Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
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, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 2,669 | $ 2,296 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,261 | 1,930 |
Selling, general and administrative expenses | 106 | 92 |
Depreciation and amortization | 90 | 89 |
Interest expense and amortization of debt issuance costs | 64 | 83 |
Research and development expenses | 15 | 13 |
Gain on assets held for sale | 0 | 1 |
Restructuring and impairment, net | 1 | 2 |
Other (income) expense, net | (12) | 28 |
Total expenses | 2,525 | 2,236 |
Income before income taxes | 144 | 60 |
Income tax provision | 43 | 36 |
Net income | 101 | 24 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to our common shareholder | $ 101 | $ 24 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 101 | $ 24 |
Other comprehensive income (loss): | ||
Currency translation adjustment | 63 | (53) |
Net change in fair value of effective portion of cash flow hedges | 44 | (11) |
Net change in pension and other benefits | (5) | 20 |
Other comprehensive income (loss) before income tax effect | 102 | (44) |
Income tax provision related to items of other comprehensive income (loss) | 15 | 1 |
Other comprehensive income (loss), net of tax | 87 | (45) |
Comprehensive income (loss) | 188 | (21) |
Less: Comprehensive loss attributable to noncontrolling interests, net of tax | (1) | 0 |
Comprehensive income (loss) attributable to our common shareholder | $ 189 | $ (21) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 565 | $ 594 |
Accounts receivable, net | ||
— third parties (net of uncollectible accounts of $6 as of June 30, 2017 and March 31, 2017) | 1,188 | 1,067 |
— related parties | 57 | 60 |
Inventories | 1,501 | 1,333 |
Prepaid expenses and other current assets | 134 | 137 |
Fair value of derivative instruments | 74 | 113 |
Assets held for sale | 3 | 3 |
Total current assets | 3,522 | 3,307 |
Property, plant and equipment, net | 3,345 | 3,357 |
Goodwill | 607 | 607 |
Intangible assets, net | 450 | 457 |
Investment in and advances to non–consolidated affiliate | 483 | 451 |
Deferred income tax assets | 76 | 86 |
Other long–term assets | ||
— third parties | 98 | 94 |
— related parties | 10 | 15 |
Total assets | 8,591 | 8,374 |
Current liabilities | ||
Current portion of long–term debt | 145 | 121 |
Short–term borrowings | 362 | 294 |
Accounts payable | ||
— third parties | 1,830 | 1,722 |
— related parties | 50 | 51 |
Fair value of derivative instruments | 68 | 151 |
Accrued expenses and other current liabilities | 480 | 580 |
Total current liabilities | 2,935 | 2,919 |
Long–term debt, net of current portion | 4,407 | 4,437 |
Deferred income tax liabilities | 111 | 98 |
Accrued postretirement benefits | 827 | 799 |
Other long–term liabilities | 200 | 198 |
Total liabilities | 8,480 | 8,451 |
Commitments and contingencies | ||
Shareholder’s equity (deficit) | ||
Common stock, no par value; unlimited number of shares authorized; 1,000 shares issued and outstanding as of June 30, 2017 and March 31, 2017 | 0 | 0 |
Additional paid–in capital | 1,404 | 1,404 |
Accumulated deficit | (817) | (918) |
Accumulated other comprehensive loss | (457) | (545) |
Total equity (deficit) of our common shareholder | 130 | (59) |
Noncontrolling interests | (19) | (18) |
Total equity (deficit) | 111 | (77) |
Total liabilities and equity (deficit) | $ 8,591 | $ 8,374 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | |
Statement of Financial Position [Abstract] | |||
Allowances for accounts receivable | $ 6 | $ 6 | |
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, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 101 | $ 24 |
Adjustments to determine net cash provided by operating activities: | ||
Depreciation and amortization | 90 | 89 |
Gain on unrealized derivatives and other realized derivatives in investing activities, net | (2) | 0 |
Gain on assets held for sale | 0 | (1) |
Loss on sale of assets | 1 | 4 |
Deferred income taxes | 9 | 7 |
Amortization of fair value adjustments, net | 0 | 3 |
Loss on foreign exchange remeasurement of debt | 1 | 0 |
Amortization of debt issuance costs and carrying value adjustments | 5 | 5 |
Other, net | 1 | 0 |
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||
Accounts receivable | (96) | (55) |
Inventories | (137) | (59) |
Accounts payable | 72 | (39) |
Other current assets | 8 | (6) |
Other current liabilities | (105) | (100) |
Other noncurrent assets | (6) | (8) |
Other noncurrent liabilities | 15 | 29 |
Net cash used in operating activities | (45) | (107) |
INVESTING ACTIVITIES | ||
Capital expenditures | (39) | (44) |
Proceeds from sales of assets, third party, net of transaction fees and hedging | 1 | 0 |
Proceeds from investment in and advances to non-consolidated affiliates, net | 6 | 2 |
Proceeds from settlement of other undesignated derivative instruments, net | 1 | 3 |
Net cash used in investing activities | (31) | (39) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of long-term and short-term borrowings | 0 | 87 |
Principal payments of long-term and short-term borrowings | (57) | (72) |
Revolving credit facilities and other, net | 113 | 35 |
Debt issuance costs | (2) | 0 |
Net cash provided by financing activities | 54 | 50 |
Net decrease in cash and cash equivalents | (22) | (96) |
Effect of exchange rate changes on cash | (7) | (3) |
Cash and cash equivalents — beginning of period | 594 | 556 |
Cash and cash equivalents — end of period | $ 565 | $ 457 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Shareholder's Equity (Deficit) (unaudited) - 3 months ended Jun. 30, 2017 - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss (AOCI) [Member] | Non-controlling interests [Member] |
Balance, shares at Mar. 31, 2017 | 1,000 | |||||
Balance at Mar. 31, 2017 | $ (77) | $ 0 | $ 1,404 | $ (918) | $ (545) | $ (18) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 101 | 101 | ||||
Currency translation adjustment included in AOCI | 63 | 63 | 0 | |||
Change in fair value of effective portion of cash flow hedges, net of tax provision of $16 million included in AOCI | 28 | 28 | 0 | |||
Change in pension and other benefits, net of tax benefit of $1 million included in AOCI | (4) | (3) | (1) | |||
Balance, shares at Jun. 30, 2017 | 1,000 | |||||
Balance at Jun. 30, 2017 | $ 111 | $ 0 | $ 1,404 | $ (817) | $ (457) | $ (19) |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Shareholder's Equity (Deficit) (unaudited) (Parenthetical) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Tax provision on change in fair value of cash flow hedges | $ 16 |
Tax benefit 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, 2017 | |
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, 2017 , we had manufacturing operations in ten countries on four continents: North America, South America, Asia and Europe, through 24 operating facilities, including recycling operations in eleven of these plants. The March 31, 2017 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, 2017 filed with the United States Securities and Exchange Commission (SEC) on May 10, 2017 . 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 attributable to our common shareholder " includes our share of Net income 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. Revision of Previously Issued Financial Statements During the preparation of the Form 10-Q for the three months ended June 30, 2017, we identified a misclassification between "Prepaid expenses and other current assets" and “Accrued expenses other current liabilities” accounts that understated these balances for the periods ended March 31, 2017, December 31, 2016, and September 30, 2016 of $26 million , $21 million , and $16 million , respectively. In addition, we identified a misclassification between “Deferred income tax assets” and “Deferred income tax liabilities” of $4 million that understated these balances as of March 31, 2017. We assessed the materiality of the misstatements and concluded that these misstatements were not material to the Company's previously issued financial statements and that amendments of previously filed reports were therefore not required. However, we elected to revise the previously reported amounts in the March 31, 2017 consolidated balance sheet by the amounts above. The referenced prior periods above not presented herein include misstatements that impact the consolidated statements of cash flows and will be revised, as applicable, in future filings. These revisions will impact the “Other current assets” and “Other current liabilities” line items within total “Operating Activities.” However, there is no impact to "Net cash provided by (used in) operating activities" within the consolidated statements of cash flows. Recently Issued Accounting Standards In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This update was issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. An entity may change the terms or conditions of a share-based payment award for many different reasons, and the nature and effect of the change can vary significantly. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective for public business entities for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We will adopt this standard in our first quarter ending June 30, 2018. Adoption of this standard is not expected to have an impact on our consolidated results of operations. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update was issued primarily to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the results of operations and (2) present the other components elsewhere in the results of operations and outside of income from operations if that subtotal is presented. In addition, the new guidance requires entities to disclose the results of operations line items that contain the other components if they are not presented on appropriately described separate lines. The guidance is effective for public business entities for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of this standard and we believe that the adoption of this standard will have an immaterial impact on our consolidated financial position and results of operations. In February 2017, the FASB issued ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), Employee Benefit Plan Master Trust Reporting (“ASU 2017-06”) . This update primarily impacted the reporting by an employee benefit plan (a plan) for its interest in a master trust. The amendments in this update require all plans to disclose (1) their master trust’s other asset and liability balances and (2) the dollar amount of the plan’s interest in each of those balances. The amendments in this update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. Adoption of this standard is not expected to have an impact on our consolidated financial position or results of operations. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets . The amendments in this update include (i) clarification that non-financial assets within the scope of ASC 610-20 may include non-financial assets transferred within a legal entity to a counterparty; (ii) clarification that an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations; and (iii) a requirement for entities to derecognize a distinct non-financial asset or distinct in substance non-financial asset in a partial sale transaction when it does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with ASC 810, and transfers control of the asset in accordance with ASC 606. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. Adoption of this standard is expected to have an immaterial impact on our consolidated financial position and results of operations. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , accounting guidance, which removes Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. Under the simplified model, a goodwill impairment is calculated as the difference between the carrying amount of the reporting unit and its fair value, but not to exceed the carrying amount of goodwill allocated to that reporting unit. Early adoption is permitted. The guidance is effective for public business entities for interim and annual periods beginning after its annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are currently evaluating the impact of this standard and we do not expect the adoption of this standard will have an impact on our consolidated financial position and results of operations. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business (Topic 805) , which provides guidance on evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new guidance amends ASC 805 to provide a more robust framework to use in determining when a set of assets and activities is a business. In addition, the amendments provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We believe that the adoption of this standard will not have an impact on our consolidated financial position and results of operations. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in this update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this standard and we believe that the adoption of this standard will have an immaterial impact on our statement of cash flow. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. The guidance will require the tax effects of intercompany transactions to be recognized currently and will likely impact reporting entities’ effective tax rates. The guidance is effective for annual periods beginning after December 15, 2017, 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The new guidance applies to all entities that are required to present a statement of cash flows under Topic 230 and addresses specific cash flow items to provide clarification and reduce the diversity in presentation of these items. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within that year. Early adoption is permitted. Adoption of this standard is not expected to have any impact on our consolidated financial position and results of operations as our current policies are aligned with this standard. 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 the 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 to 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. 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 these 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. We have begun assessing our contracts and drafting polices to implement the new revenue standards and will be implementing this standard during the first quarter of FY 2019. We have not yet determined the impact of adopting the standard on our consolidated financial statements, nor have we determined whether we will utilize the full retrospective or modified retrospective approach. |
