Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 07, 2018 | Sep. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Novelis Inc. | ||
Entity Central Index Key | 1,304,280 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 11,462 | $ 9,591 | $ 9,872 |
Cost of goods sold (exclusive of depreciation and amortization) | 9,719 | 8,016 | 8,727 |
Selling, general and administrative expenses | 489 | 421 | 407 |
Depreciation and amortization | 354 | 360 | 353 |
Interest expense and amortization of debt issuance costs | 255 | 294 | 327 |
Research and development expenses | 64 | 58 | 54 |
Gain on assets held for sale | 0 | 2 | 0 |
(Gain) loss on sale of a business, net | (318) | 27 | 0 |
Loss on extinguishment of debt | 0 | 134 | 13 |
Restructuring and impairment, net | 34 | 10 | 48 |
Equity in net loss of non-consolidated affiliates | 1 | 8 | 3 |
Other expense (income), net | 9 | 68 | (68) |
Total expenses | 10,607 | 9,394 | 9,864 |
Income before income taxes | 855 | 197 | 8 |
Income tax provision | 233 | 151 | 46 |
Net income (loss) | 622 | 46 | (38) |
Net (loss) income attributable to noncontrolling interests | (13) | 1 | 0 |
Net income (loss) attributable to our common shareholder | 635 | 45 | (38) |
Operating Segments [Member] | |||
Net income (loss) attributable to our common shareholder | $ 1,215 | $ 1,085 | 963 |
Asia [Member] | |||
Restructuring and impairment, net | $ 2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 622 | $ 46 | $ (38) |
Other comprehensive income (loss): | |||
Currency translation adjustment | 191 | (59) | 17 |
Net change in fair value of effective portion of hedges, net | 109 | (57) | 60 |
Net change in pension and other benefits, net | 12 | 74 | (33) |
Other comprehensive income (loss) before income tax effect | 312 | (42) | 44 |
Income tax provision (benefit) related to items of other comprehensive income | 34 | 0 | (6) |
Other comprehensive (loss) income, net of tax | 278 | (42) | 50 |
Comprehensive (loss) income | 900 | 4 | 12 |
Less: Comprehensive (loss) income attributable to noncontrolling interest, net of tax | (19) | 4 | (11) |
Comprehensive income attributable to our common shareholder | $ 919 | $ 0 | $ 23 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 920 | $ 594 |
Accounts receivable, net | ||
— third parties (net of uncollectible accounts of $7 as of March 31, 2018 and $6 as of March 31, 2017) | 1,353 | 1,067 |
— related parties | 242 | 60 |
Inventories | 1,560 | 1,333 |
Prepaid expenses and other current assets | 125 | 137 |
Fair value of derivative instruments | 159 | 113 |
Assets held for sale | 5 | 3 |
Total current assets | 4,364 | 3,307 |
Property, plant and equipment, net | 3,110 | 3,357 |
Goodwill | 607 | 607 |
Intangible assets, net | 410 | 457 |
Investment in and advances to non–consolidated affiliate | 849 | 451 |
Deferred income tax assets | 63 | 85 |
Other long–term assets | ||
— third parties | 97 | 94 |
— related parties | 3 | 15 |
Total assets | 9,503 | 8,373 |
Current liabilities | ||
Current portion of long–term debt | 121 | 121 |
Short–term borrowings | 49 | 294 |
Accounts payable | ||
— third parties | 2,051 | 1,722 |
— related parties | 205 | 51 |
Fair value of derivative instruments | 106 | 151 |
Accrued expenses and other current liabilities | 591 | 578 |
Total current liabilities | 3,123 | 2,917 |
Long–term debt, net of current portion | 4,336 | 4,437 |
Deferred income tax liabilities | 164 | 99 |
Accrued postretirement benefits | 825 | 799 |
Other long–term liabilities | 232 | 198 |
Total liabilities | 8,680 | 8,450 |
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 March 31, 2018 and 2017 | 0 | 0 |
Additional paid–in capital | 1,404 | 1,404 |
Accumulated deficit | (283) | (918) |
Accumulated other comprehensive loss | (261) | (545) |
Total equity (deficit) of our common shareholder | 860 | (59) |
Noncontrolling interests | (37) | (18) |
Total equity (deficit) | 823 | (77) |
Total liabilities and equity (deficit) | $ 9,503 | $ 8,373 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ / shares in Millions, $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 7 | $ 6 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 622 | $ 46 | $ (38) |
Adjustments to determine net cash provided by operating activities: | |||
Depreciation and amortization | 354 | 360 | 353 |
Loss (gain) on unrealized derivatives and other realized derivatives in investing activities, net | 15 | (15) | (27) |
Gain on assets held for sale | 0 | (2) | 0 |
(Gain) loss on sale of a business, net | (318) | 27 | 0 |
Loss on sale of assets | 7 | 6 | 4 |
Impairment charges | 15 | 2 | 25 |
Loss on extinguishment of debt | 0 | 134 | 13 |
Deferred income taxes | 53 | 6 | (93) |
Amortization of fair value adjustments, net | 0 | 7 | 11 |
Equity in net loss of non-consolidated affiliates | 1 | 8 | 3 |
(Gain) loss on foreign exchange remeasurement of debt | (2) | 2 | (2) |
Amortization of debt issuance costs and carrying value adjustments | 19 | 22 | 19 |
Other, net | 1 | 3 | 0 |
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | |||
Accounts receivable | (402) | (154) | 336 |
Inventories | (151) | (193) | 268 |
Accounts payable | 336 | 253 | (327) |
Other current assets | 21 | (17) | (12) |
Other current liabilities | (5) | 34 | 7 |
Other noncurrent assets | (5) | (30) | 20 |
Other noncurrent liabilities | 25 | 76 | (19) |
Net cash provided by operating activities | 586 | 575 | 541 |
INVESTING ACTIVITIES | |||
Capital expenditures | (226) | (224) | (370) |
Proceeds from sales of assets, third party, net of transaction fees and hedging | 2 | 4 | 3 |
Proceeds (outflows) from the sale of a business | 314 | (2) | 0 |
Proceeds from investment in and advances to non-consolidated affiliates, net | 16 | 2 | (2) |
(Outflows) proceeds from settlement of other undesignated derivative instruments, net | (23) | 8 | (9) |
Net cash provided by (used in) investing activities | 83 | (212) | (378) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term and short-term borrowings | 0 | 4,572 | 174 |
Principal payments of long-term and short-term borrowings | (174) | (4,477) | (216) |
Revolving credit facilities and other, net | (211) | (229) | (187) |
Dividends, noncontrolling interest | 0 | 0 | (1) |
Debt issuance costs | (5) | (191) | (15) |
Net cash used in financing activities | (390) | (325) | (245) |
Net increase (decrease) in cash and cash equivalents | 279 | 38 | (82) |
Effect of exchange rate changes on cash | 47 | 0 | 10 |
Cash and cash equivalents — beginning of period | 594 | 556 | 628 |
Cash and cash equivalents — end of period | $ 920 | $ 594 | $ 556 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's (Deficit) Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) (AOCI) | Non-controlling Interests |
Balance, shares at Mar. 31, 2015 | 1,000 | |||||
Balance at Mar. 31, 2015 | $ (70) | $ 0 | $ 1,404 | $ (925) | $ (561) | $ 12 |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net loss attributable to our common shareholder | (38) | (38) | ||||
Net loss attributable to noncontrolling interests | 0 | |||||
Currency translation adjustment, net of tax included in AOCI | 17 | 17 | ||||
Change in fair value of effective portion of hedges, net of tax included in AOCI | 52 | 52 | ||||
Change in pension and other benefits, net of tax included in AOCI | (19) | (8) | (11) | |||
Noncontrolling interest related to the sale of a business | (1) | (1) | ||||
Balance, shares at Mar. 31, 2016 | 1,000 | |||||
Balance at Mar. 31, 2016 | (59) | $ 0 | 1,404 | (963) | (500) | 0 |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net loss attributable to our common shareholder | 45 | 45 | ||||
Net loss attributable to noncontrolling interests | 1 | 1 | ||||
Currency translation adjustment, net of tax included in AOCI | (59) | (60) | 1 | |||
Change in fair value of effective portion of hedges, net of tax included in AOCI | (35) | (35) | ||||
Change in pension and other benefits, net of tax included in AOCI | 52 | 50 | 2 | |||
Noncontrolling interest related to the sale of a business | (22) | (22) | ||||
Balance, shares at Mar. 31, 2017 | 1,000 | |||||
Balance at Mar. 31, 2017 | (77) | $ 0 | 1,404 | (918) | (545) | (18) |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net loss attributable to our common shareholder | 635 | 635 | ||||
Net loss attributable to noncontrolling interests | (13) | (13) | ||||
Currency translation adjustment, net of tax included in AOCI | 191 | 191 | 0 | |||
Change in fair value of effective portion of hedges, net of tax included in AOCI | 77 | 77 | ||||
Change in pension and other benefits, net of tax included in AOCI | 10 | 16 | (6) | |||
Balance, shares at Mar. 31, 2018 | 1,000 | |||||
Balance at Mar. 31, 2018 | $ 823 | $ 0 | $ 1,404 | $ (283) | $ (261) | $ (37) |
Consolidated Statement of Shar8
Consolidated Statement of Shareholder's Equity (Parenthetical) - Accumulated Other Comprehensive Income (Loss) (AOCI) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Tax on currency translation adjustment | $ 0 | $ 0 | $ 0 |
Tax on change in fair value of cash flow hedges | 32 | 22 | 8 |
Tax on change in pension and other benefits | $ 2 | $ 22 | $ 14 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References herein to “Novelis,” the “Company,” “we,” “our,” or “us” refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to “Hindalco” refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco Industries Limited. Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of March 31, 2018 , 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. Consolidation Policy Our consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated “Net income (loss) attributable to our common shareholder” includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the consolidated financial statements for consolidated entities, compared to a two-line presentation of "Investment in and advances to non-consolidated affiliates" and "Equity in net income (loss) of non-consolidated affiliates." Use of Estimates and Assumptions The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Revision of Previously Issued Financial Statements In connection with preparing the financial statements for fiscal year 2018, we identified a footnote only disclosure misstatement of the aggregated receivables factored within previously issued Form 10-Ks for the years ended March 31, 2017 and March 31, 2016. The previously disclosed amounts for the years ended March 31, 2017 and March 31, 2016 were $5,149 million and $3,314 million , respectively, and the corrected amounts are $3,495 million and $2,816 million , respectively. We also identified a misclassification between “Accrued expenses and other current liabilities” and the deferred income tax balances of $2 million as of March 31, 2017. As a result, there is a $2 million misclassification between deferred income tax expense and current income tax expense within Note 18 — Income Taxes as of March 31, 2017. These items impacted the "Deferred income tax" and "Other current liabilities" line items within total "Operating Activities". However, there is no impact to " Net cash provided by operating activities " within the Consolidated Statements of Cash Flows. Additionally, disclosure misclassifications between categories, decreasing "Provisions not currently deductible for tax purposes" by $41 million and increasing "Tax losses/benefits carryforward, net" by $47 million and "Valuation allowance" by $9 million , were identified within Note 18 — Income Taxes as of March 31, 2017. As of 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 as of March 31, 2017 by $26 million . 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. These items impacted the "Other current assets" and "Other current liabilities" line items within total "Operating Activities". However, there is no impact to " Net cash provided by operating activities " within the Consolidated Statements of Cash Flows. 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, the consolidated statement of cash flows for the year ended March 31, 2017, and we have also revised the footnotes for the disclosure misstatements described above, as applicable. Reclassification A reclassification of a prior period amount has been made to conform to the presentation adopted for the current period. For the year ended March 31, 2017 , we reclassified $27 million from " Other (income) expense, net " to "(Gain) loss on the sale of a business, net" in the consolidated statement of operations to conform with the current period presentation. This reclassification had no impact on “Income before income taxes,” “Net income (loss) attributable to our common shareholder,” the condensed consolidated balance sheets or consolidated statements of cash flows during the respective periods. Refer to Note 17 — Other (income) expense, net for further details. Risks and Uncertainties We are exposed to a number of risks in the normal course of our operations that could potentially affect our financial position, results of operations, and cash flows. Laws and regulations We operate in an industry that is subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate. These laws and regulations impose increasingly stringent environmental, health and safety protection standards and permitting requirements regarding, among other things, air emissions, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste disposal practices, the remediation of environmental contamination, post-mining reclamation and working conditions for our employees. Some environmental laws, such as the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, and comparable state laws, impose joint and several liability for the cost of environmental remediation, natural resource damages, third party claims, and other expenses, without regard to the fault or the legality of the original conduct. The costs of complying with these laws and regulations, including participation in assessments and remediation of contaminated sites and installation of pollution control facilities, have been, and in the future could be, significant. In addition, these laws and regulations may also result in substantial environmental liabilities associated with divested assets, third party locations and past activities. In certain instances, these costs and liabilities, as well as related action to be taken by us, could be accelerated or increased if we were to close, divest of or change the principal use of certain facilities with respect to which we may have environmental liabilities or remediation obligations. Currently, we are involved in a number of compliance efforts, remediation activities and legal proceedings concerning environmental matters, including certain activities and proceedings arising under U.S. Superfund and comparable laws in other jurisdictions where we have operations. We have established liabilities for environmental remediation where appropriate. However, the cost of addressing environmental matters (including the timing of any charges related thereto) cannot be predicted with certainty, and these liabilities may not ultimately be adequate, especially in light of potential changes in environmental conditions, changing interpretations of laws and regulations by regulators and courts, the discovery of previously unknown environmental conditions, the risk of governmental orders to carry out additional compliance on certain sites not initially included in remediation in progress, our potential liability to remediate sites for which provisions have not been previously established and the adoption of more stringent environmental laws. Such future developments could result in increased environmental costs and liabilities and could require significant capital expenditures, any of which could have a material adverse effect on our financial position or results of operations or cash flows. Furthermore, the failure to comply with our obligations under the environmental laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions or other orders, including orders to cease operations. In addition, the presence of environmental contamination at our properties could adversely affect our ability to sell a property, receive full value for a property or use a property as collateral for a loan. Some of our current and potential operations are located or could be located in or near communities that may regard such operations as having a detrimental effect on their social and economic circumstances. Environmental laws typically provide for participation in permitting decisions, site remediation decisions and other matters. Concern about environmental justice issues may affect our operations. Should such community objections be presented to government officials, the consequences of such a development may have a material adverse impact upon the profitability or, in extreme cases, the viability of an operation. In addition, such developments may adversely affect our ability to expand or enter into new operations in such location or elsewhere and may also have an effect on the cost of our environmental remediation projects. We use a variety of hazardous materials and chemicals in our rolling processes and in connection with maintenance work on our manufacturing facilities. Because of the nature of these substances or related residues, we may be liable for certain costs, including, among others, costs for health-related claims or removal or re-treatment of such substances. Certain of our current and former facilities incorporated asbestos-containing materials, a hazardous substance that has been the subject of health-related claims for occupation exposure. In addition, although we have developed environmental, health and safety programs for our employees, including measures to reduce employee exposure to hazardous substances, and conduct regular assessments at our facilities, we are currently, and in the future may be, involved in claims and litigation filed on behalf of persons alleging injury predominantly as a result of occupational exposure to substances at our current or former facilities. It is not possible to predict the ultimate outcome of these claims and lawsuits due to the unpredictable nature of personal injury litigation. If these claims and lawsuits, individually or in the aggregate, were finally resolved against us, our financial position, results of operations and cash flows could be adversely affected. Materials and labor In the aluminum rolled products industry, our raw materials are subject to continuous price volatility. We may not be able to pass on the entire cost of the increases to our customers or offset fully the effects of higher raw material costs through productivity improvements, which may cause our profitability to decline. In addition, there is a potential time lag between changes in prices under our purchase contracts and the point when we can implement a corresponding change under our sales contracts with our customers. As a result, we could be exposed to fluctuations in raw materials prices which could have a material adverse effect on our financial position, results of operations and cash flows. Significant price increases may result in our customers substituting other materials, such as plastic or glass, for aluminum or switching to another aluminum rolled products producer, which could have a material adverse effect on our financial position, results of operations and cash flows. We consume substantial amounts of energy in our rolling operations and our cast house operations. The factors that affect our energy costs and supply reliability tend to be specific to each of our facilities. A number of factors could materially adversely affect our energy position including, but not limited to: (a) increases in the cost of natural gas; (b) increases in the cost of supplied electricity or fuel oil related to transportation; (c) interruptions in energy supply due to equipment failure or other causes and (d) the inability to extend energy supply contracts upon expiration on economical terms. A significant increase in energy costs or disruption of energy supplies or supply arrangements could have a material adverse effect on our financial position, results of operations and cash flows. A substantial portion of our employees are represented by labor unions under a large number of collective bargaining agreements with varying durations and expiration dates. We may not be able to satisfactorily renegotiate our collective bargaining agreements when they expire. In addition, existing collective bargaining agreements may not prevent a strike or work stoppage at our facilities in the future, and any such work stoppage could have a material adverse effect on our financial position, results of operations and cash flows. Geographic markets We are, and will continue to be, subject to financial, political, economic and business risks in connection with our global operations. We have made investments and carry on production activities in various emerging markets, including China, Brazil and South Korea, and we market our products in these countries, as well as certain other countries in Asia, Africa, and the Middle East. While we anticipate higher growth or attractive production opportunities from these emerging markets, they also present a higher degree of risk than more developed markets. In addition to the business risks inherent in developing and servicing new markets, economic conditions may be more volatile, legal and regulatory systems may be less developed and predictable, and the possibility of various types of adverse governmental action may be more pronounced. In addition, inflation, fluctuations in currency and interest rates, competitive factors, civil unrest and labor problems could affect our revenues, expenses and results of operations. Our operations could also be adversely affected by acts of war, terrorism or the threat of any of these events as well as government actions such as controls on imports, exports and prices, tariffs, new forms of taxation, changes in fiscal regimes and increased government regulation in the countries in which we operate or service customers. Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial position, results of operations and cash flows. Other risks and uncertainties In addition, refer to Note 14 — Financial Instruments and Commodity Contracts , Note 16 — Fair Value Measurements and Note 19 — Commitments and Contingencies for a discussion of financial instruments and commitments and contingencies. Revenue Recognition We recognize sales when the revenue is realized or realizable, and has been earned. We record sales when a firm sales agreement is in place, delivery has occurred and collectability of the fixed or determinable sales price is reasonably assured. We recognize product revenue, net of trade discounts, allowances, and estimated billing adjustments, in the reporting period in which the products are shipped and the title and risk of ownership pass to the customer. We sell most of our products under contracts based on a “conversion premium,” which is subject to periodic adjustments based on market factors. As a result, the aluminum price risk is largely absorbed by the customer. In situations where we offer customers fixed prices for future delivery of our products, we enter into derivative instruments for all or a portion of the cost of metal inputs to protect our profit on the conversion of the product. Shipping and handling amounts we bill to our customers are included in “Net sales” and the related shipping and handling costs we incur are included in “Cost of goods sold (exclusive of depreciation and amortization).” Our customers can receive or earn certain incentives including, but not limited to, contract signing bonuses, cash discounts, volume based incentive programs, and support for infrastructure programs. The incentives are recorded as reductions to "Net sales" and are recognized over the minimum contractual period in which the customer is obligated to make purchases from Novelis. For incentives that must be earned, management must make estimates related to customer performance and sales volume to determine the total amounts earned and to be recorded as reductions to "Net sales." In making these estimates, management considers historical results and future estimates. The actual amounts may differ from these estimates. On occasion, and in an attempt to better manage inventory levels, we sell inventory to third parties and have agreed to repurchase the same or similar inventory back from the third parties over a future period, based on market prices at the time of repurchase. For transactions in which the Company sells inventory and agrees to repurchase at a later date, we record the initial sale of the inventory on a net basis in our consolidated statement of operations through "Cost of goods sold (exclusive of depreciation and amortization)." Upon repurchase, the Company accounts for the inventory at the reacquisition price which becomes an input to our moving average inventory cost basis. Cost of Goods Sold (Exclusive of Depreciation and Amortization) “Cost of goods sold (exclusive of depreciation and amortization)” includes all costs associated with inventories, including the procurement of materials, the conversion of such materials into finished products, and the costs of warehousing and distributing finished goods to customers. Material procurement costs include inbound freight charges as well as purchasing, receiving, inspection and storage costs. Conversion costs include the costs of direct production inputs such as labor and energy, as well as allocated overheads from indirect production centers and plant administrative support areas. Warehousing and distribution costs include inside and outside storage costs, outbound freight charges and the costs of internal transfers. Selling, General and Administrative Expenses “Selling, general and administrative expenses” include selling, marketing and advertising expenses; salaries, travel and office expenses of administrative employees and contractors; legal and professional fees; software license fees; bad debt expenses; and factoring expenses. Research and Development We incur costs in connection with research and development programs that are expected to contribute to future earnings, and charge such costs against income as incurred. Research and development costs consist primarily of salaries and administrative costs. Restructuring Activities Restructuring charges, which are recorded within “Restructuring and impairment, net," include employee severance and benefit costs, impairments of assets, and other costs associated with exit activities. We apply the provisions of ASC 420, Exit or Disposal Cost Obligations and ASC 712, Compensation — Nonretirement Postemployment Benefits. Severance costs accounted for under ASC 420 and/or ASC 712 are recognized when management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. Impairment losses are based upon the estimated fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include environmental remediation costs and contract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we evaluate the accruals for restructuring costs to ensure the accruals are still appropriate. See Note 2 — Restructuring and Impairment for further discussion. Cash and Cash Equivalents “Cash and cash equivalents” includes investments that are highly liquid and have maturities of three months or less when purchased. The carrying values of cash and cash equivalents approximate their fair value due to the short-term nature of these instruments. We maintain amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions, and we have not experienced any losses on such deposits. Accounts Receivable Our accounts receivable are geographically dispersed. We do not obtain collateral relating to our accounts receivable. We do not believe there are any significant concentrations of revenues from any particular customer or group of customers that would subject us to any significant credit risks in the collection of our accounts receivable. We report accounts receivable at the estimated net realizable amount we expect to collect from our customers. Additions to the allowance for doubtful accounts are made by means of the provision for doubtful accounts. We write-off uncollectible accounts receivable against the allowance for doubtful accounts after exhausting collection efforts. For each of the periods presented, we performed an analysis of our historical cash collection patterns and considered the impact of any known material events in determining the allowance for doubtful accounts. See Note 3 — Accounts Receivable for further discussion. Derivative Instruments We hold derivatives for risk management purposes and not for trading. We use derivatives to mitigate uncertainty and volatility caused by underlying exposures to aluminum prices, foreign exchange rates, interest rates, and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. We may be exposed to losses in the future if the counterparties to our derivative contracts fail to perform. We are satisfied that the risk of such non-performance is remote due to our monitoring of credit exposures. Additionally, we enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default, and we do not face credit contingent provisions that would result in the posting of collateral. Prior to the adoption of ASU 2017-12 Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities, we were required to separately measure and record ineffectiveness, which is the amount by which the hedging instrument did not offset the changes in the fair value or cash flows of hedged items. We recorded the gain or loss related to the ineffective portion of derivative instruments, if any, in “Other (income) expense, net. Pursuant to our adoption of the provisions of ASU 2017-12 in the fourth quarter of fiscal 2018, we are no longer required to separately measure and recognize hedge ineffectiveness in our current period earnings. Upon adoption of ASU 2017-12, for cash flow hedges we will recognize and defer the entire periodic change in the fair value of the hedging instrument in other comprehensive income (loss). The amounts recorded in other comprehensive income (loss) will subsequently be reclassified to earnings in the same line item impacted by the hedged item when the hedged item affects earnings. Prior to the adoption of ASU 2017-12, we assessed and measured hedge effectiveness on our aluminum and natural gas programs based on all pricing components of the hedged item. Pursuant to the adoption of ASU 2017-12, we will apply hedge accounting to only a specific component of the hedged item for these programs simplifying the application of hedge accounting and better aligning our risk management objectives, activities and financial reporting. For derivatives designated as cash flow hedges or net investment hedges, we assess hedge effectiveness by formally evaluating the high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The effective portion of gain or loss on the derivative is included in other comprehensive income (OCI) and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. Gains or losses representing reclassifications of OCI to earnings are recognized in the line item most reflective of the underlying risk exposure. We exclude the time value component of foreign currency and aluminum price risk hedges when measuring and assessing ineffectiveness to align our accounting policy with risk management objectives when it is necessary. If at any time during the life of a cash flow hedge relationship we determine that the relationship is no longer effective, the derivative will no longer be designated as a cash flow hedge and future gains or losses on the derivative will be recognized in " Other expense (income), net ". For derivatives designated as fair value hedges, we assess hedge effectiveness by formally evaluating the high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. The changes in the fair values of the underlying hedged items are reported in "Prepaid expenses and other current assets," "Other long-term assets", "Accrued expenses and other current liabilities," and "Other long-term liabilities" in the consolidated balance sheets. Changes in the fair values of these derivatives and underlying hedged items generally offset and the effective portion is recorded in "Net sales" consistent with the underlying hedged item and the net ineffectiveness is recorded in "Other (income) expense, net." If no hedging relationship is designated, gains or losses are recognized in " Other expense (income), net " in our current period earnings. Consistent with the cash flows from the underlying risk exposure, we classify cash settlement amounts associated with designated derivatives as part of either operating or investing activities in the consolidated statements of cash flows. If no hedging relationship is designated, we classify cash settlement amounts as part of investing activities in the consolidated statement of cash flows. The majority of our derivative contracts are valued using industry-standard models that use observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices for foreign exchange rates. See Note 14 — Financial Instruments and Commodity Contracts and Note 16 — Fair Value Measurements for additional discussion related to derivative instruments. Inventories We carry our inventories at the lower of their cost or net realizable value, reduced for obsolete and excess inventory. We use the average cost method to determine cost. Included in inventories are stores inventories, which are carried at average cost. See Note 4 — Inventories for further discussion. Property, Plant and Equipment We record land, buildings, leasehold improvements and machinery and equipment at cost. We record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments as of the beginning of the lease term. We generally depreciate our assets using the straight-line method over the shorter of the estimated useful life of the assets or the lease term, excluding any lease renewals, unless the lease renewals are reasonably assured. See Note 5 — Property, Plant and Equipment for further discussion. We assign useful lives to and depreciate major components of our property, plant and equipment. The ranges of estimated useful lives are as follows: Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under capital lease obligations 5 to 15 Most of our large scale machinery, including hot mills, cold mills, continuous casting mills, furnaces and finishing mills have useful lives of 15 to 25 years. Supporting machinery and equipment, including automation and work rolls, have useful lives of 2 to 15 years. Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset, and we capitalize interest on major construction and development projects while in progress. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, after consideration of any proceeds, is included as a gain or loss in " Other expense (income), net " or "(Gain) loss on assets held for sale" in our consolidated statements of operations. We account for operating leases under the provisions of ASC 840, Leases. This pronouncement requires us to recognize escalating rents, including any rent holidays, on a straight-line basis over the term of the lease for those lease agreements where we receive the right to control the use of the entire leased property at the beginning of the lease term. Goodwill We test for impairment at least annually as of the last day of February of each fiscal year, unless a triggering event occurs that would require an interim impairment assessment. We do not aggregate components of operating segments to arrive at our reporting units and, as such, our reporting units are the same as our operating segments. In performing our goodwill impairment test, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If we perform a qualitative assessment and determine that an impairment is more likely than not, then we perform the two-step quantitative impairment test, otherwise no further analysis is required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether we choose to perform the qual |
Restructuring and Impairment
Restructuring and Impairment | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT | RESTRUCTURING AND IMPAIRMENT “Restructuring and impairment, net” for the year ended March 31, 2018 , 2017 and 2016 was $34 million , $10 million , and $48 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, 2015 $ 32 Fiscal 2016 Activity: -Provisions 23 -Reversal of expense (2 ) Expenses 21 $ 24 $ 45 $ 3 $ 48 Cash payments (22 ) Foreign currency translation and other (C) (4 ) Balance as of March 31, 2016 27 Fiscal 2017 Activity: Expenses 8 $ — $ 8 — $ 2 $ 10 Cash payments (13 ) Foreign currency translation and other (C) 2 Balance as of March 31, 2017 24 Fiscal 2018 Activity: Expenses 19 $ 9 $ 28 $ 6 $ 34 Cash payments (7 ) Balance as of March 31, 2018 $ 36 _________________________ (A) Other restructuring charges include period expenses that were not recorded through the restructuring liability and impairments related to a restructuring activity. (B) Other impairment charges not related to a restructuring activity. (C) This primarily relates to the remeasurement of Brazilian real denominated restructuring liabilities. As of March 31, 2018 , $31 million of restructuring liabilities was classified in "Accrued expenses and other current liabilities" and $5 million was classified in "Other long-term liabilities". The restructuring liabilities by region are as follows: $1 million for the North America segment related to environmental charges; $17 million for the Europe segment related primarily to severance charges; $1 million for the Asia segment related primarily to staff rationalization activities; $16 million for the South America segment related to $9 million of environmental charges and $7 million of contract termination and other exit related costs, and $1 million for the Corporate office related to severance charges. Restructuring and impairment activities by segment are detailed below for the years ended March 31, 2018 , 2017 and 2016 : North America North America recognized $1 million in restructuring expenses for the years ended March 31, 2017 and 2016 . Restructuring actions prior to April 1, 2015 totaled $39 million and was attributed to impairments of $32 million and severance and other exit related expenses of $7 million . The North America segment recognized less than $4 million in impairment charges on intangible software assets unrelated to restructuring for the year ended March 31, 2018 ; $2 million in impairment charges on fixed assets unrelated to restructuring for the year ended March 31, 2017 ; and $1 million in impairment charges on assets unrelated to restructuring for the year ended March 31, 2016 . Europe The Europe segment recognized $25 million in restructuring expenses for the year ended March 31, 2018 related to the closure of certain non-core operations. Severance and associated legal costs were $16 million for which cash settlement is primarily expected to incur in the next twelve months and $9 million is related to asset impairments. For the year ended March 31, 2017 , Europe recognized $2 million in restructuring expenses related to corporate restructuring. For the year ended, March 31, 2016 , Europe recognized $4 million of restructuring expenses. Prior to April 1, 2015, $46 million of restructuring expenses was incurred related to business optimization efforts. Europe recognized less than $2 million in asset impairments unrelated to restructuring during the year ended March 31, 2018 . Asia For the year ended March 31, 2016 , Asia recognized $2 million of restructuring expenses related to staff rationalization activities to optimize our business. The Asia segment recognized $1 million and less than $1 million in impairment charges on long-lived assets unrelated to restructuring for the years ended March 31, 2018 and March 31, 2016 , respectively. South America The South America segment recognized $3 million in restructuring expenses for the year ended March 31, 2018 related to staff rationalization activities to optimize our business. For the years ended March 31, 2017 and 2016 , South America recognized $5 million and $3 million , respectively, related to the closure of a smelter facility. Restructuring actions prior to April 1, 2015 totaled $79 million and was related largely to the closure of a smelter facility along with prior restructuring programs. South America recognized less than $2 million in impairment charges on long-lived assets unrelated to restructuring for the year ended March 31, 2016 . Corporate For the year ended March 31, 2016 , Corporate recognized $35 million in restructuring expenses related to a series of restructuring actions at the global headquarters office and the Europe region to better align the organizational structure and corporate staffing levels with strategic priorities. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE “Accounts receivable, net” consists of the following (in millions). March 31, 2018 2017 Trade accounts receivable $ 1,260 $ 971 Other accounts receivable 100 102 Accounts receivable — third parties 1,360 1,073 Allowance for doubtful accounts — third parties (7 ) (6 ) Accounts receivable, net — third parties $ 1,353 $ 1,067 Accounts receivable, net — related parties $ 242 $ 60 Allowance for Doubtful Accounts As of March 31, 2018 and 2017 , our allowance for doubtful accounts represented approximately 0.5% and 0.6% , respectively, of gross accounts receivable, net - third parties (exclusive of accounts receivable - related parties). Activity in the allowance for doubtful accounts is as follows (in millions). Balance at Additions Accounts Foreign Balance at Year Ended March 31, 2018 $ 6 $ 1 $ — $ — $ 7 Year Ended March 31, 2017 $ 3 $ 3 $ — $ — $ 6 Year Ended March 31, 2016 $ 3 $ — $ — $ — $ 3 Factoring of Trade Receivables We factor and forfait trade receivables (collectively, we refer to these as "factoring" programs) based on local cash needs, as well as attempting to balance the timing of cash flows of trade payables and receivables. Factored invoices are not included in our consolidated balance sheets when we do not retain a financial or legal interest. If a financial or legal interest is retained, we classify these factorings as secured borrowings. The following tables summarize amounts relating to our factoring activities (in millions). Year Ended March 31, 2018 2017 2016 Factoring expense $ 39 $ 16 $ 19 March 31, 2018 2017 Factored receivables outstanding $ 547 $ 679 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES “Inventories” consists of the following (in millions). March 31, 2018 2017 Finished goods $ 416 $ 389 Work in process 730 576 Raw materials 248 213 Supplies 166 155 Inventories $ 1,560 $ 1,333 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT “Property, plant and equipment, net” consists of the following (in millions). March 31, 2018 2017 Land and property rights $ 148 $ 173 Buildings 1,259 1,309 Machinery and equipment 4,179 4,312 5,586 5,794 Accumulated depreciation and amortization (2,644 ) (2,575 ) 2,942 3,219 Construction in progress 168 138 Property, plant and equipment, net $ 3,110 $ 3,357 For the years ended March 31, 2018 , 2017 and 2016 , we capitalized $1 million , $2 million and $14 million of interest related to construction of property, plant and equipment and intangibles under development, respectively. Depreciation expense related to property, plant, and equipment, net is shown in the table below (in millions). Year Ended March 31, 2018 2017 2016 Depreciation expense related to property, plant and equipment, net $ 290 $ 299 $ 294 Asset impairments Impairment charges are recorded in "Restructuring and impairment, net." See Note 2 — Restructuring and Impairment for additional information. Leases We lease certain land, buildings and equipment under non-cancelable operating leases expiring at various dates. Operating leases generally have terms that are less than ten years, with one or more renewal options and terms to be negotiated at the time of renewal. Various facility leases include provisions for rent escalation to recognize increased operating costs or require us to pay certain maintenance and utility costs. The following table summarizes rent expense included in our consolidated statements of operations (in millions): Year Ended March 31, 2018 2017 2016 Rent expense $ 27 $ 24 $ 22 Future minimum lease payments as of March 31, 2018 , for our operating and capital leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Year Ending March 31, Operating leases Capital lease obligations 2019 $ 31 $ 7 2020 24 5 2021 18 — 2022 14 — 2023 12 — Thereafter 24 — Total minimum lease payments $ 123 $ 12 Less: interest portion on capital lease 1 Principal obligation on capital leases $ 11 Assets and related accumulated amortization under capital lease obligations as of March 31, 2018 and 2017 are as follows (in millions). March 31, 2018 2017 Assets under capital lease obligations: Buildings $ 12 $ 11 Machinery and equipment 76 73 CWIP 2 2 90 86 Accumulated amortization (77 ) (70 ) $ 13 $ 16 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS There were no changes to the gross carrying amount or accumulated impairment of goodwill during the years ended March 31, 2018 and 2017 . The following table summarizes “Goodwill” (in millions). March 31, 2018 March 31, 2017 Gross Carrying Amount Accumulated Impairment Net Carrying Value Gross Accumulated Net North America $ 1,145 $ (860 ) $ 285 $ 1,145 $ (860 ) $ 285 Europe 511 (330 ) 181 511 (330 ) 181 South America 291 (150 ) 141 291 (150 ) 141 $ 1,947 $ (1,340 ) $ 607 $ 1,947 $ (1,340 ) $ 607 The components of “Intangible assets, net” are as follows (in millions). March 31, 2018 March 31, 2017 Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradenames 20 years $ 142 $ (77 ) $ 65 $ 142 $ (70 ) $ 72 Technology and software 9.2 years 382 (246 ) 136 369 (209 ) 160 Customer-related intangible assets 20 years 456 (247 ) 209 443 (218 ) 225 15.8 years $ 980 $ (570 ) $ 410 $ 954 $ (497 ) $ 457 In the year ended March 31, 2018 , we recorded impairment charges related to certain intangible software assets. In the year of March 31, 2017 , there were no such impairments recorded. For additional information refer to Note 2 — Restructuring and Impairment . All other intangible assets are amortized using the straight-line method. Amortization expense related to “Intangible assets, net” is as follows (in millions). Year Ended March 31, 2018 2017 2016 Total amortization expense related to intangible assets $ 64 $ 69 $ 71 Less: Amortization expense related to intangible assets included in “Cost of goods sold (exclusive of depreciation and amortization)” (A) — (8 ) (12 ) Amortization expense related to intangible assets included in “Depreciation and amortization” $ 64 $ 61 $ 59 ________________________ (A) Relates to amortization of favorable energy supply contract, which is fully amortized as of March 31, 2018 . Estimated total amortization expense related to “Intangible assets, net” for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions and other events. Fiscal Year Ending March 31, 2019 $ 71 2020 71 2021 71 2022 71 2023 71 |
Consolidation
Consolidation | 12 Months Ended |
Mar. 31, 2018 | |
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. As Logan is dependent upon the investors for ongoing capital to support the operations of the entity, Logan is a variable interest entity ("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 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. Other than the contractually required reimbursements, we do not provide other material support to Logan. Logan's creditors do not have recourse to our general credit. There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our consolidated balance sheets (in millions). March 31, 2018 2017 Assets Current assets Cash and cash equivalents $ — $ 2 Accounts receivable 39 29 Inventories 67 62 Prepaid expenses and other current assets 1 2 Total current assets 107 95 Property, plant and equipment, net 27 25 Goodwill 12 12 Deferred income taxes 67 89 Other long-term assets 26 30 Total assets $ 239 $ 251 Liabilities Current liabilities Accounts payable $ 43 $ 32 Accrued expenses and other current liabilities 22 21 Total current liabilities 65 53 Accrued postretirement benefits 245 224 Other long-term liabilities 1 3 Total liabilities $ 311 $ 280 |
Investment in and Advances to N
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | |
INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS Investments in and Advances to Non-Consolidated Affiliates We have two non-consolidated affiliates, Aluminum Norf GmbH (Alunorf) and Ulsan Aluminum, Ltd. (UAL). Included in the accompanying consolidated financial statements are transactions and balances arising from business we conducted with these non-consolidated affiliates, which we classify as related party transactions and balances. In May 2017, Novelis Korea Ltd. (Novelis Korea), a subsidiary of Novelis Inc., entered into definitive agreements with Kobe Steel Ltd. (Kobe), an unrelated party, under which Novelis Korea and Kobe will jointly own and operate the Ulsan manufacturing plant owned by Novelis Korea. In April 2017, Novelis Korea formed a new wholly owned subsidiary, UAL. In September 2017, the transaction closed and Novelis Korea sold 49.9% of its shares in UAL to Kobe for the purchase price of $314 million . We recognized a net gain of $318 million on the transaction, pre-tax, consisting of: (1) $168 million gain related to the difference between the fair value of the consideration received and the carrying amount of the former subsidiary's assets and liabilities; (2) $163 million net gain related to the remeasurement of the retained investment by Novelis Korea; (3) $11 million in transaction fees and (4) $2 million in pension settlement losses. The net gain is recognized in "Gain (loss) on sale of a business" within the consolidated statement of operations. The fair value of the retained investment was derived from cash consideration paid by a market participant, Kobe, for its 49.9% interest. As a result of this transaction, we have shared power in UAL with Kobe. Novelis Korea and Kobe will supply input metal to UAL and UAL will produce flat rolled aluminum products exclusively for Novelis Korea and Kobe. In addition, we hold several variable interests in UAL through the regular funding of costs and expenses by Novelis Korea and Kobe. As UAL is dependent upon the investors for ongoing capital to support the operations of the entity, UAL is a variable interest entity ("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. The entity will be controlled by the Board of Directors. We do not have the sole decision-making ability regarding UAL's production operations and other significant decisions as the Board of Directors have ultimate control over these decisions. In addition, we do not have the ability to take the majority share of production and associated costs over the life of the joint venture. As we share power jointly with Kobe, we determined Novelis is not the primary beneficiary. Our risk of loss with respect to this VIE is limited to the carrying value of our investment in and inventory-related receivables from UAL. UAL's creditors do not have recourse to our general credit. We have no obligation to provide additional funding to this VIE outside of the contractually required reimbursements. The following table summarizes the ownership structure and our ownership percentage of the non-consolidated affiliates in which we have investments in as of March 31, 2018 and 2017 , and which we account for using the equity method. Affiliate Name Ownership Structure Ownership Percentage Aluminium Norf GmbH (Alunorf) Corporation 50% Ulsan Aluminum, Ltd. (UAL) Corporation 50.1% The following table summarizes the assets, liabilities and equity of our equity method affiliates in the aggregate as of March 31, 2018 and 2017 (in millions). March 31, 2018 2017 Assets: Current assets $ 396 $ 143 Non-current assets 944 355 Total assets $ 1,340 $ 498 Liabilities: Current liabilities $ 281 $ 53 Non-current liabilities 342 283 Total liabilities 623 336 Equity: Total equity 717 162 Total liabilities and equity $ 1,340 $ 498 As of March 31, 2018 , the investment in Alunorf exceeded our proportionate share of the net assets by $441 million . The difference is primarily related to the unamortized fair value adjustments that are included in our investment balance as a result of the acquisition of Novelis by Hindalco in 2007. As of March 31, 2018 , the investment in UAL exceeded our proportionate share of the net assets by $47 million . The difference primarily relates to goodwill. The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2018 , 2017 and 2016 ; and the nature and amounts of significant transactions that we had with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Year Ended March 31, 2018 2017 2016 Net sales $ 866 $ 447 $ 464 Costs and expenses related to net sales 836 463 463 Provision (benefit) for taxes on income 4 (5 ) 2 Net income (loss) $ 26 $ (11 ) $ (1 ) Purchase of tolling services from Alunorf $ 245 $ 224 $ 232 Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with Alunorf and UAL. The following table describes the period-end account balances that we had with Alunorf and UAL, shown as related party balances in the accompanying consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates. March 31, 2018 2017 Accounts receivable-related parties $ 242 $ 60 Other long-term assets-related parties $ 3 $ 15 Accounts payable-related parties $ 205 $ 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 provided for this loan as of March 31, 2018 and 2017 . We have guaranteed the indebtedness for a credit facility and loan on behalf of Alunorf. The guarantee is limited to 50% of the outstanding debt, not to exceed 6 million euros. As of March 31, 2018 , there were no amounts outstanding under our guarantee with Alunorf. We have also guaranteed the payment of early retirement benefits on behalf of Alunorf. As of March 31, 2018 , this guarantee totaled $2 million . Transactions with Hindalco We occasionally have related party transactions with our indirect parent company, Hindalco. During the years ended March 31, 2018 , 2017 and 2016 we recorded “Net sales” of less than $1 million between Novelis and our indirect parent related primarily to sales of equipment and other services. As of March 31, 2018 and 2017 there were less than $1 million of "Accounts receivable, net - related parties" outstanding related to transactions with Hindalco. During the year ended March 31, 2018 , Novelis purchased less than $1 million in raw materials from Hindalco that were fully paid for during the quarter ended March 31, 2018 . During the year ended March 31, 2017 , Novelis purchased $3 million in raw materials from Hindalco that were fully paid for during the quarter ended December 31, 2016 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES “Accrued expenses and other current liabilities” consists of the following (in millions). March 31, 2018 2017 Accrued compensation and benefits $ 193 $ 191 Accrued interest payable 44 60 Accrued income taxes 29 26 Other current liabilities 325 301 Accrued expenses and other current liabilities — third parties $ 591 $ 578 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consists of the following (in millions). March 31, 2018 March 31, 2017 Interest Rates (A) Principal Unamortized Carrying Value Principal Unamortized Carrying Value Third party debt: Short term borrowings 3.49 % $ 49 $ — $ 49 $ 294 $ — $ 294 Novelis Inc. Floating rate Term Loan Facility, due June 2022 4.15 % 1,778 (43 ) 1,735 1,796 (53 ) 1,743 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (21 ) 1,479 1,500 (23 ) 1,477 6.25% Senior Notes, due August 2024 6.25 % 1,150 (17 ) 1,133 1,150 (19 ) 1,131 Novelis Korea Limited Bank loans, due through September 2020 (KRW 102 billion) 2.88 % 95 — 95 184 — 184 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 11 million) 7.50 % 12 — 12 17 (1 ) 16 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 6 million) 6.06 % 2 — 2 4 — 4 Other Capital Lease Obligations and Other debt, due through December 2020 5.56 % 1 — 1 3 — 3 Total debt 4,587 (81 ) 4,506 4,948 (96 ) 4,852 Less: Short term borrowings (49 ) — (49 ) (294 ) — (294 ) Current portion of long-term debt (121 ) — (121 ) (121 ) — (121 ) Long-term debt, net of current portion $ 4,417 $ (81 ) $ 4,336 $ 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 March 31, 2018 , 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 March 31, 2018 for our debt denominated in foreign currencies are as follows (in millions). As of March 31, 2018 Amount Short-term borrowings and current portion of long term debt due within one year $ 170 2 years 24 3 years 20 4 years 18 5 years 1,705 Thereafter 2,650 Total $ 4,587 Senior Secured Credit Facilities As of March 31, 2018 , 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 asset based loan facility (ABL Revolver). As of March 31, 2018 , $18 million of the Term Loan Facility is due within one year. 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. Term Loan Facility In September 2017, we amended our Term Loan Credit Agreement (the "Term Loan Amendment") to our $1.8 billion Credit Agreement (the "Term Loan Facility") dated as of January 10, 2017. The Term Loan Facility matures on June 2, 2022, and is 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 casualty event 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. 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 incurrences 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. ABL Revolver In September 2017, we amended and extended the ABL Revolver. The facility is a senior secured revolver bearing an interest rate of LIBOR plus a spread of 1.25% to 1.75% or a prime rate plus a prime spread of 0.25% to 0.75% 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 specified minimum fixed charge coverage ratio of 1.25 to 1 if excess availability is less than the greater of (1) $90 million and (2) 10% of the lesser of (a) the maximum size of the ABL Revolver and (b) the borrowing base. The ABL Revolver matures on September 14, 2022 ; provided that, in the event that the Term Loan Facility, or certain other indebtedness matures on or prior to March 14, 2023 and is outstanding 90 days prior to its maturity (and not refinanced with a maturity date later than March 14, 2023), then the ABL Revolver will mature 90 days prior to the maturity date for such other indebtedness, as applicable; unless excess availability under the ABL Revolver is at least (i) 20% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base and (ii) 15% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base, and a minimum fixed charge ratio test of at least 1.25 to 1 is met. Short-Term Borrowings As of March 31, 2018 , our short-term borrowings were $49 million consisting of $12 million of short-term loans under our ABL Revolver, $36 million in Novelis China loans (CNY 234 million ) and $1 million of other short term borrowings. As of March 31, 2018 , $12 million of the ABL Revolver was utilized for letters of credit, and we had $789 million in remaining availability under the ABL Revolver. As of March 31, 2018 , we had availability under our Novelis Korea, Novelis Middle East and Africa, and Novelis China revolving credit facilities and credit lines of $184 million (KRW 196 billion ), $20 million , and $5 million (CNY 35 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 (1) any other indebtedness with an aggregate principal amount of more than $100 million is (1) accelerated prior to its maturity or (2) not repaid at its maturity. 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. As of March 31, 2018 , we were in compliance with the covenants for our Senior Notes. Korean Bank Loans As of March 31, 2018 , Novelis Korea had $94 million (KRW 100 billion ) of outstanding long-term loans with various banks due within one year. All loans have variable interest rates with base rates tied to Korea's 91-day CD rate plus an applicable spread ranging from 0.80% to 1.58% . Brazil BNDES Loans Novelis Brazil entered into loan agreements with Brazil's National Bank for Economic and Social Development (the BNDES loans) related to the plant expansion in Pindamonhangaba, Brazil (Pinda). As of March 31, 2018 , there are $2 million of BNDES loans due within one year. 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 14 — Financial Instruments and Commodity Contracts for further information about these interest rate swaps. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2018 | |
