as hedging instruments Aluminum contracts 46 1 (52 ) (1 ) (6 ) Currency exchange contracts 55 5 (51 ) — 9 Energy contracts 1 — (5 ) — (4 ) Total derivatives not designated as hedging instruments 102 6 (108 ) (1 ) (1 ) Total derivative fair value $ 131 $ 8 $ (142 ) $ (8 ) $ (11 ) March 31, 2016 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent(A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 10 $ — $ (2 ) $ — $ 8 Currency exchange contracts 15 5 (3 ) (5 ) 12 Energy contracts — — (4 ) — (4 ) Interest rate swaps — — — (1 ) (1 ) Net investment hedges Currency exchange contracts — — (1 ) — (1 ) Total derivatives designated as hedging instruments 25 5 (10 ) (6 ) 14 Derivatives not designated as hedging instruments: Aluminum contracts 24 — (26 ) — (2 ) Currency exchange contracts 39 — (39 ) (1 ) (1 ) Energy contracts — 1 (10 ) — (9 ) Total derivatives not designated as hedging instruments 63 1 (75 ) (1 ) (12 ) Total derivative fair value $ 88 $ 6 $ (85 ) $ (7 ) $ 2 (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. Aluminum We use derivative instruments to preserve our conversion margins and manage the timing differences associated with metal price lag. We use over-the-counter derivatives indexed to the London Metals Exchange (LME) (referred to as our "aluminum derivative forward contracts") to reduce our exposure to fluctuating metal prices associated with the period of time between the pricing of our purchases of inventory and the pricing of the sale of that inventory to our customers, which is known as "metal price lag." We also purchase forward LME aluminum contracts simultaneously with our sales contracts with customers that contain fixed metal prices. These LME aluminum forward contracts directly hedge the economic risk of future metal price fluctuations to better match the selling price of the metal with the purchase price of the metal. The volatility in local market premiums also results in metal price lag, although we do not have derivative contracts associated with local market premiums as these are not prevalent in the market. Price risk exposure arises from commitments to sell aluminum in future periods at fixed prices. We identify and designate certain LME aluminum forward contracts as fair value hedges of the metal price risk associated with fixed price sales commitments that qualify as firm commitments. Such exposures do not extend beyond two years in length. We had 1 kt and less than 1 kt of outstanding aluminum forward purchase contracts designated as fair value hedges as of June 30, 2016 and March 31, 2016 , respectively. One kilotonne (kt) is 1,000 metric tonnes. We recognized less than $1 million of net gains and losses on fair value hedges of metal price risk in the three months ended June 30, 2016 and 2015. Price risk arises due to fluctuating aluminum prices between the time the sales order is committed and the time the order is shipped. We identify and designate certain LME aluminum forward purchase contracts as cash flow hedges of the metal price risk associated with our future metal purchases that vary based on changes in the price of aluminum. Such exposures do not extend beyond two years in length. We had 1 kt of outstanding aluminum forward purchase contracts designated as cash flow hedges as of June 30, 2016 and March 31, 2016 . Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. We had 368 kt and 301 kt of outstanding aluminum forward sales contracts designated as cash flow hedges as of June 30, 2016 and March 31, 2016 , respectively. The remaining aluminum derivative contracts are not designated as accounting hedges. As of June 30, 2016 and March 31, 2016 , we had 62 kt and 76 kt, respectively, of outstanding aluminum sales contracts not designated as hedges. Generally, the average duration of undesignated contracts is less than six months . The following table summarizes our notional amount (in kt). June 30, March 31, Hedge Type Purchase (Sale) Cash flow purchases 1 1 Cash flow sales (368 ) (301 ) Fair value 1 — Not designated (62 ) (76 ) Total, net (428 ) (376 ) Foreign Currency We use foreign exchange forward contracts, cross-currency swaps and options to manage our exposure to changes in exchange rates. These exposures arise from recorded assets and liabilities, firm commitments and forecasted cash flows denominated in currencies other than the functional currency of certain operations. We use foreign currency contracts to hedge expected future foreign currency transactions, which include capital expenditures. These contracts cover the same periods as known or expected exposures. We had total notional amounts of $510 million and $601 million in outstanding foreign currency forwards designated as cash flow hedges as of June 30, 2016 and March 31, 2016 , respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We had $27 million and $36 million of outstanding foreign currency forwards designated as net investment hedges as of June 30, 2016 and March 31, 2016 , respectively. As of June 30, 2016 and March 31, 2016 , we had outstanding currency exchange contracts with a total notional amount of $647 million and $636 million , respectively, to primarily hedge balance sheet remeasurement risk, which were not designated as hedges. Contracts representing the majority of this notional amount will mature during the second quarter of fiscal year 2017 and offset the remeasurement impact. Energy We own an interest in an electricity swap that matures January 5, 2017 which we formerly designated as a cash flow hedge of our exposure to fluctuating electricity prices. As of March 31, 2011, due to significant credit deterioration of our counterparty, we discontinued hedge accounting for this electricity swap. Less than 1 million of notional megawatt hours remained outstanding as of June 30, 2016 , and the fair value of this swap was a liability of $5 million as of June 30, 2016 . As of March 31, 2016 , the fair value of this electricity swap was a liability of $9 million . On December 31, 2015, we entered into an agreement to extend the electricity swap contract for an additional five years, effective January 6, 2017 and maturing on January 5, 2022. As of June 30, 2016 and March 31, 2016 , 1 million of notional megawatt hours was outstanding and the fair value of this swap was a liability of $3 million and an asset of $1 million , respectively. The electricity swap was designated as a cash flow hedge in the first quarter of fiscal year 2017. We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had 4 million MMBTUs designated as cash flow hedges as of June 30, 2016 , and the fair value was a liability of $1 million . There were 5 million MMBTUs of natural gas forward purchase contracts designated as cash flow hedges as of March 31, 2016 and the fair value was a liability of $4 million . As of June 30, 2016 and March 31, 2016 , we had less than 1 million of MMBTUs of natural gas forward purchase contracts that were not designated as hedges. The fair value as of June 30, 2016 and March 31, 2016 was a liability of less than $1 million and a liability of $1 million , respectively, for the forward purchase contracts not designated as hedges. The average duration of undesignated contracts is less than two years in length. One MMBTU is the equivalent of one decatherm, or one million British Thermal Units. We use diesel fuel forward contracts to manage our exposure to fluctuating fuel prices in North America, which are not designated as hedges as of June 30, 2016 . As of June 30, 2016 and March 31, 2016 , we had 4 million gallons of diesel fuel forward purchase contracts outstanding, and the fair value was an asset of $1 million and a liability of less than $1 million , respectively. The average duration of undesignated contracts is less than one year . Interest Rate As of June 30, 2016 , we swapped $114 million (KRW 133 billion ) floating rate loans to a weighted average fixed rate of 2.92% . All swaps expire concurrent with the maturity of the related loans. As of June 30, 2016 and March 31, 2016 , $114 million ( KRW 133 billion ) and $115 million ( KRW 133 billion ), respectively, were designated as cash flow hedges. Gain (Loss) Recognition The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the ineffectiveness of designated derivatives recognized in “Other expense (income), net” (in millions). Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended June 30, 2016 2015 Derivative Instruments Not Designated as Hedges Aluminum contracts $ (12 ) $ 31 Currency exchange contracts 8 1 Energy contracts (A) 3 — (Loss) gain recognized in "Other expense (income), net" (1 ) 32 Derivative Instruments Designated as Hedges Loss recognized in "Other expense (income), net" (B) (8 ) (6 ) Total (loss) gain recognized in "Other expense (income), net" $ (9 ) $ 26 Balance sheet remeasurement currency exchange contract gains (losses) $ 8 $ (1 ) Realized losses, net (10 ) (8 ) Unrealized (losses) gains on other derivative instruments, net (7 ) 35 Total (loss) gain recognized in "Other expense (income), net" $ (9 ) $ 26 (A) Includes amounts related to de-designated electricity swap and natural gas swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts; and ineffectiveness of fair value hedges involving aluminum derivatives. The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow and net investment hedges (in millions). Within the next twelve months, we expect to reclassify $2 million of losses from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) (Ineffective and Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 Cash flow hedging derivatives Aluminum contracts $ (31 ) $ 37 $ (9 ) $ (6 ) Currency exchange contracts 18 8 — — Energy contracts (1 ) — — — Total cash flow hedging derivatives $ (14 ) $ 45 $ (9 ) $ (6 ) Net investment derivatives Currency exchange contracts 1 (1 ) — — Total $ (13 ) $ 44 $ (9 ) $ (6 ) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended June 30, Location of Gain (Loss) Cash flow hedging derivatives 2016 2015 Energy contracts (A) $ (1 ) $ (1 ) Other expense (income), net Energy contracts (C) (2 ) (2 ) Cost of goods sold (B) Aluminum contracts 1 13 Cost of goods sold (B) Aluminum contracts (1 ) — Net sales Currency exchange contracts — (6 ) Cost of goods sold (B) Currency exchange contracts — 3 Net sales Currency exchange contracts 1 — Other expense (income), net Total $ (2 ) $ 7 Income (loss) before taxes (1 ) (4 ) Income tax provision $ (3 ) $ 3 Net income (loss) (A) Includes amounts related to de-designated electricity swap. AOCI related to this swap is amortized to income over the remaining term of the hedged item. (B) "Cost of goods sold" is exclusive of depreciation and amortization. (C) Includes amounts related to natural gas swaps. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the change in the components of accumulated other comprehensive loss net of tax and excluding "Noncontrolling interests", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2016 $ (196 ) $ (11 ) $ (293 ) $ (500 ) Other comprehensive (loss) income before reclassifications (52 ) (10 ) 6 (56 ) Amounts reclassified from AOCI — 3 8 11 Net current-period other comprehensive (loss) income (52 ) (7 ) 14 (45 ) Balance as of June 30, 2016 $ (248 ) $ (18 ) $ (279 ) $ (545 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2015 $ (213 ) $ (63 ) $ (285 ) $ (561 ) Other comprehensive income (loss) before reclassifications 44 33 (8 ) 69 Amounts reclassified from AOCI — (3 ) 1 (2 ) Net current-period other comprehensive income (loss) 44 30 (7 ) 67 Balance as of June 30, 2015 $ (169 ) $ (33 ) $ (292 ) $ (494 ) (A) For additional information on our cash flow hedges see Note 11 - Financial Instruments and Commodity Contracts. (B) For additional information on our postretirement benefit plans see Note 9 - Postretirement Benefit Plans. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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 value of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions we used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, foreign exchange, natural gas and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum derivative contracts, natural gas and diesel fuel forward contracts. We classify derivative contracts that are valued based on models with significant unobservable market inputs as Level 3 of the valuation hierarchy. Our electricity swaps, which are our only Level 3 derivative contracts, represent agreements to buy electricity at a fixed price at our Oswego, New York facility. Forward prices are not observable for this market, so we must make certain assumptions based on available information we believe to be relevant to market participants. We use observable forward prices for a geographically nearby market and adjust for 1) historical spreads between the cash prices of the two markets, and 2) historical spreads between retail and wholesale prices. For the electricity swap maturing January 5, 2017, the average forward price at June 30, 2016 , estimated using the method described above, was $46 per megawatt hour, which represented a $2 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $34 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by less than $1 million . For the electricity swap maturing January 5, 2022, the average forward price at June 30, 2016 , estimated using the method described above, was $45 per megawatt hour, which represented a $2 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $34 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by $1 million . For Level 2 and 3 of the fair value hierarchy, where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations (nonperformance risk). We regularly monitor these factors along with significant market inputs and assumptions used in our fair value measurements and evaluate the level of the valuation input according to the fair value hierarchy. This may result in a transfer between levels in the hierarchy from period to period. As of June 30, 2016 and March 31, 2016 , we did not have any Level 1 derivative contracts. No amounts were transferred between levels in the fair value hierarchy. All of the Company's derivative instruments are carried at fair value in the statements of financial position prior to considering master netting agreements. The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as of June 30, 2016 and March 31, 2016 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. June 30, 2016 March 31, 2016 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 47 $ (84 ) $ 34 $ (28 ) Currency exchange contracts 91 (56 ) 59 (49 ) Energy contracts 1 (1 ) — (5 ) Interest rate swaps — (1 ) — (1 ) Total level 2 instruments 139 (142 ) 93 (83 ) Level 3 instruments Energy contracts — (8 ) 1 (9 ) Total level 3 instruments — (8 ) 1 (9 ) Total gross $ 139 $ (150 ) $ 94 $ (92 ) Netting adjustment (A) $ (45 ) 45 (31 ) 31 Total net $ 94 $ (105 ) $ 63 $ (61 ) (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. We recognized unrealized losses of $2 million for the three months ended June 30, 2016 related to Level 3 financial instruments that were still held as of June 30, 2016 . These unrealized losses were included in “Other expense (income), net.” The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2016 $ (8 ) Unrealized/realized gain included in earnings (B) 1 Settlements (1 ) Balance as of June 30, 2016 $ (8 ) (A) Represents net derivative liabilities. (B) Included in “Other expense (income), net.” Financial Instruments Not Recorded at Fair Value The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis (in millions). The table excludes short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term receivables and long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. June 30, 2016 March 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 14 $ 15 $ 16 $ 17 Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,464 $ 4,697 $ 4,468 $ 4,659 |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER EXPENSE (INCOME), NET “Other expense (income), net” is comprised of the following (in millions). Three Months Ended June 30, 2016 2015 Foreign currency remeasurement losses (gains), net (A) $ 3 $ (4 ) Loss (gain) on change in fair value of other unrealized derivative instruments, net (B) 7 (35 ) Loss on change in fair value of other realized derivative instruments, net (B) 10 8 Loss on sale of assets, net 4 1 Loss on Brazilian tax litigation, net (C) 1 1 Interest income (3 ) (2 ) Gain on business interruption insurance recovery (D) — (5 ) Other, net 6 6 Other expense (income), net $ 28 $ (30 ) (A) Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” (B) See Note 11 - Financial Instruments and Commodity Contracts for further details. (C) See Note 16 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. (D) We experienced an outage at the hotmill in the Logan facility in North America due to an unexpected motor failure in fiscal 2015 and recognized a gain $5 million during the first quarter of fiscal 2016. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES A reconciliation of the Canadian statutory tax rate to our effective tax rate was as follows (in millions, except percentages). Three Months Ended June 30, 2016 2015 Pre-tax income (loss) before equity in net loss of non-consolidated affiliates and noncontrolling interests $ 60 $ (44 ) Canadian statutory tax rate 25 % 25 % Provision (benefit) at the Canadian statutory rate $ 15 $ (11 ) Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 6 8 Exchange remeasurement of deferred income taxes 7 2 Change in valuation allowances 11 21 Dividends not subject to tax (10 ) (5 ) Tax rate differences on foreign earnings 7 1 Other — net — (1 ) Income tax provision $ 36 $ 15 Effective tax rate 60 % (33 )% Exchange translation items relate primarily to instances where functional currency is different than local and tax reporting currency. The exchange remeasurement of deferred income taxes relates to deferred tax assets and liabilities in Brazil which get remeasured for currency fluctuations against the U.S. dollar. The change in valuation allowances primarily relates to tax losses in certain jurisdictions where we believe it is more likely than not that we will not be able to utilize those losses. As of June 30, 2016 , we had a net deferred tax liability of $18 million . This amount included gross deferred tax assets of approximately $1.2 billion and a valuation allowance of $630 million . It is reasonably possible that our estimates of future taxable income may change within the next 12 months, resulting in a change to the valuation allowance in one or more jurisdictions. Tax authorities continue to examine certain of our tax filings for fiscal years 2008 through 2013 . As a result of audit settlements, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations, our reserves for unrecognized tax benefits, as well as reserves for interest and penalties, may decrease in the next 12 months by an amount up to approximately $15 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in the ordinary course of our business, including some we assert against others, such as environmental, health and safety, product liability, employee, tax, personal injury and other matters. We have established a liability with respect to contingencies for which a loss is probable and estimable. While the ultimate resolution of and liability and costs related to these matters cannot be determined with certainty, we do not believe any of these pending actions, individually or in the aggregate, will materially impair our operations or materially affect our financial condition or liquidity. For certain matters in which the Company is involved for which a loss is reasonably possible, we are unable to estimate a loss. For certain other matters for which a loss is reasonably possible and the loss is estimable, we have estimated the aggregated range of loss as $0 to $60 million . This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified, including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. The following describes certain contingencies relating to our business, including those for which we assumed liability as a result of our spin-off from Alcan Inc. Environmental Matters We own and operate numerous manufacturing and other facilities in various countries around the world. Our operations are subject to environmental laws and regulations from various jurisdictions, which govern, among other things, air emissions, wastewater discharges, the handling, storage and disposal of hazardous substances and wastes, the remediation of contaminated sites, post-mining reclamation and restoration of natural resources, and employee health and safety. Future environmental regulations may impose stricter compliance requirements on the industries in which we operate. Additional equipment or process changes at some of our facilities may be needed to meet future requirements. The cost of meeting these requirements may be significant. Failure to comply with such laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions and other orders, including orders to cease operations. We are involved in proceedings under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, or analogous state provisions regarding liability arising from the usage, storage, treatment or disposal of hazardous substances and wastes at a number of sites in the United States, as well as similar proceedings under the laws and regulations of the other jurisdictions in which we have operations, including Brazil and certain countries in the European Union. Many of these jurisdictions have laws that impose joint and several liability, without regard to fault or the legality of the original conduct, for the costs of environmental remediation, natural resource damages, third party claims, and other expenses. In addition, we are, from time to time, subject to environmental reviews and investigations by relevant governmental authorities. We are also involved in claims and litigation filed on behalf of persons alleging exposure to substances and other hazards at our current and former facilities. We have established liabilities based on our estimates for the currently anticipated costs associated with these environmental matters. We estimated that the remaining undiscounted clean-up costs related to our environmental liabilities as of June 30, 2016 were approximately $18 million , of which $8 million was included in “Other long-term liabilities” and the remaining $10 million in “Accrued expenses and other current liabilities”. Of the total $18 million , $14 million was associated with restructuring actions and the remaining undiscounted clean-up costs were approximately $4 million . As of March 31, 2016 , $7 million of the environmental liability was included in “Other long-term liabilities,” with the remaining $10 million included in “Accrued expenses and other current liabilities” in our condensed consolidated balance sheet. Management has reviewed the environmental matters, including those for which we assumed liability as a result of our spin-off from Alcan Inc. As a result of management's review of these items, management has determined that the currently anticipated costs associated with these environmental matters will not, individually or in the aggregate, materially impact our operations or materially adversely affect our financial condition, results of operations or liquidity. Brazil Tax and Legal Matters Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. In most cases, we are paying the settlement amounts over a period of 180 months , although in some cases we are paying the settlement amounts over a shorter period. The assets and liabilities related to these settlements are presented in the table below (in millions). June 30, March 31, Cash deposits (A) $ 3 $ 2 Short-term settlement liability (B) $ 6 $ 7 Long-term settlement liability (B) 51 57 Total settlement liability $ 57 $ 64 Liability for other disputes and claims (C) $ 22 $ 17 (A) We have maintained these cash deposits as a result of legal proceedings with Brazil's tax authorities. These deposits, which are included in “Other long-term assets — third parties” in our accompanying condensed consolidated balance sheets, will be expended toward these legal proceedings. (B) The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying condensed consolidated balance sheets. (C) In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposits is included in the table below (in millions). Three Months Ended June 30, 2016 2015 Loss on Brazilian tax litigation, net $ 1 $ 1 Additionally, we have included in the range of reasonably possible losses disclosed above, any unresolved tax disputes or other contingencies for which a loss is reasonably possible and estimable. Other Commitments As of June 30, 2016 and March 31, 2016 , we sold certain inventories to third parties and have agreed to repurchase the same or similar inventory back from the third parties at market prices subsequent to the balance sheet dates. Our estimated outstanding repurchase obligations for this inventory as of June 30, 2016 were $21 million and as of March 31, 2016 were approximately $22 million , based on market prices as of these dates. We sell and repurchase inventory with third parties in an attempt to better manage inventory levels and to better match the purchasing of inventory with the demand for our products. As of June 30, 2016 and March 31, 2016 , there was no liability related to these repurchase obligations on our accompanying condensed consolidated balance sheets. |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | SEGMENT, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia and South America. All of our segments manufacture aluminum sheet and light gauge products. The following is a description of our operating segments: North America. Headquartered in Atlanta, Georgia, this segment operates eight plants, including two fully dedicated recycling facilities and one facility with recycling operations, in two countries. This segment also operates four automotive heat treatment lines. Europe. Headquartered in Kusnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in four countries. This segment also operates three automotive heat treatment lines. Asia. Headquartered in Seoul, South Korea, this segment operates five plants, including three facilities with recycling operations, in four countries. This segment also operates one automotive heat treatment line. South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operations, and operates two plants, including a facility with recycling operations, in Brazil. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies see in our Annual Report on Form 10-K for the year ended March 31, 2016 . We measure the profitability and financial performance of our operating segments based on “Segment income.” “Segment income” provides a measure of our underlying segment results that is in line with our approach to risk management. We define “Segment income” as earnings before (a) “depreciation and amortization”; (b) “interest expense and amortization of debt issuance costs”; (c) “interest income”; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) gain or loss on extinguishment of debt; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of “Segment income” from non-consolidated affiliates to income as determined on the equity method of accounting; (i) “restructuring and impairment, net”; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) provision or benefit for taxes on income (loss) and (o) cumulative effect of accounting change, net of tax. The tables below show selected segment financial information (in millions). The “Eliminations and Other” column in the table below includes eliminations and functions that are managed directly from our corporate office that have not been allocated to our operating segments, as well as the adjustments for proportional consolidation, and eliminations of intersegment “Net sales.” The financial information for our segments includes the results of our affiliates on a proportionately consolidated basis, which is consistent with the way we manage our business segments. In order to reconcile the financial information for the segments shown in the tables below to the relevant U.S. GAAP-based measures, we must adjust proportional consolidation of each line item. The “Eliminations and Other” in “Net sales – third party” includes the net sales attributable to our joint venture party, Tri-Arrows, for our Logan affiliate because we consolidate 100% of the Logan joint venture for U.S. GAAP, but we manage our Logan affiliate on a proportionately consolidated basis. See Note 5 - Consolidation and Note 6 - 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 June 30, 2016 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 475 $ — $ — $ — $ 475 Total assets $ 2,379 $ 2,730 $ 1,493 $ 1,464 $ 155 $ 8,221 March 31, 2016 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 488 $ — $ — $ — $ 488 Total assets $ 2,370 $ 2,687 $ 1,516 $ 1,584 $ 123 $ 8,280 Selected Operating Results Three Months Ended June 30, 2016 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 742 $ 755 $ 440 $ 304 $ 55 $ 2,296 Net sales-intersegment 1 12 4 15 (32 ) — Net sales $ 743 $ 767 $ 444 $ 319 $ 23 $ 2,296 Depreciation and amortization $ 37 $ 27 $ 15 $ 16 $ (6 ) $ 89 Income tax (benefit) provision $ (4 ) $ 3 $ 8 $ 21 $ 8 $ 36 Capital expenditures $ 12 $ 20 $ 5 $ 10 $ (3 ) $ 44 Selected Operating Results Three Months Ended June 30, 2015 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 886 $ 815 $ 533 $ 353 $ 47 $ 2,634 Net sales-intersegment 2 65 33 38 (138 ) — Net sales $ 888 $ 880 $ 566 $ 391 $ (91 ) $ 2,634 Depreciation and amortization $ 35 $ 25 $ 16 $ 15 $ (4 ) $ 87 Income tax (benefit) provision $ (15 ) $ (6 ) $ 1 $ 17 $ 18 $ 15 Capital expenditures $ 52 $ 56 $ 10 $ 8 $ 3 $ 129 The following table shows the reconciliation from segment income (loss) for each of our regions to “Net income (loss) attributable to our common shareholder” (in millions). Three Months Ended June 30, 2016 2015 North America $ 86 $ 42 Europe 52 (9 ) Asia 45 36 South America 72 59 Intersegment eliminations — (1 ) Depreciation and amortization (89 ) (87 ) Interest expense and amortization of debt issuance costs (83 ) (80 ) Adjustment to eliminate proportional consolidation (8 ) (7 ) Unrealized (losses) gains on change in fair value of derivative instruments, net (7 ) 35 Realized gains on derivative instruments not included in segment income 1 1 Gain on assets held for sale 1 — Loss on extinguishment of debt — (13 ) Restructuring and impairment, net (2 ) (15 ) Loss on sale of fixed assets (4 ) (1 ) Other costs, net (4 ) (5 ) Income (loss) before income taxes 60 (45 ) Income tax provision 36 15 Net income (loss) 24 (60 ) Net loss attributable to noncontrolling interests — — Net income (loss) attributable to our common shareholder $ 24 $ (60 ) Information about Major Customers and Primary Supplier The table below shows our net sales to Rexam Plc (Rexam) and Affiliates of Ball Corporation (Ball), our two largest customers, as a percentage of total “Net sales.” Three Months Ended June 30, 2016 2015 Rexam (A) 17 % 18 % Ball (A) 13 % 10 % (A) In February of 2015, Ball Corporation made an offer to acquire Rexam. On June 30, 2016, Ball completed the acquisition of Rexam and the divestiture of certain assets to the Ardagh Group. Rio Tinto (RT) is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from RT as a percentage of our total combined metal purchases. Three Months Ended June 30, 2016 2015 Purchases from RT as a percentage of total 11 % 14 % |
Supplemental Information
Supplemental Information | 3 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION Supplemental cash flow information is as follows (in millions). Three Months Ended June 30, 2016 2015 Supplemental disclosures of cash flow information: Interest paid $ 133 $ 123 Income taxes paid $ 28 $ 10 As of June 30, 2016 , we recorded $49 million of outstanding accounts payable and accrued liabilities related to capital expenditures for which the cash outflows will occur subsequent to June 30, 2016 . During the three months ended June 30, 2016 , we incurred capital lease obligations of $1 million . |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Jun. 30, 2016 | |
Supplemental Guarantor Information [Abstract] | |
SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION In connection with the issuance of Novelis Inc.'s (the Parent and Issuer) 2017 Notes and 2020 Notes, certain of our wholly-owned subsidiaries, which are 100% owned within the meaning of Rule 3-10(h)(1) of Regulation S-X, provided guarantees. These guarantees are full and unconditional as well as joint and several. The guarantor subsidiaries (the Guarantors) are comprised of the majority of our businesses in Canada, the U.S., the U.K., Brazil, Portugal and Switzerland, as well as certain businesses in Germany and France. The remaining subsidiaries (the Non-Guarantors) of the Parent are not guarantors of the Notes. The amounts for the three months ended June 30, 2015 below have been retrospectively adjusted to reflect the amalgamation of certain subsidiaries in the U.S. and Canada that occurred during fiscal 2016. These amalgamations had no impact on the consolidated financial statements. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (in millions) Three Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ 161 $ 1,948 $ 575 $ (388 ) $ 2,296 Cost of goods sold (exclusive of depreciation and amortization) 155 1,651 511 (387 ) 1,930 Selling, general and administrative expenses 1 74 17 — 92 Depreciation and amortization 4 69 16 — 89 Interest expense and amortization of debt issuance costs 80 30 3 (30 ) 83 Gain on assets held for sale, net — (1 ) — — (1 ) Research and development expenses — 13 — — 13 Restructuring and impairment, net — 2 — — 2 Equity in net income of consolidated subsidiaries (68 ) (21 ) — 89 — Other (income) expense, net (38 ) 35 1 30 28 134 1,852 548 (298 ) 2,236 Income before income taxes 27 96 27 (90 ) 60 Income tax provision 3 25 8 — 36 Net income 24 71 19 (90 ) 24 Net income attributable to noncontrolling interests — — — — — Net income attributable to our common shareholder $ 24 $ 71 $ 19 $ (90 ) $ 24 Comprehensive (loss) income $ (21 ) $ 53 $ 8 $ (61 ) $ (21 ) Less: Comprehensive income attributable to noncontrolling interest — — — — — Comprehensive (loss) income attributable to our common shareholder $ (21 ) $ 53 $ 8 $ (61 ) $ (21 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (in millions) Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ 166 $ 2,291 $ 633 $ (456 ) $ 2,634 Cost of goods sold (exclusive of depreciation and amortization) 177 2,099 579 (455 ) 2,400 Selling, general and administrative expenses (7 ) 87 20 — 100 Depreciation and amortization 5 65 17 — 87 Research and development expenses — 13 — — 13 Interest expense and amortization of debt issuance costs 79 29 2 (30 ) 80 Loss on early debt extinguishment 13 — — — 13 Restructuring and impairment, net 9 5 1 — 15 Equity in net loss of non-consolidated affiliates — 1 — — 1 Equity in net income of consolidated subsidiaries (9 ) (6 ) — 15 — Other (income) expense, net (42 ) (25 ) 7 30 (30 ) 225 2,268 626 (440 ) 2,679 (Loss) income before taxes (59 ) 23 7 (16 ) (45 ) Income tax provision 1 13 1 — 15 Net (loss) income (60 ) 10 6 (16 ) (60 ) Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to our common shareholder $ (60 ) $ 10 $ 6 $ (16 ) $ (60 ) Comprehensive income (loss) $ 7 $ 45 $ (1 ) $ (46 ) $ 5 Less: Comprehensive loss attributable to noncontrolling interest — — (2 ) — (2 ) Comprehensive income attributable to our common shareholder $ 7 $ 45 $ 1 $ (46 ) $ 7 CONDENSED CONSOLIDATING BALANCE SHEET (in millions) As of June 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 4 $ 237 $ 216 $ — $ 457 Accounts receivable, net of allowances — third parties 27 722 249 — 998 — related parties 337 231 181 (692 ) 57 Inventories 43 918 267 (4 ) 1,224 Prepaid expenses and other current assets 9 85 36 — 130 Fair value of derivative instruments 33 89 13 (4 ) 131 Assets held for sale — 4 — — 4 Total current assets 453 2,286 962 (700 ) 3,001 Property, plant and equipment, net 79 2,535 823 — 3,437 Goodwill — 596 11 — 607 Intangible assets, net 17 485 3 — 505 Investments in and advances to non-consolidated affiliates — 475 — — 475 Investments in consolidated subsidiaries 2,464 629 — (3,093 ) — Deferred income tax assets — 23 70 — 93 Other long-term assets — third parties 12 55 22 — 89 — related parties 1,734 14 — (1,734 ) 14 Total assets $ 4,759 $ 7,098 $ 1,891 $ (5,527 ) $ 8,221 LIABILITIES AND (DEFICIT) EQUITY Current liabilities Current portion of long-term debt $ 22 $ 8 $ 18 $ — $ 48 Short-term borrowings — third parties 262 272 96 — 630 — related parties 127 45 — (172 ) — Accounts payable — third parties 28 910 509 — 1,447 — related parties 62 362 14 (391 ) 47 Fair value of derivative instruments 34 102 10 (4 ) 142 Accrued