Restructuring and Impairment
Restructuring and Impairment | 3 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT | RESTRUCTURING AND IMPAIRMENT “Restructuring and impairment, net” for the three months ended June 30, 2017 and 2016 was $1 million and $ 2 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, 2017 $ 24 Expenses 1 $ — $ 1 $ — $ 1 Cash payments (1 ) Foreign currency (C) (1 ) Balance as of June 30, 2017 $ 23 (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, 2017 , $16 million of restructuring liabilities was included in "Accrued expenses and other current liabilities" and $8 million was included in "Other long-term liabilities" on our condensed consolidated balance sheet. As of June 30, 2017 , there was an $18 million restructuring liability for the South America segment, $2 million for the Europe segment, $1 million for the North America segment, $1 million for the Asia segment, and $1 million for the Corporate office. As of March 31, 2017 , $16 million of restructuring liabilities was included in "Accrued expenses and other current liabilities" and $8 million was included in "Other long-term liabilities" on our condensed consolidated balance sheet. For additional information on environmental charges see Note 16 – Commitments and Contingencies. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES "Inventories" consist of the following (in millions). June 30, March 31, Finished goods $ 367 $ 389 Work in process 683 576 Raw materials 293 213 Supplies 158 155 Inventories $ 1,501 $ 1,333 |
Assets Held For Sale
Assets Held For Sale | 3 Months Ended |
Jun. 30, 2017 | |
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. During the year ended March 31, 2017, we recorded a $1 million gain from our sale of one hydroelectric power generation facility. The remaining hydroelectric power generation assets have a net book value of $3 million as of June 30, 2017 and March 31, 2017 . These assets continue to be reflected as "Assets held for sale" pending the resolution of certain operating license issues. In March 2016, we made a decision to sell properties in Ouro Preto, Brazil related to the closure of the Ouro Preto smelter facility in South America. "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, 2017 | |
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 $ 2 $ 2 Accounts receivable 19 29 Inventories 66 62 Prepaid expenses and other current assets — 2 Total current assets 87 95 Property, plant and equipment, net 22 25 Goodwill 12 12 Deferred income taxes 91 89 Other long-term assets 38 30 Total assets $ 250 $ 251 Liabilities Current liabilities Accounts payable $ 34 $ 32 Accrued expenses and other current liabilities 14 21 Total current liabilities 48 53 Accrued postretirement benefits 229 224 Other long-term liabilities 3 3 Total liabilities $ 280 $ 280 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 3 Months Ended |
Jun. 30, 2017 | |
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, Aluminum 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 our equity method affiliate and the nature and amounts of significant transactions that 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, 2017 2016 Net sales $ 117 $ 121 Costs and expenses related to net sales 116 120 Benefit for taxes on income — (1 ) Net income $ 1 $ 2 Purchases of tolling services from Alunorf $ 58 $ 61 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 $ 60 Other long-term assets-related parties $ 10 $ 15 Accounts payable-related parties $ 50 $ 51 We earned less than $1 million of interest income on a loan due from Alunorf during each of the years presented in "Other long-term assets-related parties" in the table above. We believe collection of the full receivable from Alunorf is probable; thus no allowance for loan loss was recorded as of June 30, 2017 and March 31, 2017 . 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, 2017 , 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, 2017 , 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, 2017 and 2016 , “Net sales” were less than $1 million between Novelis and Hindalco. As of June 30, 2017 and March 31, 2017 , there were less than $1 million in "Accounts receivable, net - related parties" outstanding related to transactions with Hindalco. During the three months ended June 30, 2017 , Novelis did not purchase any raw materials from Hindalco. There were $2 million of raw material purchases from Hindalco during the three months ended June 30, 2016 . |
Debt
Debt | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in millions). June 30, 2017 March 31, 2017 Interest Rates (A) Principal Unamortized Carrying Value Adjustments Carrying Value Principal Unamortized Carrying Value Adjustments Carrying Value Third party debt: Short-term borrowings 3.33 % $ 362 $ — $ 362 $ 294 $ — $ 294 Novelis Inc. Floating rate Term Loan Facility, due June 2022 3.15 % 1,791 (50 ) (B) 1,741 1,796 (53 ) (B) 1,743 Capital lease obligations, due through March 2019 3.64 % 1 — 1 2 — 2 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (22 ) (B) 1,478 1,500 (23 ) (B) 1,477 6.25% Senior Notes, due August 2024 6.25 % 1,150 (18 ) (B) 1,132 1,150 (19 ) (B) 1,131 Novelis Korea Limited Bank loans, due through September 2020 (KRW 205 billion) 2.55 % 180 — 180 184 — 184 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 16 million) 7.50 % 17 (1 ) (B) 16 17 (1 ) (B) 16 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 11 million) 5.90 % 3 — 3 4 — 4 Other Other debt, due through December 2020 5.13 % 1 — 1 1 — 1 Total debt 5,005 (91 ) 4,914 4,948 (96 ) 4,852 Less: Short term borrowings (362 ) — (362 ) (294 ) — (294 ) Current portion of long term debt (145 ) — (145 ) (121 ) — (121 ) Long-term debt, net of current portion $ 4,498 $ (91 ) $ 4,407 $ 4,533 $ (96 ) $ 4,437 (A) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of June 30, 2017 , and therefore, exclude the effects of related interest rate swaps and accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to refinancing transactions and additional borrowings. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Amounts include unamortized debt issuance costs, fair value adjustments and debt discounts. Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of June 30, 2017 (for our debt denominated in foreign currencies) are as follows (in millions). As of June 30, 2017 Amount Short-term borrowings and current portion of long-term debt due within one year $ 507 2 years 75 3 years 34 4 years 20 5 years 1,719 Thereafter 2,650 Total $ 5,005 Senior Secured Credit Facilities As of June 30, 2017 , the senior secured credit facilities consisted of (i) a 1.8 billion five-year secured term loan credit facility (Term Loan Facility) and (ii) a $1 billion five -year asset based loan facility (ABL Revolver). As of June 30, 2017 , $18 million of the Term Loan Facility is due within one year. The Term Loan Facility matures on June 2, 2022, subject to 0.25% quarterly amortization payments. The loans under the Term Loan Facility accrue interest at LIBOR plus 1.85% . The Term Loan Facility also requires customary mandatory prepayments with excess cash flow, asset sale and condemnation proceeds and proceeds of prohibited indebtedness, all subject to customary exceptions. The Term Loan may be prepaid, in full or in part, at any time at the Company’s election without penalty or premium; provided that any optional prepayment in connection with a repricing amendment or refinancing through the issuance of lower priced debt made within six-months after the earlier of (i) completion of the initial syndication of the Term Loan and (ii) April 13, 2017, will be subject to a 1.00% prepayment premium. The Term Loan Facility allows for additional term loans to be issued in an amount not to exceed $300 million (or its equivalent in other currencies) plus an unlimited amount if, after giving effect to such incurrence on a pro forma basis, the senior secured net leverage ratio does not exceed 3.00 to 1.00 . The lenders under the Term Loan Facility have not committed to provide any such additional term loans. In fiscal 2017, we elected to reduce the capacity of the ABL Revolver from $1.2 billion to $1 billion . The facility is a five -year, senior secured revolver bearing an interest rate of LIBOR plus a spread of 1.50% to 2.00% plus a prime spread of 0.50% to 1.00% based on excess availability. The ABL Revolver has a provision that allows the facility to be increased by an additional $500 million . The ABL Revolver has various customary covenants including maintaining a minimum fixed charge coverage ratio of 1.25 to 1 if excess availability is less than the greater of (1) $110 million and (2) 12.5% of the lesser of (a) the maximum size of the ABL Revolver and (b) the borrowing base. The fixed charge coverage ratio will be equal to the ratio of (1) (a) ABL Revolver defined Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") less (b) maintenance capital expenditures less (c) cash taxes; to (2) (a) interest expense plus (b) scheduled principal payments plus (c) dividends to the Company's direct holding company to pay certain taxes, operating expenses and management fees and repurchases of equity interests from employees, officers and directors. The ABL Revolver matures on October 6, 2019; provided that, in the event that any of the Notes, the Term Loan Facility, or certain other indebtedness are outstanding (and not refinanced with a maturity date later than April 6, 2020) 90 days prior to their respective maturity dates, then the ABL Revolver will mature 90 days prior to the maturity date for the Notes, the Term Loan Facility or such other indebtedness, as applicable; unless excess availability under the ABL Revolver is at least (i) 25% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base and (ii) 20% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base, and a minimum fixed charged ratio test of at least 1.25 to 1 is met. The senior secured credit facilities contain various affirmative covenants, including covenants with respect to our financial statements, litigation and other reporting requirements, insurance, payment of taxes, employee benefits and (subject to certain limitations) causing new subsidiaries to pledge collateral and guaranty our obligations. The senior secured credit facilities also include various customary negative covenants and events of default, including limitations on our ability to (1) make certain restricted payments, (2) incur additional indebtedness, (3) sell certain assets, (4) enter into sale and leaseback transactions, (5) make investments, loans and advances, (6) pay dividends or returns of capital and distributions beyond certain amounts, (7) engage in mergers, amalgamations or consolidations, (8) engage in certain transactions with affiliates, and (9) prepay certain indebtedness. The Term Loan Credit Agreement also contains a financial maintenance covenant, prohibiting the Company's senior secured net leverage ratio as of the last day of each fiscal quarter period and measured on a rolling four quarter basis from exceeding 3.50 to 1.00, subject to customary equity cure rights. 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, 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, 2017 , we were in compliance with the covenants in the Term Loan Facility and ABL Revolver. Short-Term Borrowings As of June 30, 2017 , our short-term borrowings were $362 million , consisting of $308 million of short-term loans under our ABL Revolver, $53 million in Novelis China loans (CNY 360 million ), and $1 million of other short-term borrowings. As of June 30, 2017 , $19 million of the ABL Revolver was utilized for letters of credit, and we had $441 million in remaining availability under the ABL Revolver. As of June 30, 2017, we had availability under our Novelis Korea, Novelis Middle East and Africa, and Novelis China revolving credit facilities and credit lines of $207 million (KRW 236 billion ), $20 million , and $3 million (CNY 22 million ), respectively. Senior Notes On August 29, 2016, Novelis Corporation, an indirect wholly owned subsidiary of Novelis Inc., issued $1.15 billion in aggregate principal amount of 6.25% Senior Notes Due 2024 (the 2024 Notes). The 2024 Notes are guaranteed, jointly and severally, on a senior unsecured basis, by Novelis Inc. and certain of its subsidiaries. Additionally, on September 14, 2016, Novelis Corporation issued $1.5 billion in aggregate principal amount of 5.875% Senior Notes Due 2026 (the 2026 Notes, and together with the 2024 Notes, the Notes). The 2026 Notes are guaranteed, jointly and severally, on a senior unsecured basis, by Novelis Inc. and certain of its subsidiaries. The proceeds from the issuance of the 2024 Notes and the 2026 Notes were used to extinguish our 8.375% 2017 Senior Notes and our 8.75% 2020 Senior Notes, respectively. In addition, we paid combined tender offer premiums and issuance costs of $139 million associated with the refinancing transactions, including fees paid to lenders, arrangers, and outside professionals such as attorneys and rating agencies. We recorded a "Loss on extinguishment of debt" of $112 million in the second quarter of fiscal 2017 related to refinancing transactions. We incurred debt issuance costs of $45 million on the Notes which were capitalized and will be amortized as an increase to "Interest expense and amortization of debt issuance costs" over the term of these instruments. 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, 2017 , 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 August 2022 for the 2024 Notes and through September 2024 for the 2026 Notes. Korean Bank Loans As of June 30, 2017 , Novelis Korea had $117 million (KRW 133 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, 2017 there are $2 million of BNDES loans due within one year. Other Long-term debt In December 2004, we entered into a fifteen-year capital lease obligation with Alcan 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 five-year capital lease arrangements to upgrade and expand our information technology infrastructure. As of June 30, 2017 , we had $1 million of other debt, including certain capital lease obligations, with due dates through December 2020. Interest Rate Swaps We use interest rate swaps to manage our exposure to changes in benchmark interest rates which impact our variable-rate debt. See Note 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, 2017 | |