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. Fiscal 2012 through fiscal 2016 SARs expire in May of the seventh year from the original grant date, while Fiscal 2017 and onwards SARs 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 minimum threshold for vesting each year is 75% of each annual target operating EBITDA. Given that the performance criterion is based on an earnings target in a future period for each fiscal year, the grant date of the awards for accounting purposes is generally not established until the performance criterion has been defined. Each Hindalco SAR is to be settled in cash based on the difference between the market value of one Hindalco share on the date of grant and the market value on the date of exercise. Each Novelis SAR is to be settled in cash based on the difference between the fair value of one Novelis phantom share on the original date of grant and the fair value of a phantom share on the date of the exercise. The amount of cash paid to settle Hindalco SARs and Novelis SARs is limited to two and a half or three times the target payout , depending on the plan year. The Hindalco SARs and Novelis SARs do not transfer any shareholder rights in Hindalco or Novelis to a participant. The Hindalco SARs and Novelis SARs are classified as liability awards and are remeasured at fair value each reporting period until the SARs are settled. 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. There were 92,223 of Novelis SARs that remain outstanding as of March 31, 2018 . 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. Each RSU is to be settled in cash equal to the market value of one Hindalco share. The payout on the RSUs is limited to three times the market value of one Hindalco share measured on the original date of grant. The RSUs are classified as liability awards and expensed over the requisite service period ( three years) based on the Hindalco stock price as of each balance sheet date. Total compensation expense related to Hindalco SARs, Novelis SARs, and RSUs under the plans for the respective periods is presented in the table below (in millions). These amounts are included in “Selling, general and administrative expenses” in our consolidated statements of operations. As the performance criteria for fiscal years 2019, 2020, and 2021 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. Year Ended March 31, 2018 2017 2016 Total compensation expense (income) $ 21 $ 21 $ (2 ) The table below shows the RSUs activity for the year ended March 31, 2018 . Number of RSUs Grant Date Fair Value (in Indian Rupees) Aggregate Intrinsic Value (USD in millions) RSUs outstanding as of March 31, 2017 7,712,984 105.68 $ 23 Granted 2,594,805 186.96 — Exercised (2,826,252 ) 112.52 8 Forfeited/Cancelled (367,480 ) 126.06 — RSUs outstanding as of March 31, 2018 7,114,057 131.74 $ 23 The table below shows Hindalco SARs activity for the year ended March 31, 2018 . Number of Hindalco SARs Weighted Average Exercise Price (in Indian Rupees) Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2017 15,161,233 122.16 4.4 $ 18 Granted 2,324,230 186.11 6.1 — Exercised (5,928,524 ) 123.54 0.0 10 Forfeited/Cancelled (358,965 ) 131.94 0.0 — SARs outstanding as of March 31, 2018 11,197,974 134.32 4.3 14 SARs exercisable as of March 31, 2018 2,923,178 134.62 2.8 $ 4 The table below shows the Novelis SARs activity for the year ended March 31, 2018 . Number of Weighted Weighted Average Aggregate SARs outstanding as of March 31, 2017 108,549 $ 83.57 3.5 $ — Exercised (8,808 ) 63.54 0.0 — Forfeited/Cancelled (7,518 ) 87.25 0.0 — SARs outstanding as of March 31, 2018 92,223 85.18 2.8 — SARs exercisable as of March 31, 2018 71,153 $ 88.22 2.5 $ — The fair value of each unvested Hindalco SAR was estimated using the following assumptions: Year ended March 31, 2018 2017 2016 Risk-free interest rate 6.14% - 7.67% 5.82% - 6.99% 7.23% - 7.68% Dividend yield 0.53 % 0.51 % 1.14 % Volatility 29% - 42% 35% - 44% 43% - 44% The fair value of each unvested Novelis SAR was estimated using the following assumptions: Year ended March 31, 2018 2017 2016 Risk-free interest rate 1.71% - 2.55% 0.78% - 1.95% 0.89% - 1.39% Dividend yield — % — % — % Volatility 20% - 25% 25% - 28% 38% - 41% The fair value of each unvested Hindalco SAR was based on the difference between the fair value of a long call and a short call option. The fair value of each of these call options was determined using the Monte Carlo Simulation model. We used historical stock price volatility data of Hindalco on the National Stock Exchange of India to determine expected volatility assumptions. The risk-free interest rate is based on Indian treasury yields interpolated for a time period corresponding to the remaining contractual life. The forfeiture rate is estimated based on actual historical forfeitures. The dividend yield is estimated to be the annual dividend of the Hindalco stock over the remaining contractual lives of the Hindalco SARs. The value of each vested Hindalco SAR is remeasured at fair value each reporting period based on the excess of the current stock price over the exercise price, not to exceed the maximum payout as defined by the plans. The fair value of the Hindalco SARs is being recognized over the requisite performance and service period of each tranche, subject to the achievement of any performance criteria. The fair value of each unvested Novelis SAR was based on the difference between the fair value of a long call and a short call option. The fair value of each of these call options was determined using the Monte Carlo Simulation model. We used the historical volatility of comparable companies to determine expected volatility assumptions. The risk-free interest rate is based on U.S. treasury yields for a time period corresponding to the remaining contractual life. The forfeiture rate is estimated based on actual historical forfeitures of Hindalco SARs. The value of each vested Novelis SAR is remeasured at fair value each reporting period based on the percentage increase in the current Novelis phantom stock price over the exercise price, not to exceed the maximum payout as defined by the plans. The fair value of the Novelis SARs is being recognized over the requisite performance and service period of each tranche, subject to the achievement of any performance criteria. The cash payments made to settle SAR liabilities were $10 million , $7 million , and $2 million , in the years ended March 31, 2018 , 2017 , and 2016 , respectively. Total cash payments made to settle Hindalco RSUs were $8 million , $2 million , and $5 million in the years ended March 31, 2018 , 2017 and 2016 , respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $5 million which is expected to be recognized over a weighted average period of 1.2 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 year . Unrecognized compensation expense related to the RSUs was $6 million , which will be recognized over the remaining weighted average vesting period of 1.3 years . |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Mar. 31, 2018 | |
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; (2) 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 Benefits, as shown in certain tables below) include unfunded health care and life insurance benefits provided to retired employees in the U.S., Canada, and Brazil. We have combined our domestic (i.e. Canadian Plans) and foreign (i.e. All other Plans other than Canadian Plans) postretirement benefit plan disclosures because our domestic benefit obligation is not significant as compared to our total benefit obligation, as our foreign benefit obligation is 95% of the total benefit obligation, and the assumptions used to value domestic and foreign plans were not significantly different. Fiscal year ended March 31, 2018 settlement activity primarily relates to the formation of Ulsan Aluminum Ltd., (UAL). 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 (in millions) to all plans. Year Ended March 31, 2018 2017 2016 Funded pension plans $ 57 $ 26 $ 28 Unfunded pension plans 12 15 12 Savings and defined contribution pension plans 27 25 24 Total contributions $ 96 $ 66 $ 64 During fiscal year 2019 , we expect to contribute $26 million to our funded pension plans, $14 million to our unfunded pension plans and $28 million to our savings and defined contribution pension plans. Benefit Obligations, Fair Value of Plan Assets, Funded Status and Amounts Recognized in Financial Statements The following tables present the change in benefit obligation, change in fair value of plan assets and the funded status for pension and other benefits (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2018 2017 2018 2017 Benefit obligation at beginning of period $ 1,865 $ 1,868 $ 153 $ 151 Service cost 44 45 7 6 Interest cost 60 59 7 6 Members’ contributions 5 4 — — Benefits paid (60 ) (74 ) (8 ) (8 ) Amendments (8 ) 2 3 — Curtailments, settlements and special termination benefits (25 ) (4 ) — — Actuarial losses (gains) 17 35 14 (3 ) Other (3 ) (4 ) — — Currency losses (gains) 88 (66 ) — 1 Benefit obligation at end of period $ 1,983 $ 1,865 $ 176 $ 153 Benefit obligation of funded plans $ 1,677 $ 1,594 $ — $ — Benefit obligation of unfunded plans 306 271 176 153 Benefit obligation at end of period $ 1,983 $ 1,865 $ 176 $ 153 Pension Benefits Year Ended March 31, 2018 2017 Change in fair value of plan assets Fair value of plan assets at beginning of period $ 1,200 $ 1,177 Actual return on plan assets 85 106 Members’ contributions 5 4 Benefits paid (60 ) (74 ) Company contributions 69 37 Settlements (A) (24 ) (4 ) Other (3 ) (3 ) Currency 45 (43 ) Fair value of plan assets at end of period $ 1,317 $ 1,200 March 31, 2018 2017 Pension Benefits Other Benefits Pension Benefits Other Benefits Funded status Funded status at end of period: Assets less the benefit obligation of funded plans $ (360 ) $ — $ (394 ) $ — Benefit obligation of unfunded plans (306 ) (176 ) (271 ) (153 ) $ (666 ) $ (176 ) $ (665 ) $ (153 ) As included in our consolidated balance sheets within Total assets / (Total liabilities) Other non- current assets $ 3 $ — $ 2 $ — Accrued expenses and other current liabilities (13 ) (6 ) (12 ) (10 ) Accrued postretirement benefits (656 ) (169 ) (655 ) (143 ) $ (666 ) $ (175 ) $ (665 ) $ (153 ) The postretirement amounts recognized in “ Accumulated other comprehensive loss ,” before tax effects, are presented in the table below (in millions), and includes the impact related to our equity method investments. Amounts are amortized to net periodic benefit cost over the group’s average future service life of the employees or the group's average life expectancy. March 31, 2018 2017 Pension Benefits Other Benefits Pension Benefits Other Benefits Net actuarial losses $ (355 ) $ (29 ) $ (375 ) $ (16 ) Prior service credit 13 5 4 7 Total postretirement amounts recognized in Accumulated other comprehensive income $ (342 ) $ (24 ) $ (371 ) $ (9 ) The estimated amounts that will be amortized from “ Accumulated other comprehensive loss ” into net periodic benefit costs in fiscal year 2019 (exclusive of equity method investments) are $32 million for pension benefit costs related to net actuarial losses of $33 million partially offset by prior service credits of $1 million , and $2 million for other postretirement benefits, primarily related to amortization of prior service costs of $2 million . The postretirement changes recognized in “ Accumulated other comprehensive loss ,” before tax effects, are presented in the table below (in millions), and include the impact related to our equity method investments. March 31, 2018 2017 Pension Benefits Other Benefits Pension Benefits Other Benefits Beginning balance in Accumulated other comprehensive loss $ (371 ) $ (9 ) $ (435 ) $ (16 ) Curtailments, settlements, and special termination benefits 1 — 1 — Plan amendment — (3 ) — — Net actuarial gain (loss) 7 (15 ) 11 2 Prior service cost 8 — (2 ) — Amortization of: Prior service credits (1 ) 1 (2 ) 1 Actuarial losses 40 2 43 4 Effect of currency exchange (26 ) — 13 — Total postretirement amounts recognized in Accumulated other comprehensive income $ (342 ) $ (24 ) $ (371 ) $ (9 ) Pension Plan Obligations The projected benefit obligation, accumulated benefit obligation and fair value of plan assets are presented in the table below (in millions). March 31, 2018 2017 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans: Projected benefit obligation $ 1,983 $ 1,865 Accumulated benefit obligation $ 1,830 $ 1,711 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 1,880 $ 1,769 Fair value of plan assets $ 1,211 $ 1,103 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 1,733 $ 1,581 Fair value of plan assets $ 1,171 $ 1,049 Pension plans with projected benefit obligations less than plan assets: Projected benefit obligation $ 103 $ 96 Fair value of plan assets $ 106 $ 97 Future Benefit Payments Expected benefit payments to be made during the next ten fiscal years are listed in the table below (in millions). Pension Benefits Other Benefits 2019 $ 74 $ 6 2020 79 8 2021 82 9 2022 86 9 2023 89 10 2024 through 2028 509 59 Total $ 919 $ 101 Components of Net Periodic Benefit Cost The components of net periodic benefit cost for the respective periods are listed in the table below (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2018 2017 2016 2018 2017 2016 Net periodic benefit costs Service cost $ 44 $ 45 $ 47 $ 7 $ 6 $ 5 Interest cost 60 59 59 7 6 5 Expected return on assets (63 ) (61 ) (67 ) — — — Amortization — losses 36 40 37 1 4 4 Amortization — prior service credit (1 ) (2 ) (2 ) — 2 (27 ) Curtailment, settlement, and special termination losses 2 1 — — — — Net periodic benefit cost (income) $ 78 $ 82 $ 74 $ 15 $ 18 $ (13 ) Proportionate share of non-consolidated affiliates’ pension costs 9 8 9 — — — Total net periodic benefit costs (income) recognized $ 87 $ 90 $ 83 $ 15 $ 18 $ (13 ) Actuarial Assumptions and Sensitivity Analysis The weighted average assumptions used to determine benefit obligations and net periodic benefit costs for the respective periods are listed in the table below. Pension Benefits Other Benefits Year Ended March 31, Year Ended March 31, 2018 2017 2016 2018 2017 2016 Weighted average assumptions used to determine benefit obligations Discount rate 3.1 % 3.2 % 3.3 % 4.0 % 4.1 % 4.0 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Weighted average assumptions used to determine net periodic benefit cost Discount rate 3.2 % 3.3 % 3.1 % 4.1 % 4.0 % 3.6 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Expected return on plan assets 5.2 % 5.4 % 5.6 % — % — % — % In selecting the appropriate discount rate for each plan, for pension and other postretirement plans in Canada, the U.S., U.K., and other Euro zone countries, we used spot rate yield curves and individual bond matching models. For other countries we used published long-term high quality corporate bond indices with adjustments made to the index rates based on the duration of the plans' obligation. In estimating the expected return on assets of a pension plan, consideration is given primarily to its target allocation, the current yield on long-term bonds in the country where the plan is established, and the historical risk premium of equity or real estate over long-term bond yields in each relevant country. The approach is consistent with the principle that assets with higher risk provide a greater return over the long-term. The expected long-term rate of return on plan assets is 5.2% in fiscal 2019 . We provide unfunded health care and life insurance benefits to our retired employees in Canada, the U.S. and Brazil, for which we paid $8 million , $8 million , and $10 million in fiscal 2018 , 2017 and 2016 , respectively. The assumed health care cost trend used for measurement purposes is 7.5% for fiscal 2019 , decreasing gradually to 5% in 2028 and remaining at that level thereafter. A change of one percentage point in the assumed health care cost trend rates would have the following effects on our other benefits (in millions). 1% Increase 1% Decrease Sensitivity Analysis Effect on service and interest costs $ 2 $ (2 ) Effect on benefit obligation $ 17 $ (15 ) In addition, we provide post-employment benefits, including disability, early retirement and continuation of benefits (medical, dental, and life insurance) to our former or inactive employees, which are accounted for on the accrual basis in accordance with ASC No. 712, Compensation — Retirement Benefits . “Other long-term liabilities” and "Accrued expenses and other current liabilities" on our consolidated balance sheets include $10 million and $4 million , respectively, as of March 31, 2018 , for these benefits. Comparatively, “Other long-term liabilities” and "Accrued expenses and other current liabilities" on our consolidated balance sheets include $9 million and $4 million , respectively, as of March 31, 2017 . Investment Policy and Asset Allocation The Company’s overall investment strategy is to achieve a mix of approximately 50% of investments for long-term growth (equities, real estate) and 50% for near-term benefit payments (debt securities, other) with a wide diversification of asset categories, investment styles, fund strategies and fund managers. Since most of the defined benefit plans are closed to new entrants, we expect this strategy to gradually shift more investments toward near-term benefit payments. Each of our funded pension plans is governed by an Investment Fiduciary, who establishes an investment policy appropriate for the pension plan. The Investment Fiduciary is responsible for selecting the asset allocation for each plan, monitoring investment managers, monitoring returns versus benchmarks and monitoring compliance with the investment policy. The targeted allocation ranges by asset class, and the actual allocation percentages for each class are listed in the table below. Asset Category Target Allocation Ranges Allocation in Aggregate as of March 31, 2018 2017 Equity 14-54% 33% 32% Fixed income 46-78% 55% 49% Real estate 0-15% 3% 3% Other 0-18% 9% 17% Fair Value of Plan Assets The following pension plan assets are measured and recognized at fair value on a recurring basis (in millions). Please see Note 16 — Fair Value Measurements for a description of the fair value hierarchy. The U.S. and Canadian pension plan assets are invested exclusively in commingled funds and classified in Level 2, and the U.K., Switzerland, and South Korea pension plan assets are invested in both direct investments (Levels 1 and 2) and commingled funds (Level 2). Pension Plan Assets March 31, 2018 March 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equity — — — — — — — — Fixed income 163 41 — 204 136 54 — 190 Real estate — — — — — — — — Cash and cash equivalents 7 — — 7 8 — — 8 Other — — — — — — — — Investments measured at net asset value (A) — — — 1,106 — — — 1,002 Total $ 170 $ 41 $ — $ 1,317 $ 144 $ 54 $ — $ 1,200 _________________________ (A) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Currency Losses (Gains)
Currency Losses (Gains) | 12 Months Ended |
Mar. 31, 2018 | |
Foreign Currency [Abstract] | |