expenses and other current liabilities — third parties 31 351 75 — 457 — related parties — 119 10 (129 ) — Total current liabilities 566 2,169 732 (696 ) 2,771 Long-term debt, net of current portion — third parties 4,221 19 176 — 4,416 — related parties — 1,680 54 (1,734 ) — Deferred income tax liabilities — 108 3 — 111 Accrued postretirement benefits 31 548 236 — 815 Other long-term liabilities 21 157 10 — 188 Total liabilities 4,839 4,681 1,211 (2,430 ) 8,301 Commitments and contingencies Total temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (939 ) 1,149 771 (1,920 ) (939 ) Accumulated other comprehensive loss (545 ) (413 ) (91 ) 504 (545 ) Total (deficit) equity of our common shareholder (80 ) 736 680 (1,416 ) (80 ) Noncontrolling interests — — — — — Total (deficit) equity (80 ) 736 680 (1,416 ) (80 ) Total liabilities and (deficit) equity $ 4,759 $ 7,098 $ 1,891 $ (5,527 ) $ 8,221 CONDENSED CONSOLIDATING BALANCE SHEET (in millions) As of March 31, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 2 $ 301 $ 253 $ — $ 556 Accounts receivable, net of allowances — third parties 23 716 217 — 956 — related parties 188 139 175 (443 ) 59 Inventories 46 873 264 (3 ) 1,180 Prepaid expenses and other current assets 5 91 31 — 127 Fair value of derivative instruments 26 49 16 (3 ) 88 Deferred income tax assets — — — — — Assets held for sale — 5 — — 5 Total current assets 290 2,174 956 (449 ) 2,971 Property, plant and equipment, net 81 2,581 844 — 3,506 Goodwill — 596 11 — 607 Intangible assets, net 17 503 3 — 523 Investments in and advances to non-consolidated affiliates — 488 — — 488 Investments in consolidated subsidiaries 2,667 619 — (3,286 ) — Deferred income tax assets — 18 69 — 87 Other long-term assets — third parties 15 48 19 — 82 — related parties 1,752 16 — (1,752 ) 16 Total assets $ 4,822 $ 7,043 $ 1,902 $ (5,487 ) $ 8,280 LIABILITIES AND (DEFICIT) EQUITY Current liabilities Current portion of long-term debt $ 21 $ 8 $ 18 $ — $ 47 Short-term borrowings — third parties 337 149 93 — 579 — related parties 20 (71 ) — 51 — Accounts payable — third parties 43 958 505 — 1,506 — related parties 69 322 39 (382 ) 48 Fair value of derivative instruments 19 58 11 (3 ) 85 Accrued expenses and other current liabilities — third parties 95 398 76 — 569 — related parties — 102 10 (112 ) — Deferred income tax liabilities — — — — — Total current liabilities 604 1,924 752 (446 ) 2,834 Long-term debt, net of current portion — third parties 4,223 20 178 — 4,421 — related parties — 1,697 55 (1,752 ) — Deferred income tax liabilities — 87 2 — 89 Accrued postretirement benefits 32 557 231 — 820 Other long-term liabilities 22 143 10 — 175 Total liabilities 4,881 4,428 1,228 (2,198 ) 8,339 Commitments and contingencies Total temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (963 ) 1,329 754 (2,083 ) (963 ) Accumulated other comprehensive loss (500 ) (395 ) (80 ) 475 (500 ) Total (deficit) equity of our common shareholder (59 ) 934 674 (1,608 ) (59 ) Noncontrolling interests — — — — — Total (deficit) equity (59 ) 934 674 (1,608 ) (59 ) Total liabilities and (deficit) equity $ 4,822 $ 7,043 $ 1,902 $ (5,487 ) $ 8,280 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) Three Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated OPERATING ACTIVITIES Net cash provided (used in) by operating activities $ 80 $ 49 $ (34 ) $ (202 ) $ (107 ) INVESTING ACTIVITIES Capital expenditures (2 ) (38 ) (4 ) — (44 ) (Outflows) proceeds from investment in and advances to affiliates, net (116 ) (105 ) — 223 2 Proceeds (outflows) from settlement of other undesignated derivative instruments, net 14 (11 ) — — 3 Net cash used in investing activities (104 ) (154 ) (4 ) 223 (39 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties — 70 17 — 87 Principal payments of long-term and short-term borrowings — third parties (6 ) (49 ) (17 ) — (72 ) Revolving credit facilities and other, net — third parties (75 ) 106 4 — 35 — related parties 107 116 — (223 ) — Dividends, noncontrolling interest and intercompany — (202 ) — 202 — Net cash provided by financing activities 26 41 4 (21 ) 50 Net increase (decrease) in cash and cash equivalents 2 (64 ) (34 ) — (96 ) Effect of exchange rate changes on cash — — (3 ) — (3 ) Cash and cash equivalents — beginning of period 2 301 253 — 556 Cash and cash equivalents — end of period $ 4 $ 237 $ 216 $ — $ 457 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Eliminations Consolidated OPERATING ACTIVITIES Net cash used in operating activities $ (111 ) $ (69 ) $ (108 ) $ — $ (288 ) INVESTING ACTIVITIES Capital expenditures — (120 ) (9 ) — (129 ) Proceeds (outflows) from investment in and advances to affiliates, net 16 (1 ) (45 ) 29 (1 ) (Outflows) proceeds from settlement of other undesignated derivative instruments, net (11 ) 3 1 — (7 ) Net cash provided by (used in) investing activities 5 (118 ) (53 ) 29 (137 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties 60 45 34 — 139 Principal payments of long-term and short-term borrowings — third parties (1 ) (60 ) (7 ) — (68 ) — related parties — (45 ) — 45 — Revolving credit facilities and other, net — third parties 12 160 10 — 182 — related parties 45 29 — (74 ) — Debt issuance costs (10 ) — — — (10 ) Net cash provided by financing activities 106 129 37 (29 ) 243 Net decrease in cash and cash equivalents — (58 ) (124 ) — (182 ) Effect of exchange rate changes on cash — 3 7 — 10 Cash and cash equivalents — beginning of period 4 365 259 — 628 Cash and cash equivalents — end of period $ 4 $ 310 $ 142 $ — $ 456 |
Business and Summary of Signi28
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food cans and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used beverage cans and post-industrial aluminum, such as class scrap. As of June 30, 2016 , we had manufacturing operations in eleven countries on four continents: North America, South America, Asia and Europe, through 25 operating facilities, including recycling operations in eleven of these plants. |
Consolidation Policy | Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant 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 where we have the ability to exercise significant influence over operating and financial policies. Consolidated " Net income (loss) attributable to our common shareholder " includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the 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 loss of non-consolidated affiliates." |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which, when effective, will supersede the guidance in former ASC 605, Revenue Recognition . The new guidance requires entities to recognize revenue based on the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within that year. Early adoption is not permitted. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which provides an optional one-year deferral of the effective date. Subsequent to these amendments, further clarifying amendments have been issued. We are currently evaluating the impact of the standard on our consolidated financial position and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which when effective will require organizations that lease assets (e.g., through "leases") to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. A lessee will be required to recognize assets and liabilities for leases with terms that exceed twelve months. The standard will also require disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this standard on our consolidated financial position and results of operations. |
Restructuring and Impairment (T
Restructuring and Impairment (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring liability activity and other impairment charges | The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2016 $ 27 -Provisions 2 -Reversal of expense — Expenses, net 2 $ — $ 2 $ — $ 2 Cash payments (4 ) Foreign currency (C) 2 Balance as of June 30, 2016 $ 27 (A) Other restructuring charges include period expenses that were not recorded through the restructuring liability. (B) Other impairment charges not related to a restructuring activity. (C) This primarily relates to the remeasurement of Brazilian real denominated restructuring liabilities. |
Europe [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Summary of restructuring reserve activity | The following table summarizes our restructuring activity for the Europe segment by plan (in millions). Three Months Ended June 30, Year Ended March 31, Prior to April 1, 2016 2016 2015 Restructuring charges - Europe Corporate Restructuring Program Severance 1 4 46 Total restructuring charges - Europe $ 1 $ 4 $ 46 Restructuring payments - Europe Severance $ (2 ) $ (6 ) Total restructuring payments - Europe $ (2 ) $ (6 ) |
South America [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Summary of restructuring reserve activity | The following table summarizes our restructuring activity for the South America segment by plan (in millions). Three Months Ended June 30, Year Ended March 31, Prior to April 1, 2016 2016 2015 Restructuring charges - South America Ouro Preto closures Severance $ — $ 2 $ 19 Asset impairments (A) — — 6 Environmental charges — (1 ) 22 Contract termination and other exit related costs 1 2 11 Other past restructuring programs — — 21 Total restructuring charges - South America $ 1 $ 3 $ 79 Restructuring payments - South America Severance $ (1 ) $ (2 ) Other — (3 ) Total restructuring payments - South America $ (1 ) $ (5 ) (A) These charges were not recorded through the restructuring liability. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | "Inventories" consist of the following (in millions). June 30, March 31, Finished goods $ 289 $ 295 Work in process 521 416 Raw materials 264 322 Supplies 150 147 Inventories $ 1,224 $ 1,180 |
Consolidation (Tables)
Consolidation (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Consolidation [Abstract] | |
Schedule of variable interest entity | The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets (in millions). There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. June 30, March 31, Assets Current assets Cash and cash equivalents $ 5 $ 3 Accounts receivable 38 33 Inventories 56 61 Prepaid expenses and other current assets 2 2 Total current assets 101 99 Property, plant and equipment, net 20 21 Goodwill 12 12 Deferred income taxes 86 84 Other long-term assets 13 8 Total assets $ 232 $ 224 Liabilities Current liabilities Accounts payable $ 37 $ 30 Accrued expenses and other current liabilities 13 15 Total current liabilities 50 45 Accrued postretirement benefits 217 214 Other long-term liabilities 3 3 Total liabilities $ 270 $ 262 |
Investment In and Advances to32
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of this equity method affiliate, and the nature and amounts of significant transactions we had with our non-consolidated affiliate (in millions). The amounts in the table below are disclosed at 100% of the operating results of this affiliate. Three Months Ended June 30, 2016 2015 Net sales $ 121 $ 117 Costs and expenses related to net sales 120 118 Benefit for taxes on income (1 ) (1 ) Net income $ 2 $ — Purchases of tolling services from Alunorf $ 61 $ 58 |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table describes the period-end account balances that we had with Alunorf, shown as related party balances in the accompanying condensed consolidated balance sheets (in millions). We had no other material related party balances with Alunorf. June 30, March 31, Accounts receivable-related parties $ 57 $ 59 Other long-term assets-related parties $ 14 $ 16 Accounts payable-related parties $ 47 $ 48 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consisted of the following (in millions). June 30, 2016 March 31, 2016 Interest Rates (A) Principal Unamortized Carrying Value Adjustments Carrying Value Principal Unamortized Carrying Value Adjustments Carrying Value Third party debt: Short-term borrowings 2.80 % $ 630 $ — $ 630 $ 579 $ — $ 579 Novelis Inc. Floating rate Term Loan Facility, due through June 2022 4.00 % 1,782 (24 ) (B), (E) 1,758 1,787 (25 ) (B), (E) 1,762 8.375% Senior Notes, due December 2017 8.375 % 1,100 (5 ) (E) 1,095 1,100 (6 ) (E) 1,094 8.75% Senior Notes, due December 2020 8.75 % 1,400 (14 ) (E) 1,386 1,400 (15 ) (E) 1,385 Capital lease obligations, due through July 2017 3.64 % 4 — 4 5 — 5 Novelis Korea Limited Bank loans, due through September 2020 (KRW 226 billion) 2.66 % 194 — 194 195 — 195 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 21 million) 7.50 % 22 (1 ) (C) 21 23 (1 ) (C) 22 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 15 million) 5.94 % 5 (1 ) (D) 4 5 (1 ) (D) 4 Other Other debt, due through May 2021 4.66 % 2 — 2 1 — 1 Total debt 5,139 (45 ) 5,094 5,095 (48 ) 5,047 Less: Short-term borrowings (630 ) — (630 ) (579 ) — (579 ) Current portion of long term debt (48 ) — (48 ) (47 ) — (47 ) Long-term debt, net of current portion $ 4,461 $ (45 ) $ 4,416 $ 4,469 $ (48 ) $ 4,421 (A) I nterest rates are the fixed or variable rates as specified in the debt instruments (not the effective interest rate) as of June 30, 2016 , and therefore, exclude the effects of related interest rate swaps, accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to the debt exchange completed in fiscal 2009 and the series of refinancing transactions and additional borrowings we completed in fiscal 2011 and thereafter. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value. In connection with a series of refinancing transactions, a portion of the historical fair value adjustments was allocated to the Term Loan Facility, resulting in carrying value adjustments on this debt obligation. The unamortized carrying value also includes issuance discounts from subsequent refinancings. Additionally, the unamortized carrying value includes unamortized debt issuance costs. (C) Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value resulting in carrying value adjustments to our capital lease obligations in Novelis Switzerland. (D) The unamortized carrying value includes issuance discounts related to the difference resulting from the contractual rates of interest specified in the instruments that are lower than the market rates of interest upon issuance. (E) As of June 30, 2016, we adopted ASU 2015-03 related to the presentation of debt issuance costs. For additional information, see Recently Adopted Accounting Standards within Note 1 - Business and Summary of Significant Accounting Policies. |
Principal repayment requirements for total debt over the next five years and thereafter | Principal repayment requirements for our total debt over the next five years and thereafter (excluding unamortized carrying value adjustments and using exchange rates as of June 30, 2016 for our debt denominated in foreign currencies) are as follows (in millions). As of June 30, 2016 Amount Short-term borrowings and current portion of long-term debt due within one year $ 678 2 years 1,203 3 years 124 4 years 22 5 years 1,421 Thereafter 1,691 Total $ 5,139 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost (credit) for all of our postretirement benefit plans are shown in the tables below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 Service cost $ 11 $ 12 $ 2 $ 1 Interest cost 15 15 1 1 Expected return on assets (16 ) (17 ) — — Amortization — losses, net 11 9 1 1 Amortization — prior service credit, net — (1 ) — (7 ) Net periodic benefit cost (credit) $ 21 $ 18 $ 4 $ (4 ) |
Contributions to employee benefit plans | We contributed the following amounts to all plans (in millions). Three Months Ended June 30, 2016 2015 Funded pension plans $ 3 $ 3 Unfunded pension plans 3 2 Savings and defined contribution pension plans 6 7 Total contributions $ 12 $ 12 |
Currency Gains (Tables)
Currency Gains (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in Other (income) expense, net | The following currency losses (gains) are included in “Other expense (income), net” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended June 30, 2016 2015 Loss (gain) on remeasurement of monetary assets and liabilities, net $ 11 $ (5 ) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net (8 ) 1 Currency losses (gains), net $ 3 $ (4 ) |
Currency losses included in AOCI, net of tax and noncontrolling interests | The following currency losses are included in “Accumulated other comprehensive loss, net of tax” and “Noncontrolling interests” in the accompanying condensed consolidated balance sheets (in millions). Three Months Ended June 30, 2016 Year Ended March 31, 2016 Cumulative currency translation adjustment — beginning of period $ (197 ) $ (214 ) Effect of changes in exchange rates (53 ) 17 Cumulative currency translation adjustment — end of period $ (250 ) $ (197 ) |
Financial Instruments and Com36
Financial Instruments and Commodity Contracts (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 ineffectiveness of designated derivatives recognized in “Other expense (income), net” (in millions). Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended June 30, 2016 2015 Derivative Instruments Not Designated as Hedges Aluminum contracts $ (12 ) $ 31 Currency exchange contracts 8 1 Energy contracts (A) 3 — (Loss) gain recognized in "Other expense (income), net" (1 ) 32 Derivative Instruments Designated as Hedges Loss recognized in "Other expense (income), net" (B) (8 ) (6 ) Total (loss) gain recognized in "Other expense (income), net" $ (9 ) $ 26 Balance sheet remeasurement currency exchange contract gains (losses) $ 8 $ (1 ) Realized losses, net (10 ) (8 ) Unrealized (losses) gains on other derivative instruments, net (7 ) 35 Total (loss) gain recognized in "Other expense (income), net" $ (9 ) $ 26 (A) Includes amounts related to de-designated electricity swap and natural gas swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts; and ineffectiveness of fair value hedges involving aluminum derivatives. |