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. The voluntary exchange resulted in 1,054,662 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. During the three months ended June 30, 2017 , we granted 2,567,050 RSUs, 2,317,529 Hindalco SARs, and no Novelis SARs. Total compensation expense (benefit) related to these plans for the respective periods was $5 million and ( $1 million ) for the three months ended June 30, 2017 and 2016 , 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 2019 , 2020 and 2021 have not yet been established, measurement periods for Hindalco 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, 2017 , the outstanding liability related to share-based compensation was $15 million . The cash payments made to settle SAR liabilities were $ 3 million in the three months ended June 30, 2017 and less than $1 million in the three months ended June 30, 2016 . Total cash payments made to settle Hindalco RSUs were $8 million and $2 million in the three months ended June 30, 2017 and 2016 , respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $9 million , which is expected to be recognized over a weighted average period of 1.5 years. Unrecognized compensation expense related to the non-vested Novelis SARs (assuming all future performance criteria are met) was less than $1 million , which is expected to be recognized over a weighted average period of 1.2 years . Unrecognized compensation expense related to the RSUs was $15 million , which will be recognized over the remaining weighted average vesting period of 1.6 years . |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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 and Italy; and (4) partially funded lump sum indemnities in South Korea. Our other postretirement obligations (Other Benefit Plans, 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 for all of our postretirement benefit plans are shown in the table below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ 11 $ 11 $ 2 $ 2 Interest cost 15 15 1 1 Expected return on assets (16 ) (16 ) — — Amortization — losses, net 9 11 1 1 Net periodic benefit cost $ 19 $ 21 $ 4 $ 4 The average expected long-term rate of return on plan assets is 5.2% in fiscal 2018 . Employer Contributions to Plans For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to date, and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., U.K., Canada, Germany, Italy, Switzerland and Brazil. We contributed the following amounts to all plans (in millions). Three Months Ended June 30, 2017 2016 Funded pension plans $ 3 $ 3 Unfunded pension plans 3 3 Savings and defined contribution pension plans 8 6 Total contributions $ 14 $ 12 During the remainder of fiscal 2018 , we expect to contribute an additional $26 million to our funded pension plans, $13 million to our unfunded pension plans and $17 million to our savings and defined contribution plans. |
Currency Losses (Gains)
Currency Losses (Gains) | 3 Months Ended |
Jun. 30, 2017 | |
Foreign Currency [Abstract] | |
CURRENCY GAINS | CURRENCY LOSSES (GAINS) The following currency losses (gains) are included in “ Other (income) expense, net ” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended June 30, 2017 2016 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (29 ) $ 11 Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net 30 (8 ) Currency losses, net $ 1 $ 3 The following currency (losses) gains 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, 2017 Year Ended March 31, 2017 Cumulative currency translation adjustment — beginning of period $ (256 ) $ (197 ) Effect of changes in exchange rates 63 (75 ) Sale of investment in foreign entities (A) — 16 Cumulative currency translation adjustment — end of period $ (193 ) $ (256 ) (A) We reclassified $16 million of cumulative currency losses from AOCI to " Other (income) expense, net "in the twelve months ended March 31, 2017 due to the sale of our equity interest in Aluminum Company of Malaysia Berhad (ALCOM) in fiscal 2017. |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 and March 31, 2017 (in millions). June 30, 2017 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 10 $ — $ (19 ) $ (1 ) $ (10 ) Currency exchange contracts 14 — (3 ) (3 ) 8 Energy contracts — — — (9 ) (9 ) Total derivatives designated as hedging instruments 24 — (22 ) (13 ) (11 ) Derivatives not designated as hedging instruments Aluminum contracts 31 1 (19 ) — 13 Currency exchange contracts 19 — (26 ) — (7 ) Energy contracts — — (1 ) — (1 ) Total derivatives not designated as hedging instruments 50 1 (46 ) — 5 Total derivative fair value $ 74 $ 1 $ (68 ) $ (13 ) $ (6 ) March 31, 2017 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent(A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ — $ — $ (69 ) $ — $ (69 ) Currency exchange contracts 26 1 (1 ) (3 ) 23 Energy contracts 1 — — (9 ) (8 ) Total derivatives designated as hedging instruments 27 1 (70 ) (12 ) (54 ) Derivatives not designated as hedging instruments: Aluminum contracts 57 1 (68 ) (1 ) (11 ) Currency exchange contracts 29 — (13 ) — 16 Total derivatives not designated as hedging instruments 86 1 (81 ) (1 ) 5 Total derivative fair value $ 113 $ 2 $ (151 ) $ (13 ) $ (49 ) (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. 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. We did not have any outstanding aluminum forward purchase contracts designated as fair value hedges as of June 30, 2017 and March 31, 2017 . One kilotonne (kt) is 1,000 metric tonnes. 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. We did not have any outstanding aluminum forward purchase contracts designated as cash flow hedges as of June 30, 2017 and March 31, 2017 . Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year . The following table summarizes our notional amount (in kt). June 30, March 31, Hedge type Purchase (Sale) Cash flow sales (417 ) (391 ) Not designated (101 ) (89 ) Total, net (518 ) (480 ) 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 $418 million and $465 million in outstanding foreign currency forwards designated as cash flow hedges as of June 30, 2017 and March 31, 2017 , respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We did not have any outstanding foreign currency forwards designated as net investment hedges as of June 30, 2017 and March 31, 2017 . As of June 30, 2017 and March 31, 2017 , we had outstanding foreign currency exchange contracts with a total notional amount of $1,136 million and $683 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 2018 and offset the remeasurement impact. Energy We own an interest in an electricity swap contract to hedge our exposure to fluctuating electricity prices. As of June 30, 2017 and March 31, 2017 , there were 1 million of notional megawatt hours outstanding, and the fair value of the swap was a liability of $8 million and $9 million , respectively. The electricity swap, which matures on January 5, 2022, is designated as a cash flow hedge. We use natural gas forward purchase contracts ("forward contracts") to manage our exposure to fluctuating natural gas prices in North America. We had a notional of 15 million MMBTUs designated as cash flow hedges as of June 30, 2017 , and the fair value was a liability of $1 million . There was a notional of 6 million MMBTU forward contracts designated as cash flow hedges as of March 31, 2017 and the fair value was an asset of $1 million . As of June 30, 2017 and March 31, 2017 , we had notionals of 2 million and less than 1 million MMBTU forward contracts that were not designated as hedges, respectively. The fair value as of June 30, 2017 and March 31, 2017 was a liability of less than 1 million for the forward contracts not designated as hedges. The average duration of undesignated contracts is less than 4 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 were not designated as hedges as of June 30, 2017 . As of June 30, 2017 and March 31, 2017 , we had 8 million gallons of diesel fuel forward purchase contracts outstanding, and the fair values were a liability of less than $1 million . The average duration of undesignated contracts is less than 2 years in length. Interest Rate As of June 30, 2017 , we swapped $116 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, 2017 and March 31, 2017 , $116 million ( KRW 133 billion ) and $119 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, 2017 2016 Derivative instruments not designated as hedges Aluminum contracts $ 14 $ (12 ) Currency exchange contracts (38 ) 8 Energy contracts (A) 1 3 Loss recognized in "Other expense (income), net" (23 ) (1 ) Derivative instruments designated as hedges Gain (loss) recognized in "Other expense (income), net" (B) 5 (8 ) Total loss recognized in "Other (income) expense, net" $ (18 ) $ (9 ) Balance sheet remeasurement currency exchange contract (losses) gains $ (30 ) $ 8 Realized losses, net (4 ) (10 ) Unrealized gains (losses) on other derivative instruments, net 16 (7 ) Total loss recognized in "Other (income) expense, net" $ (18 ) $ (9 ) (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 $1 million of gains 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, 2017 2016 2017 2016 Cash flow hedging derivatives Aluminum contracts $ 29 $ (31 ) $ 5 $ (9 ) Currency exchange contracts (11 ) 18 — — Energy contracts (2 ) (1 ) — — Total cash flow hedging derivatives $ 16 $ (14 ) $ 5 $ (9 ) Net investment derivatives Currency exchange contracts — 1 — — Total $ 16 $ (13 ) $ 5 $ (9 ) 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 2017 2016 Energy contracts (A) $ — $ (1 ) Other (income) expense, net Energy contracts (C) (1 ) (2 ) Cost of goods sold (B) Aluminum contracts (32 ) 1 Cost of goods sold (B) Aluminum contracts — (1 ) Net sales Currency exchange contracts 3 — Cost of goods sold (B) Currency exchange contracts 2 — Net sales Currency exchange contracts — 1 Other (income) expense, net Total $ (28 ) $ (2 ) Loss before taxes 10 (1 ) Income tax benefit (provision) $ (18 ) $ (3 ) Net 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, 2017 | |
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, 2017 $ (256 ) $ (46 ) $ (243 ) $ (545 ) Other comprehensive income (loss) before reclassifications 63 10 (10 ) 63 Amounts reclassified from AOCI — 18 7 25 Net current-period other comprehensive income (loss) 63 28 (3 ) 88 Balance as of June 30, 2017 $ (193 ) $ (18 ) $ (246 ) $ (457 ) 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 ) (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, 2017 | |
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 swap, which is our only Level 3 derivative contract, represents an agreement 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, the average forward price at June 30, 2017 , estimated using the method described above, was $39 per megawatt hour, which represented a $1 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, 2017 and March 31, 2017 , 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, 2017 and March 31, 2017 (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, 2017 March 31, 2017 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 42 $ (39 ) $ 58 $ (138 ) Currency exchange contracts 33 (32 ) 56 (17 ) Energy contracts — (2 ) 1 — Total level 2 instruments 75 (73 ) 115 (155 ) Level 3 instruments Energy contracts — (8 ) — (9 ) Total level 3 instruments — (8 ) — (9 ) Total gross $ 75 $ (81 ) $ 115 $ (164 ) Netting adjustment (A) $ (32 ) $ 32 $ (46 ) $ 46 Total net $ 43 $ (49 ) $ 69 $ (118 ) (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. We recognized unrealized gains of $1 million for the three months ended June 30, 2017 related to Level 3 financial instruments that were still held as of June 30, 2017 . These unrealized gains were included in “ Other (income) expense, net .” The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2017 $ (9 ) Unrealized/realized gain included in earnings (B) 1 Unrealized/realized (loss) included in AOCI (C) (1 ) Settlements 1 Balance as of June 30, 2017 $ (8 ) (A) Represents net derivative liabilities. (B) Included in “ Other (income) expense, net .” (C) Included in "Change in fair value of effective portion of cash flow hedges, 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, 2017 March 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 10 $ 10 $ 15 $ 14 Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,552 $ 4,756 $ 4,558 $ 4,797 |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET “Other (income) expense, net” is comprised of the following (in millions). Three Months Ended June 30, 2017 2016 Currency losses, net (A) $ 1 $ 3 Unrealized (gains) losses on change in fair value of derivative instruments, net (B) (16 ) 7 Realized losses on change in fair value of derivative instruments, net (B) 4 10 Loss on sale of assets, net 1 4 Loss on Brazilian tax litigation, net (C) 1 1 Interest income (2 ) (3 ) Other, net (1 ) 6 Other (income) expense, net $ (12 ) $ 28 (A) See Note 10 – Currency Losses (Gains) for further details. (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. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 Pre-tax income before equity in net loss of non-consolidated affiliates and noncontrolling interests $ 144 $ 60 Canadian statutory tax rate 25 % 25 % Provision (benefit) at the Canadian statutory rate $ 36 $ 15 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 3 6 Exchange remeasurement of deferred income taxes (3 ) 7 Change in valuation allowances 2 11 Tax credits (3 ) — Dividends not subject to tax — (10 ) Tax rate differences on foreign earnings 6 7 Uncertain tax positions 2 — Income tax provision $ 43 $ 36 Effective tax rate 30 % 60 % Our effective tax rate differs from the Canadian statutory rate primarily due to the following factors: (1) pre-tax foreign currency gains or losses with no tax effect and the tax effect of U.S. dollar denominated currency gains or losses with no pre-tax effect, which are shown above as exchange translation items; (2) the remeasurement of deferred income taxes due to foreign currency changes, which is shown above as exchange remeasurement of deferred income taxes; (3) changes in valuation allowances; and (4) differences between Canadian and foreign statutory tax rates applied to earnings in foreign jurisdictions and foreign withholding tax expense shown above as tax rate differences on foreign earnings. As of June 30, 2017 , we had a net deferred tax liability of $35 million . This amount included gross deferred tax assets of approximately $1.2 billion and a valuation allowance of $681 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 2005 through 2016 . 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 $16 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2017 | |