CURRENCY (GAINS) LOSSES | CURRENCY LOSSES (GAINS) The following currency losses (gains) are included in “Other expense (income), net” in the accompanying consolidated statements of operations (in millions). Year Ended March 31, 2018 2017 2016 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (46 ) $ 30 $ (55 ) Loss released from accumulated other comprehensive loss — — 1 Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net 47 (35 ) 52 Currency losses (gains), net $ 1 $ (5 ) $ (2 ) The following currency losses are included in "Accumulated other comprehensive loss, net of tax" and “Noncontrolling interests” in the accompanying consolidated balance sheets (in millions). Year Ended March 31, 2018 2017 2016 Cumulative currency translation adjustment — beginning of period $ (256 ) $ (197 ) $ (214 ) Effect of changes in exchange rates 191 (75 ) 17 Sale of investment in foreign entities (A) — 16 — Cumulative currency translation adjustment — end of period $ (65 ) $ (256 ) $ (197 ) _________________________ (A) We reclassified $16 million of cumulative currency losses from AOCI to "(Gain) loss on sale of a business, net" during the year-ended March 31, 2017 due to the sale of our equity interest in Aluminium Company of Malaysia Berhad (ALCOM). |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of March 31, 2018 and 2017 (in millions): March 31, 2018 Assets Liabilities Net Fair Value Current Noncurrent(A) Current Noncurrent(A) Assets/(Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 63 $ 1 $ (1 ) $ — $ 63 Currency exchange contracts 5 — (7 ) — (2 ) Energy contracts — 1 (2 ) (7 ) (8 ) Total derivatives designated as hedging instruments 68 2 (10 ) (7 ) 53 Derivatives not designated as hedging instruments Aluminum contracts 75 — (64 ) — 11 Currency exchange contracts 15 — (32 ) (1 ) (18 ) Energy contracts 1 — — — 1 Total derivatives not designated as hedging instruments 91 — (96 ) (1 ) (6 ) Total derivative fair value $ 159 $ 2 $ (106 ) $ (8 ) $ 47 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 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 March 31, 2018 and March 31, 2017 . 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 March 31, 2018 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). March 31, 2018 2017 Hedge type Purchase (sale) Cash flow sales (423 ) (391 ) Not designated (74 ) (89 ) Total, net (497 ) (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 $499 million and $465 million in outstanding foreign currency forwards designated as cash flow hedges as of March 31, 2018 and 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 March 31, 2018 and March 31, 2017 . As of March 31, 2018 and 2017 , we had outstanding foreign currency exchange contracts with a total notional amount of $1,024 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 first quarter of fiscal 2019 and offset the remeasurement impact. Energy We owned an interest in an electricity swap that matured January 5, 2017 which we formerly designated as a cash flow hedge of our exposure to fluctuating electricity prices. As of March 31, 2011, due to significant credit deterioration of our counterparty, we discontinued hedge accounting for this electricity swap. We did not have any outstanding notional megawatt hours remaining as of March 31, 2017 or March 31, 2018 . On December 31, 2015, we entered into an agreement to extend the electricity swap contract for an additional five years, effective January 6, 2017 and maturing on January 5, 2022. As of March 31, 2018 and 2017 , 1 million of notional megawatt hours was outstanding and the fair value of this swap was a liability of $7 million and $9 million , respectively. The electricity swap was designated as a cash flow hedge in the first quarter of fiscal year 2017. We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 20 million MMBTU designated as cash flow hedges as of March 31, 2018 , and the fair value was a liability of $1 million . There was a notional of 6 million MMBTU of natural gas forward purchase contracts designated as cash flow hedges as of March 31, 2017 and the fair value was an asset of $1 million . As of March 31, 2018 and 2017 , we had notionals of less than 1 million MMBTU of forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of March 31, 2018 and 2017 were both a liability of less than $1 million . The average duration of undesignated contracts is less than two years in length. One MMBTU is the equivalent of one decatherm, or one million British Thermal Units. We use diesel fuel forward purchase contracts to manage our exposure to fluctuating fuel prices in North America, which were not designated as hedges as of March 31, 2018 . As of March 31, 2018 and 2017 , we had 5 million gallons and 8 million gallons, respectively, of diesel fuel forward purchase contracts outstanding. The fair value as of March 31, 2018 was an asset of $2 million , and as of March 31, 2017 was a liability of less than $1 million . The average duration of undesignated contracts is less than two years in length. Interest Rate As of March 31, 2018 , we swapped $28 million ( KRW 30 billion ) floating rate loans to a weighted average fixed rate of 3.35% . All swaps expire concurrent with the maturity of the related loans. As of March 31, 2018 and 2017 , $28 million ( KRW 30 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 consolidated statement of operations are separately disclosed within this footnote. Year Ended March 31, 2018 2017 2016 Derivative instruments not designated as hedges Aluminum contracts $ 10 $ (44 ) $ 47 Currency exchange contracts (57 ) 40 (60 ) Energy contracts (A) 7 8 3 (Loss) gain recognized in "Other expense (income), net" (40 ) 4 (10 ) Derivative instruments designated as hedges (Loss) gain recognized in "Other expense (income), net" (B) (7 ) (25 ) 17 Total (loss) gain recognized in "Other expense (income), net" $ (47 ) $ (21 ) $ 7 Balance sheet remeasurement currency exchange contract (losses) gains $ (47 ) $ 35 $ (53 ) Realized (losses) gains, net (20 ) (61 ) 64 Unrealized gains (losses) on other derivative instruments, net 20 5 (4 ) Total (loss) gain recognized in "Other expense (income), net" $ (47 ) $ (21 ) $ 7 _________________________ (A) Includes amounts related to de-designated electricity swap and natural gas and diesel swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum 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 $64 million of gains from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Recognized in “Other (Income) Expense, net” (Ineffective and Excluded Portion) Year Ended March 31, Year Ended March 31, 2018 2017 2016 2018 2017 2016 Cash flow hedging derivatives Aluminum contracts $ 35 $ (137 ) $ 84 $ (9 ) $ (27 ) $ 17 Currency exchange contracts (5 ) 48 (7 ) 1 2 1 Energy contracts (4 ) (7 ) (5 ) 1 (1 ) (1 ) Interest rate swaps — — (1 ) — — — Total cash flow hedging derivatives 26 (96 ) 71 (7 ) (26 ) 17 Net investment derivatives Currency exchange contracts (17 ) — (2 ) — — — Total $ 9 $ (96 ) $ 69 $ (7 ) $ (26 ) $ 17 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Year Ended March 31, Location of Gain (Loss) Reclassified from AOCI into Earnings Cash flow hedging derivatives 2018 2017 2016 Energy contracts (A) $ — $ (4 ) $ (5 ) Other expense (income), net Energy contracts (C) (3 ) (4 ) (10 ) Cost of goods sold (B) Aluminum contracts (78 ) (55 ) 83 Cost of goods sold (B) Aluminum contracts (22 ) (3 ) — Net sales Currency exchange contracts 14 18 (44 ) Cost of goods sold (B) Currency exchange contracts 1 2 (4 ) Selling, general and administrative expenses Currency exchange contracts 7 7 (9 ) Net sales Currency exchange contracts — — (1 ) Other expense (income), net Currency exchange contracts (1 ) (1 ) (1 ) Depreciation and amortization Interest rate swaps — — (1 ) Interest expense Total (82 ) (40 ) 8 (Loss) income before income taxes 24 12 (19 ) Income tax benefit (provision) $ (58 ) $ (28 ) $ (11 ) Net loss _________________________ (A) Includes amounts related to de-designated electricity swap. AOCI related to this swap was 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 electricity, natural gas, and diesel swaps. The following table summarizes the location and amount of gain (loss) that was reclassified from accumulated other comprehensive income into earnings and the amount excluded from the assessment of effectiveness for the three months ended March 31, 2018 . Net Sales Cost of Goods Sold Selling, General and Administrative Expenses Depreciation and Amortization Interest Expense Other Expense (Income), Net Gain (loss) on cash flow hedging relationships: Aluminum commodity contracts: Amount of loss reclassified from AOCI into income (22 ) — — — — — Energy commodity contracts: Amount of loss reclassified from AOCI into income — (1 ) — — — — Foreign exchange contracts: Amount of gain reclassified from AOCI into income 4 3 — — — — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the change in the components of " Accumulated other comprehensive loss , net of tax" and excluding "Noncontrolling interests", for the periods presented (in millions). Currency Translation (B) Cash Flow Hedges (C) Postretirement Benefit Plans Total Balance as of March 31, 2015 $ (213 ) $ (63 ) $ (285 ) $ (561 ) Other comprehensive income (loss) before reclassifications 17 41 (15 ) 43 Amounts reclassified from AOCI, net — 11 7 18 Net current-period other comprehensive income (loss) 17 52 (8 ) 61 Balance as of March 31, 2016 (196 ) (11 ) (293 ) (500 ) Other comprehensive (loss) income before reclassifications (76 ) (63 ) 22 (117 ) Amounts reclassified from AOCI, net (A) 16 28 28 72 Net current-period other comprehensive (loss) income (60 ) (35 ) 50 (45 ) Balance as of March 31, 2017 (256 ) (46 ) (243 ) (545 ) Other comprehensive income before reclassifications 191 19 29 239 Amounts reclassified from AOCI, net — 58 (13 ) 45 Net current-period other comprehensive income 191 77 16 284 Balance as of March 31, 2018 $ (65 ) $ 31 $ (227 ) $ (261 ) _________________________ (A) The $16 million in currency translation reclassified from AOCI relates to CTA that was written off as part of our sale of the Aluminium Company of Malaysia Berhad (ALCOM) business. Refer to Note 17 — Other Expense (Income) for additional information. (B) For additional information on our cash flow hedges see Note 14 — Financial Instruments and Commodity Contracts . (C) For additional information on our postretirement benefit plans see Note 12 — Postretirement Benefit Plans . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our consolidated balance sheets at fair value. We also disclose the fair values of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions we used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, foreign exchange, natural gas and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum derivative contracts, natural gas and diesel fuel forward contracts. We classify derivative contracts that are valued based on models with significant unobservable market inputs as Level 3 of the valuation hierarchy. Our two electricity swaps, which are our only Level 3 derivative contracts, represent agreements to buy electricity at a fixed price at our Oswego, New York facility. Forward prices are not observable for this market, so we must make certain assumptions based on available information we believe to be relevant to market participants. We use observable forward prices for a geographically nearby market and adjust for 1) historical spreads between the cash prices of the two markets, and 2) historical spreads between retail and wholesale prices. For the electricity swap that matured January 5, 2017, we did not have any outstanding notional megawatt hours remaining as of March 31, 2017. For the electricity swap maturing January 5, 2022, the average forward price at March 31, 2018 , estimated using the method described above, was $40 per megawatt hour, which represented an approximately $3 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $35 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by $1 million . For Level 2 and 3 of the fair value hierarchy, where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations (nonperformance risk). We regularly monitor these factors along with significant market inputs and assumptions used in our fair value measurements and evaluate the level of the valuation input according to the fair value hierarchy. This may result in a transfer between levels in the hierarchy from period to period. As of March 31, 2018 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 classified under the appropriate level of the fair value hierarchy as of March 31, 2018 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. March 31, 2018 2017 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 139 $ (65 ) $ 58 $ (138 ) Currency exchange contracts 20 (40 ) 56 (17 ) Energy contracts 2 (2 ) 1 — Total level 2 instruments 161 (107 ) 115 (155 ) Level 3 instruments Energy contracts — (7 ) — (9 ) Total level 3 instruments — (7 ) — (9 ) Total gross $ 161 $ (114 ) $ 115 $ (164 ) Netting adjustment (A) $ (57 ) $ 57 $ (46 ) $ 46 Total net $ 104 $ (57 ) $ 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 $2 million for the year ended March 31, 2018 related to Level 3 financial instrument that was still held as of March 31, 2018. These gains were included in “ Other expense (income), net .” The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2016 $ (8 ) Unrealized/realized gain included in earnings (B) 11 Unrealized/realized (loss) included in AOCI (C) (9 ) Settlements (3 ) Balance as of March 31, 2017 $ (9 ) Unrealized/realized gain included in earnings (B) 5 Settlements (B) (3 ) Balance as of March 31, 2018 $ (7 ) _________________________ (A) Represents net derivative liabilities. (B) Included in "Other expense (income), 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. March 31, 2018 2017 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 3 $ 3 $ 15 $ 14 Liabilities Total debt — third parties (excluding short term borrowings) $ 4,457 $ 4,569 $ 4,558 $ 4,797 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME) | OTHER EXPENSE (INCOME) “ Other expense (income), net ” is comprised of the following (in millions). Year Ended March 31, 2018 2017 2016 Currency losses (gains), net (A) $ 1 $ (5 ) $ (2 ) Unrealized (gains) losses on change in fair value of derivative instruments, net (B) (20 ) (5 ) 4 Realized losses (gains) on change in fair value of derivative instruments, net (B) 20 61 (64 ) Loss on sale of assets, net 7 6 4 Loss on Brazilian tax litigation, net (C) 3 5 5 Interest income (9 ) (11 ) (13 ) Gain on business interruption insurance recovery (D) — — (10 ) Other, net 7 17 8 Other expense (income), net (E) $ 9 $ 68 $ (68 ) _________________________ (A) Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” (B) See Note 14 — Financial Instruments and Commodity Contracts for further details. (C) See Note 19 — Commitments and Contingencies – Brazil Tax and Legal Matters for further details. (D) We experienced an outage at a facility in North America in fiscal 2015. As a result, we recognized gains of $(10) million during the year ended March 31, 2016. (E) We have reclassified the "Loss on sale of a business" for the year ended March 31, 2017 of $27 million from " Other expense (income), net " to "(Gain) loss on sale of a business, net" in the consolidated statement of operations for presentation purposes. In fiscal 2017, we sold our equity interest in Aluminium Company of Malaysia Berhad (ALCOM), a previously consolidated subsidiary. The sale resulted in a loss of $27 million during the year ended March 31, 2017 . |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We are subject to Canadian and United States federal, state, and local income taxes as well as other foreign income taxes. The domestic (Canada) and foreign components of our "Income before income taxes" (and after removing our "Equity in net loss of non-consolidated affiliates") are as follows (in millions). Year Ended March 31, 2018 2017 2016 Domestic (Canada) $ (50 ) $ (286 ) $ (313 ) Foreign (all other countries) 906 491 324 Pre-tax income before equity in net loss of non-consolidated affiliates $ 856 $ 205 $ 11 The components of the "Income tax provision" are as follows (in millions). Year Ended March 31, 2018 2017 2016 Current provision: Domestic (Canada) $ 4 $ 8 $ 5 Foreign (all other countries) 176 137 134 Total current 180 145 139 Deferred provision (benefit): Domestic (Canada) — — — Foreign (all other countries) 53 6 (93 ) Total deferred 53 6 (93 ) Income tax provision $ 233 $ 151 $ 46 The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below (in millions, except percentages). Year Ended March 31, 2018 2017 2016 Pre-tax income before equity in net loss on non-consolidated affiliates $ 856 $ 205 $ 11 Canadian statutory tax rate 25 % 25 % 25 % Provision at the Canadian statutory rate $ 214 $ 51 $ 3 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 10 9 16 Exchange remeasurement of deferred income taxes (3 ) 8 (8 ) Change in valuation allowances 22 67 104 Tax credits (22 ) (14 ) (22 ) Income items not subject to tax (5 ) (3 ) — State tax expense, net 4 1 (10 ) Dividends not subject to tax — (23 ) (52 ) Enacted tax rate changes (19 ) 1 5 Tax rate differences on foreign earnings 23 36 4 Uncertain tax positions 7 6 7 Prior year adjustments 1 4 (2 ) Income tax settlements 1 6 — Other — net — 2 1 Income tax provision $ 233 $ 151 $ 46 Effective tax rate 27 % 73 % 411 % On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017 (the "Act"). The Act makes broad and complex changes to the U.S. tax code that affects our fiscal year ended March 31, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018 and (2) bonus depreciation that allows for full expensing of qualified property. Section 15 of the Internal Revenue Code stipulates that our fiscal year ending March 31, 2018 has a blended corporate tax rate of 31.55% , which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. Also recorded in the fiscal year is a provisional income tax benefit of $19 million for the remeasurement of deferred tax asset and liabilities to reflect the anticipated rate at which the deferred items will be realized. The amounts are subject to change as the Company obtains information necessary to complete the calculations. The Company will continue to review the technical interpretations of the Tax Act and other applicable laws, monitor legislative changes, and review U.S. state guidance as it is issued. The Company expects to complete the analysis of the provisional items within the one-year measurement period during fiscal year ending March 31, 2019. The following information is needed to complete the accounting for the remeasurement of deferred tax assets and liabilities: • Determination of state conformity • Actual reversals of temporary differences based on tax return filing positions Based on an initial assessment of the Act, the Company believes that most significant impact on the Company’s consolidated fiscal year 2018 financial statements is the remeasurement of deferred tax assets and liabilities. Other provisions of the Act did not have a material impact on the fiscal year 2018 consolidated financial statements. Our effective tax rate differs from the Canadian statutory rate primarily due to the following factors: (1) pre-tax foreign currency gains or losses with no tax effect and the tax effect of U.S. dollar denominated currency gains or losses with no pre-tax effect, which is shown above as exchange translation items; (2) the remeasurement of deferred income taxes due to foreign currency changes, which is shown above as exchange remeasurement of deferred income taxes; (3) changes in valuation allowances; (4) remeasurement of deferred taxes for recently enacted tax reform; and (5) differences between the Canadian statutory and foreign statutory tax rates applied to entities in different jurisdictions shown above as tax rate differences on foreign earnings. We continue to maintain valuation allowances in Canada and certain foreign jurisdictions primarily related to tax losses where we believe it is more likely than not that we will be unable to utilize those losses. The impact on our income tax provision of the change in these valuation allowances during the year ended March 31, 2018 was an increase of $22 million . We earn tax credits in a number of the jurisdictions in which we operate. Primarily comprised of foreign tax credits in the U.K. of $8 million in the current year and empire zone credits in New York of $6 million . The impact on our income tax provision of credits during the year ended March 31, 2018 was a benefit of $22 million . However, legislation enacted in New York state on March 31, 2014 established a zero percent statutory income tax rate for manufacturers. As a result, the current year empire zone credits in New York are offset with a corresponding valuation allowance of $6 million . We receive the benefits of favorable tax holidays in various jurisdictions, which resulted in a $4 million reduction to tax expense for the year ended March 31, 2018 , and phase out as of December 31, 2020. Deferred Income Taxes Deferred income taxes recognize the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for income tax purposes, and the impact of available net operating loss (NOL) and tax credit carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Our deferred income tax assets and deferred income tax liabilities are as follows (in millions). March 31, 2018 2017 Deferred income tax assets: Provisions not currently