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 June 30, 2016 and March 31, 2016 (in millions). June 30, 2016 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ — $ — $ (31 ) $ — $ (31 ) Currency exchange contracts 29 2 (1 ) (4 ) 26 Energy contracts — — (1 ) (3 ) (4 ) Interest rate swaps — — (1 ) — (1 ) Total derivatives designated as hedging instruments 29 2 (34 ) (7 ) (10 ) Derivatives not designated as hedging instruments Aluminum contracts 46 1 (52 ) (1 ) (6 ) Currency exchange contracts 55 5 (51 ) — 9 Energy contracts 1 — (5 ) — (4 ) Total derivatives not designated as hedging instruments 102 6 (108 ) (1 ) (1 ) Total derivative fair value $ 131 $ 8 $ (142 ) $ (8 ) $ (11 ) March 31, 2016 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent(A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 10 $ — $ (2 ) $ — $ 8 Currency exchange contracts 15 5 (3 ) (5 ) 12 Energy contracts — — (4 ) — (4 ) Interest rate swaps — — — (1 ) (1 ) Net investment hedges Currency exchange contracts — — (1 ) — (1 ) Total derivatives designated as hedging instruments 25 5 (10 ) (6 ) 14 Derivatives not designated as hedging instruments: Aluminum contracts 24 — (26 ) — (2 ) Currency exchange contracts 39 — (39 ) (1 ) (1 ) Energy contracts — 1 (10 ) — (9 ) Total derivatives not designated as hedging instruments 63 1 (75 ) (1 ) (12 ) Total derivative fair value $ 88 $ 6 $ (85 ) $ (7 ) $ 2 (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. |
Summary of notional amount | The following table summarizes our notional amount (in kt). June 30, March 31, Hedge Type Purchase (Sale) Cash flow purchases 1 1 Cash flow sales (368 ) (301 ) Fair value 1 — Not designated (62 ) (76 ) Total, net (428 ) (376 ) |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow and net investment hedges (in millions). Within the next twelve months, we expect to reclassify $2 million of losses from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) (Ineffective and Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 Cash flow hedging derivatives Aluminum contracts $ (31 ) $ 37 $ (9 ) $ (6 ) Currency exchange contracts 18 8 — — Energy contracts (1 ) — — — Total cash flow hedging derivatives $ (14 ) $ 45 $ (9 ) $ (6 ) Net investment derivatives Currency exchange contracts 1 (1 ) — — Total $ (13 ) $ 44 $ (9 ) $ (6 ) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended June 30, Location of Gain (Loss) Cash flow hedging derivatives 2016 2015 Energy contracts (A) $ (1 ) $ (1 ) Other expense (income), net Energy contracts (C) (2 ) (2 ) Cost of goods sold (B) Aluminum contracts 1 13 Cost of goods sold (B) Aluminum contracts (1 ) — Net sales Currency exchange contracts — (6 ) Cost of goods sold (B) Currency exchange contracts — 3 Net sales Currency exchange contracts 1 — Other expense (income), net Total $ (2 ) $ 7 Income (loss) before taxes (1 ) (4 ) Income tax provision $ (3 ) $ 3 Net income (loss) (A) Includes amounts related to de-designated electricity swap. AOCI related to this swap is amortized to income over the remaining term of the hedged item. (B) "Cost of goods sold" is exclusive of depreciation and amortization. (C) Includes amounts related to natural gas swaps. |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated other comprehensive income, net of tax | The following tables summarize the change in the components of accumulated other comprehensive loss net of tax and excluding "Noncontrolling interests", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2016 $ (196 ) $ (11 ) $ (293 ) $ (500 ) Other comprehensive (loss) income before reclassifications (52 ) (10 ) 6 (56 ) Amounts reclassified from AOCI — 3 8 11 Net current-period other comprehensive (loss) income (52 ) (7 ) 14 (45 ) Balance as of June 30, 2016 $ (248 ) $ (18 ) $ (279 ) $ (545 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2015 $ (213 ) $ (63 ) $ (285 ) $ (561 ) Other comprehensive income (loss) before reclassifications 44 33 (8 ) 69 Amounts reclassified from AOCI — (3 ) 1 (2 ) Net current-period other comprehensive income (loss) 44 30 (7 ) 67 Balance as of June 30, 2015 $ (169 ) $ (33 ) $ (292 ) $ (494 ) (A) For additional information on our cash flow hedges see Note 11 - Financial Instruments and Commodity Contracts. (B) For additional information on our postretirement benefit plans see Note 9 - Postretirement Benefit Plans. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Derivative assets and liabilities measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy | The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as of June 30, 2016 and March 31, 2016 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. June 30, 2016 March 31, 2016 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 47 $ (84 ) $ 34 $ (28 ) Currency exchange contracts 91 (56 ) 59 (49 ) Energy contracts 1 (1 ) — (5 ) Interest rate swaps — (1 ) — (1 ) Total level 2 instruments 139 (142 ) 93 (83 ) Level 3 instruments Energy contracts — (8 ) 1 (9 ) Total level 3 instruments — (8 ) 1 (9 ) Total gross $ 139 $ (150 ) $ 94 $ (92 ) Netting adjustment (A) $ (45 ) 45 (31 ) 31 Total net $ 94 $ (105 ) $ 63 $ (61 ) (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. |
Reconciliation of fair value activity for Level 3 derivative contracts | The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2016 $ (8 ) Unrealized/realized gain included in earnings (B) 1 Settlements (1 ) Balance as of June 30, 2016 $ (8 ) (A) Represents net derivative liabilities. (B) Included in “Other expense (income), net.” |
Estimated fair value of certain financial instruments that are not recorded at fair value on a recurring basis | The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis (in millions). The table excludes short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term receivables and long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. June 30, 2016 March 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 14 $ 15 $ 16 $ 17 Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,464 $ 4,697 $ 4,468 $ 4,659 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | “Other expense (income), net” is comprised of the following (in millions). Three Months Ended June 30, 2016 2015 Foreign currency remeasurement losses (gains), net (A) $ 3 $ (4 ) Loss (gain) on change in fair value of other unrealized derivative instruments, net (B) 7 (35 ) Loss on change in fair value of other realized derivative instruments, net (B) 10 8 Loss on sale of assets, net 4 1 Loss on Brazilian tax litigation, net (C) 1 1 Interest income (3 ) (2 ) Gain on business interruption insurance recovery (D) — (5 ) Other, net 6 6 Other expense (income), net $ 28 $ (30 ) (A) Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” (B) See Note 11 - Financial Instruments and Commodity Contracts for further details. (C) See Note 16 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. (D) We experienced an outage at the hotmill in the Logan facility in North America due to an unexpected motor failure in fiscal 2015 and recognized a gain $5 million during the first quarter of fiscal 2016. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Canadian statutory tax rates to effective tax rates | A reconciliation of the Canadian statutory tax rate to our effective tax rate was as follows (in millions, except percentages). Three Months Ended June 30, 2016 2015 Pre-tax income (loss) before equity in net loss of non-consolidated affiliates and noncontrolling interests $ 60 $ (44 ) Canadian statutory tax rate 25 % 25 % Provision (benefit) at the Canadian statutory rate $ 15 $ (11 ) Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 6 8 Exchange remeasurement of deferred income taxes 7 2 Change in valuation allowances 11 21 Dividends not subject to tax (10 ) (5 ) Tax rate differences on foreign earnings 7 1 Other — net — (1 ) Income tax provision $ 36 $ 15 Effective tax rate 60 % (33 )% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Settlement with Taxing Authority [Member] | |
Loss Contingencies [Line Items] | |
Schedule of loss contingencies by contingency | The assets and liabilities related to these settlements are presented in the table below (in millions). June 30, March 31, Cash deposits (A) $ 3 $ 2 Short-term settlement liability (B) $ 6 $ 7 Long-term settlement liability (B) 51 57 Total settlement liability $ 57 $ 64 Liability for other disputes and claims (C) $ 22 $ 17 (A) We have maintained these cash deposits as a result of legal proceedings with Brazil's tax authorities. These deposits, which are included in “Other long-term assets — third parties” in our accompanying condensed consolidated balance sheets, will be expended toward these legal proceedings. (B) The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying condensed consolidated balance sheets. (C) In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. |
Interest Expense [Member] | |
Loss Contingencies [Line Items] | |
Schedule of loss contingencies by contingency | The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposits is included in the table below (in millions). Three Months Ended June 30, 2016 2015 Loss on Brazilian tax litigation, net $ 1 $ 1 |
Segment, Major Customer and M42
Segment, Major Customer and Major Supplier Information (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Selected segment financial information | Selected Segment Financial Information June 30, 2016 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 475 $ — $ — $ — $ 475 Total assets $ 2,379 $ 2,730 $ 1,493 $ 1,464 $ 155 $ 8,221 March 31, 2016 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 488 $ — $ — $ — $ 488 Total assets $ 2,370 $ 2,687 $ 1,516 $ 1,584 $ 123 $ 8,280 Selected Operating Results Three Months Ended June 30, 2016 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 742 $ 755 $ 440 $ 304 $ 55 $ 2,296 Net sales-intersegment 1 12 4 15 (32 ) — Net sales $ 743 $ 767 $ 444 $ 319 $ 23 $ 2,296 Depreciation and amortization $ 37 $ 27 $ 15 $ 16 $ (6 ) $ 89 Income tax (benefit) provision $ (4 ) $ 3 $ 8 $ 21 $ 8 $ 36 Capital expenditures $ 12 $ 20 $ 5 $ 10 $ (3 ) $ 44 Selected Operating Results Three Months Ended June 30, 2015 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 886 $ 815 $ 533 $ 353 $ 47 $ 2,634 Net sales-intersegment 2 65 33 38 (138 ) — Net sales $ 888 $ 880 $ 566 $ 391 $ (91 ) $ 2,634 Depreciation and amortization $ 35 $ 25 $ 16 $ 15 $ (4 ) $ 87 Income tax (benefit) provision $ (15 ) $ (6 ) $ 1 $ 17 $ 18 $ 15 Capital expenditures $ 52 $ 56 $ 10 $ 8 $ 3 $ 129 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The following table shows the reconciliation from segment income (loss) for each of our regions to “Net income (loss) attributable to our common shareholder” (in millions). Three Months Ended June 30, 2016 2015 North America $ 86 $ 42 Europe 52 (9 ) Asia 45 36 South America 72 59 Intersegment eliminations — (1 ) Depreciation and amortization (89 ) (87 ) Interest expense and amortization of debt issuance costs (83 ) (80 ) Adjustment to eliminate proportional consolidation (8 ) (7 ) Unrealized (losses) gains on change in fair value of derivative instruments, net (7 ) 35 Realized gains on derivative instruments not included in segment income 1 1 Gain on assets held for sale 1 — Loss on extinguishment of debt — (13 ) Restructuring and impairment, net (2 ) (15 ) Loss on sale of fixed assets (4 ) (1 ) Other costs, net (4 ) (5 ) Income (loss) before income taxes 60 (45 ) Income tax provision 36 15 Net income (loss) 24 (60 ) Net loss attributable to noncontrolling interests — — Net income (loss) attributable to our common shareholder $ 24 $ (60 ) |
Net sales to largest customers, as a percentage of total Net sales | The table below shows our net sales to Rexam Plc (Rexam) and Affiliates of Ball Corporation (Ball), our two largest customers, as a percentage of total “Net sales.” Three Months Ended June 30, 2016 2015 Rexam (A) 17 % 18 % Ball (A) 13 % 10 % (A) In February of 2015, Ball Corporation made an offer to acquire Rexam. On June 30, 2016, Ball completed the acquisition of Rexam and the divestiture of certain assets to the Ardagh Group. |
Percentage of total combined metal purchases | The table below shows our purchases from RT as a percentage of our total combined metal purchases. Three Months Ended June 30, 2016 2015 Purchases from RT as a percentage of total 11 % 14 % |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information is as follows (in millions). Three Months Ended June 30, 2016 2015 Supplemental disclosures of cash flow information: Interest paid $ 133 $ 123 Income taxes paid $ 28 $ 10 |
Supplemental Guarantor Inform44
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Supplemental Guarantor Information [Abstract] | |
Condensed consolidating statement of operations | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (in millions) Three Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ 161 $ 1,948 $ 575 $ (388 ) $ 2,296 Cost of goods sold (exclusive of depreciation and amortization) 155 1,651 511 (387 ) 1,930 Selling, general and administrative expenses 1 74 17 — 92 Depreciation and amortization 4 69 16 — 89 Interest expense and amortization of debt issuance costs 80 30 3 (30 ) 83 Gain on assets held for sale, net — (1 ) — — (1 ) Research and development expenses — 13 — — 13 Restructuring and impairment, net — 2 — — 2 Equity in net income of consolidated subsidiaries (68 ) (21 ) — 89 — Other (income) expense, net (38 ) 35 1 30 28 134 1,852 548 (298 ) 2,236 Income before income taxes 27 96 27 (90 ) 60 Income tax provision 3 25 8 — 36 Net income 24 71 19 (90 ) 24 Net income attributable to noncontrolling interests — — — — — Net income attributable to our common shareholder $ 24 $ 71 $ 19 $ (90 ) $ 24 Comprehensive (loss) income $ (21 ) $ 53 $ 8 $ (61 ) $ (21 ) Less: Comprehensive income attributable to noncontrolling interest — — — — — Comprehensive (loss) income attributable to our common shareholder $ (21 ) $ 53 $ 8 $ (61 ) $ (21 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (in millions) Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Eliminations Consolidated Net sales $ 166 $ 2,291 $ 633 $ (456 ) $ 2,634 Cost of goods sold (exclusive of depreciation and amortization) 177 2,099 579 (455 ) 2,400 Selling, general and administrative expenses (7 ) 87 20 — 100 Depreciation and amortization 5 65 17 — 87 Research and development expenses — 13 — — 13 Interest expense and amortization of debt issuance costs 79 29 2 (30 ) 80 Loss on early debt extinguishment 13 — — — 13 Restructuring and impairment, net 9 5 1 — 15 Equity in net loss of non-consolidated affiliates — 1 — — 1 Equity in net income of consolidated subsidiaries (9 ) (6 ) — 15 — Other (income) expense, net (42 ) (25 ) 7 30 (30 ) 225 2,268 626 (440 ) 2,679 (Loss) income before taxes (59 ) 23 7 (16 ) (45 ) Income tax provision 1 13 1 — 15 Net (loss) income (60 ) 10 6 (16 ) (60 ) Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to our common shareholder $ (60 ) $ 10 $ 6 $ (16 ) $ (60 ) Comprehensive income (loss) $ 7 $ 45 $ (1 ) $ (46 ) $ 5 Less: Comprehensive loss attributable to noncontrolling interest — — (2 ) — (2 ) Comprehensive income attributable to our common shareholder $ 7 $ 45 $ 1 $ (46 ) $ 7 |
Condensed consolidating balance sheet | As of June 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 4 $ 237 $ 216 $ — $ 457 Accounts receivable, net of allowances — third parties 27 722 249 — 998 — related parties 337 231 181 (692 ) 57 Inventories 43 918 267 (4 ) 1,224 Prepaid expenses and other current assets 9 85 36 — 130 Fair value of derivative instruments 33 89 13 (4 ) 131 Assets held for sale — 4 — — 4 Total current assets 453 2,286 962 (700 ) 3,001 Property, plant and equipment, net 79 2,535 823 — 3,437 Goodwill — 596 11 — 607 Intangible assets, net 17 485 3 — 505 Investments in and advances to non-consolidated affiliates — 475 — — 475 Investments in consolidated subsidiaries 2,464 629 — (3,093 ) — Deferred income tax assets — 23 70 — 93 Other long-term assets — third parties 12 55 22 — 89 — related parties 1,734 14 — (1,734 ) 14 Total assets $ 4,759 $ 7,098 $ 1,891 $ (5,527 ) $ 8,221 LIABILITIES AND (DEFICIT) EQUITY Current liabilities Current portion of long-term debt $ 22 $ 8 $ 18 $ — $ 48 Short-term borrowings — third parties 262 272 96 — 630 — related parties 127 45 — (172 ) — Accounts payable — third parties 28 910 509 — 1,447 — related parties 62 362 14 (391 ) 47 Fair value of derivative instruments 34 102 10 (4 ) 142 Accrued expenses and other current liabilities — third parties 31 351 75 — 457 — related parties — 119 10 (129 ) — Total current liabilities 566 2,169 732 (696 ) 2,771 Long-term debt, net of current portion — third parties 4,221 19 176 — 4,416 — related parties — 1,680 54 (1,734 ) — Deferred income tax liabilities — 108 3 — 111 Accrued postretirement benefits 31 548 236 — 815 Other long-term liabilities 21 157 10 — 188 Total liabilities 4,839 4,681 1,211 (2,430 ) 8,301 Commitments and contingencies Total temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (939 ) 1,149 771 (1,920 ) (939 ) Accumulated other comprehensive loss (545 ) (413 ) (91 ) 504 (545 ) Total (deficit) equity of our common shareholder (80 ) 736 680 (1,416 ) (80 ) Noncontrolling interests — — — — — Total (deficit) equity (80 ) 736 680 (1,416 ) (80 ) Total liabilities and (deficit) equity $ 4,759 $ 7,098 $ 1,891 $ (5,527 ) $ 8,221 CONDENSED CONSOLIDATING BALANCE SHEET (in millions) As of March 31, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 2 $ 301 $ 253 $ — $ 556 Accounts receivable, net of allowances — third parties 23 716 217 — 956 — related parties 188 139 175 (443 ) 59 Inventories 46 873 264 (3 ) 1,180 Prepaid expenses and other current assets 5 91 31 — 127 Fair value of derivative instruments 26 49 16 (3 ) 88 Deferred income tax assets — — — — — Assets held for sale — 5 — — 5 Total current assets 290 2,174 956 (449 ) 2,971 Property, plant and equipment, net 81 2,581 844 — 3,506 Goodwill — 596 11 — 607 Intangible assets, net 17 503 3 — 523 Investments in and advances to non-consolidated affiliates — 488 — — 488 Investments in consolidated subsidiaries 2,667 619 — (3,286 ) — Deferred income tax assets — 18 69 — 87 Other long-term assets — third parties 15 48 19 — 82 — related parties 1,752 16 — (1,752 ) 16 Total assets $ 4,822 $ 7,043 $ 1,902 $ (5,487 ) $ 8,280 LIABILITIES AND (DEFICIT) EQUITY Current liabilities Current portion of long-term debt $ 21 $ 8 $ 18 $ — $ 47 Short-term borrowings — third parties 337 149 93 — 579 — related parties 20 (71 ) — 51 — Accounts payable — third parties 43 958 505 — 1,506 — related parties 69 322 39 (382 ) 48 Fair value of derivative instruments 19 58 11 (3 ) 85 Accrued expenses and other current liabilities — third parties 95 398 76 — 569 — related parties — 102 10 (112 ) — Deferred income tax liabilities — — — — — Total current liabilities 604 1,924 752 (446 ) 2,834 Long-term debt, net of current portion — third parties 4,223 20 178 — 4,421 — related parties — 1,697 55 (1,752 ) — Deferred income tax liabilities — 87 2 — 89 Accrued postretirement benefits 32 557 231 — 820 Other long-term liabilities 22 143 10 — 175 Total liabilities 4,881 4,428 1,228 (2,198 ) 8,339 Commitments and contingencies Total temporary equity - intercompany — 1,681 — (1,681 ) — Shareholder’s (deficit) equity Common stock — — — — — Additional paid-in capital 1,404 — — — 1,404 (Accumulated deficit) retained earnings (963 ) 1,329 754 (2,083 ) (963 ) Accumulated other comprehensive loss (500 ) (395 ) (80 ) 475 (500 ) Total (deficit) equity of our common shareholder (59 ) 934 674 (1,608 ) (59 ) Noncontrolling interests — — — — — Total (deficit) equity (59 ) 934 674 (1,608 ) (59 ) Total liabilities and (deficit) equity $ 4,822 $ 7,043 $ 1,902 $ (5,487 ) $ 8,280 |
Condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) Three Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated OPERATING ACTIVITIES Net cash provided (used in) by operating activities $ 80 $ 49 $ (34 ) $ (202 ) $ (107 ) INVESTING ACTIVITIES Capital expenditures (2 ) (38 ) (4 ) — (44 ) (Outflows) proceeds from investment in and advances to affiliates, net (116 ) (105 ) — 223 2 Proceeds (outflows) from settlement of other undesignated derivative instruments, net 14 (11 ) — — 3 Net cash used in investing activities (104 ) (154 ) (4 ) 223 (39 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties — 70 17 — 87 Principal payments of long-term and short-term borrowings — third parties (6 ) (49 ) (17 ) — (72 ) Revolving credit facilities and other, net — third parties (75 ) 106 4 — 35 — related parties 107 116 — (223 ) — Dividends, noncontrolling interest and intercompany — (202 ) — 202 — Net cash provided by financing activities 26 41 4 (21 ) 50 Net increase (decrease) in cash and cash equivalents 2 (64 ) (34 ) — (96 ) Effect of exchange rate changes on cash — — (3 ) — (3 ) Cash and cash equivalents — beginning of period 2 301 253 — 556 Cash and cash equivalents — end of period $ 4 $ 237 $ 216 $ — $ 457 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Eliminations Consolidated OPERATING ACTIVITIES Net cash used in operating activities $ (111 ) $ (69 ) $ (108 ) $ — $ (288 ) INVESTING ACTIVITIES Capital expenditures — (120 ) (9 ) — (129 ) Proceeds (outflows) from investment in and advances to affiliates, net 16 (1 ) (45 ) 29 (1 ) (Outflows) proceeds from settlement of other undesignated derivative instruments, net (11 ) 3 1 — (7 ) Net cash provided by (used in) investing activities 5 (118 ) (53 ) 29 (137 ) FINANCING ACTIVITIES Proceeds from issuance of long-term and short-term borrowings — third parties 60 45 34 — 139 Principal payments of long-term and short-term borrowings — third parties (1 ) (60 ) (7 ) — (68 ) — related parties — (45 ) — 45 — Revolving credit facilities and other, net — third parties 12 160 10 — 182 — related parties 45 29 — (74 ) — Debt issuance costs (10 ) — — — (10 ) Net cash provided by financing activities 106 129 37 (29 ) 243 Net decrease in cash and cash equivalents — (58 ) (124 ) — (182 ) Effect of exchange rate changes on cash — 3 7 — 10 Cash and cash equivalents — beginning of period 4 365 259 — 628 Cash and cash equivalents — end of period $ 4 $ 310 $ 142 $ — $ 456 |
Business and Summary of Signi45
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2016USD ($)countrycontinentplant | Jun. 30, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of countries Company operates in | country | 11 | |
Number of continents Company operates in | continent | 4 | |
Number of operating plants | 25 | |
Number of plants with recycling operations | 11 | |
Decrease in other long-term assets resulting from adoption of ASU | $ | $ 27 | $ (30) |
Restructuring and Impairment (R
Restructuring and Impairment (Restructuring Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Total restructuring liabilities | |||
Balance, beginning of period | $ 27 | ||
-Provisions | 2 | ||
-Reversal of expense | 0 | ||
Expenses, net | 2 | ||
Cash payments | (4) | ||
Foreign currency and other | [1] | 2 | |
Balance, end of period | 27 | ||
Other restructuring charges | [2] | 0 | |
Total restructuring charges | 2 | ||
Other impairments | [3] | 0 | |
Total restructuring and impairments, net | $ 2 | $ 15 | |
[1] | This primarily relates to the remeasurement of Brazilian real denominated restructuring liabilities. | ||
[2] | Other restructuring charges include period expenses that were not recorded through the restructuring liability. | ||
[3] | Other impairment charges not related to a restructuring activity. |
Restructuring and Impairment (D
Restructuring and Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2 | ||
Cash payments | (4) | ||
Europe [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | $ 4 | $ 46 |
Cash payments | (2) | (6) | |
Europe [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash payments | (2) | (6) | |
Europe [Member] | Severance [Member] | Corporate Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | 4 | 46 |
South America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | 3 | 79 |
Cash payments | (1) | (5) | |
South America [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash payments | (1) | (2) | |
South America [Member] | Severance [Member] | Ouro Preto Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 2 | 19 |
South America [Member] | Asset Impairments [Member] | Ouro Preto Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 6 |
South America [Member] | Environmental Charges [Member] | Ouro Preto Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | (1) | 22 |
South America [Member] | Contract Termination and Other Exit Related Costs [Member] | Ouro Preto Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | 2 | 11 |
South America [Member] | Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | $ 21 |
Cash payments | 0 | $ (3) | |
Asia [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash payments | $ (1) |
Restructuring and Impairment 48
Restructuring and Impairment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and impairment, net | $ 2 | $ 15 | |
Restructuring liability | 27 | $ 27 | |
Accrued expenses and other current liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities, short-term | 21 | ||
Other long-term liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities, long-term | 6 | ||
Asia [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 1 | ||
Europe [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 3 | ||
South America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 21 | ||
South America [Member] | Non-core Assets [Member] | Other Exit Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 8 | ||
South America [Member] | Non-core Assets [Member] | Environmental Remediation Site [Domain] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 13 | ||
Corporate [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | $ 2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 |
Schedule of inventories | ||
Finished goods | $ 289 | $ 295 |
Work in process | 521 | 416 |
Raw materials | 264 | 322 |
Supplies | 150 | 147 |
Inventories | $ 1,224 | $ 1,180 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 4 | $ 5 |
Gain on assets held for sale | 1 | |
South America [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 4 | |
Ouro Preto, Brazil [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 1 | |
Gain on assets held for sale | $ 1 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 457 | $ 556 | $ 456 | $ 628 |
Inventories | 1,224 | 1,180 | ||
Prepaid expenses and other current assets | 130 | 127 | ||
Total current assets | 3,001 | 2,971 | ||
Property, plant and equipment, net | 3,437 | 3,506 | ||
Goodwill | 607 | 607 | ||
Deferred income taxes | 93 | 87 | ||
Other long-term assets | 89 | 82 | ||
Total assets | 8,221 | 8,280 | ||
Current liabilities | ||||
Accounts payable | 1,447 | 1,506 | ||
Accrued expenses and other current liabilities | 457 | 569 | ||
Total current liabilities | 2,771 | 2,834 | ||
Accrued postretirement benefits | 815 | 820 | ||
Other long–term liabilities | 188 | 175 | ||
Total liabilities | 8,301 | 8,339 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 5 | 3 | ||
Accounts receivable | 38 | 33 | ||
Inventories | 56 | 61 | ||
Prepaid expenses and other current assets | 2 | 2 | ||
Total current assets | 101 | 99 | ||
Property, plant and equipment, net | 20 | 21 | ||
Goodwill | 12 | 12 | ||
Deferred income taxes | 86 | 84 | ||
Other long-term assets | 13 | 8 | ||
Total assets | 232 | 224 | ||
Current liabilities | ||||
Accounts payable | 37 | 30 | ||
Accrued expenses and other current liabilities | 13 | 15 | ||
Total current liabilities | 50 | 45 | ||
Accrued postretirement benefits | 217 | 214 | ||
Other long–term liabilities | 3 | 3 | ||
Total liabilities | $ 270 | $ 262 |
Investment In and Advances to52
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Summary of Results of Operations) (Details) - Equity Method Investments [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of the share of the condensed results of operations of equity method affiliates | ||
Net sales | $ 121 | $ 117 |
Costs and expenses related to net sales | 120 | 118 |
Benefit for taxes on income | (1) | (1) |
Net income | 2 | 0 |
Purchases of tolling services from Alunorf | $ 61 | $ 58 |
Investment In and Advances to53
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Period End Account Balances) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 |
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | $ 57 | $ 59 |
Other long-term assets-related parties | 14 | 16 |
Accounts payable-related parties | 47 | 48 |
Alunorf [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | 57 | 59 |
Other long-term assets-related parties | 14 | 16 |
Accounts payable-related parties | $ 47 | $ 48 |
Investment In and Advances to54
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Details Textual) € in Millions | 3 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||||
Accounts receivable-related parties (less than) | $ 57,000,000 | $ 59,000,000 | ||
Alunorf [Member] | ||||
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||||
Interest income on a loan due from a non-consolidated affiliate (less than) | 1,000,000 | $ 0 | ||
Allowance for loan loss | $ 0 | 0 | ||
Guarantee as percentage of outstanding debt | 50.00% | |||
Maximum exposure for guaranteed obligation | € | € 6 | |||
Outstanding guarantee | $ 0 | |||
Accounts receivable-related parties (less than) | 57,000,000 | $ 59,000,000 | ||
Alunorf [Member] | Supplemental Employee Retirement Plan [Member] | ||||
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||||
Maximum exposure for guaranteed obligation | 2,000,000 | |||
Parent Company [Member] | ||||
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||||
Revenue from related parties (less than) | 1,000,000 | $ 1,000,000 | ||
Accounts receivable-related parties (less than) | 1,000,000 | |||
Purchases from related party | $ 2,000,000 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) SFr in Millions, BRL in Millions, $ in Millions, ₩ in Billions | Jun. 30, 2016USD ($) | Jun. 30, 2016KRW (₩) | Jun. 30, 2016BRL | Jun. 30, 2016CHF (SFr) | Mar. 31, 2016USD ($) | Dec. 17, 2010USD ($) | |
Debt Instrument [Line Items] | |||||||
Long-term debt, Principal | $ 4,461 | $ 4,469 | |||||
Long-term debt, Carrying Value | 4,464 | 4,468 | |||||
Total debt | 5,139 | 5,095 | |||||
Total debt, Unamortized Carrying Value Adjustment | (45) | (48) | |||||
Total debt, carrying value | 5,094 | 5,047 | |||||
Short-term borrowings | (630) | (579) | |||||
Current portion of long-term debt | (48) | (47) | |||||
Long-term debt, net of current portion, Carrying Value | $ 4,416 | 4,421 | |||||
Floating Rate Term Loan Facility, due through June 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 4.00% | 4.00% | 4.00% | 4.00% | ||
Long-term debt, Principal | $ 1,782 | 1,787 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | [2] | (24) | (25) | ||||
Long-term debt, Carrying Value | $ 1,758 | 1,762 | |||||
8.375% Senior Notes, due December 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 8.375% | 8.375% | 8.375% | 8.375% | ||
Long-term debt, Principal | $ 1,100 | 1,100 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | (5) | (6) | |||||
Long-term debt, Carrying Value | $ 1,095 | 1,094 | |||||
Principal amount (in foreign currency) | $ 1,100 | ||||||
8.75% Senior Notes, due December 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 8.75% | 8.75% | 8.75% | 8.75% | ||
Long-term debt, Principal | $ 1,400 | 1,400 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | (14) | (15) | |||||
Long-term debt, Carrying Value | $ 1,386 | 1,385 | |||||
Principal amount (in foreign currency) | $ 1,400 | ||||||
Capital Lease Obligation due through July 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 3.64% | 3.64% | 3.64% | 3.64% | ||
Long-term debt, Principal | $ 4 | 5 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||
Long-term debt, Carrying Value | $ 4 | 5 | |||||
Loans due through September 2020 [Member] | Korea [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 2.66% | 2.66% | 2.66% | 2.66% | ||
Long-term debt, Principal | $ 194 | 195 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||
Long-term debt, Carrying Value | $ 194 | 195 | |||||
Principal amount (in foreign currency) | ₩ | ₩ 0 | ||||||
Capital Lease Obligation, due December 2019 [Member] | Switzerland [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 7.50% | 7.50% | 7.50% | 7.50% | ||
Capital lease obligation, Principal | $ 22 | 23 | |||||
Capital lease obligation, Unamortized Carrying Value Adjustments | [3] | (1) | (1) | ||||
Capital lease obligation, Carrying Value | $ 21 | 22 | |||||
Capital lease obligation, Principal amount (in swiss francs) | SFr | SFr 24 | ||||||
BNDES Loans due through April 2021 [Member] | Brazil [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 5.94% | 5.94% | 5.94% | 5.94% | ||
Long-term debt, Principal | $ 5 | 5 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | [4] | (1) | (1) | ||||
Long-term debt, Carrying Value | $ 4 | 4 | |||||
Principal amount (in foreign currency) | BRL | BRL 18 | ||||||
Other Debt, due through December 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 4.66% | 4.66% | 4.66% | 4.66% | ||
Long-term debt, Principal | $ 2 | 1 | |||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||
Long-term debt, Carrying Value | $ 2 | 1 | |||||
Short term borrowings [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rates | [1] | 2.80% | 2.80% | 2.80% | 2.80% | ||
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | 0 | |||||
Short-term borrowings | $ (630) | $ (579) | |||||
[1] | Interest rates are the fixed or variable rates as specified in the debt instruments (not the effective interest rate) as of June 30, 2016, and therefore, exclude the effects of related interest rate swaps, accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to the debt exchange completed in fiscal 2009 and the series of refinancing transactions and additional borrowings we completed in fiscal 2011 and thereafter. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. | ||||||
[2] | Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value. In connection with a series of refinancing transactions, a portion of the historical fair value adjustments was allocated to the Term Loan Facility, resulting in carrying value adjustments on this debt obligation. The unamortized carrying value also includes issuance discounts from subsequent refinancings. | ||||||
[3] | Debt existing at the time of Hindalco's purchase of Novelis was recorded at fair value resulting in carrying value adjustments to our capital lease obligations in Novelis Switzerland. | ||||||
[4] | The unamortized carrying value includes issuance discounts related to the difference resulting from the contractual rates of interest specified in the instruments that are lower than the market rates of interest upon issuance. |
Debt (Principal Repayments) (De
Debt (Principal Repayments) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 678 | |
2 years | 1,203 | |
3 years | 124 | |
4 years | 22 | |
5 years | 1,421 | |
Thereafter | 1,691 | |
Total debt | $ 5,139 | $ 5,095 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2015 | Oct. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Seven-year Secured Term Loan Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,800,000,000 | ||||
Basis spread on variable rate | 0.75% | ||||
Minimum net leverage ratio | 4 | ||||
Number of days preceding maturity date | 92 days | ||||
Seven-year Secured Term Loan Credit Facility [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | ||||
Basis spread on variable rate | 3.25% | ||||
Four-year Secured Term Loan Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,700,000,000 | ||||
Term Loan Facility [Member] | Seven-year Secured Term Loan Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,800,000,000 | ||||
Debt instrument, term | 7 years | ||||
Debt due within one year | $ 18,000,000 | ||||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | 5 years | |||
Current borrowing capacity | $ 1,200,000,000 | $ 1,200,000,000 | |||
Description of variable rate basis | LIBOR | ||||
Number of days preceding maturity date | 90 days | ||||
Potential additional borrowing capacity | $ 500,000,000 | ||||
Debt covenant, minimum fixed charge coverage ratio | 1.25 | ||||
Debt covenant, minimum amount for excess availability under ABL revolver | $ 110,000,000 | ||||
Debt covenant, percentage applied on lesser of ABL revolver commitment and applicable borrowing base | 12.50% | ||||
Percentage of the lesser of total revolver commitment to applicable borrowing base | 20.00% | ||||
ABL Revolver [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of the lesser of total revolver commitment to applicable borrowing base | 25.00% | ||||
ABL Revolver [Member] | LIBOR [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
ABL Revolver [Member] | LIBOR [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Subordinated Lien Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Subordinated Lien Revolver [Member] | Prime Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Subordinated Lien Revolver [Member] | Prime Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Subordinated Lien Revolver [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | LIBOR | ||||
Subordinated Lien Revolver [Member] | LIBOR [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.50% | ||||
Subordinated Lien Revolver [Member] | LIBOR [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Subordinated Lien Revolver [Member] | 15 - Month Subordinated Secured Revolving Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 150,000,000 |