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, 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 $125 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, 2017 were approximately $15 million , of which $10 million was included in “Other long-term liabilities” and the remaining $5 million in “Accrued expenses and other current liabilities”. Of the total $15 million , $12 million was associated with restructuring actions and the remaining undiscounted clean-up costs were approximately $3 million . As of March 31, 2017 , $10 million of the environmental liability was included in “Other long-term liabilities,” with the remaining $5 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 $ 3 Short-term settlement liability (B) $ 9 $ 9 Long-term settlement liability (B) 54 59 Total settlement liability $ 63 $ 68 Liability for other disputes and claims (C) $ 26 $ 22 (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, 2017 2016 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 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. We sell certain inventories to third parties and agree to repurchase the same or similar inventory back from the third parties at market prices subsequent to balance sheet dates. Our estimated outstanding repurchase obligations for this inventory as of March 31, 2017 was approximately $12 million based on market prices as of the balance sheet date. We had no outstanding repurchase obligations at June 30, 2017 . However, as of June 30, 2017 and March 31, 2017 , there were no liabilities related to these repurchase obligations recorded in our accompanying condensed consolidated balance sheets. |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 3 Months Ended |
Jun. 30, 2017 | |
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. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including three facilities with recycling operations, in three countries. South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operations, and operates two plants, including a facility with recycling operations, in Brazil. The majority of our power generation operations were sold during the fourth quarter of fiscal 2015. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies see in our Annual Report on Form 10-K for the year ended March 31, 2017 . 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); (o) cumulative effect of accounting change, net of tax; and (p) metal price lag. 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, 2017 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 483 $ — $ — $ — $ 483 Total assets $ 2,372 $ 2,900 $ 1,687 $ 1,542 $ 90 $ 8,591 March 31, 2017 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 451 $ — $ — $ — $ 451 Total assets $ 2,359 $ 2,683 $ 1,602 $ 1,637 $ 93 $ 8,374 Selected Operating Results Three Months Ended June 30, 2017 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 944 $ 810 $ 494 $ 371 $ 50 $ 2,669 Net sales-intersegment 6 11 10 9 (36 ) — Net sales $ 950 $ 821 $ 504 $ 380 $ 14 $ 2,669 Depreciation and amortization $ 38 $ 27 $ 15 $ 16 $ (6 ) $ 90 Income tax (benefit) provision $ 11 $ 7 $ 7 $ 12 $ 6 $ 43 Capital expenditures $ 15 $ 9 $ 4 $ 7 $ 4 $ 39 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 The table below reconciles “ Net income attributable to our common shareholder ” to income from reportable segments for the three months ended June 30, 2017 and 2016 (in millions). Three Months Ended June 30, 2017 2016 Net income attributable to our common shareholder $ 101 $ 24 Noncontrolling interests — — Income tax provision 43 36 Depreciation and amortization 90 89 Interest expense and amortization of debt issuance costs 64 83 Adjustment to eliminate proportional consolidation 8 8 Unrealized (gains) losses on change in fair value of derivative instruments, net (16 ) 7 Realized gains on derivative instruments not included in segment income (1 ) (1 ) Gain on assets held for sale — (1 ) Restructuring and impairment, net 1 2 Loss on sale of fixed assets 1 4 Metal price lag (A) 1 13 Other, net (3 ) 4 Total of reportable segments $ 289 $ 268 (A) Effective in the first quarter of fiscal 2018, management removed the impact of metal price lag from Segment Income in order to enhance the visibility of the underlying operating performance of the Company. The impact of metal price lag is now reported as a separate line item in this reconciliation. This change does not impact our condensed consolidated financial statements. Segment Income for prior periods presented has been updated to reflect this change. For additional information related to metal price lag, see Note 11 - Financial Instruments and Commodity Contracts. “ Adjustment to eliminate proportional consolidation ” relates to depreciation and amortization and income taxes at our Aluminium Norf GmbH (Alunorf) joint venture. Income taxes related to our equity method investments are reflected in the carrying value of the investment and not in our consolidated “Income tax provision.” “ Realized gains on derivative instruments not included in segment income ” represents realized gains (losses) on foreign currency derivatives related to capital expenditures. " Other, net " is related primarily to losses on certain indirect tax expenses in Brazil and interest income. The table below shows income from reportable segments for the three months ended June 30, 2017 and 2016 , respectively. Three Months Ended June 30, 2017 2016 North America $ 116 $ 92 Europe 57 57 Asia 44 46 South America 72 73 Total of reportable segments $ 289 $ 268 Information about Major Customers and Primary Supplier Major Customers The table below shows our net sales to the Affiliates of Ball Corporation (Ball), Ford Motor Company (Ford), and Crown Holdings Incorporated, formerly Crown Cork & Seal Company (Crown), our three largest customers, as a percentage of total “Net sales.” Three Months Ended June 30, 2017 2016 Ball (A) 21 % 30 % (A) Ford 11 % 9 % Crown 10 % 9 % (A) In fiscal 2017 , Ball completed the acquisition of Rexam and the divestiture of certain assets to the Ardagh Group (Ardagh). We combined the sales of Ball and Rexam for presentation purposes. Amounts disclosed for the period ended June 30, 2016 do not include the effects of the divestiture of assets from Ball to Ardagh. For the three months ended June 30, 2017 , combined sales to Ball, Rexam and Ardagh total 29% of “Net sales”. Primary Supplier 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, 2017 2016 Purchases from RT as a percentage of total combined metal purchases 10 % 11 % |
Supplemental Information
Supplemental Information | 3 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION Supplemental cash flow information is as follows (in millions). Three Months Ended June 30, 2017 2016 Supplemental disclosures of cash flow information: Interest paid $ 81 $ 133 Income taxes paid $ 27 $ 28 As of June 30, 2017 , we recorded $40 million of outstanding accounts payable and accrued liabilities related to capital expenditures for which the cash outflows will occur subsequent to June 30, 2017 . During the three months ended June 30, 2017 , we did not incur any capital lease obligations. During the three months ended June 30, 2016, we incurred capital lease obligations of $1 million . |
Business and Summary of Signi27
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 , we had manufacturing operations in ten countries on four continents: North America, South America, Asia and Europe, through 24 operating facilities, including recycling operations in eleven of these plants. The March 31, 2017 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, 2017 filed with the United States Securities and Exchange Commission (SEC) on May 10, 2017 . Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. |
Consolidation Policy | Consolidation Policy Our condensed consolidated financial statements 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 attributable to our common shareholder " includes our share of Net income 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 Issued Accounting Standards | Recently Issued Accounting Standards In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This update was issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. An entity may change the terms or conditions of a share-based payment award for many different reasons, and the nature and effect of the change can vary significantly. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective for public business entities for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We will adopt this standard in our first quarter ending June 30, 2018. Adoption of this standard is not expected to have an impact on our consolidated results of operations. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update was issued primarily to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the results of operations and (2) present the other components elsewhere in the results of operations and outside of income from operations if that subtotal is presented. In addition, the new guidance requires entities to disclose the results of operations line items that contain the other components if they are not presented on appropriately described separate lines. The guidance is effective for public business entities for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of this standard and we believe that the adoption of this standard will have an immaterial impact on our consolidated financial position and results of operations. In February 2017, the FASB issued ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), Employee Benefit Plan Master Trust Reporting (“ASU 2017-06”) . This update primarily impacted the reporting by an employee benefit plan (a plan) for its interest in a master trust. The amendments in this update require all plans to disclose (1) their master trust’s other asset and liability balances and (2) the dollar amount of the plan’s interest in each of those balances. The amendments in this update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. Adoption of this standard is not expected to have an impact on our consolidated financial position or results of operations. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets . The amendments in this update include (i) clarification that non-financial assets within the scope of ASC 610-20 may include non-financial assets transferred within a legal entity to a counterparty; (ii) clarification that an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations; and (iii) a requirement for entities to derecognize a distinct non-financial asset or distinct in substance non-financial asset in a partial sale transaction when it does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with ASC 810, and transfers control of the asset in accordance with ASC 606. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. Adoption of this standard is expected to have an immaterial impact on our consolidated financial position and results of operations. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , accounting guidance, which removes Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. Under the simplified model, a goodwill impairment is calculated as the difference between the carrying amount of the reporting unit and its fair value, but not to exceed the carrying amount of goodwill allocated to that reporting unit. Early adoption is permitted. The guidance is effective for public business entities for interim and annual periods beginning after its annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are currently evaluating the impact of this standard and we do not expect the adoption of this standard will have an impact on our consolidated financial position and results of operations. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business (Topic 805) , which provides guidance on evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new guidance amends ASC 805 to provide a more robust framework to use in determining when a set of assets and activities is a business. In addition, the amendments provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We believe that the adoption of this standard will not have an impact on our consolidated financial position and results of operations. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in this update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this standard and we believe that the adoption of this standard will have an immaterial impact on our statement of cash flow. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. The guidance will require the tax effects of intercompany transactions to be recognized currently and will likely impact reporting entities’ effective tax rates. The guidance is effective for annual periods beginning after December 15, 2017, 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The new guidance applies to all entities that are required to present a statement of cash flows under Topic 230 and addresses specific cash flow items to provide clarification and reduce the diversity in presentation of these items. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within that year. Early adoption is permitted. Adoption of this standard is not expected to have any impact on our consolidated financial position and results of operations as our current policies are aligned with this standard. 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 the 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 to 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. 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 these 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. We have begun assessing our contracts and drafting polices to implement the new revenue standards and will be implementing this standard during the first quarter of FY 2019. We have not yet determined the impact of adopting the standard on our consolidated financial statements, nor have we determined whether we will utilize the full retrospective or modified retrospective approach. |