deductible for tax purposes $ 323 $ 418 Tax losses/benefit carryforwards, net 767 771 Depreciation and amortization 46 45 Other assets 6 4 Total deferred income tax assets 1,142 1,238 Less: valuation allowance (727 ) (688 ) Net deferred income tax assets $ 415 $ 550 Deferred income tax liabilities: Depreciation and amortization $ 384 $ 442 Inventory valuation reserves 83 84 Monetary exchange gains, net 12 14 Other liabilities 37 24 Total deferred income tax liabilities $ 516 $ 564 Net deferred income tax liabilities $ 101 $ 14 ASC 740 requires that we reduce our deferred income tax assets by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that all or a portion of a deferred tax asset will not be realized. After consideration of all evidence, both positive and negative, management concluded that it is more likely than not that we will be unable to realize a portion of our deferred tax assets and that valuation allowances of $727 million and $688 million were necessary as of March 31, 2018 and 2017 , respectively. It is reasonably possible that our estimates of future taxable income may change within the next 12 months, resulting in a change to the valuation allowance in one or more jurisdictions. As of March 31, 2018 , we had net operating loss carryforwards of approximately $627 million (tax effected) and tax credit carryforwards of $140 million , which will be available to offset future taxable income and tax liabilities, respectively. The carryforwards will begin expiring in fiscal year 2019. As of March 31, 2018 , valuation allowances of $541 million , $119 million and $67 million had been recorded against net operating loss carryforwards, tax credit carryforwards and other deferred tax assets, respectively, where it appeared more likely than not that such benefits will not be realized. The net operating loss carryforwards are predominantly in Canada, the U.S., Italy, Germany, Switzerland and the U.K. As of March 31, 2017 , we had net operating loss carryforwards of approximately $655 million (tax effected) and tax credit carryforwards of $116 million , which will be available to offset future taxable income and tax liabilities, respectively. The carryforwards will begin expiring in fiscal 2017 with some amounts being carried forward indefinitely. As of March 31, 2017 , valuation allowances of $531 million , $98 million and $59 million had been recorded against net operating loss carryforwards, tax credit carryforwards and other deferred tax assets, respectively, where it appeared more likely than not that such benefits will not be realized. The net operating loss carryforwards are predominantly in Canada, the U.S., Italy, Germany, Switzerland, China and the U.K. Although realization is not assured, management believes it is more likely than not that all the remaining net deferred tax assets will be realized. In the near term, the amount of deferred tax assets considered realizable could be reduced if we do not generate sufficient taxable income in certain jurisdictions. As of March 31, 2018 , we had cumulative earnings of approximately $3 billion for which we had not provided Canadian income tax or withholding taxes because we consider them to be indefinitely reinvested. We acknowledge that we would need to accrue and pay taxes should we decide to repatriate cash and short term investments generated from earnings of our foreign subsidiaries that are considered indefinitely reinvested. Except for those jurisdictions where we have already distributed and paid taxes on the earnings, we have reinvested and expect to continue to reinvest undistributed earnings of foreign subsidiaries indefinitely. Cash and cash equivalents held by foreign subsidiaries that are indefinitely reinvested are used to cover expansion and short-term cash flow needs of such subsidiaries. The amounts considered indefinitely reinvested would be subject to possible Canadian taxation only if remitted as dividends. However, due to our full valuation allowance position of $618 million in Canada, in excess of $500 million of net operating loss carryforwards, exempt surpluses for Canadian tax purposes, $51 million of tax credits and other deferred tax assets of $67 million , a portion of the cumulative earnings would not be taxed if distributed. Due to the complex structure of our international holdings, and the various methods available for repatriation, quantification of the deferred tax liability, if any, associated with these undistributed earnings is not practicable. Tax Uncertainties As of March 31, 2018 and 2017 , the total amount of unrecognized benefits that, if recognized, would affect the effective income tax rate in future periods based on anticipated settlement dates is $44 million and $36 million , respectively. Tax authorities continue to examine certain other of our tax filings for fiscal years 2005 through 2017. As a result of further settlement of audits, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations, our reserves for unrecognized tax benefits, as well as reserves for interest and penalties, may decrease in the next 12 months by an amount up to approximately $26 million . With few exceptions, tax returns for all jurisdictions for all tax years before 2005 are no longer subject to examination by taxing authorities. Our policy is to record interest and penalties related to unrecognized tax benefits in the income tax provision (benefit). As of March 31, 2018 , 2017 and 2016 , we had $9 million , $5 million and $4 million accrued, respectively, for interest and penalties. For the year ended March 31, 2018 , we recognized $3 million expense related to accrued interest and penalties. For the years ended March 31, 2017 and 2016 we recognized a tax expense and benefit of $1 million and $2 million , respectively, related to changes in accrued interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year Ended March 31, 2018 2017 2016 Beginning balance $ 36 $ 34 $ 37 Additions based on tax positions related to the current period 4 5 6 Additions based on tax positions of prior years 6 — 3 Reductions based on tax positions of prior years (7 ) — (6 ) Settlements — (1 ) (10 ) Foreign exchange 5 (2 ) 4 Ending Balance $ 44 $ 36 $ 34 Income Taxes Payable Our consolidated balance sheets include income taxes payable (net) of $38 million and $44 million as of March 31, 2018 and 2017 , respectively. Of these amounts, $29 million and $26 million are reflected in “Accrued expenses and other current liabilities” as of March 31, 2018 and 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in the ordinary course of our business, including some we assert against others, such as environmental, health and safety, product liability, employee, tax, personal injury and other matters. We have established a liability with respect to contingencies for which a loss is probable and estimable. While the ultimate resolution of and liability and costs related to these matters cannot be determined with certainty, we do not believe any of these pending actions, individually or in the aggregate, will materially impact our operations or materially affect our financial condition or liquidity. For certain matters in which the Company is involved for which a loss is reasonably possible, we are unable to estimate a loss. For certain other matters for which a loss is reasonably possible and the loss is estimable, we have estimated the aggregated range of loss as $0 to $110 million . This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. The following describes certain contingencies relating to our business, including those for which we assumed liability as a result of our spin-off from Alcan Inc. Environmental Matters We own and operate numerous manufacturing and other facilities in various countries around the world. Our operations are subject to environmental laws and regulations from various jurisdictions, which govern, among other things, air emissions, wastewater discharges, the handling, storage and disposal of hazardous substances and wastes, the remediation of contaminated sites, post-mining reclamation and restoration of natural resources, and employee health and safety. Future environmental regulations may impose stricter compliance requirements on the industries in which we operate. Additional equipment or process changes at some of our facilities may be needed to meet future requirements. The cost of meeting these requirements may be significant. Failure to comply with such laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions and other orders, including orders to cease operations. We are involved in proceedings under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, or analogous state provisions regarding liability arising from the usage, storage, treatment or disposal of hazardous substances and wastes at a number of sites in the United States, as well as similar proceedings under the laws and regulations of the other jurisdictions in which we have operations, including Brazil and certain countries in the European Union. Many of these jurisdictions have laws that impose joint and several liability, without regard to fault or the legality of the original conduct, for the costs of environmental remediation, natural resource damages, third party claims, and other expenses. In addition, we are, from time to time, subject to environmental reviews and investigations by relevant governmental authorities. We are also involved in claims and litigation filed on behalf of persons alleging exposure to substances and other hazards at our current and former facilities. We have established liabilities based on our estimates for the currently anticipated costs associated with these environmental matters. We estimated that the remaining undiscounted clean-up costs related to our environmental liabilities as of March 31, 2018 were approximately $14 million , of which $10 million was associated with restructuring actions and the remaining undiscounted clean-up costs were approximately $4 million . Additionally, $7 million of the environmental liability was included in “Other long-term liabilities,” with the remaining $7 million included in “Accrued expenses and other current liabilities” in our consolidated balance sheet as of March 31, 2018 . 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 consolidated balance sheet. Management has reviewed the environmental matters, including those for which we assumed liability as a result of our spin-off from Alcan Inc. As a result of management's review of these items, management has determined that the currently anticipated costs associated with these environmental matters will not, individually or in the aggregate, materially impact our operations or materially adversely affect our financial condition, results of operations or liquidity. Brazil Tax and Legal Matters Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. In most cases, we are paying the settlement amounts over a period of 180 months , although in some cases we are paying the settlement amounts over a shorter period. The assets and liabilities related to these settlements are presented in the table below (in millions). March 31, 2018 2017 Cash deposits (A) $ 7 $ 7 Short-term settlement liability (B) $ 9 $ 9 Long-term settlement liability (B) 49 59 Total settlement liability $ 58 $ 68 Liability for other disputes and claims (C) $ 29 $ 22 _________________________ (A) Effective in the third quarter of fiscal 2018, management defines “Cash deposits” to include cash deposits related to tax, labor, and civil disputes. To conform with current year presentation, we have updated prior period amounts to also include cash deposits related to labor and civil disputes. We have maintained these cash deposits as a result of legal proceedings with Brazil's tax authorities, labor courts, or designated civil courts. These deposits, which are included in “Other long-term assets - third parties” in our accompanying consolidated balance sheets, will be expended toward these legal proceedings. (B) The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying consolidated balance sheets. (C) In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying consolidated balance sheets. The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposits is included in the table below (in millions). Year Ended March 31, 2018 2017 2016 Loss on Brazilian tax litigation, net $ 3 $ 5 $ 5 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. |
Segment, Geographical Area, Maj
Segment, Geographical Area, Major Customer and Major Supplier Information | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment, Geographical Area, Major Customer and Major Supplier Information | SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia and South America. All of our segments manufacture aluminum sheet and light gauge products. The following is a description of our operating segments: North America. Headquartered in Atlanta, Georgia, this segment operates eight plants, including two fully dedicated recycling facilities and one facility with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates 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. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies . We measure the profitability and financial performance of our operating segments based on “Segment income.” “Segment income” provides a measure of our underlying segment results that is in line with our approach to risk management. We define “Segment income” as earnings before (a) “depreciation and amortization”; (b) “interest expense and amortization of debt issuance costs”; (c) “interest income”; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) gain or loss on extinguishment of debt; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of “Segment income” from non-consolidated affiliates to income as determined on the equity method of accounting; (i) “restructuring and impairment, net”; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) provision or benefit for taxes on income (loss); (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 7 — Consolidation and Note 8 — Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis. Selected Segment Financial Information Selected Operating Results Year Ended March 31, 2018 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,933 $ 3,390 $ 2,066 $ 1,851 $ 222 $ 11,462 Net sales - intersegment 18 57 44 80 (199 ) — Net sales $ 3,951 $ 3,447 $ 2,110 $ 1,931 $ 23 $ 11,462 Depreciation and amortization $ 149 $ 112 $ 65 $ 65 $ (37 ) $ 354 Income tax provision $ 13 $ 19 $ 108 $ 77 $ 16 $ 233 Capital expenditures $ 78 $ 71 $ 36 $ 38 $ 3 $ 226 March 31, 2018 Investment in and advances to non–consolidated affiliates $ — $ 522 $ 327 $ — $ — $ 849 Total assets $ 2,569 $ 3,151 $ 1,796 $ 1,781 $ 206 $ 9,503 Selected Operating Results Year Ended March 31, 2017 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,226 $ 2,930 $ 1,771 $ 1,448 $ 216 $ 9,591 Net sales - intersegment 2 38 20 62 (122 ) — Net sales $ 3,228 $ 2,968 $ 1,791 $ 1,510 $ 94 $ 9,591 Depreciation and amortization $ 149 $ 106 $ 59 $ 63 $ (17 ) $ 360 Income tax provision $ 18 $ 12 $ 20 $ 88 $ 13 $ 151 Capital expenditures $ 80 $ 65 $ 38 $ 39 $ 2 $ 224 March 31, 2017 Investment in and advances to non–consolidated affiliates $ — $ 451 $ — $ — $ — $ 451 Total assets $ 2,358 $ 2,683 $ 1,602 $ 1,637 $ 93 $ 8,373 Selected Operating Results Year Ended March 31, 2016 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,262 $ 3,055 $ 1,879 $ 1,482 $ 194 $ 9,872 Net sales - intersegment 4 168 113 93 (378 ) — Net sales $ 3,266 $ 3,223 $ 1,992 $ 1,575 $ (184 ) $ 9,872 Depreciation and amortization $ 143 $ 106 $ 61 $ 61 $ (18 ) $ 353 Income tax (benefit) provision $ (53 ) $ (11 ) $ 12 $ 81 $ 17 $ 46 Capital expenditures $ 143 $ 146 $ 35 $ 39 $ 7 $ 370 The following table displays the reconciliation from “Net income attributable to our common shareholder” to "Segment income" from reportable segments (in millions). Year Ended March 31, 2018 2017 2016 Net income (loss) attributable to our common shareholder $ 635 $ 45 $ (38 ) Noncontrolling interests (13 ) 1 — Income tax provision 233 151 46 Depreciation and amortization 354 360 353 Interest expense and amortization of debt issuance costs 255 294 327 Adjustment to reconcile proportional consolidation 51 28 30 Unrealized (gains) losses on change in fair value of derivative instruments, net (20 ) (5 ) 4 Realized (gains) losses on derivative instruments not included in segment income — (5 ) 1 Gain on assets held for sale — (2 ) — Loss on extinguishment of debt — 134 13 Restructuring and impairment, net 34 10 48 Loss on sale of fixed assets 7 6 4 (Gain) loss on sale of a business (A) (318 ) 27 — Metal price lag (B) (4 ) 31 172 Other, net 1 10 3 Total of reportable segments $ 1,215 $ 1,085 $ 963 _________________________ (A) In September 2017, Novelis Korea Ltd., a subsidiary of Novelis Inc., sold a portion of its shares in Ulsan Aluminum, Ltd. (UAL) for $314 million , which resulted in a gain on sale of investments. For additional information related to the transaction, see Note 8 — Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions . (B) 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 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 14 — Financial Instruments and Commodity Contracts . The following table displays "Segment income" from reportable segments by region. Year Ended March 31, 2018 2017 2016 North America $ 474 $ 380 $ 338 Europe 219 208 203 Asia 167 163 142 South America 363 337 280 Intersegment eliminations (8 ) (3 ) — Total of reportable segments $ 1,215 $ 1,085 $ 963 Geographical Area Information We had 24 operating facilities in ten countries as of March 31, 2018 . The tables below present “Net sales” and “Long-lived assets and other intangible assets” by geographical area (in millions). “Net sales” are attributed to geographical areas based on the origin of the sale. “Long-lived assets and other intangible assets” are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill. Year Ended March 31, 2018 2017 2016 Net sales: United States $ 4,041 $ 3,336 $ 3,334 Asia and Other Pacific 2,068 1,771 1,879 Brazil 1,851 1,448 1,482 Canada 113 106 121 Germany 2,853 2,428 2,506 Other Europe 536 502 550 Total Net sales $ 11,462 $ 9,591 $ 9,872 March 31, 2018 2017 Long-lived assets and other intangibles: United States $ 1,338 $ 1,400 Asia and Other Pacific 490 756 Brazil 796 823 Canada 60 64 Germany 287 260 United Kingdom 43 39 Other Europe 506 472 Total long-lived assets $ 3,520 $ 3,814 Information about Product Sales, Major Customers and Primary Supplier Product Sales The percentage of “Net sales” generated from beverage and food can products were 52% , 52% , and 55% for the years ended March 31, 2018 , 2017 , and 2016 , respectively. The percentage of “Net sales” generated from automotive products increased to 24% in the year ended March 31, 2018 , compared to 23% and 20% in the years ended March 31, 2017 and 2016 , respectively. Major Customers The following table displays our net sales to the Affiliates of Ball Corporation (Ball) and Ford Motor Company (Ford), our two largest customers, as a percentage of total “Net sales.” Year Ended March 31, 2018 2017 2016 Ball (A) 21 % 27 % 30 % Ford 10 % 10 % 4 % _________________________ (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. For the year ended March 31, 2018 combined sales to Ball and Rexam totaled 29% . For the years ended March 31, 2017 and March 31, 2016 , combined sales to Ball, Rexam, and Ardagh totaled 30% . 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. Year Ended March 31, 2018 2017 2016 Purchases from RT as a percentage of total combined metal purchases 10 % 10 % 12 % |
Supplemental Information