Debt (Short-Term Borrowings) (D
Debt (Short-Term Borrowings) (Details) ¥ in Millions, $ in Millions, ₫ in Billions, ₩ in Billions | Jun. 30, 2016USD ($) | Jun. 30, 2016KRW (₩) | Jun. 30, 2016VND (₫) | Jun. 30, 2016CNY (¥) | Mar. 31, 2016USD ($) |
Short-term Debt [Line Items] | |||||
Short–term borrowings | $ 630 | $ 579 | |||
ABL Revolver [Member] | |||||
Short-term Debt [Line Items] | |||||
Letters of credit outstanding amount | 11 | ||||
Remaining borrowing capacity | 240 | ||||
Subordinated Lien Revolver [Member] | |||||
Short-term Debt [Line Items] | |||||
Remaining borrowing capacity | 150 | ||||
Revolving Credit Facility [Member] | Korea [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 203 | ₩ 236 | |||
Revolving Credit Facility [Member] | Middle East and Africa [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 40 | ||||
Short-term Loan [Member] | ABL Revolver [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 431 | ||||
Bank Loan Obligations [Member] | Brazil [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 103 | ||||
Bank Loan Obligations [Member] | Korea [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 37 | ₩ 44 | |||
Bank Loan Obligations [Member] | China [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 48 | ¥ 321 | |||
Bank Loan Obligations [Member] | Vietnam [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | 10 | ₫ 230 | |||
Other Debt Obligations [Member] | |||||
Short-term Debt [Line Items] | |||||
Short–term borrowings | $ 1 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) | Dec. 17, 2010USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 100,000,000 |
8.375% Senior Notes, due December 2017 [Member] | |
Debt Instrument [Line Items] | |
Principal amount | $ 1,100,000,000 |
Stated interest rate | 8.375% |
8.75% Senior Notes, due December 2020 [Member] | |
Debt Instrument [Line Items] | |
Principal amount | $ 1,400,000,000 |
Stated interest rate | 8.75% |
Debt (Korean Bank Loans) (Detai
Debt (Korean Bank Loans) (Details) - 3 months ended Jun. 30, 2016 - Korea [Member] $ in Millions, ₩ in Billions | USD ($) | KRW (₩) |
Debt Instrument [Line Items] | ||
Long-term debt, current maturities | $ | $ 18 | |
Korea 91-day CD rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.91% | |
Korea 91-day CD rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.58% | |
Bank Loan Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, current maturities | ₩ | ₩ 21 |
Debt Debt (Brazil BNDES Loans)
Debt Debt (Brazil BNDES Loans) (Details) $ in Millions | Jun. 30, 2016USD ($) |
BNDES Loans due February 2015 through April 2021 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, current maturities | $ 2 |
Debt (Other Long-term Debt) (De
Debt (Other Long-term Debt) (Details) SFr in Millions, $ in Millions | 1 Months Ended | ||
Dec. 31, 2004USD ($) | Dec. 31, 2004CHF (SFr) | Jun. 30, 2016USD ($) | |
Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Other debt, including certain capital lease obligations | $ 2 | ||
Alcan [Member] | |||
Debt Instrument [Line Items] | |||
Capital lease term | 15 years | 15 years | |
Weighted average interest rate | 7.50% | 7.50% | |
Quarterly capital lease payments | $ 1.8 | SFr 1.7 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation by Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Description | 7 | |
Cash payments to settle liabilities | $ 1 | |
2010 LTIP [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Total compensation expense | $ (1) | (7) |
SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Expiration period (years) | 7 years | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 9 months 4 days | |
SARs [Member] | Hindalco SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Number of SARs granted (in shares) | 3,596,564 | |
Unrecognized compensation expense | $ 8 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 10 months 24 days | |
SARs [Member] | Novelis SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Number of SARs granted (in shares) | 1,050,682,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other, Description | 177,743 | |
Unrecognized compensation expense | $ 1 | |
Cash [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Cash payments to settle liabilities | $ 1 | |
RSUs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Vesting period (years) | 3 years | |
Number of RSUs granted (in shares) | 5,280,005 | |
Cash payments to settle liabilities | $ 2 | $ 5 |
Unrecognized compensation expense | $ 4 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 10 months 24 days | |
Minimum [Member] | SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Vesting rate (as a percent) | 25.00% | |
Maximum [Member] | SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Vesting rate (as a percent) | 33.00% |
Postretirement Benefit Plans (C
Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefit Plans [Member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | $ 11 | $ 12 |
Interest cost | 15 | 15 |
Expected return on assets | (16) | (17) |
Amortization — losses, net | 11 | 9 |
Amortization — prior service credit, net | 0 | (1) |
Net periodic benefit cost | 21 | 18 |
Other Benefit Plans [member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | 2 | 1 |
Interest cost | 1 | 1 |
Expected return on assets | 0 | 0 |
Amortization — losses, net | 1 | 1 |
Amortization — prior service credit, net | 0 | (7) |
Net periodic benefit cost | $ 4 | $ (4) |
Postretirement Benefit Plans (E
Postretirement Benefit Plans (Employer Contributions to Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Contributions to employee benefit plans | ||
Funded pension plans | $ 3 | $ 3 |
Unfunded pension plans | 3 | 2 |
Savings and defined contribution pension plans | 6 | 7 |
Total contributions | $ 12 | $ 12 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details Textual) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Expected long-term rate of return on plan assets | 5.40% |
Maximum amortization period of unfunded actuarial liability | 15 years |
Expected additional contribution to funded pension plan | $ 18 |
Expected additional contribution to unfunded pension plan | 9 |
Expected additional contribution to savings and defined contribution plans | $ 17 |
Currency Gains (Included in Oth
Currency Gains (Included in Other (Income) Expense, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Currency (gains) losses included in other income expense | ||
Loss (gain) on remeasurement of monetary assets and liabilities, net | $ 11 | $ (5) |
(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net | (8) | 1 |
Currency losses (gains), net | $ (3) | $ 4 |
Currency Gains (Included in AOC
Currency Gains (Included in AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Mar. 31, 2016 | |
Currency gains included in AOCI, net of tax and Non controlling interests | ||
Cumulative currency translation adjustment — beginning of period | $ (197) | $ (214) |
Effect of changes in exchange rates | (53) | 17 |
Cumulative currency translation adjustment — end of period | $ (250) | $ (197) |
Financial Instruments and Com69
Financial Instruments and Commodity Contracts (Summary of Gross Fair Values of Financial Instruments and Commodity Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | |||
Assets | |||||
Derivative Assets, Current | $ 131 | $ 88 | |||
Derivative Asset, Noncurrent | [1] | 8 | 6 | ||
Liabilities | |||||
Derivative Liabilities, Current | (142) | (85) | |||
Derivative Liabilities, Noncurrent | [1] | (8) | (7) | ||
Net Fair Value Assets/Liabilities | (11) | 2 | |||
Designated as Hedging Instrument [Member] | |||||
Assets | |||||
Derivative Assets, Current | 29 | 25 | |||
Derivative Asset, Noncurrent | [1] | 2 | 5 | ||
Liabilities | |||||
Derivative Liabilities, Current | (34) | (10) | |||
Derivative Liabilities, Noncurrent | [1] | (7) | (6) | ||
Net Fair Value Assets/Liabilities | (10) | 14 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Aluminum Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 0 | 10 | |||
Derivative Asset, Noncurrent | [1] | 0 | 0 | ||
Liabilities | |||||
Derivative Liabilities, Current | (31) | (2) | |||
Derivative Liabilities, Noncurrent | [1] | 0 | 0 | ||
Net Fair Value Assets/Liabilities | (31) | 8 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 29 | 15 | |||
Derivative Asset, Noncurrent | [1] | 2 | 5 | ||
Liabilities | |||||
Derivative Liabilities, Current | (1) | (3) | |||
Derivative Liabilities, Noncurrent | [1] | (4) | (5) | ||
Net Fair Value Assets/Liabilities | 26 | 12 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 0 | 0 | |||
Derivative Asset, Noncurrent | [1] | 0 | 0 | ||
Liabilities | |||||
Derivative Liabilities, Current | (1) | (4) | |||
Derivative Liabilities, Noncurrent | (3) | 0 | [1] | ||
Net Fair Value Assets/Liabilities | (4) | (4) | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | |||||
Assets | |||||
Derivative Assets, Current | 0 | 0 | |||
Derivative Asset, Noncurrent | 0 | [1] | 0 | ||
Liabilities | |||||
Derivative Liabilities, Current | (1) | 0 | |||
Derivative Liabilities, Noncurrent | 0 | [1] | (1) | ||
Net Fair Value Assets/Liabilities | (1) | (1) | |||
Designated as Hedging Instrument [Member] | Net Investment Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 0 | ||||
Derivative Asset, Noncurrent | [1] | 0 | |||
Liabilities | |||||
Derivative Liabilities, Current | (1) | ||||
Derivative Liabilities, Noncurrent | [1] | 0 | |||
Net Fair Value Assets/Liabilities | (1) | ||||
Not Designated as Hedging Instrument [Member] | |||||
Assets | |||||
Derivative Assets, Current | 102 | 63 | |||
Derivative Asset, Noncurrent | [1] | 6 | 1 | ||
Liabilities | |||||
Derivative Liabilities, Current | (108) | (75) | |||
Derivative Liabilities, Noncurrent | [1] | (1) | (1) | ||
Net Fair Value Assets/Liabilities | (1) | (12) | |||
Not Designated as Hedging Instrument [Member] | Aluminum Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 46 | 24 | |||
Derivative Asset, Noncurrent | [1] | 1 | 0 | ||
Liabilities | |||||
Derivative Liabilities, Current | (52) | (26) | |||
Derivative Liabilities, Noncurrent | [1] | (1) | 0 | ||
Net Fair Value Assets/Liabilities | (6) | (2) | |||
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 55 | 39 | |||
Derivative Asset, Noncurrent | [1] | 5 | 0 | ||
Liabilities | |||||
Derivative Liabilities, Current | (51) | (39) | |||
Derivative Liabilities, Noncurrent | [1] | 0 | (1) | ||
Net Fair Value Assets/Liabilities | 9 | (1) | |||
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | |||||
Assets | |||||
Derivative Assets, Current | 1 | 0 | |||
Derivative Asset, Noncurrent | [1] | 0 | 1 | ||
Liabilities | |||||
Derivative Liabilities, Current | (5) | (10) | |||
Derivative Liabilities, Noncurrent | [1] | 0 | 0 | ||
Net Fair Value Assets/Liabilities | $ (4) | $ (9) | |||
[1] | The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. |
Financial Instruments and Com70
Financial Instruments and Commodity Contracts (Summary of Notional Amount) (Details) - Mg Mg in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Aluminum Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 428 | 376 |
Designated as Hedging Instrument [Member] | Aluminum Forward Purchase Contracts [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 1 | 1 |
Designated as Hedging Instrument [Member] | Aluminum Forward Purchase Contracts [Member] | Fair Value Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 1 | |
Designated as Hedging Instrument [Member] | Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 368 | 301 |
Designated as Hedging Instrument [Member] | Aluminum Contracts [Member] | Fair Value Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 1 | 0 |
Not Designated as Hedging Instrument [Member] | Aluminum Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 62 | 76 |
Financial Instruments and Com71
Financial Instruments and Commodity Contracts (Gain (Loss) Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | $ 0 | $ 32 | |
Other Operating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Balance sheet remeasurement currency exchange contract gains (losses) | 8 | (1) | |
Realized losses, net | (10) | (8) | |
Unrealized (losses) gains on other derivative instruments, net | [1] | (7) | 35 |
Total gain (loss) recognized | (9) | 26 | |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (1) | 32 | |
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | [2] | (8) | (6) |
Other Operating Income (Expense) [Member] | Aluminum Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (12) | 31 | |
Other Operating Income (Expense) [Member] | Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 8 | 1 | |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | [3] | $ 3 | $ 0 |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjExMTc0ZmQ0MWIyZjQ2OTViZDY1Nzg4YzhmNDg0ZjIyfFRleHRTZWxlY3Rpb246OTlFMDQ3NDM5NDMyQkU0MTgxQjhCQTMxNjc5OTczQjIM} | ||
[2] | Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts; and ineffectiveness of fair value hedges involving aluminum derivatives. | ||
[3] | Includes amounts related to de-designated electricity swap and natural gas swaps not designated as hedges. |
Financial Instruments and Com72
Financial Instruments and Commodity Contracts (Summary of the Impact on AOCI and Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (13) | $ 44 |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | (9) | (6) |
Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (14) | 45 |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | (9) | (6) |
Cash Flow Hedges [Member] | Aluminum Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (31) | 37 |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | (9) | (6) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 18 | 8 |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | 0 | 0 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (1) | 0 |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | 0 | 0 |
Net Investment Hedges [Member] | Currency Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 1 | (1) |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | $ 0 | $ 0 |
Financial Instruments and Com73
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other (income) expense, net | $ 28 | $ (30) | |
Cost of goods sold | (1,930) | (2,400) | |
Net sales | 2,296 | 2,634 | |
Income (loss) before taxes | 60 | (45) | |
Income tax provision | (36) | (15) | |
Net income (loss) | 24 | (60) | |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Income (loss) before taxes | (2) | 7 | |
Income tax provision | (1) | (4) | |
Net income (loss) | (3) | 3 | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Other (Income) Expense, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other (income) expense, net | [1] | (1) | (1) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of goods sold | [2],[3] | (2) | (2) |
Cash Flow Hedges [Member] | Aluminum Contracts [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of goods sold | [2] | 1 | 13 |
Cash Flow Hedges [Member] | Aluminum Contracts [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net sales | (1) | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Other (Income) Expense, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other (income) expense, net | 1 | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of goods sold | [2] | 0 | (6) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net sales | $ 0 | $ 3 | |
[1] | Includes amounts related to de-designated electricity swap. AOCI related to this swap is amortized to income over the remaining term of the hedged item. | ||
[2] | "Cost of goods sold" is exclusive of depreciation and amortization. | ||
[3] | Includes amounts related to natural gas swaps. |
Financial Instruments and Com74
Financial Instruments and Commodity Contracts (Details Textual) Mg in Thousands, MMBTU in Millions, $ in Millions, ₩ in Billions | 3 Months Ended | |||
Jun. 30, 2016USD ($)MMBTUMg | Jun. 30, 2016KRW (₩)MMBTUMg | Mar. 31, 2016USD ($)MMBTUMg | Mar. 31, 2016KRW (₩)MMBTUMg | |
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | $ (11) | $ 2 | ||
Expected reclassification of losses from AOCI to earnings | 2 | |||
Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | (10) | 14 | ||
Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | $ (1) | $ (12) | ||
Aluminum Forward Purchase Contracts [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Notional amount (in tons) | Mg | 1 | 1 | ||
Aluminum Forward Purchase Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Notional amount (in tons) | Mg | 1 | 1 | 1 | 1 |
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 6 months | |||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Notional amount (in tons) | Mg | 368 | 368 | 301 | 301 |
Aluminum Contracts [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 428 | 428 | 376 | 376 |
Aluminum Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 62 | 62 | 76 | 76 |
Fair value of swap asset (liability) | $ (6) | $ (2) | ||
Aluminum Contracts [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 1 | 1 | 0 | 0 |
Aluminum Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | $ (31) | $ 8 | ||
Foreign Currency Forwards [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 647 | 636 | ||
Fair value of swap asset (liability) | 9 | (1) | ||
Foreign Currency Forwards [Member] | Cash Flow Hedges [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 510 | 601 | ||
Foreign Currency Forwards [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | 26 | 12 | ||
Foreign Currency Forwards [Member] | Net Investment Hedges [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 27 | 36 | ||
Foreign Currency Forwards [Member] | Net Investment Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | (1) | |||
Electricity Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 1 | |||
Fair value of swap asset (liability) | $ 5 | $ (9) | ||
Natural Gas Swaps [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Higher remaining maturity range | 2 years | |||
Natural Gas Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 4 | 4 | 5 | 5 |
Fair value of swap asset (liability) | $ 1 | $ 4 | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 1 | 1 | ||
Fair value of swap asset (liability) | $ (1) | |||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Korea [Member] | Long-term Debt [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 114 | ₩ 133 | 115 | ₩ 133 |
Interest rate swaps, hedged amount | $ 114 | ₩ 133 | ||