Restructuring and Impairment (T
Restructuring and Impairment (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ 24 Expenses 1 $ — $ 1 $ — $ 1 Cash payments (1 ) Foreign currency (C) (1 ) Balance as of June 30, 2017 $ 23 (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. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | "Inventories" consist of the following (in millions). June 30, March 31, Finished goods $ 367 $ 389 Work in process 683 576 Raw materials 293 213 Supplies 158 155 Inventories $ 1,501 $ 1,333 |
Consolidation (Tables)
Consolidation (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 $ 2 $ 2 Accounts receivable 19 29 Inventories 66 62 Prepaid expenses and other current assets — 2 Total current assets 87 95 Property, plant and equipment, net 22 25 Goodwill 12 12 Deferred income taxes 91 89 Other long-term assets 38 30 Total assets $ 250 $ 251 Liabilities Current liabilities Accounts payable $ 34 $ 32 Accrued expenses and other current liabilities 14 21 Total current liabilities 48 53 Accrued postretirement benefits 229 224 Other long-term liabilities 3 3 Total liabilities $ 280 $ 280 |
Investment In and Advances to31
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliate and the nature and amounts of significant transactions that 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, 2017 2016 Net sales $ 117 $ 121 Costs and expenses related to net sales 116 120 Benefit for taxes on income — (1 ) Net income $ 1 $ 2 Purchases of tolling services from Alunorf $ 58 $ 61 |
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 $ 60 Other long-term assets-related parties $ 10 $ 15 Accounts payable-related parties $ 50 $ 51 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consisted of the following (in millions). June 30, 2017 March 31, 2017 Interest Rates (A) Principal Unamortized Carrying Value Adjustments Carrying Value Principal Unamortized Carrying Value Adjustments Carrying Value Third party debt: Short-term borrowings 3.33 % $ 362 $ — $ 362 $ 294 $ — $ 294 Novelis Inc. Floating rate Term Loan Facility, due June 2022 3.15 % 1,791 (50 ) (B) 1,741 1,796 (53 ) (B) 1,743 Capital lease obligations, due through March 2019 3.64 % 1 — 1 2 — 2 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (22 ) (B) 1,478 1,500 (23 ) (B) 1,477 6.25% Senior Notes, due August 2024 6.25 % 1,150 (18 ) (B) 1,132 1,150 (19 ) (B) 1,131 Novelis Korea Limited Bank loans, due through September 2020 (KRW 205 billion) 2.55 % 180 — 180 184 — 184 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 16 million) 7.50 % 17 (1 ) (B) 16 17 (1 ) (B) 16 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 11 million) 5.90 % 3 — 3 4 — 4 Other Other debt, due through December 2020 5.13 % 1 — 1 1 — 1 Total debt 5,005 (91 ) 4,914 4,948 (96 ) 4,852 Less: Short term borrowings (362 ) — (362 ) (294 ) — (294 ) Current portion of long term debt (145 ) — (145 ) (121 ) — (121 ) Long-term debt, net of current portion $ 4,498 $ (91 ) $ 4,407 $ 4,533 $ (96 ) $ 4,437 (A) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of June 30, 2017 , and therefore, exclude the effects of related interest rate swaps and accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to refinancing transactions and additional borrowings. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Amounts include unamortized debt issuance costs, fair value adjustments and debt discounts. |
Principal repayment requirements for total debt over the next five years and thereafter | As of June 30, 2017 Amount Short-term borrowings and current portion of long-term debt due within one year $ 507 2 years 75 3 years 34 4 years 20 5 years 1,719 Thereafter 2,650 Total $ 5,005 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ 11 $ 11 $ 2 $ 2 Interest cost 15 15 1 1 Expected return on assets (16 ) (16 ) — — Amortization — losses, net 9 11 1 1 Net periodic benefit cost $ 19 $ 21 $ 4 $ 4 |
Contributions to employee benefit plans | We contributed the following amounts to all plans (in millions). Three Months Ended June 30, 2017 2016 Funded pension plans $ 3 $ 3 Unfunded pension plans 3 3 Savings and defined contribution pension plans 8 6 Total contributions $ 14 $ 12 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in Other (income) expense, net | The following currency losses (gains) are included in “ Other (income) expense, net ” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended June 30, 2017 2016 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (29 ) $ 11 Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net 30 (8 ) Currency losses, net $ 1 $ 3 |
Currency losses included in AOCI, net of tax and noncontrolling interests | The following currency (losses) gains 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, 2017 Year Ended March 31, 2017 Cumulative currency translation adjustment — beginning of period $ (256 ) $ (197 ) Effect of changes in exchange rates 63 (75 ) Sale of investment in foreign entities (A) — 16 Cumulative currency translation adjustment — end of period $ (193 ) $ (256 ) (A) We reclassified $16 million of cumulative currency losses from AOCI to " Other (income) expense, net "in the twelve months ended March 31, 2017 due to the sale of our equity interest in Aluminum Company of Malaysia Berhad (ALCOM) in fiscal 2017. |
Financial Instruments and Com35
Financial Instruments and Commodity Contracts (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of financial instruments and commodity contracts | The following tables summarize the gross fair values of our financial instruments and commodity contracts as of June 30, 2017 and March 31, 2017 (in millions). June 30, 2017 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 10 $ — $ (19 ) $ (1 ) $ (10 ) Currency exchange contracts 14 — (3 ) (3 ) 8 Energy contracts — — — (9 ) (9 ) Total derivatives designated as hedging instruments 24 — (22 ) (13 ) (11 ) Derivatives not designated as hedging instruments Aluminum contracts 31 1 (19 ) — 13 Currency exchange contracts 19 — (26 ) — (7 ) Energy contracts — — (1 ) — (1 ) Total derivatives not designated as hedging instruments 50 1 (46 ) — 5 Total derivative fair value $ 74 $ 1 $ (68 ) $ (13 ) $ (6 ) March 31, 2017 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent(A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ — $ — $ (69 ) $ — $ (69 ) Currency exchange contracts 26 1 (1 ) (3 ) 23 Energy contracts 1 — — (9 ) (8 ) Total derivatives designated as hedging instruments 27 1 (70 ) (12 ) (54 ) Derivatives not designated as hedging instruments: Aluminum contracts 57 1 (68 ) (1 ) (11 ) Currency exchange contracts 29 — (13 ) — 16 Total derivatives not designated as hedging instruments 86 1 (81 ) (1 ) 5 Total derivative fair value $ 113 $ 2 $ (151 ) $ (13 ) $ (49 ) (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. |
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, 2017 2016 Derivative instruments not designated as hedges Aluminum contracts $ 14 $ (12 ) Currency exchange contracts (38 ) 8 Energy contracts (A) 1 3 Loss recognized in "Other expense (income), net" (23 ) (1 ) Derivative instruments designated as hedges Gain (loss) recognized in "Other expense (income), net" (B) 5 (8 ) Total loss recognized in "Other (income) expense, net" $ (18 ) $ (9 ) Balance sheet remeasurement currency exchange contract (losses) gains $ (30 ) $ 8 Realized losses, net (4 ) (10 ) Unrealized gains (losses) on other derivative instruments, net 16 (7 ) Total loss recognized in "Other (income) expense, net" $ (18 ) $ (9 ) (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. |
Summary of notional amount | The following table summarizes our notional amount (in kt). June 30, March 31, Hedge type Purchase (Sale) Cash flow sales (417 ) (391 ) Not designated (101 ) (89 ) Total, net (518 ) (480 ) |
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 $1 million of gains 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, 2017 2016 2017 2016 Cash flow hedging derivatives Aluminum contracts $ 29 $ (31 ) $ 5 $ (9 ) Currency exchange contracts (11 ) 18 — — Energy contracts (2 ) (1 ) — — Total cash flow hedging derivatives $ 16 $ (14 ) $ 5 $ (9 ) Net investment derivatives Currency exchange contracts — 1 — — Total $ 16 $ (13 ) $ 5 $ (9 ) 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 2017 2016 Energy contracts (A) $ — $ (1 ) Other (income) expense, net Energy contracts (C) (1 ) (2 ) Cost of goods sold (B) Aluminum contracts (32 ) 1 Cost of goods sold (B) Aluminum contracts — (1 ) Net sales Currency exchange contracts 3 — Cost of goods sold (B) Currency exchange contracts 2 — Net sales Currency exchange contracts — 1 Other (income) expense, net Total $ (28 ) $ (2 ) Loss before taxes 10 (1 ) Income tax benefit (provision) $ (18 ) $ (3 ) Net 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 Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ (256 ) $ (46 ) $ (243 ) $ (545 ) Other comprehensive income (loss) before reclassifications 63 10 (10 ) 63 Amounts reclassified from AOCI — 18 7 25 Net current-period other comprehensive income (loss) 63 28 (3 ) 88 Balance as of June 30, 2017 $ (193 ) $ (18 ) $ (246 ) $ (457 ) 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 ) (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, 2017 | |
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, 2017 and March 31, 2017 (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, 2017 March 31, 2017 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 42 $ (39 ) $ 58 $ (138 ) Currency exchange contracts 33 (32 ) 56 (17 ) Energy contracts — (2 ) 1 — Total level 2 instruments 75 (73 ) 115 (155 ) Level 3 instruments Energy contracts — (8 ) — (9 ) Total level 3 instruments — (8 ) — (9 ) Total gross $ 75 $ (81 ) $ 115 $ (164 ) Netting adjustment (A) $ (32 ) $ 32 $ (46 ) $ 46 Total net $ 43 $ (49 ) $ 69 $ (118 ) (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, 2017 $ (9 ) Unrealized/realized gain included in earnings (B) 1 Unrealized/realized (loss) included in AOCI (C) (1 ) Settlements 1 Balance as of June 30, 2017 $ (8 ) (A) Represents net derivative liabilities. (B) Included in “ Other (income) expense, net .” (C) Included in "Change in fair value of effective portion of cash flow hedges, 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, 2017 March 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 10 $ 10 $ 15 $ 14 Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,552 $ 4,756 $ 4,558 $ 4,797 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | “Other (income) expense, net” is comprised of the following (in millions). Three Months Ended June 30, 2017 2016 Currency losses, net (A) $ 1 $ 3 Unrealized (gains) losses on change in fair value of derivative instruments, net (B) (16 ) 7 Realized losses on change in fair value of derivative instruments, net (B) 4 10 Loss on sale of assets, net 1 4 Loss on Brazilian tax litigation, net (C) 1 1 Interest income (2 ) (3 ) Other, net (1 ) 6 Other (income) expense, net $ (12 ) $ 28 (A) See Note 10 – Currency Losses (Gains) for further details. (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. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 Pre-tax income before equity in net loss of non-consolidated affiliates and noncontrolling interests $ 144 $ 60 Canadian statutory tax rate 25 % 25 % Provision (benefit) at the Canadian statutory rate $ 36 $ 15 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 3 6 Exchange remeasurement of deferred income taxes (3 ) 7 Change in valuation allowances 2 11 Tax credits (3 ) — Dividends not subject to tax — (10 ) Tax rate differences on foreign earnings 6 7 Uncertain tax positions 2 — Income tax provision $ 43 $ 36 Effective tax rate 30 % 60 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 $ 3 Short-term settlement liability (B) $ 9 $ 9 Long-term settlement liability (B) 54 59 Total settlement liability $ 63 $ 68 Liability for other disputes and claims (C) $ 26 $ 22 (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, 2017 2016 Loss on Brazilian tax litigation, net $ 1 $ 1 |
Segment, Major Customer and M41