Supplemental Information | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION Supplemental cash flow information is as follows (in millions). Year Ended March 31, 2018 2017 2016 Supplemental disclosures of cash flow information: Interest paid $ 254 $ 288 $ 308 Income taxes paid $ 191 $ 128 $ 123 As of March 31, 2018 , we recorded $53 million of outstanding accounts payable and accrued liabilities related to capital expenditures in which the cash outflows will occur subsequent to March 31, 2018 . During the years ended March 31, 2018 and 2016, we did not incur any new capital lease obligations. We incurred capital lease obligations of $2 million during the year ended March 31, 2017 . |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | QUARTERLY RESULTS (UNAUDITED) The tables below present select operating results (in millions) by period: (Unaudited) Quarter Ended June 30, September 30, December 31, 2017 March 31, Net sales (A) $ 2,669 $ 2,794 $ 2,933 $ 3,066 Cost of goods sold (exclusive of depreciation and amortization) (A) 2,261 2,361 2,494 2,603 Selling, general and administrative expenses 106 124 128 131 Depreciation and amortization 90 91 86 87 Interest expense and amortization of debt issuance costs 64 64 64 63 Research and development expenses 15 16 17 16 Gain on sale of a business, net — (318 ) — — Restructuring and impairment, net 1 7 25 1 Equity in net loss of non-consolidated affiliates — 1 — — Other (income) expense, net (12 ) 25 (6 ) 2 Income tax provision 43 116 20 54 Net income 101 307 105 109 Net loss (income) attributable to noncontrolling interests — — (16 ) 3 Net income attributable to our common shareholder $ 101 $ 307 $ 121 $ 106 (A) "Net Sales" and "Cost of goods sold (exclusive of depreciation and amortization)" for the quarter ended December 31, 2017 have each been reduced from amounts previously reported by $152 million to correct a misstatement in the presentation of certain transactions. We have determined this misstatement to be immaterial to our previously issued financial statements. (Unaudited) Quarter Ended June 30, September 30, December 31, March 31, Net sales $ 2,296 $ 2,361 $ 2,313 $ 2,621 Cost of goods sold (exclusive of depreciation and amortization) 1,930 1,980 1,924 2,182 Selling, general and administrative expenses 92 108 103 118 Depreciation and amortization 89 90 88 93 Interest expense and amortization of debt issuance costs 83 81 67 63 Research and development expenses 13 14 14 17 Loss on sale of a business, net — 27 — — Gain on assets held for sale, net (1 ) (1 ) — — Loss on extinguishment of debt — 112 — 22 Restructuring and impairment, net 2 1 1 6 Equity in net loss of non-consolidated affiliates — — 8 — Other expense (income), net 28 11 (3 ) 32 Income tax provision 36 27 47 41 Net income (loss) 24 (89 ) 64 47 Net income attributable to noncontrolling interests — — 1 — Net income (loss) attributable to our common shareholder $ 24 $ (89 ) $ 63 $ 47 |
Business and Summary of Signi31
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of March 31, 2018 , 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. |
Consolidation Policy | Consolidation Policy Our consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated “Net income (loss) attributable to our common shareholder” includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the consolidated financial statements for consolidated entities, compared to a two-line presentation of "Investment in and advances to non-consolidated affiliates" and "Equity in net income (loss) of non-consolidated affiliates." |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. |
Risks and Uncertainties | Risks and Uncertainties We are exposed to a number of risks in the normal course of our operations that could potentially affect our financial position, results of operations, and cash flows. Laws and regulations We operate in an industry that is subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate. These laws and regulations impose increasingly stringent environmental, health and safety protection standards and permitting requirements regarding, among other things, air emissions, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste disposal practices, the remediation of environmental contamination, post-mining reclamation and working conditions for our employees. Some environmental laws, such as the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, and comparable state laws, impose joint and several liability for the cost of environmental remediation, natural resource damages, third party claims, and other expenses, without regard to the fault or the legality of the original conduct. The costs of complying with these laws and regulations, including participation in assessments and remediation of contaminated sites and installation of pollution control facilities, have been, and in the future could be, significant. In addition, these laws and regulations may also result in substantial environmental liabilities associated with divested assets, third party locations and past activities. In certain instances, these costs and liabilities, as well as related action to be taken by us, could be accelerated or increased if we were to close, divest of or change the principal use of certain facilities with respect to which we may have environmental liabilities or remediation obligations. Currently, we are involved in a number of compliance efforts, remediation activities and legal proceedings concerning environmental matters, including certain activities and proceedings arising under U.S. Superfund and comparable laws in other jurisdictions where we have operations. We have established liabilities for environmental remediation where appropriate. However, the cost of addressing environmental matters (including the timing of any charges related thereto) cannot be predicted with certainty, and these liabilities may not ultimately be adequate, especially in light of potential changes in environmental conditions, changing interpretations of laws and regulations by regulators and courts, the discovery of previously unknown environmental conditions, the risk of governmental orders to carry out additional compliance on certain sites not initially included in remediation in progress, our potential liability to remediate sites for which provisions have not been previously established and the adoption of more stringent environmental laws. Such future developments could result in increased environmental costs and liabilities and could require significant capital expenditures, any of which could have a material adverse effect on our financial position or results of operations or cash flows. Furthermore, the failure to comply with our obligations under the environmental laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions or other orders, including orders to cease operations. In addition, the presence of environmental contamination at our properties could adversely affect our ability to sell a property, receive full value for a property or use a property as collateral for a loan. Some of our current and potential operations are located or could be located in or near communities that may regard such operations as having a detrimental effect on their social and economic circumstances. Environmental laws typically provide for participation in permitting decisions, site remediation decisions and other matters. Concern about environmental justice issues may affect our operations. Should such community objections be presented to government officials, the consequences of such a development may have a material adverse impact upon the profitability or, in extreme cases, the viability of an operation. In addition, such developments may adversely affect our ability to expand or enter into new operations in such location or elsewhere and may also have an effect on the cost of our environmental remediation projects. We use a variety of hazardous materials and chemicals in our rolling processes and in connection with maintenance work on our manufacturing facilities. Because of the nature of these substances or related residues, we may be liable for certain costs, including, among others, costs for health-related claims or removal or re-treatment of such substances. Certain of our current and former facilities incorporated asbestos-containing materials, a hazardous substance that has been the subject of health-related claims for occupation exposure. In addition, although we have developed environmental, health and safety programs for our employees, including measures to reduce employee exposure to hazardous substances, and conduct regular assessments at our facilities, we are currently, and in the future may be, involved in claims and litigation filed on behalf of persons alleging injury predominantly as a result of occupational exposure to substances at our current or former facilities. It is not possible to predict the ultimate outcome of these claims and lawsuits due to the unpredictable nature of personal injury litigation. If these claims and lawsuits, individually or in the aggregate, were finally resolved against us, our financial position, results of operations and cash flows could be adversely affected. Materials and labor In the aluminum rolled products industry, our raw materials are subject to continuous price volatility. We may not be able to pass on the entire cost of the increases to our customers or offset fully the effects of higher raw material costs through productivity improvements, which may cause our profitability to decline. In addition, there is a potential time lag between changes in prices under our purchase contracts and the point when we can implement a corresponding change under our sales contracts with our customers. As a result, we could be exposed to fluctuations in raw materials prices which could have a material adverse effect on our financial position, results of operations and cash flows. Significant price increases may result in our customers substituting other materials, such as plastic or glass, for aluminum or switching to another aluminum rolled products producer, which could have a material adverse effect on our financial position, results of operations and cash flows. We consume substantial amounts of energy in our rolling operations and our cast house operations. The factors that affect our energy costs and supply reliability tend to be specific to each of our facilities. A number of factors could materially adversely affect our energy position including, but not limited to: (a) increases in the cost of natural gas; (b) increases in the cost of supplied electricity or fuel oil related to transportation; (c) interruptions in energy supply due to equipment failure or other causes and (d) the inability to extend energy supply contracts upon expiration on economical terms. A significant increase in energy costs or disruption of energy supplies or supply arrangements could have a material adverse effect on our financial position, results of operations and cash flows. A substantial portion of our employees are represented by labor unions under a large number of collective bargaining agreements with varying durations and expiration dates. We may not be able to satisfactorily renegotiate our collective bargaining agreements when they expire. In addition, existing collective bargaining agreements may not prevent a strike or work stoppage at our facilities in the future, and any such work stoppage could have a material adverse effect on our financial position, results of operations and cash flows. Geographic markets We are, and will continue to be, subject to financial, political, economic and business risks in connection with our global operations. We have made investments and carry on production activities in various emerging markets, including China, Brazil and South Korea, and we market our products in these countries, as well as certain other countries in Asia, Africa, and the Middle East. While we anticipate higher growth or attractive production opportunities from these emerging markets, they also present a higher degree of risk than more developed markets. In addition to the business risks inherent in developing and servicing new markets, economic conditions may be more volatile, legal and regulatory systems may be less developed and predictable, and the possibility of various types of adverse governmental action may be more pronounced. In addition, inflation, fluctuations in currency and interest rates, competitive factors, civil unrest and labor problems could affect our revenues, expenses and results of operations. Our operations could also be adversely affected by acts of war, terrorism or the threat of any of these events as well as government actions such as controls on imports, exports and prices, tariffs, new forms of taxation, changes in fiscal regimes and increased government regulation in the countries in which we operate or service customers. Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial position, results of operations and cash flows. Other risks and uncertainties In addition, refer to Note 14 — Financial Instruments and Commodity Contracts , Note 16 — Fair Value Measurements and Note 19 — Commitments and Contingencies for a discussion of financial instruments and commitments and contingencies. |
Revenue Recognition | Revenue Recognition We recognize sales when the revenue is realized or realizable, and has been earned. We record sales when a firm sales agreement is in place, delivery has occurred and collectability of the fixed or determinable sales price is reasonably assured. We recognize product revenue, net of trade discounts, allowances, and estimated billing adjustments, in the reporting period in which the products are shipped and the title and risk of ownership pass to the customer. We sell most of our products under contracts based on a “conversion premium,” which is subject to periodic adjustments based on market factors. As a result, the aluminum price risk is largely absorbed by the customer. In situations where we offer customers fixed prices for future delivery of our products, we enter into derivative instruments for all or a portion of the cost of metal inputs to protect our profit on the conversion of the product. Shipping and handling amounts we bill to our customers are included in “Net sales” and the related shipping and handling costs we incur are included in “Cost of goods sold (exclusive of depreciation and amortization).” Our customers can receive or earn certain incentives including, but not limited to, contract signing bonuses, cash discounts, volume based incentive programs, and support for infrastructure programs. The incentives are recorded as reductions to "Net sales" and are recognized over the minimum contractual period in which the customer is obligated to make purchases from Novelis. For incentives that must be earned, management must make estimates related to customer performance and sales volume to determine the total amounts earned and to be recorded as reductions to "Net sales." In making these estimates, management considers historical results and future estimates. The actual amounts may differ from these estimates. On occasion, and in an attempt to better manage inventory levels, we sell inventory to third parties and have agreed to repurchase the same or similar inventory back from the third parties over a future period, based on market prices at the time of repurchase. For transactions in which the Company sells inventory and agrees to repurchase at a later date, we record the initial sale of the inventory on a net basis in our consolidated statement of operations through "Cost of goods sold (exclusive of depreciation and amortization)." Upon repurchase, the Company accounts for the inventory at the reacquisition price which becomes an input to our moving average inventory cost basis. |
Cost of Goods Sold (Exclusive of Depreciation and Amortization) | Cost of Goods Sold (Exclusive of Depreciation and Amortization) “Cost of goods sold (exclusive of depreciation and amortization)” includes all costs associated with inventories, including the procurement of materials, the conversion of such materials into finished products, and the costs of warehousing and distributing finished goods to customers. Material procurement costs include inbound freight charges as well as purchasing, receiving, inspection and storage costs. Conversion costs include the costs of direct production inputs such as labor and energy, as well as allocated overheads from indirect production centers and plant administrative support areas. Warehousing and distribution costs include inside and outside storage costs, outbound freight charges and the costs of internal transfers. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses “Selling, general and administrative expenses” include selling, marketing and advertising expenses; salaries, travel and office expenses of administrative employees and contractors; legal and professional fees; software license fees; bad debt expenses; and factoring expenses. |
Research and Development | Research and Development We incur costs in connection with research and development programs that are expected to contribute to future earnings, and charge such costs against income as incurred. Research and development costs consist primarily of salaries and administrative costs. |
Restructuring Activities | Restructuring Activities Restructuring charges, which are recorded within “Restructuring and impairment, net," include employee severance and benefit costs, impairments of assets, and other costs associated with exit activities. We apply the provisions of ASC 420, Exit or Disposal Cost Obligations and ASC 712, Compensation — Nonretirement Postemployment Benefits. Severance costs accounted for under ASC 420 and/or ASC 712 are recognized when management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. Impairment losses are based upon the estimated fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include environmental remediation costs and contract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we evaluate the accruals for restructuring costs to ensure the accruals are still appropriate. See Note 2 — Restructuring and Impairment for further discussion. |
Cash and Cash Equivalents | Cash and Cash Equivalents “Cash and cash equivalents” includes investments that are highly liquid and have maturities of three months or less when purchased. The carrying values of cash and cash equivalents approximate their fair value due to the short-term nature of these instruments. We maintain amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions, and we have not experienced any losses on such deposits. |
Accounts Receivable | Accounts Receivable Our accounts receivable are geographically dispersed. We do not obtain collateral relating to our accounts receivable. We do not believe there are any significant concentrations of revenues from any particular customer or group of customers that would subject us to any significant credit risks in the collection of our accounts receivable. We report accounts receivable at the estimated net realizable amount we expect to collect from our customers. Additions to the allowance for doubtful accounts are made by means of the provision for doubtful accounts. We write-off uncollectible accounts receivable against the allowance for doubtful accounts after exhausting collection efforts. For each of the periods presented, we performed an analysis of our historical cash collection patterns and considered the impact of any known material events in determining the allowance for doubtful accounts. See Note 3 — Accounts Receivable for further discussion. |