Weighted average fixed rate (as a percent) | 2.92% | 2.92% | ||
Interest Rate Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | $ (1) | $ (1) |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | $ (500) | $ (561) | |
Other comprehensive (loss) income before reclassifications | (56) | 69 | |
Amounts reclassified from AOCI | 11 | (2) | |
Other comprehensive income, net of tax | (45) | 67 | |
Balance as of end of period | (545) | (494) | |
Currency Translation [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | (196) | (213) | |
Other comprehensive (loss) income before reclassifications | (52) | 44 | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income, net of tax | (52) | 44 | |
Balance as of end of period | (248) | (169) | |
Cash Flow Hedges [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | [1] | (11) | (63) |
Other comprehensive (loss) income before reclassifications | [1] | (10) | 33 |
Amounts reclassified from AOCI | [1] | 3 | (3) |
Other comprehensive income, net of tax | [1] | (7) | 30 |
Balance as of end of period | [1] | (18) | (33) |
Postretirement Benefit Plans [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | [2] | (293) | (285) |
Other comprehensive (loss) income before reclassifications | [2] | 6 | (8) |
Amounts reclassified from AOCI | [2] | 8 | 1 |
Other comprehensive income, net of tax | [2] | 14 | (7) |
Balance as of end of period | [2] | $ (279) | $ (292) |
[1] | For additional information on our cash flow hedges see Note 11 - Financial Instruments and Commodity Contracts. | ||
[2] | For additional information on our postretirement benefit plans see Note 9 - Postretirement Benefit Plans. |
Fair Value Measurements (Deriva
Fair Value Measurements (Derivative Assets and Liabilities on Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | $ 139 | $ 94 | |
Liabilities | (150) | (92) | |
Derivative Asset, Master Netting Adjustment | [1] | (45) | (31) |
Derivative Liability, Master Netting Adjustment | [1] | 45 | 31 |
Derivative Asset | 94 | 63 | |
Derivative Liability | (105) | (61) | |
Electricity Swaps [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | 1 | ||
Level 2 Instruments [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 139 | 93 | |
Liabilities | (142) | (83) | |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 47 | 34 | |
Liabilities | (84) | (28) | |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 91 | 59 | |
Liabilities | (56) | (49) | |
Level 2 Instruments [Member] | Interest Rate Swaps [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 0 | 0 | |
Liabilities | (1) | (1) | |
Level 2 Instruments [Member] | Energy Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 1 | 0 | |
Liabilities | (1) | (5) | |
Level 3 Instruments [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 0 | 1 | |
Liabilities | (8) | (9) | |
Level 3 Instruments [Member] | Energy Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 0 | 1 | |
Liabilities | $ (8) | $ (9) | |
[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. |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Fair Value Activity for Level 3 Contracts) (Details) - Level 3 Derivative Instruments [Member] $ in Millions | 3 Months Ended | |
Jun. 30, 2016USD ($) | [1] | |
Reconciliation of fair value activity for Level 3 derivative contracts | ||
Balance as of beginning of period | $ (8) | |
Realized/unrealized gain included in earnings | 1 | [2] |
Settlements | (1) | |
Balance as of end of period | $ (8) | |
[1] | Represents net derivative liabilities. | |
[2] | Included in “Other expense (income), net.” |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 |
Assets | ||
Long-term receivables from related parties, carrying value | $ 14 | $ 16 |
Long-term receivables from related parties, fair value | 15 | 17 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | 4,464 | 4,468 |
Total debt - third parties (excluding short term borrowings), fair value | $ 4,697 | $ 4,659 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) | 3 Months Ended |
Jun. 30, 2016USD ($)$ / MWh | |
Level 3 Instruments [Member] | |
Fair Value Measurements [Abstract] | |
Unrealized gains related to financial instruments | $ | $ 2,000,000 |
Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Average forward price (per megawatt hour) | 46 |
Premium over forward prices in nearby observable market (per megawatt hour) | 2 |
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1,000,000 |
Actual swap settlement price (per megawatt hour) | 34 |
Extended Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Average forward price (per megawatt hour) | 45 |
Premium over forward prices in nearby observable market (per megawatt hour) | 2 |
Derivatives, unit per hour | $ | $ 1 |
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1,000,000 |
Actual swap settlement price (per megawatt hour) | 34 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Other Income and Expenses [Abstract] | |||
Foreign currency remeasurement gains, net | [1] | $ 3 | $ (4) |
Loss (gain) on change in fair value of other unrealized derivative instruments, net | [2] | 7 | (35) |
(Gain) loss on change in fair value of other realized derivative instruments, net | [2] | 10 | 8 |
Loss on sale of assets | 4 | 1 | |
Loss on Brazilian tax litigation, net | [3] | 1 | 1 |
Interest income | (3) | (2) | |
Gain on business interruption insurance recovery | [4] | 0 | 5 |
Other, net | (6) | (6) | |
Other expense (income), net | $ 28 | $ (30) | |
[1] | Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” | ||
[2] | See Note 11 - Financial Instruments and Commodity Contracts for further details. | ||
[3] | See Note 16 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. | ||
[4] | Text selection found with no content. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of Canadian statutory tax rates | ||
Pre-tax income (loss) before equity in net loss of non-consolidated affiliates and noncontrolling interests | $ 60 | $ (44) |
Canadian statutory tax rate | 25.00% | 25.00% |
Provision (benefit) at the Canadian statutory rate | $ 15 | $ (11) |
Exchange translation items | 6 | 8 |
Exchange remeasurement of deferred income taxes | 7 | 2 |
Change in valuation allowances | 11 | 21 |
Dividends not subject to tax | (10) | (5) |
Tax rate differences on foreign earnings | 7 | 1 |
Other — net | 0 | (1) |
Income tax provision | $ 36 | $ 15 |
Effective tax rate | 60.00% | (33.00%) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Millions | Jun. 30, 2016USD ($) |
Income Tax Disclosure [Abstract] | |
Net deferred tax liability | $ 18 |
Gross deferred tax assets | 1,200 |
Valuation allowance | 630 |
Decrease in unrecognized tax benefits | $ 15 |
Commitments and Contingencies83
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | ||
Loss Contingencies [Line Items] | ||||
Estimated range of loss, minimum | $ 0 | |||
Estimated range of loss, maximum | 60,000,000 | |||
Environmental Matters | ||||
Accrual for environmental loss contingencies, noncurrent | 18,000,000 | |||
Accrual for environmental loss contingencies | $ 4,000,000 | |||
Brazil Tax and Legal Matters | ||||
Settlement period | 180 months | |||
Loss on Brazilian tax litigation, net | [1] | $ 1,000,000 | $ 1,000,000 | |
Obligation to Repurchase Receivables Sold [Member] | ||||
Other Commitments | ||||
Estimated outstanding repurchase obligations | 21,000,000 | $ 22,000,000 | ||
Liability for repurchase obligation | 0 | |||
Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | 57,000,000 | 64,000,000 | ||
Brazilian Tax Authorities and Other Third Parties [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | [2] | 22,000,000 | 17,000,000 | |
Restructuring Action [Member] | ||||
Environmental Matters | ||||
Accrual for environmental loss contingencies | 14,000,000 | |||
Other long-term liabilities [Member] | ||||
Environmental Matters | ||||
Accrual for environmental loss contingencies, noncurrent | 8,000,000 | 7,000,000 | ||
Other long-term liabilities [Member] | Settlement with Taxing Authority [Member] | Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | [3] | 51,000,000 | 57,000,000 | |
Accrued expenses and other current liabilities [Member] | ||||
Environmental Matters | ||||
Accrual for environmental loss contingencies, current | 10,000,000 | 10,000,000 | ||
Accrued expenses and other current liabilities [Member] | Settlement with Taxing Authority [Member] | Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | [3] | 6,000,000 | 7,000,000 | |
Other long-term assets - third parties [Member] | Settlement with Taxing Authority [Member] | Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Cash deposits | [4] | $ 3,000,000 | $ 2,000,000 | |
[1] | See Note 16 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. | |||
[2] | In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. | |||
[3] | The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying condensed consolidated balance sheets. | |||
[4] | We have maintained these cash deposits as a result of legal proceedings with Brazil's tax authorities. These deposits, which are included in “Other long-term assets — third parties” in our accompanying condensed consolidated balance sheets, will be expended toward these legal proceedings. |
(Selected Segment Financial Inf
(Selected Segment Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | $ 475 | $ 488 | |
Total assets | 8,221 | 8,280 | |
Sales Revenue, Goods, Net, Third Party | 2,296 | $ 2,634 | |
Sales Revenue, Goods, Net, Intersegment | 0 | 0 | |
Net sales | 2,296 | 2,634 | |
Depreciation and amortization | 89 | 87 | |
Income tax provision | 36 | 15 | |
Capital expenditures | 44 | 129 | |
Operating Segments [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 2,379 | 2,370 | |
Sales Revenue, Goods, Net, Third Party | 742 | 886 | |
Sales Revenue, Goods, Net, Intersegment | 1 | 2 | |
Net sales | 743 | 888 | |
Depreciation and amortization | 37 | 35 | |
Income tax provision | (4) | (15) | |
Capital expenditures | 12 | 52 | |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 475 | 488 | |
Total assets | 2,730 | 2,687 | |
Sales Revenue, Goods, Net, Third Party | 755 | 815 | |
Sales Revenue, Goods, Net, Intersegment | 12 | 65 | |
Net sales | 767 | 880 | |
Depreciation and amortization | 27 | 25 | |
Income tax provision | 3 | (6) | |
Capital expenditures | 20 | 56 | |
Operating Segments [Member] | Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 1,493 | 1,516 | |
Sales Revenue, Goods, Net, Third Party | 440 | 533 | |
Sales Revenue, Goods, Net, Intersegment | 4 | 33 | |
Net sales | 444 | 566 | |
Depreciation and amortization | 15 | 16 | |
Income tax provision | 8 | 1 | |
Capital expenditures | 5 | 10 | |
Operating Segments [Member] | South America [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 1,464 | 1,584 | |
Sales Revenue, Goods, Net, Third Party | 304 | 353 | |
Sales Revenue, Goods, Net, Intersegment | 15 | 38 | |
Net sales | 319 | 391 | |
Depreciation and amortization | 16 | 15 | |
Income tax provision | 21 | 17 | |
Capital expenditures | 10 | 8 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 155 | $ 123 | |
Sales Revenue, Goods, Net, Third Party | 55 | 47 | |
Sales Revenue, Goods, Net, Intersegment | (32) | (138) | |
Net sales | 23 | (91) | |
Depreciation and amortization | (6) | (4) | |
Income tax provision | 8 | 18 | |
Capital expenditures | $ (3) | $ 3 |
Segment, Major Customer and M85
Segment, Major Customer and Major Supplier Information (Reconciliation from Segment Income to Consolidated Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Depreciation and amortization | $ (89) | $ (87) | |
Interest expense and amortization of debt issuance costs | (83) | (80) | |
Adjustment to eliminate proportional consolidation | (8) | (7) | |
Unrealized (losses) gains on change in fair value of derivative instruments, net | [1] | (7) | 35 |
Gain on assets held for sale | 1 | 0 | |
Loss on extinguishment of debt | 0 | (13) | |
Restructuring and impairment, net | (2) | (15) | |
Loss on sale of fixed assets | (4) | (1) | |
Other costs, net | (4) | (5) | |
Income (loss) before income taxes | 60 | (45) | |
Income tax provision | 36 | 15 | |
Net income (loss) | 24 | (60) | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to our common shareholder | 24 | (60) | |
Gain (Loss) on Derivative Instruments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Realized gains on derivative instruments not included in segment income | 1 | 1 | |
Intersegment Eliminations [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Gross profit | 0 | (1) | |
Depreciation and amortization | 6 | 4 | |
Income tax provision | 8 | 18 | |
North America [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Gross profit | 86 | 42 | |
Depreciation and amortization | (37) | (35) | |
Income tax provision | (4) | (15) | |
Europe [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Gross profit | 52 | (9) | |
Depreciation and amortization | (27) | (25) | |
Income tax provision | 3 | (6) | |
Asia [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Gross profit | 45 | 36 | |
Depreciation and amortization | (15) | (16) | |
Income tax provision | 8 | 1 | |
South America [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Gross profit | 72 | 59 | |
Depreciation and amortization | (16) | (15) | |
Income tax provision | $ 21 | $ 17 | |
[1] | See Note 11 - Financial Instruments and Commodity Contracts for further details. |
Segment, Major Customer and M86
Segment, Major Customer and Major Supplier Information (Information About Major Customers and Primary Supplier) (Details) | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net Sales [Member] | Rexam [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 17.00% | 18.00% |
Net Sales [Member] | Ball [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 13.00% | 10.00% |
Purchases [Member] | Rio Tinto Alcan [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 11.00% | 14.00% |
Segment, Major Customer and M87
Segment, Major Customer and Major Supplier Information (Details Textual) | 3 Months Ended |
Jun. 30, 2016countryplantFacilitiessegmentCustomers | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 4 |
Number of operating plants | 25 |
Number of plants with recycling operations | 11 |
Number of countries Company operates in | country | 11 |
Number of major customers | Customers | 2 |
North America [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 8 |
Number of fully dedicated recycling facilities | 2 |
Number of plants with recycling operations | 1 |
Number of countries Company operates in | country | 2 |
Number of heat treatment lines | Facilities | 4 |
Europe [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 10 |
Number of fully dedicated recycling facilities | 2 |
Number of plants with recycling operations | 2 |
Number of countries Company operates in | country | 4 |
Number of heat treatment lines | Facilities | 3 |
Asia [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 5 |
Number of plants with recycling operations | 3 |
Number of countries Company operates in | country | 4 |
Number of heat treatment lines | Facilities | 1 |
South America [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 2 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental cash flow information | ||
Interest paid | $ 133 | $ 123 |
Income taxes paid | 28 | $ 10 |
Capital expenditures incurred but not yet paid | 49 | |
Capital Lease Obligations Incurred | $ 1 |
Supplemental Guarantor Inform89
Supplemental Guarantor Information (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental guarantor information statements of operation | ||
Net sales | $ 2,296 | $ 2,634 |
Cost of goods sold (exclusive of depreciation and amortization) | 1,930 | 2,400 |
Selling, general and administrative expenses | 92 | 100 |
Depreciation and amortization | 89 | 87 |
Interest expense and amortization of debt issuance costs | 83 | 80 |
Loss on extinguishment of debt | 0 | 13 |
Gain on assets held for sale, net | (1) | |
Research and development expenses | 13 | 13 |
Restructuring and impairment, net | 2 | 15 |
Equity in net loss of non-consolidated affiliates | 0 | 1 |
Equity in net income of consolidated subsidiaries | 0 | 0 |
Other (income) expense, net | 28 | (30) |
Total expenses | 2,236 | 2,679 |
Income (loss) before income taxes | 60 | (45) |
Income tax provision | 36 | 15 |
Net income (loss) | 24 | (60) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | 24 | (60) |
Comprehensive (loss) income | (21) | 5 |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | (2) |
Comprehensive income attributable to our common shareholder | (21) | 7 |
Parent [Member] | ||
Supplemental guarantor information statements of operation | ||
Net sales | 161 | 166 |
Cost of goods sold (exclusive of depreciation and amortization) | 155 | 177 |
Selling, general and administrative expenses | 1 | (7) |
Depreciation and amortization | 4 | 5 |
Interest expense and amortization of debt issuance costs | 80 | 79 |
Loss on extinguishment of debt | 13 | |
Gain on assets held for sale, net | 0 | |
Research and development expenses | 0 | 0 |
Restructuring and impairment, net | 0 | 9 |
Equity in net loss of non-consolidated affiliates | 0 | |
Equity in net income of consolidated subsidiaries | (68) | (9) |
Other (income) expense, net | (38) | (42) |
Total expenses | 134 | 225 |
Income (loss) before income taxes | 27 | (59) |
Income tax provision | 3 | 1 |
Net income (loss) | 24 | (60) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | 24 | (60) |
Comprehensive (loss) income | (21) | 7 |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive income attributable to our common shareholder | (21) | 7 |
Guarantors [Member] | ||
Supplemental guarantor information statements of operation | ||
Net sales | 1,948 | 2,291 |
Cost of goods sold (exclusive of depreciation and amortization) | 1,651 | 2,099 |
Selling, general and administrative expenses | 74 | 87 |
Depreciation and amortization | 69 | 65 |
Interest expense and amortization of debt issuance costs | 30 | 29 |
Loss on extinguishment of debt | 0 | |
Gain on assets held for sale, net | (1) | |
Research and development expenses | 13 | 13 |
Restructuring and impairment, net | 2 | 5 |
Equity in net loss of non-consolidated affiliates | 1 | |
Equity in net income of consolidated subsidiaries | (21) | (6) |
Other (income) expense, net | 35 | (25) |
Total expenses | 1,852 | 2,268 |
Income (loss) before income taxes | 96 | 23 |
Income tax provision | 25 | 13 |
Net income (loss) | 71 | 10 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | 71 | 10 |