Segment, Major Customer and Major Supplier Information (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Selected segment financial information | Selected Segment Financial Information June 30, 2017 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 483 $ — $ — $ — $ 483 Total assets $ 2,372 $ 2,900 $ 1,687 $ 1,542 $ 90 $ 8,591 March 31, 2017 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliate $ — $ 451 $ — $ — $ — $ 451 Total assets $ 2,359 $ 2,683 $ 1,602 $ 1,637 $ 93 $ 8,374 Selected Operating Results Three Months Ended June 30, 2017 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 944 $ 810 $ 494 $ 371 $ 50 $ 2,669 Net sales-intersegment 6 11 10 9 (36 ) — Net sales $ 950 $ 821 $ 504 $ 380 $ 14 $ 2,669 Depreciation and amortization $ 38 $ 27 $ 15 $ 16 $ (6 ) $ 90 Income tax (benefit) provision $ 11 $ 7 $ 7 $ 12 $ 6 $ 43 Capital expenditures $ 15 $ 9 $ 4 $ 7 $ 4 $ 39 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 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The table below reconciles “ Net income attributable to our common shareholder ” to income from reportable segments for the three months ended June 30, 2017 and 2016 (in millions). Three Months Ended June 30, 2017 2016 Net income attributable to our common shareholder $ 101 $ 24 Noncontrolling interests — — Income tax provision 43 36 Depreciation and amortization 90 89 Interest expense and amortization of debt issuance costs 64 83 Adjustment to eliminate proportional consolidation 8 8 Unrealized (gains) losses on change in fair value of derivative instruments, net (16 ) 7 Realized gains on derivative instruments not included in segment income (1 ) (1 ) Gain on assets held for sale — (1 ) Restructuring and impairment, net 1 2 Loss on sale of fixed assets 1 4 Metal price lag (A) 1 13 Other, net (3 ) 4 Total of reportable segments $ 289 $ 268 (A) Effective in the first quarter of fiscal 2018, management removed the impact of metal price lag from Segment Income in order to enhance the visibility of the underlying operating performance of the Company. The impact of metal price lag is now reported as a separate line item in this reconciliation. This change does not impact our condensed consolidated financial statements. Segment Income for prior periods presented has been updated to reflect this change. For additional information related to metal price lag, see Note 11 - Financial Instruments and Commodity Contracts. |
Net sales to largest customers, as a percentage of total Net sales | The table below shows our net sales to the Affiliates of Ball Corporation (Ball), Ford Motor Company (Ford), and Crown Holdings Incorporated, formerly Crown Cork & Seal Company (Crown), our three largest customers, as a percentage of total “Net sales.” Three Months Ended June 30, 2017 2016 Ball (A) 21 % 30 % (A) Ford 11 % 9 % Crown 10 % 9 % (A) In fiscal 2017 , Ball completed the acquisition of Rexam and the divestiture of certain assets to the Ardagh Group (Ardagh). We combined the sales of Ball and Rexam for presentation purposes. Amounts disclosed for the period ended June 30, 2016 do not include the effects of the divestiture of assets from Ball to Ardagh. For the three months ended June 30, 2017 , combined sales to Ball, Rexam and Ardagh total 29% of “Net sales”. |
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, 2017 2016 Purchases from RT as a percentage of total combined metal purchases 10 % 11 % |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information is as follows (in millions). Three Months Ended June 30, 2017 2016 Supplemental disclosures of cash flow information: Interest paid $ 81 $ 133 Income taxes paid $ 27 $ 28 |
Business and Summary of Signi43
Business and Summary of Significant Accounting Policies (Details) $ in Millions | Jun. 30, 2017countrycontinentplant | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Number of countries Company operates in | country | 10 | |||
Number of continents Company operates in | continent | 4 | |||
Number of operating plants | plant | 24 | |||
Number of plants with recycling operations | plant | 11 | |||
Prepaid Expenses And Other Current Assets And Accrued Expenses Other Current Liabilities [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Immaterial error correction amount | $ | $ 26 | $ 21 | $ 16 | |
Deferred Income Tax Assets And Deferred Income Tax Liabilities [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Immaterial error correction amount | $ | $ 4 |
Restructuring and Impairment (R
Restructuring and Impairment (Restructuring Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Total restructuring liabilities | |||
Balance, beginning of period | $ 24 | ||
Expenses | 1 | ||
Cash payments | (1) | ||
Foreign currency | [1] | (1) | |
Balance, end of period | 23 | ||
Other restructuring charges | [2] | 0 | |
Total restructuring charges | 1 | ||
Other impairments | [3] | 0 | |
Total restructuring and impairments, net | $ 1 | $ 2 | |
[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 Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and impairment, net | $ 1 | $ 2 | |
Restructuring liability | 23 | $ 24 | |
Accrued expenses and other current liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities, short-term | 16 | ||
Other long-term liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities, long-term | 8 | ||
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 | 2 | ||
South America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 18 | ||
Corporate [Member] | Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Schedule of inventories | ||
Finished goods | $ 367 | $ 389 |
Work in process | 683 | 576 |
Raw materials | 293 | 213 |
Supplies | 158 | 155 |
Inventories | $ 1,501 | $ 1,333 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held for sale | $ 3 | $ 3 | |
South America [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held for sale | $ 0 | $ 1 | $ 1 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 565 | $ 594 | $ 457 | $ 556 |
Inventories | 1,501 | 1,333 | ||
Prepaid expenses and other current assets | 134 | 137 | ||
Total current assets | 3,522 | 3,307 | ||
Property, plant and equipment, net | 3,345 | 3,357 | ||
Goodwill | 607 | 607 | ||
Deferred income taxes | 76 | 86 | ||
Other long-term assets | 98 | 94 | ||
Total assets | 8,591 | 8,374 | ||
Current liabilities | ||||
Accounts payable | 1,830 | 1,722 | ||
Accrued expenses and other current liabilities | 480 | 580 | ||
Total current liabilities | 2,935 | 2,919 | ||
Accrued postretirement benefits | 827 | 799 | ||
Other long–term liabilities | 200 | 198 | ||
Total liabilities | 8,480 | 8,451 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 2 | 2 | ||
Accounts receivable | 19 | 29 | ||
Inventories | 66 | 62 | ||
Prepaid expenses and other current assets | 0 | 2 | ||
Total current assets | 87 | 95 | ||
Property, plant and equipment, net | 22 | 25 | ||
Goodwill | 12 | 12 | ||
Deferred income taxes | 91 | 89 | ||
Other long-term assets | 38 | 30 | ||
Total assets | 250 | 251 | ||
Current liabilities | ||||
Accounts payable | 34 | 32 | ||
Accrued expenses and other current liabilities | 14 | 21 | ||
Total current liabilities | 48 | 53 | ||
Accrued postretirement benefits | 229 | 224 | ||
Other long–term liabilities | 3 | 3 | ||
Total liabilities | $ 280 | $ 280 |
Investment In and Advances to49
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, 2017 | Jun. 30, 2016 | |
Summary of the share of the condensed results of operations of equity method affiliates | ||
Net sales | $ 117 | $ 121 |
Costs and expenses related to net sales | 116 | 120 |
Benefit for taxes on income | 0 | (1) |
Net income | 1 | 2 |
Purchases of tolling services from Alunorf | $ 58 | $ 61 |
Investment In and Advances to50
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Period End Account Balances) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | $ 57 | $ 60 |
Other long-term assets-related parties | 10 | 15 |
Accounts payable-related parties | 50 | 51 |
Alunorf [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | 57 | 60 |
Other long-term assets-related parties | 10 | 15 |
Accounts payable-related parties | $ 50 | $ 51 |
Investment In and Advances to51
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Details Textual) € in Millions | 3 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017EUR (€) | Mar. 31, 2017USD ($) | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||||
Accounts receivable-related parties (less than) | $ 57,000,000 | $ 60,000,000 | ||
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 | $ 60,000,000 | ||
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 | 2,000,000 | ||
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 | 3 Months Ended | ||||||||
Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017KRW (₩) | Jun. 30, 2017BRL | Jun. 30, 2017CHF (SFr) | Mar. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Mar. 31, 2016USD ($) | ||
Debt Instrument [Line Items] | |||||||||
Capital Lease Obligations Incurred | $ 1 | ||||||||
Long-term debt, Principal | $ 4,498 | $ 4,533 | |||||||
Long-term debt, Carrying Value | 4,552 | 4,558 | |||||||
Total debt | 5,005 | 4,948 | |||||||
Total debt, Unamortized Carrying Value Adjustment | (91) | (96) | |||||||
Total debt, carrying value | 4,914 | 4,852 | |||||||
Short-term borrowings | (362) | (294) | |||||||
Current portion of long-term debt | (145) | (121) | |||||||
Long-term debt, net of current portion, Carrying Value | $ 4,407 | 4,437 | |||||||
Floating Rate Term Loan Facility, due through June 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 3.15% | 3.15% | 3.15% | 3.15% | ||||
Long-term debt, Principal | $ 1,791 | ||||||||
Long-term debt, Unamortized Carrying Value Adjustments | (50) | (53) | |||||||
Long-term debt, Carrying Value | $ 1,741 | $ 1,743 | |||||||
8.375% Senior Notes, due December 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.375% | ||||||||
Seven Point Two Five Percentage Senior Notes Due February Two Zero One Five Member | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.64% | 3.64% | 3.64% | 3.64% | |||||
Long-term debt, Principal | $ 1 | $ 2 | |||||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||||
Capital Lease Obligation due through July 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, Carrying Value | $ 1 | 2 | |||||||
Loans due through September 2020 [Member] | Korea [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 2.55% | 2.55% | 2.55% | 2.55% | ||||
Long-term debt, Principal | $ 180 | 184 | |||||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||||
Long-term debt, Carrying Value | $ 180 | 184 | |||||||
Principal amount (in foreign currency) | ₩ | ₩ 0 | ||||||||
Capital Lease Obligation, due December 2019 [Member] | Switzerland [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 7.50% | 7.50% | 7.50% | 7.50% | ||||
Capital lease obligation, Principal | $ 17 | 17 | |||||||
Capital lease obligation, Unamortized Carrying Value Adjustments | (1) | (1) | |||||||
Capital lease obligation, Carrying Value | $ 16 | 16 | |||||||
Capital lease obligation, Principal amount (in swiss francs) | SFr | SFr 0 | ||||||||
BNDES Loans due through April 2021 [Member] | Brazil [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 5.90% | 5.90% | 5.90% | 5.90% | ||||
Long-term debt, Principal | $ 3 | 4 | |||||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||||
Long-term debt, Carrying Value | $ 3 | 4 | |||||||
Principal amount (in foreign currency) | BRL | BRL 0 | ||||||||
Other Debt, due through December 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 5.13% | 5.13% | 5.13% | 5.13% | ||||
Long-term debt, Principal | $ 1 | 1 | |||||||
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 | |||||||
Long-term debt, Carrying Value | $ 1 | 1 | |||||||
Senior Notes due September 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.875% | 5.875% | 5.875% | 5.875% | |||||
Long-term debt, Principal | $ 1,500 | 1,500 | |||||||
Long-term debt, Unamortized Carrying Value Adjustments | (22) | $ (23) | |||||||
Long-term debt, Carrying Value | $ 1,478 | 1,477 | |||||||
Senior Notes due August 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | 6.25% | 6.25% | 6.25% | |||||
Long-term debt, Principal | $ 1,150 | 1,150 | |||||||
Long-term debt, Unamortized Carrying Value Adjustments | (18) | $ (19) | |||||||
Long-term debt, Carrying Value | $ 1,132 | 1,131 | |||||||
Short term borrowings [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 3.33% | 3.33% | 3.33% | 3.33% | ||||
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | 0 | |||||||
Short-term borrowings | (362) | (294) | |||||||
current portion of long term debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | $ 0 | |||||||
Term Loan Credit Agreement, Due June 2, 2022 [Member] | Secured Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount (in foreign currency) | $ 1,796 | ||||||||
[1] | . |
Debt (Principal Repayments) (De
Debt (Principal Repayments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 507 | |
2 years | 75 | |
3 years | 34 | |
4 years | 20 | |
5 years | 1,719 | |
Thereafter | 2,650 | |
Total debt | $ 5,005 | $ 4,948 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2017USD ($) | Oct. 31, 2014USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016 | Mar. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | $ 4,498,000,000 | $ 4,533,000,000 | |||
Line of Credit Facility, Periodic Payment, Principal | $ 100,000,000 | ||||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum net leverage ratio | 3.50 | ||||
Term Loan Facility [Member] | Seven-year Secured Term Loan Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt due within one year | $ 18,000,000 | ||||
Term Loan Credit Agreement, Due June 2, 2022 [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,796,000,000 | ||||
Debt Instrument, Quarterly Amortization Payment, Percentage | 0.25% | ||||
Debt Instrument, Prepayment Premium, Percentage | 1.00% | ||||
Minimum net leverage ratio | 3 | 1 | |||
Term Loan Credit Agreement, Due June 2, 2022 [Member] | Secured Debt [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Potential additional borrowing capacity | $ 300,000,000 | ||||
Term Loan Credit Agreement, Due June 2, 2022 [Member] | Secured Debt [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.85% | ||||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | 1,200,000,000 | $ 1,000,000,000 | |||
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] | Prime Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
ABL Revolver [Member] | Prime Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
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% |
Debt (Short-Term Borrowings) (D
Debt (Short-Term Borrowings) (Details) ¥ in Millions, $ in Millions, ₩ in Billions | Jun. 30, 2017USD ($) | Jun. 30, 2017KRW (₩) | Jun. 30, 2017CNY (¥) | Mar. 31, 2017USD ($) |
Short-term Debt [Line Items] | ||||
Short–term borrowings | $ 362 | $ 294 | ||
ABL Revolver [Member] | ||||
Short-term Debt [Line Items] | ||||
Letters of credit outstanding amount | 19 | |||
Remaining borrowing capacity | 441 | |||
Revolving Credit Facility [Member] | Korea [Member] | ||||
Short-term Debt [Line Items] | ||||
Short–term borrowings | 207 | ₩ 236 | ||
Revolving Credit Facility [Member] | China [Member] | ||||
Short-term Debt [Line Items] | ||||
Short–term borrowings | 3 | ¥ 22 | ||
Revolving Credit Facility [Member] | Middle East and Africa [Member] | ||||
Short-term Debt [Line Items] | ||||
Short–term borrowings | 20 | |||
Short-term Loan [Member] | ABL Revolver [Member] | ||||
Short-term Debt [Line Items] | ||||
Short–term borrowings | 308 | |||
Bank Loan Obligations [Member] | China [Member] | ||||
Short-term Debt [Line Items] | ||||
Short–term borrowings | 53 | ¥ 360 | ||
Other Debt Obligations [Member] | ||||
Short-term Debt [Line Items] | ||||
Short–term borrowings | $ 1 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) | Dec. 17, 2010 | Sep. 30, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | $ 4,533,000,000 | $ 4,498,000,000 | |||
Debt Instrument, Refinance Premiums and Insurance Costs | 139,000,000 | ||||
Loss on extinguishment of debt | $ 112,000,000 | ||||
Aggregate principal amount | $ 100,000,000 | ||||
Senior Notes due August 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | 1,150,000,000 | $ 1,150,000,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | ||||
Senior Notes due September 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | $ 1,500,000,000 | $ 1,500,000,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 5.875% | ||||
8.375% Senior Notes, due December 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 8.375% | ||||
8.75% Senior Notes, due December 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | [1] | 8.75% | |||
Debt Issuance Costs Incurred [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | $ 45,000,000 | ||||
[1] | . |
Debt (Korean Bank Loans) (Detai
Debt (Korean Bank Loans) (Details) - 3 months ended Jun. 30, 2017 - Korea [Member] $ in Millions, ₩ in Billions | USD ($) | KRW (₩) |
Debt Instrument [Line Items] | ||
Long-term debt, current maturities | $ | $ 117 | |
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 | ₩ | ₩ 133 |
Debt Debt (Brazil BNDES Loans)
Debt Debt (Brazil BNDES Loans) (Details) $ in Millions | Jun. 30, 2017USD ($) |
BNDES Loans due February 2015 through April 2021 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, current maturities | $ 2 |
Capital Lease Obligation, carry
Capital Lease Obligation, carrying value SFr in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2004USD ($) | Dec. 31, 2004CHF (SFr) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Capital Lease Obligations Incurred | $ 1 | |||
Other Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Other debt, including certain capital lease obligations | $ 1 | |||
Alcan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 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, 2017 | Jun. 30, 2016 | |
Share-based Compensation by Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Description | 15 | |
Cash payments to settle liabilities | $ 1 | |
Share-based Compensation Arrangements by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block] | 100 | |
2010 LTIP [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Total compensation expense | $ 5 | (1) |
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 2 months 24 days | |
SARs [Member] | Hindalco SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Number of SARs granted (in shares) | 2,317,529 | |
Unrecognized compensation expense | $ 9 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 5 months 24 days | |
SARs [Member] | Novelis SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Number of SARs granted (in shares) | 1,054,662,000,000 | |
Unrecognized compensation expense | $ 1 | |
Cash [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Cash payments to settle liabilities | $ 3 | |
RSUs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Vesting period (years) | 3 years | |
Number of RSUs granted (in shares) | 2,567,050 | |
Cash payments to settle liabilities | $ 8 | $ 2 |
Unrecognized compensation expense | $ 15 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 7 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, 2017 | Jun. 30, 2016 | |
Pension Benefit Plans [Member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | $ 11 | $ 11 |
Interest cost | 15 | 15 |
Expected return on assets | (16) | (16) |
Amortization — losses, net | 9 | 11 |
Net periodic benefit cost | 19 | 21 |
Other Benefit Plans [member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | 2 | 2 |
Interest cost | 1 | 1 |
Expected return on assets | 0 | 0 |
Amortization — losses, net | 1 | 1 |
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, 2017 | Jun. 30, 2016 | |
Contributions to employee benefit plans | ||
Funded pension plans | $ 3 | $ 3 |
Unfunded pension plans | 3 | 3 |
Savings and defined contribution pension plans | 8 | 6 |
Total contributions | $ 14 | $ 12 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details Textual) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Expected long-term rate of return on plan assets | 5.20% |
Maximum amortization period of unfunded actuarial liability | 15 years |
Expected additional contribution to funded pension plan | $ 26 |
Expected additional contribution to unfunded pension plan | 13 |
Expected additional contribution to savings and defined contribution plans | $ 17 |
Currency Losses (Gains) (Includ
Currency Losses (Gains) (Included in Other (Income) Expense, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Currency (gains) losses included in other income expense | ||
(Gain) loss on remeasurement of monetary assets and liabilities, net | $ (29) | $ 11 |
Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net | 30 | (8) |
Currency losses, net | $ (1) | $ (3) |
Currency Losses (Gains) (Incl65
Currency Losses (Gains) (Included in AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | 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 | $ (256) | $ (197) | |
Effect of changes in exchange rates | 63 | $ (75) | |
Sale of investment in foreign entities | 0 | $ 16 | |
Cumulative currency translation adjustment — end of period | $ (193) |
Financial Instruments and Com66
Financial Instruments and Commodity Contracts (Summary of Gross Fair Values of Financial Instruments and Commodity Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | ||
Assets | ||||
Derivative Assets, Current | $ 74 | $ 113 | ||
Derivative Asset, Noncurrent | [1] | 1 | 2 | |
Liabilities | ||||
Derivative Liabilities, Current | (68) | (151) | ||
Derivative Liabilities, Noncurrent | [1] | (13) | (13) | |
Net Fair Value Assets/Liabilities | (6) | (49) | ||
Designated as Hedging Instrument [Member] | ||||
Assets | ||||
Derivative Assets, Current | 24 | 27 | ||
Derivative Asset, Noncurrent | [1] | 0 | 1 | |
Liabilities | ||||
Derivative Liabilities, Current | (22) | (70) | ||
Derivative Liabilities, Noncurrent | [1] | (13) | (12) | |
Net Fair Value Assets/Liabilities | (11) | (54) | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Aluminum Contracts [Member] | ||||
Assets | ||||
Derivative Assets, Current | 10 | 0 | ||
Derivative Asset, Noncurrent | [1] | 0 | 0 | |
Liabilities | ||||
Derivative Liabilities, Current | (19) | (69) | ||
Derivative Liabilities, Noncurrent | [1] | (1) | 0 | |
Net Fair Value Assets/Liabilities | (10) | (69) | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Assets | ||||
Derivative Assets, Current | 14 | 26 | ||
Derivative Asset, Noncurrent | [1] | 0 | 1 | |
Liabilities | ||||
Derivative Liabilities, Current | (3) | (1) | ||
Derivative Liabilities, Noncurrent | [1] | (3) | (3) | |
Net Fair Value Assets/Liabilities | 8 | 23 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||||
Assets | ||||
Derivative Assets, Current | 0 | 1 | ||
Derivative Asset, Noncurrent | [1] | 0 | 0 | |
Liabilities | ||||
Derivative Liabilities, Current | 0 | 0 | ||
Derivative Liabilities, Noncurrent | (9) | (9) | [1] | |
Net Fair Value Assets/Liabilities | (9) | (8) | ||
Not Designated as Hedging Instrument [Member] | ||||
Assets | ||||
Derivative Assets, Current | 50 | 86 | ||
Derivative Asset, Noncurrent | [1] | 1 | 1 | |
Liabilities | ||||
Derivative Liabilities, Current | (46) | (81) | ||
Derivative Liabilities, Noncurrent | [1] | 0 | (1) | |
Net Fair Value Assets/Liabilities | 5 | 5 | ||
Not Designated as Hedging Instrument [Member] | Aluminum Contracts [Member] | ||||
Assets | ||||
Derivative Assets, Current | 31 | 57 | ||
Derivative Asset, Noncurrent | [1] | 1 | 1 | |
Liabilities | ||||
Derivative Liabilities, Current | (19) | (68) | ||
Derivative Liabilities, Noncurrent | [1] | 0 | (1) | |
Net Fair Value Assets/Liabilities | 13 | (11) | ||
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||||
Assets | ||||
Derivative Assets, Current | 19 | 29 | ||
Derivative Asset, Noncurrent | [1] | 0 | 0 | |
Liabilities | ||||
Derivative Liabilities, Current | (26) | (13) | ||
Derivative Liabilities, Noncurrent | [1] | 0 | 0 | |
Net Fair Value Assets/Liabilities | (7) | $ 16 | ||
Not Designated as Hedging Instrument [Member] | Energy 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) | |||
[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 Com67
Financial Instruments and Commodity Contracts (Summary of Notional Amount) (Details) - Mg Mg in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Aluminum Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 518 | 480 |
Designated as Hedging Instrument [Member] | Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 417 | 391 |
Not Designated as Hedging Instrument [Member] | Aluminum Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 101 | 89 |
Financial Instruments and Com68
Financial Instruments and Commodity Contracts (Gain (Loss) Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | $ 2 | $ 0 |
Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Balance sheet remeasurement currency exchange contract (losses) gains | (30) | 8 |
Realized losses, net | (4) | (10) |
Unrealized gains (losses) on other derivative instruments, net | 16 | (7) |
Total gain (loss) recognized | (18) | (9) |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | (23) | (1) |
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | 5 | (8) |
Other Operating Income (Expense) [Member] | Aluminum Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | 14 | (12) |
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 | (38) | 8 |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | $ 1 | $ 3 |
Financial Instruments and Com69
Financial Instruments and Commodity Contracts (Summary of the Impact on AOCI and Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ 16 | $ (13) |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | 5 | (9) |
Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 16 | (14) |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | 5 | (9) |
Cash Flow Hedges [Member] | Aluminum Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 29 | (31) |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | 5 | (9) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (11) | 18 |
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) | (2) | (1) |
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) | 0 | 1 |
Amount of Gain (Loss) Recognized in “Other Expense (Income), net” (Ineffective and Excluded Portion) | $ 0 | $ 0 |
Financial Instruments and Com70
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income tax benefit (provision) | $ (43) | $ (36) |
Net income | $ 101 | $ 24 |
Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (28) | (2) |
Income tax benefit (provision) | $ 10 | $ (1) |
Net income | $ (18) | $ (3) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Other (Income) Expense, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | (1) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (1) | (2) |
Cash Flow Hedges [Member] | Aluminum Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (32) | 1 |
Cash Flow Hedges [Member] | Aluminum Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | (1) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Other (Income) Expense, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | 1 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 3 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 2 | 0 |
Financial Instruments and Com71
Financial Instruments and Commodity Contracts (Details Textual) Mg in Thousands, MMBTU in Millions, ₩ in Billions | 3 Months Ended | |||
Jun. 30, 2017USD ($)MMBTUMg | Jun. 30, 2017KRW (₩)MMBTUMg | Mar. 31, 2017USD ($)MMBTUMg | Mar. 31, 2017KRW (₩)MMBTUMg | |
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | $ 8,000,000 | |||
Derivative Instruments Not Designated as Hedging Instruments, Purpose | 1 | |||
Fair Value Hedge Assets | $ 8 | $ 9 | ||
Fair value of swap asset (liability) | (6,000,000) | (49,000,000) | ||
Expected reclassification of losses from AOCI to earnings | 1,000,000 | |||
Diesel Fuel Purchase Contract, Fair Value Disclosure | 1,000,000 | |||
Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | (11,000,000) | (54,000,000) | ||
Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | $ 5,000,000 | $ 5,000,000 | ||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative, Remaining Maturity | 1 year | |||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 417 | 417 | 391 | 391 |
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative, Remaining Maturity | 2 years | |||
Aluminum Contracts [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 518 | 518 | 480 | 480 |
Aluminum Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 101 | 101 | 89 | 89 |
Fair value of swap asset (liability) | $ 13,000,000 | $ (11,000,000) | ||
Aluminum Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of swap asset (liability) | (10,000,000) | (69,000,000) | ||
Foreign Currency Forwards [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 1,136,000,000 | 683,000,000 | ||
Fair value of swap asset (liability) | (7,000,000) | 16,000,000 | ||
Foreign Currency Forwards [Member] | Cash Flow Hedges [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Foreign currency, notional amounts | 418,000,000 | 465,000,000 | ||