Comprehensive (loss) income | 53 | 45 |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive income attributable to our common shareholder | 53 | 45 |
Non-Guarantors [Member] | ||
Supplemental guarantor information statements of operation | ||
Net sales | 575 | 633 |
Cost of goods sold (exclusive of depreciation and amortization) | 511 | 579 |
Selling, general and administrative expenses | 17 | 20 |
Depreciation and amortization | 16 | 17 |
Interest expense and amortization of debt issuance costs | 3 | 2 |
Loss on extinguishment of debt | 0 | |
Gain on assets held for sale, net | 0 | |
Research and development expenses | 0 | 0 |
Restructuring and impairment, net | 0 | 1 |
Equity in net loss of non-consolidated affiliates | 0 | |
Equity in net income of consolidated subsidiaries | 0 | 0 |
Other (income) expense, net | 1 | 7 |
Total expenses | 548 | 626 |
Income (loss) before income taxes | 27 | 7 |
Income tax provision | 8 | 1 |
Net income (loss) | 19 | 6 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | 19 | 6 |
Comprehensive (loss) income | 8 | (1) |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | (2) |
Comprehensive income attributable to our common shareholder | 8 | 1 |
Eliminations [Member] | ||
Supplemental guarantor information statements of operation | ||
Net sales | (388) | (456) |
Cost of goods sold (exclusive of depreciation and amortization) | (387) | (455) |
Selling, general and administrative expenses | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Interest expense and amortization of debt issuance costs | (30) | (30) |
Loss on extinguishment of debt | 0 | |
Gain on assets held for sale, net | 0 | |
Research and development expenses | 0 | 0 |
Restructuring and impairment, net | 0 | 0 |
Equity in net loss of non-consolidated affiliates | 0 | |
Equity in net income of consolidated subsidiaries | 89 | 15 |
Other (income) expense, net | 30 | 30 |
Total expenses | (298) | (440) |
Income (loss) before income taxes | (90) | (16) |
Income tax provision | 0 | 0 |
Net income (loss) | (90) | (16) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | (90) | (16) |
Comprehensive (loss) income | (61) | (46) |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive income attributable to our common shareholder | $ (61) | $ (46) |
Supplemental Guarantor Inform90
Supplemental Guarantor Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 457 | $ 556 | $ 456 | $ 628 |
Accounts receivable, net of allowances | ||||
— third parties | 998 | 956 | ||
— related parties | 57 | 59 | ||
Inventories | 1,224 | 1,180 | ||
Prepaid expenses and other current assets | 130 | 127 | ||
Fair value of derivative instruments | 131 | 88 | ||
Deferred income tax assets | 0 | |||
Assets held for sale | 4 | 5 | ||
Total current assets | 3,001 | 2,971 | ||
Property, plant and equipment, net | 3,437 | 3,506 | ||
Goodwill | 607 | 607 | ||
Intangible assets, net | 505 | 523 | ||
Investment in and advances to non–consolidated affiliate | 475 | 488 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Deferred income tax assets | 93 | 87 | ||
Other long-term assets | ||||
— third parties | 89 | 82 | ||
— related parties | 14 | 16 | ||
Total assets | 8,221 | 8,280 | ||
Current liabilities | ||||
Current portion of long–term debt | 48 | 47 | ||
Short-term borrowings | ||||
— third parties | 630 | 579 | ||
— related parties | 0 | 0 | ||
Accounts payable | ||||
— third parties | 1,447 | 1,506 | ||
— related parties | 47 | 48 | ||
Fair value of derivative instruments | 142 | 85 | ||
Accrued expenses and other current liabilities | ||||
— third parties | 457 | 569 | ||
— related parties | 0 | 0 | ||
Deferred income tax liabilities | 0 | |||
Total current liabilities | 2,771 | 2,834 | ||
Long-term debt, net of current portion | ||||
— third parties | 4,416 | 4,421 | ||
— related parties | 0 | 0 | ||
Deferred income tax liabilities | 111 | 89 | ||
Accrued postretirement benefits | 815 | 820 | ||
Other long–term liabilities | 188 | 175 | ||
Total liabilities | 8,301 | 8,339 | ||
Commitments and contingencies | ||||
Total temporary equity - intercompany | 0 | 0 | ||
Shareholder’s deficit | ||||
Common stock | 0 | 0 | ||
Additional paid–in capital | 1,404 | 1,404 | ||
(Accumulated deficit) retained earnings | (939) | (963) | ||
Accumulated other comprehensive loss | (545) | (500) | (494) | (561) |
Total deficit of our common shareholder | (80) | (59) | ||
Noncontrolling interests | 0 | 0 | ||
Total deficit | (80) | (59) | ||
Total liabilities and deficit | 8,221 | 8,280 | ||
Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 4 | 2 | 4 | 4 |
Accounts receivable, net of allowances | ||||
— third parties | 27 | 23 | ||
— related parties | 337 | 188 | ||
Inventories | 43 | 46 | ||
Prepaid expenses and other current assets | 9 | 5 | ||
Fair value of derivative instruments | 33 | 26 | ||
Deferred income tax assets | 0 | |||
Assets held for sale | 0 | 0 | ||
Total current assets | 453 | 290 | ||
Property, plant and equipment, net | 79 | 81 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 17 | 17 | ||
Investment in and advances to non–consolidated affiliate | 0 | 0 | ||
Investments in consolidated subsidiaries | 2,464 | 2,667 | ||
Deferred income tax assets | 0 | 0 | ||
Other long-term assets | ||||
— third parties | 12 | 15 | ||
— related parties | 1,734 | 1,752 | ||
Total assets | 4,759 | 4,822 | ||
Current liabilities | ||||
Current portion of long–term debt | 22 | 21 | ||
Short-term borrowings | ||||
— third parties | 262 | 337 | ||
— related parties | 127 | 20 | ||
Accounts payable | ||||
— third parties | 28 | 43 | ||
— related parties | 62 | 69 | ||
Fair value of derivative instruments | 34 | 19 | ||
Accrued expenses and other current liabilities | ||||
— third parties | 31 | 95 | ||
— related parties | 0 | 0 | ||
Deferred income tax liabilities | 0 | |||
Total current liabilities | 566 | 604 | ||
Long-term debt, net of current portion | ||||
— third parties | 4,221 | 4,223 | ||
— related parties | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Accrued postretirement benefits | 31 | 32 | ||
Other long–term liabilities | 21 | 22 | ||
Total liabilities | 4,839 | 4,881 | ||
Commitments and contingencies | ||||
Total temporary equity - intercompany | 0 | 0 | ||
Shareholder’s deficit | ||||
Common stock | 0 | 0 | ||
Additional paid–in capital | 1,404 | 1,404 | ||
(Accumulated deficit) retained earnings | (939) | (963) | ||
Accumulated other comprehensive loss | (545) | (500) | ||
Total deficit of our common shareholder | (80) | (59) | ||
Noncontrolling interests | 0 | 0 | ||
Total deficit | (80) | (59) | ||
Total liabilities and deficit | 4,759 | 4,822 | ||
Guarantors [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 237 | 301 | 310 | 365 |
Accounts receivable, net of allowances | ||||
— third parties | 722 | 716 | ||
— related parties | 231 | 139 | ||
Inventories | 918 | 873 | ||
Prepaid expenses and other current assets | 85 | 91 | ||
Fair value of derivative instruments | 89 | 49 | ||
Deferred income tax assets | 0 | |||
Assets held for sale | 4 | 5 | ||
Total current assets | 2,286 | 2,174 | ||
Property, plant and equipment, net | 2,535 | 2,581 | ||
Goodwill | 596 | 596 | ||
Intangible assets, net | 485 | 503 | ||
Investment in and advances to non–consolidated affiliate | 475 | 488 | ||
Investments in consolidated subsidiaries | 629 | 619 | ||
Deferred income tax assets | 23 | 18 | ||
Other long-term assets | ||||
— third parties | 55 | 48 | ||
— related parties | 14 | 16 | ||
Total assets | 7,098 | 7,043 | ||
Current liabilities | ||||
Current portion of long–term debt | 8 | 8 | ||
Short-term borrowings | ||||
— third parties | 272 | 149 | ||
— related parties | 45 | (71) | ||
Accounts payable | ||||
— third parties | 910 | 958 | ||
— related parties | 362 | 322 | ||
Fair value of derivative instruments | 102 | 58 | ||
Accrued expenses and other current liabilities | ||||
— third parties | 351 | 398 | ||
— related parties | 119 | 102 | ||
Deferred income tax liabilities | 0 | |||
Total current liabilities | 2,169 | 1,924 | ||
Long-term debt, net of current portion | ||||
— third parties | 19 | 20 | ||
— related parties | 1,680 | 1,697 | ||
Deferred income tax liabilities | 108 | 87 | ||
Accrued postretirement benefits | 548 | 557 | ||
Other long–term liabilities | 157 | 143 | ||
Total liabilities | 4,681 | 4,428 | ||
Commitments and contingencies | ||||
Total temporary equity - intercompany | 1,681 | 1,681 | ||
Shareholder’s deficit | ||||
Common stock | 0 | 0 | ||
Additional paid–in capital | 0 | 0 | ||
(Accumulated deficit) retained earnings | 1,149 | 1,329 | ||
Accumulated other comprehensive loss | (413) | (395) | ||
Total deficit of our common shareholder | 736 | 934 | ||
Noncontrolling interests | 0 | 0 | ||
Total deficit | 736 | 934 | ||
Total liabilities and deficit | 7,098 | 7,043 | ||
Non-Guarantors [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 216 | 253 | 142 | 259 |
Accounts receivable, net of allowances | ||||
— third parties | 249 | 217 | ||
— related parties | 181 | 175 | ||
Inventories | 267 | 264 | ||
Prepaid expenses and other current assets | 36 | 31 | ||
Fair value of derivative instruments | 13 | 16 | ||
Deferred income tax assets | 0 | |||
Assets held for sale | 0 | 0 | ||
Total current assets | 962 | 956 | ||
Property, plant and equipment, net | 823 | 844 | ||
Goodwill | 11 | 11 | ||
Intangible assets, net | 3 | 3 | ||
Investment in and advances to non–consolidated affiliate | 0 | 0 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Deferred income tax assets | 70 | 69 | ||
Other long-term assets | ||||
— third parties | 22 | 19 | ||
— related parties | 0 | 0 | ||
Total assets | 1,891 | 1,902 | ||
Current liabilities | ||||
Current portion of long–term debt | 18 | 18 | ||
Short-term borrowings | ||||
— third parties | 96 | 93 | ||
— related parties | 0 | 0 | ||
Accounts payable | ||||
— third parties | 509 | 505 | ||
— related parties | 14 | 39 | ||
Fair value of derivative instruments | 10 | 11 | ||
Accrued expenses and other current liabilities | ||||
— third parties | 75 | 76 | ||
— related parties | 10 | 10 | ||
Deferred income tax liabilities | 0 | |||
Total current liabilities | 732 | 752 | ||
Long-term debt, net of current portion | ||||
— third parties | 176 | 178 | ||
— related parties | 54 | 55 | ||
Deferred income tax liabilities | 3 | 2 | ||
Accrued postretirement benefits | 236 | 231 | ||
Other long–term liabilities | 10 | 10 | ||
Total liabilities | 1,211 | 1,228 | ||
Commitments and contingencies | ||||
Total temporary equity - intercompany | 0 | 0 | ||
Shareholder’s deficit | ||||
Common stock | 0 | 0 | ||
Additional paid–in capital | 0 | 0 | ||
(Accumulated deficit) retained earnings | 771 | 754 | ||
Accumulated other comprehensive loss | (91) | (80) | ||
Total deficit of our common shareholder | 680 | 674 | ||
Noncontrolling interests | 0 | 0 | ||
Total deficit | 680 | 674 | ||
Total liabilities and deficit | 1,891 | 1,902 | ||
Eliminations [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net of allowances | ||||
— third parties | 0 | 0 | ||
— related parties | (692) | (443) | ||
Inventories | (4) | (3) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Fair value of derivative instruments | (4) | (3) | ||
Deferred income tax assets | 0 | |||
Assets held for sale | 0 | 0 | ||
Total current assets | (700) | (449) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Investment in and advances to non–consolidated affiliate | 0 | 0 | ||
Investments in consolidated subsidiaries | (3,093) | (3,286) | ||
Deferred income tax assets | 0 | 0 | ||
Other long-term assets | ||||
— third parties | 0 | 0 | ||
— related parties | (1,734) | (1,752) | ||
Total assets | (5,527) | (5,487) | ||
Current liabilities | ||||
Current portion of long–term debt | 0 | 0 | ||
Short-term borrowings | ||||
— third parties | 0 | 0 | ||
— related parties | (172) | 51 | ||
Accounts payable | ||||
— third parties | 0 | 0 | ||
— related parties | (391) | (382) | ||
Fair value of derivative instruments | (4) | (3) | ||
Accrued expenses and other current liabilities | ||||
— third parties | 0 | 0 | ||
— related parties | (129) | (112) | ||
Deferred income tax liabilities | 0 | |||
Total current liabilities | (696) | (446) | ||
Long-term debt, net of current portion | ||||
— third parties | 0 | 0 | ||
— related parties | (1,734) | (1,752) | ||
Deferred income tax liabilities | 0 | 0 | ||
Accrued postretirement benefits | 0 | 0 | ||
Other long–term liabilities | 0 | 0 | ||
Total liabilities | (2,430) | (2,198) | ||
Commitments and contingencies | ||||
Total temporary equity - intercompany | (1,681) | (1,681) | ||
Shareholder’s deficit | ||||
Common stock | 0 | 0 | ||
Additional paid–in capital | 0 | 0 | ||
(Accumulated deficit) retained earnings | (1,920) | (2,083) | ||
Accumulated other comprehensive loss | 504 | 475 | ||
Total deficit of our common shareholder | (1,416) | (1,608) | ||
Noncontrolling interests | 0 | 0 | ||
Total deficit | (1,416) | (1,608) | ||
Total liabilities and deficit | $ (5,527) | $ (5,487) |
Supplemental Guarantor Inform91
Supplemental Guarantor Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net cash provided (used in) by operating activities | $ (107) | $ (288) |
INVESTING ACTIVITIES | ||
Capital expenditures | (44) | (129) |
(Outflows) proceeds from investment in and advances to affiliates, net | 2 | (1) |
Proceeds (outflows) from settlement of other undesignated derivative instruments, net | 3 | (7) |
Net cash used in investing activities | (39) | (137) |
Proceeds from issuance of long-term and short-term borrowings | ||
— third parties | 87 | 139 |
Principal payments of long-term and short-term borrowings | ||
— third parties | (72) | (68) |
— related parties | 0 | |
Revolving credit facilities and other, net | ||
— third parties | 35 | 182 |
— related parties | 0 | 0 |
Dividends, noncontrolling interest and intercompany | 0 | |
Debt issuance costs | 0 | (10) |
Net cash provided by financing activities | 50 | 243 |
Net increase (decrease) in cash and cash equivalents | (96) | (182) |
Effect of exchange rate changes on cash | (3) | 10 |
Cash and cash equivalents — beginning of period | 556 | 628 |
Cash and cash equivalents — end of period | 457 | 456 |
Parent [Member] | ||
OPERATING ACTIVITIES | ||
Net cash provided (used in) by operating activities | 80 | (111) |
INVESTING ACTIVITIES | ||
Capital expenditures | (2) | 0 |
(Outflows) proceeds from investment in and advances to affiliates, net | (116) | 16 |
Proceeds (outflows) from settlement of other undesignated derivative instruments, net | 14 | (11) |
Net cash used in investing activities | (104) | 5 |
Proceeds from issuance of long-term and short-term borrowings | ||
— third parties | 0 | 60 |
Principal payments of long-term and short-term borrowings | ||
— third parties | (6) | (1) |
— related parties | 0 | |
Revolving credit facilities and other, net | ||
— third parties | (75) | 12 |
— related parties | 107 | 45 |
Dividends, noncontrolling interest and intercompany | 0 | |
Debt issuance costs | (10) | |
Net cash provided by financing activities | 26 | 106 |
Net increase (decrease) in cash and cash equivalents | 2 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and cash equivalents — beginning of period | 2 | 4 |
Cash and cash equivalents — end of period | 4 | 4 |
Guarantors [Member] | ||
OPERATING ACTIVITIES | ||
Net cash provided (used in) by operating activities | 49 | (69) |
INVESTING ACTIVITIES | ||
Capital expenditures | (38) | (120) |
(Outflows) proceeds from investment in and advances to affiliates, net | (105) | (1) |
Proceeds (outflows) from settlement of other undesignated derivative instruments, net | (11) | 3 |
Net cash used in investing activities | (154) | (118) |
Proceeds from issuance of long-term and short-term borrowings | ||
— third parties | 70 | 45 |
Principal payments of long-term and short-term borrowings | ||
— third parties | (49) | (60) |
— related parties | (45) | |
Revolving credit facilities and other, net | ||
— third parties | 106 | 160 |
— related parties | 116 | 29 |
Dividends, noncontrolling interest and intercompany | (202) | |
Debt issuance costs | 0 | |
Net cash provided by financing activities | 41 | 129 |
Net increase (decrease) in cash and cash equivalents | (64) | (58) |
Effect of exchange rate changes on cash | 0 | 3 |
Cash and cash equivalents — beginning of period | 301 | 365 |
Cash and cash equivalents — end of period | 237 | 310 |
Non-Guarantors [Member] | ||
OPERATING ACTIVITIES | ||
Net cash provided (used in) by operating activities | (34) | (108) |
INVESTING ACTIVITIES | ||
Capital expenditures | (4) | (9) |
(Outflows) proceeds from investment in and advances to affiliates, net | 0 | (45) |
Proceeds (outflows) from settlement of other undesignated derivative instruments, net | 0 | 1 |
Net cash used in investing activities | (4) | (53) |
Proceeds from issuance of long-term and short-term borrowings | ||
— third parties | 17 | 34 |
Principal payments of long-term and short-term borrowings | ||
— third parties | (17) | (7) |
— related parties | 0 | |
Revolving credit facilities and other, net | ||
— third parties | 4 | 10 |
— related parties | 0 | 0 |
Dividends, noncontrolling interest and intercompany | 0 | |
Debt issuance costs | 0 | |
Net cash provided by financing activities | 4 | 37 |
Net increase (decrease) in cash and cash equivalents | (34) | (124) |
Effect of exchange rate changes on cash | (3) | 7 |
Cash and cash equivalents — beginning of period | 253 | 259 |
Cash and cash equivalents — end of period | 216 | 142 |
Eliminations [Member] | ||
OPERATING ACTIVITIES | ||
Net cash provided (used in) by operating activities | (202) | 0 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
(Outflows) proceeds from investment in and advances to affiliates, net | 223 | 29 |
Proceeds (outflows) from settlement of other undesignated derivative instruments, net | 0 | 0 |
Net cash used in investing activities | 223 | 29 |
Proceeds from issuance of long-term and short-term borrowings | ||
— third parties | 0 | 0 |
Principal payments of long-term and short-term borrowings | ||
— third parties | 0 | 0 |
— related parties | 45 | |
Revolving credit facilities and other, net | ||
— third parties | 0 | 0 |
— related parties | (223) | (74) |
Dividends, noncontrolling interest and intercompany | 202 | |
Debt issuance costs | 0 | |
Net cash provided by financing activities | (21) | (29) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 |
Cash and cash equivalents — end of period | $ 0 | $ 0 |