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) | $ 8,000,000 | $ 23,000,000 | ||
Natural Gas Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 15 | 15 | 6 | 6 |
Fair value of swap asset (liability) | $ 1,000,000 | $ 1,000,000 | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MMBTU | 2 | 2 | 1 | 1 |
Fair value of swap asset (liability) | $ (1,000,000) | |||
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 | 116,000,000 | ₩ 133 | $ 119,000,000 | ₩ 133 |
Interest rate swaps, hedged amount | $ 116,000,000 | ₩ 133 | ||
Weighted average fixed rate (as a percent) | 2.92% | 2.92% |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | $ (545) | $ (500) | |
Other comprehensive income (loss) before reclassifications | 63 | (56) | |
Amounts reclassified from AOCI | 25 | 11 | |
Other comprehensive income, net of tax | 88 | (45) | |
Balance as of end of period | (457) | (545) | |
Currency Translation [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | (256) | (196) | |
Other comprehensive income (loss) before reclassifications | 63 | (52) | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income, net of tax | 63 | (52) | |
Balance as of end of period | (193) | (248) | |
Cash Flow Hedges [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | [1] | (46) | (11) |
Other comprehensive income (loss) before reclassifications | [1] | 10 | (10) |
Amounts reclassified from AOCI | [1] | 18 | 3 |
Other comprehensive income, net of tax | [1] | 28 | (7) |
Balance as of end of period | [1] | (18) | (18) |
Postretirement Benefit Plans [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance as of beginning of period | [2] | (243) | (293) |
Other comprehensive income (loss) before reclassifications | [2] | (10) | 6 |
Amounts reclassified from AOCI | [2] | 7 | 8 |
Other comprehensive income, net of tax | [2] | (3) | 14 |
Balance as of end of period | [2] | $ (246) | $ (279) |
[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 | Jun. 30, 2017 | Mar. 31, 2017 | |
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | $ 75 | $ 115 | |
Liabilities | (81) | (164) | |
Derivative Asset, Master Netting Adjustment | [1] | (32) | (46) |
Derivative Liability, Master Netting Adjustment | [1] | 32 | 46 |
Derivative Asset | 43 | 69 | |
Derivative Liability | (49) | (118) | |
Level 2 Instruments [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 75 | 115 | |
Liabilities | (73) | (155) | |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 42 | 58 | |
Liabilities | (39) | (138) | |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 33 | 56 | |
Liabilities | (32) | (17) | |
Level 2 Instruments [Member] | Energy Contracts [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 0 | 1 | |
Liabilities | (2) | 0 | |
Level 3 Instruments [Member] | |||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | |||
Assets | 0 | 0 | |
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 | 0 | |
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) $ in Millions | 3 Months Ended | |
Jun. 30, 2017USD ($) | [1] | |
Level 3 Derivative Instruments [Member] | ||
Reconciliation of fair value activity for Level 3 derivative contracts | ||
Balance as of beginning of period | $ (9) | |
Realized/unrealized gain included in earnings | 1 | [2] |
Settlements | 1 | |
Balance as of end of period | (8) | |
Accumulated Other Comprehensive Loss (AOCI) [Member] | ||
Reconciliation of fair value activity for Level 3 derivative contracts | ||
Realized/unrealized gain included in earnings | $ (1) | [2] |
[1] | Represents net derivative liabilities. | |
[2] | Included in “Other (income) expense, net.” |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 |
Assets | ||
Long-term receivables from related parties, carrying value | $ 10 | $ 15 |
Long-term receivables from related parties, fair value | 10 | 14 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | 4,552 | 4,558 |
Total debt - third parties (excluding short term borrowings), fair value | $ 4,756 | $ 4,797 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) | 3 Months Ended |
Jun. 30, 2017USD ($)$ / MWh | |
Level 3 Instruments [Member] | |
Fair Value Measurements [Abstract] | |
Unrealized gains related to financial instruments | $ | $ 1,000,000 |
Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Premium over forward prices in nearby observable market (per megawatt hour) | $ / MWh | 39 |
Actual swap settlement price (per megawatt hour) | $ / MWh | 34 |
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1,000,000 |
Extended Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Premium over forward prices in nearby observable market (per megawatt hour) | $ / MWh | 1 |
Derivatives, unit per hour | $ | $ 1 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Other Income and Expenses [Abstract] | |||
Foreign currency remeasurement gains, net | [1] | $ 1 | $ 3 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | [2] | 16 | (7) |
(Gain) loss on change in fair value of other realized derivative instruments, net | [2] | 4 | 10 |
Loss on sale of assets | 1 | 4 | |
Loss on Brazilian tax litigation, net | [3] | 1 | 1 |
Interest income | (2) | (3) | |
Other, net | (1) | 6 | |
Other (income) expense, net | $ (12) | $ 28 | |
[1] | . | ||
[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. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Canadian statutory tax rates | ||
Pre-tax income before equity in net loss of non-consolidated affiliates and noncontrolling interests | $ 144 | $ 60 |
Canadian statutory tax rate | 25.00% | 25.00% |
Provision (benefit) at the Canadian statutory rate | $ 36 | $ 15 |
Exchange translation items | 3 | 6 |
Exchange remeasurement of deferred income taxes | (3) | 7 |
Change in valuation allowances | 2 | 11 |
Tax credits | (3) | 0 |
Dividends not subject to tax | 0 | (10) |
Tax rate differences on foreign earnings | 6 | 7 |
Uncertain tax positions | 2 | 0 |
Income tax provision | $ 43 | $ 36 |
Effective tax rate | 30.00% | 60.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Millions | Jun. 30, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Net deferred tax liability | $ 35 |
Gross deferred tax assets | 1,200 |
Valuation allowance | 681 |
Decrease in unrecognized tax benefits | $ 16 |
Commitments and Contingencies80
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | ||
Environmental Matters | ||||
Accrual for environmental loss contingencies, noncurrent | $ 15,000,000 | |||
Accrual for environmental loss contingencies | $ 3,000,000 | |||
Brazil Tax and Legal Matters | ||||
Settlement period | 180 months | |||
Loss on Brazilian tax litigation, net | [1] | $ 1,000,000 | $ 1,000,000 | |
Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 0 | |||
Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 125,000,000 | |||
Obligation to Repurchase Receivables Sold [Member] | ||||
Other Commitments | ||||
Estimated outstanding repurchase obligations | $ 12,000,000 | |||
Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | 63,000,000 | 68,000,000 | ||
Brazilian Tax Authorities and Other Third Parties [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | 26,000,000 | 22,000,000 | ||
Restructuring Action [Member] | ||||
Environmental Matters | ||||
Accrual for environmental loss contingencies | 12,000,000 | |||
Other long-term liabilities [Member] | ||||
Environmental Matters | ||||
Accrual for environmental loss contingencies, noncurrent | 10,000,000 | 10,000,000 | ||
Other long-term liabilities [Member] | Settlement with Taxing Authority [Member] | Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | 54,000,000 | 59,000,000 | ||
Accrued expenses and other current liabilities [Member] | ||||
Environmental Matters | ||||
Accrual for environmental loss contingencies, current | 5,000,000 | 5,000,000 | ||
Accrued expenses and other current liabilities [Member] | Settlement with Taxing Authority [Member] | Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Settlement liabilities | 9,000,000 | 9,000,000 | ||
Other long-term assets - third parties [Member] | Settlement with Taxing Authority [Member] | Brazil [Member] | ||||
Brazil Tax and Legal Matters | ||||
Cash deposits | $ 3,000,000 | $ 3,000,000 | ||
[1] | See Note 16 – Commitments and Contingencies – Brazil Tax and Legal Matters for further details. |
Segment, Major Customer and M81
Segment, Major Customer and Major Supplier Information (Details Textual) | 3 Months Ended |
Jun. 30, 2017countryplantsegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 4 |
Number of operating plants | 24 |
Number of plants with recycling operations | 11 |
Number of countries Company operates in | country | 10 |
North America [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 8 |
Number of fully dedicated recycling facilities | 2 |
Number of plants with recycling operations | 1 |
Number of countries Company operates in | country | 2 |
Europe [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 10 |
Number of fully dedicated recycling facilities | 2 |
Number of plants with recycling operations | 2 |
Number of countries Company operates in | country | 4 |
Asia [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 4 |
Number of plants with recycling operations | 3 |
Number of countries Company operates in | country | 3 |
South America [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating plants | 2 |
(Selected Segment Financial Inf
(Selected Segment Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Metal Price Lag | $ 1 | $ 13 | |
Investment in and advances to non–consolidated affiliate | 483 | $ 451 | |
Total assets | 8,591 | 8,374 | |
Net sales-third party | 2,669 | 2,296 | |
Net sales-intersegment | 0 | 0 | |
Net sales | 2,669 | 2,296 | |
Depreciation and amortization | 90 | 89 | |
Income tax provision | 43 | 36 | |
Capital expenditures | 39 | 44 | |
Operating Segments [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 2,372 | 2,359 | |
Net sales-third party | 944 | 742 | |
Net sales-intersegment | 6 | 1 | |
Net sales | 950 | 743 | |
Depreciation and amortization | 38 | 37 | |
Income tax provision | 11 | (4) | |
Capital expenditures | 15 | 12 | |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 483 | 451 | |
Total assets | 2,900 | 2,683 | |
Net sales-third party | 810 | 755 | |
Net sales-intersegment | 11 | 12 | |
Net sales | 821 | 767 | |
Depreciation and amortization | 27 | 27 | |
Income tax provision | 7 | 3 | |
Capital expenditures | 9 | 20 | |
Operating Segments [Member] | Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 1,687 | 1,602 | |
Net sales-third party | 494 | 440 | |
Net sales-intersegment | 10 | 4 | |
Net sales | 504 | 444 | |
Depreciation and amortization | 15 | 15 | |
Income tax provision | 7 | 8 | |
Capital expenditures | 4 | 5 | |
Operating Segments [Member] | South America [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 1,542 | 1,637 | |
Net sales-third party | 371 | 304 | |
Net sales-intersegment | 9 | 15 | |
Net sales | 380 | 319 | |
Depreciation and amortization | 16 | 16 | |
Income tax provision | 12 | 21 | |
Capital expenditures | 7 | 10 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliate | 0 | 0 | |
Total assets | 90 | $ 93 | |
Net sales-third party | 50 | 55 | |
Net sales-intersegment | (36) | (32) | |
Net sales | 14 | 23 | |
Depreciation and amortization | (6) | (6) | |
Income tax provision | 6 | 8 | |
Capital expenditures | $ 4 | $ (3) |
Segment, Major Customer and M83
Segment, Major Customer and Major Supplier Information (Reconciliation from Segment Income to Consolidated Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Net income attributable to our common shareholder | $ 101 | $ 24 | |
Noncontrolling interests | 0 | 0 | |
Income tax provision | 43 | 36 | |
Depreciation and amortization | (90) | (89) | |
Interest expense and amortization of debt issuance costs | (64) | (83) | |
Adjustment to eliminate proportional consolidation | 8 | 8 | |
Unrealized (losses) gains on change in fair value of derivative instruments, net | [1] | (16) | 7 |
Gain on assets held for sale | 0 | (1) | |
Restructuring and impairment, net | 1 | 2 | |
Loss on sale of fixed assets | 1 | 4 | |
Metal Price Lag | 1 | 13 | |
Other costs, net | (3) | 4 | |
Operating Income (Loss) | 289 | 268 | |
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) | |
North America [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Income tax provision | 11 | (4) | |
Depreciation and amortization | (38) | (37) | |
Operating Income (Loss) | 116 | 92 | |
Europe [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Income tax provision | 7 | 3 | |
Depreciation and amortization | (27) | (27) | |
Operating Income (Loss) | 57 | 57 | |
Asia [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Income tax provision | 7 | 8 | |
Depreciation and amortization | (15) | (15) | |
Operating Income (Loss) | 44 | 46 | |
South America [Member] | Operating Segments [Member] | |||
Reconciliation of income from reportable segments to net income attributable to common shareholder | |||
Income tax provision | 12 | 21 | |
Depreciation and amortization | (16) | (16) | |
Operating Income (Loss) | $ 72 | $ 73 | |
[1] | See Note 11 – Financial Instruments and Commodity Contracts for further details. |
Segment, Major Customer and M84
Segment, Major Customer and Major Supplier Information (Information About Major Customers and Primary Supplier) (Details) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cost of Goods Sold [Member] | Rio Tinto Alcan [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 10.00% | 11.00% |
Net Sales [Member] | Ball, Rexam and Ardagh [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 29.00% | |
Net Sales [Member] | Ball [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 21.00% | 30.00% |
Net Sales [Member] | Ford [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 11.00% | 9.00% |
Net Sales [Member] | Crown [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 10.00% | 9.00% |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental cash flow information | ||
Interest paid | $ 81 | $ 133 |
Income taxes paid | 27 | 28 |
Capital expenditures incurred but not yet paid | $ 40 | |
Capital Lease Obligations Incurred | $ 1 |