Derivative Instruments | Derivative Instruments We hold derivatives for risk management purposes and not for trading. We use derivatives to mitigate uncertainty and volatility caused by underlying exposures to aluminum prices, foreign exchange rates, interest rates, and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. We may be exposed to losses in the future if the counterparties to our derivative contracts fail to perform. We are satisfied that the risk of such non-performance is remote due to our monitoring of credit exposures. Additionally, we enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default, and we do not face credit contingent provisions that would result in the posting of collateral. Prior to the adoption of ASU 2017-12 Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities, we were required to separately measure and record ineffectiveness, which is the amount by which the hedging instrument did not offset the changes in the fair value or cash flows of hedged items. We recorded the gain or loss related to the ineffective portion of derivative instruments, if any, in “Other (income) expense, net. Pursuant to our adoption of the provisions of ASU 2017-12 in the fourth quarter of fiscal 2018, we are no longer required to separately measure and recognize hedge ineffectiveness in our current period earnings. Upon adoption of ASU 2017-12, for cash flow hedges we will recognize and defer the entire periodic change in the fair value of the hedging instrument in other comprehensive income (loss). The amounts recorded in other comprehensive income (loss) will subsequently be reclassified to earnings in the same line item impacted by the hedged item when the hedged item affects earnings. Prior to the adoption of ASU 2017-12, we assessed and measured hedge effectiveness on our aluminum and natural gas programs based on all pricing components of the hedged item. Pursuant to the adoption of ASU 2017-12, we will apply hedge accounting to only a specific component of the hedged item for these programs simplifying the application of hedge accounting and better aligning our risk management objectives, activities and financial reporting. For derivatives designated as cash flow hedges or net investment hedges, we assess hedge effectiveness by formally evaluating the high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The effective portion of gain or loss on the derivative is included in other comprehensive income (OCI) and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. Gains or losses representing reclassifications of OCI to earnings are recognized in the line item most reflective of the underlying risk exposure. We exclude the time value component of foreign currency and aluminum price risk hedges when measuring and assessing ineffectiveness to align our accounting policy with risk management objectives when it is necessary. If at any time during the life of a cash flow hedge relationship we determine that the relationship is no longer effective, the derivative will no longer be designated as a cash flow hedge and future gains or losses on the derivative will be recognized in " Other expense (income), net ". For derivatives designated as fair value hedges, we assess hedge effectiveness by formally evaluating the high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. The changes in the fair values of the underlying hedged items are reported in "Prepaid expenses and other current assets," "Other long-term assets", "Accrued expenses and other current liabilities," and "Other long-term liabilities" in the consolidated balance sheets. Changes in the fair values of these derivatives and underlying hedged items generally offset and the effective portion is recorded in "Net sales" consistent with the underlying hedged item and the net ineffectiveness is recorded in "Other (income) expense, net." If no hedging relationship is designated, gains or losses are recognized in " Other expense (income), net " in our current period earnings. Consistent with the cash flows from the underlying risk exposure, we classify cash settlement amounts associated with designated derivatives as part of either operating or investing activities in the consolidated statements of cash flows. If no hedging relationship is designated, we classify cash settlement amounts as part of investing activities in the consolidated statement of cash flows. The majority of our derivative contracts are valued using industry-standard models that use observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices for foreign exchange rates. See Note 14 — Financial Instruments and Commodity Contracts and Note 16 — Fair Value Measurements for additional discussion related to derivative instruments. |
Inventories | Inventories We carry our inventories at the lower of their cost or net realizable value, reduced for obsolete and excess inventory. We use the average cost method to determine cost. Included in inventories are stores inventories, which are carried at average cost. See Note 4 — Inventories for further discussion. |
Property, Plant and Equipment | Property, Plant and Equipment We record land, buildings, leasehold improvements and machinery and equipment at cost. We record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments as of the beginning of the lease term. We generally depreciate our assets using the straight-line method over the shorter of the estimated useful life of the assets or the lease term, excluding any lease renewals, unless the lease renewals are reasonably assured. See Note 5 — Property, Plant and Equipment for further discussion. We assign useful lives to and depreciate major components of our property, plant and equipment. The ranges of estimated useful lives are as follows: Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under capital lease obligations 5 to 15 Most of our large scale machinery, including hot mills, cold mills, continuous casting mills, furnaces and finishing mills have useful lives of 15 to 25 years. Supporting machinery and equipment, including automation and work rolls, have useful lives of 2 to 15 years. Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset, and we capitalize interest on major construction and development projects while in progress. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, after consideration of any proceeds, is included as a gain or loss in " Other expense (income), net " or "(Gain) loss on assets held for sale" in our consolidated statements of operations. We account for operating leases under the provisions of ASC 840, Leases. This pronouncement requires us to recognize escalating rents, including any rent holidays, on a straight-line basis over the term of the lease for those lease agreements where we receive the right to control the use of the entire leased property at the beginning of the lease term. |
Goodwill | Goodwill We test for impairment at least annually as of the last day of February of each fiscal year, unless a triggering event occurs that would require an interim impairment assessment. We do not aggregate components of operating segments to arrive at our reporting units and, as such, our reporting units are the same as our operating segments. In performing our goodwill impairment test, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If we perform a qualitative assessment and determine that an impairment is more likely than not, then we perform the two-step quantitative impairment test, otherwise no further analysis is required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether we choose to perform the qualitative assessment or proceed directly to the two-step quantitative impairment test. For the years ended March 31, 2018 , 2017 and 2016 we elected to perform the two-step quantitative impairment test. No goodwill impairment was identified in any of the years. See Note 6 — Goodwill and Intangible Assets for further discussion. We use the present value of estimated future cash flows to establish the estimated fair value of our reporting units as of the testing date. This approach includes many assumptions related to future growth rates, discount factors and tax rates, among other considerations. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairment in future periods. When available and as appropriate, we use the market approach to corroborate the estimated fair value. If the carrying amount of a reporting unit's goodwill exceeds its estimated fair value, the second step of the impairment test is performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, we would recognize an impairment charge in an amount equal to that excess in our consolidated statements of operations. When a business within a reporting unit is disposed of, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology. |
Long-Lived Assets and Other Intangible Assets | Long-Lived Assets and Other Intangible Assets We amortize the cost of intangible assets over their respective estimated useful lives to their estimated residual value. See Note 6 — Goodwill and Intangible Assets for further discussion. We assess the recoverability of long-lived assets (excluding goodwill) and finite-lived intangible assets, whenever events or changes in circumstances indicate that we may not be able to recover the asset’s carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset (groups) to the expected, undiscounted future net cash flows to be generated by that asset (groups), or, for identifiable intangible assets, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets is based on the present value of estimated future cash flows. We measure the amount of impairment of other long-lived assets and intangible assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined as the present value of estimated future cash flows or as the appraised value. Impairments of long-lived assets and intangible assets are included in “Restructuring and impairment, net” in the consolidated statement of operations. See Note 2 — Restructuring and Impairment for further discussions. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale We classify long-lived assets (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset (disposal group) that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. We assess the fair value of a long-lived asset (disposal group) less any costs to sell each reporting period it remains classified as held for sale and report any reduction in fair value as an adjustment to the carrying value of the asset (disposal group). Upon being classified as held for sale we cease depreciation. We continue to depreciate long-lived assets to be disposed of other than by sale. Upon determining that a long-lived asset (disposal group) meets the criteria to be classified as held for sale, we report the assets and liabilities of the disposal group in the line items "Assets held for sale" and "Liabilities held for sale," respectively in our consolidated balance sheets. |
Investments in and Advances to Non-Consolidated Affiliates | Investment in and Advances to Non-Consolidated Affiliates We assess the potential for other-than-temporary impairment of our equity method investments when impairment indicators are identified. We consider all available information, including the recoverability of the investment, the earnings and near-term prospects of the affiliate, factors related to the industry, conditions of the affiliate, and our ability, if any, to influence the management of the affiliate. We assess fair value based on valuation methodologies, as appropriate, including the present value of estimated future cash flows, estimates of sales proceeds, and external appraisals. If an investment is considered to be impaired and the decline in value is other than temporary, we record an appropriate write-down. See Note 8 — Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further discussion. |
Financing Costs | Financing Costs We amortize financing costs and premiums, and accrete discounts, over the remaining life of the related debt using the effective interest amortization method, unless the impact of utilizing the straight-line method results in an immaterial difference. The expense is included in “Interest expense and amortization of debt issuance costs” in our consolidated statements of operations. We record discounts and unamortized financing costs as a direct deduction from, or premiums as a direct addition to, the face amount of the financing. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 also applies to measurements under other accounting pronouncements, such as ASC 825, Financial Instruments (ASC 825) that require or permit fair value measurements. ASC 825 requires disclosures of the fair value of financial instruments. Our financial instruments include: cash and cash equivalents; certificates of deposit; accounts receivable; accounts payable; foreign currency, energy and interest rate derivative instruments; cross-currency swaps; metal option and forward contracts; share-based compensation; related party notes receivable and payable; letters of credit; short-term borrowings and long-term debt. The carrying amounts of cash and cash equivalents, certificates of deposit, accounts receivable, accounts payable and current related party notes receivable and payable approximate their fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our letters of credit is deemed to be the amount of payment guaranteed on our behalf by third party financial institutions. We determine the fair value of our short-term borrowings and long-term debt based on various factors including maturity schedules, call features and current market rates. We also use quoted market prices, when available, or the present value of estimated future cash flows to determine fair value of our share-based compensation liabilities, short-term borrowings and long-term debt. When quoted market prices are not available for various types of financial instruments (such as currency, energy and interest rate derivative instruments, swaps, options and forward contracts), we use standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. See Note 16 — Fair Value Measurements for further discussion. |
Pension and Postretirement Benefits | Pensions and Postretirement Benefits Our pension obligations relate to funded defined benefit pension plans in the U.S., Canada, Switzerland and the U.K., unfunded pension plans in the U.S., Canada, and Germany, and unfunded lump sum indemnities in France and Italy; and partially funded lump sum indemnities in South Korea. Our other postretirement obligations include unfunded health care and life insurance benefits provided to retired employees in Canada, the U.S. and Brazil. We account for our pensions and other postretirement benefits in accordance with ASC 715, Compensation — Retirement Benefits (ASC 715). We recognize the funded status of our benefit plans as a net asset or liability, with an offsetting adjustment to accumulated other comprehensive income in shareholder’s (deficit) equity. The funded status is calculated as the difference between the fair value of plan assets and the benefit obligation. For the years ended March 31, 2018 and 2017 , we used March 31 as the measurement date. We use standard actuarial methods and assumptions to account for our pension and other postretirement benefit plans. Pension and postretirement benefit obligations are actuarially calculated using management’s best estimates of the rate used to discount the future estimated liability, the long-term rate of return on plan assets, and several assumptions related to the employee workforce (compensation increases, health care cost trend rates, expected service period, retirement age, and mortality). Pension and postretirement benefit expense includes the actuarially computed cost of benefits earned during the current service period, the interest cost on accrued obligations, the expected return on plan assets based on fair market value and the straight-line amortization of net actuarial gains and losses and adjustments due to plan amendments, curtailments, and settlements. Net actuarial gains and losses are amortized over periods of 15 years or less, which represent the group's average future service life of the employees or the group's average life expectancy. See Note 12 — Postretirement Benefit Plans for further discussion. |
Noncontrolling Interests in Consolidated Affiliates | Noncontrolling Interests in Consolidated Affiliates These financial statements reflect the application of ASC 810, Consolidations (ASC 810), which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s (deficit) equity, but separate from the parent’s (deficit) equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. Our consolidated financial statements include all assets, liabilities, revenues and expenses of less-than-100%-owned affiliates that we control or for which we are the primary beneficiary. We record a noncontrolling interest for the allocable portion of income or loss and comprehensive income or loss to which the noncontrolling interest holders are entitled based upon their ownership share of the affiliate. Distributions made to the holders of noncontrolling interests are charged to the respective noncontrolling interest balance. Losses attributable to the noncontrolling interest in an affiliate may exceed our interest in the affiliate’s equity. The excess, and any further losses attributable to the noncontrolling interest, shall be attributed to those interests. The noncontrolling interest shall continue to be attributed its share of losses even if that attribution results in a deficit noncontrolling interest balance. |
Environmental Liabilities | Environmental Liabilities We record accruals for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. We adjust these accruals periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are stated at undiscounted amounts. Environmental liabilities are included in our consolidated balance sheets in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” depending on their short- or long-term nature. Any receivables for related insurance or other third party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in our consolidated balance sheets in “Prepaid expenses and other current assets.” Costs related to environmental matters are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued in the period in which such costs are determined to be probable and estimable. See Note 19 — Commitments and Contingencies for further discussion. |
Litigation Contingencies | Litigation Contingencies We accrue for loss contingencies associated with outstanding litigation, claims and assessments for which management has determined it is probable that a loss contingency exists and the amount of loss can be reasonably estimated. We expense professional fees associated with litigation claims and assessments as incurred. See Note 19 — Commitments and Contingencies for further discussion. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. This approach recognizes the amount of income taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates. Under ASC 740 Income Taxes , (ASC 740) a valuation allowance is required when it is more likely than not that some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient taxable income through various sources. We record tax benefits related to uncertain tax positions taken or expected to be taken on a tax return when such benefits meet a more than likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, the statute of limitation has expired or the appropriate taxing authority has completed their examination. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. See Note 18 — Income Taxes for further discussion. |
Share-Based Compensation | Share-Based Compensation In accordance with ASC 718, Compensation — Stock Compensation (ASC 718), we recognize compensation expense for a share-based award over an employee’s requisite service period based on the award’s grant date fair value, subject to adjustment. Our share-based awards are settled in cash and are accounted for as liability based awards. As such, liabilities for awards under these plans are required to be measured at fair value at each reporting date until the date of settlement. See Note 11 — Share-Based Compensation for further discussion. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of foreign operations, whose functional currency is other than the U.S. dollar (located in Europe and Asia), are translated to U.S. dollars at the period end exchange rates and revenues and expenses are translated at average exchange rates for the period. Differences arising from this translation are included in the currency translation adjustment (CTA) component of AOCI and Noncontrolling Interest, both of which are on the balance sheet. If there is a planned or completed sale or liquidation of our ownership in a foreign operation, the relevant CTA is recognized in our consolidated statement of operations. For all operations, the monetary items denominated in currencies other than the functional currency are remeasured at period-end exchange rates and transaction gains and losses are included in “Other (income) expense, net” in our consolidated statements of operations. Non-monetary items are remeasured at historical rates. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Effective for the fourth quarter of fiscal 2018, we early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update better align an entity’s risk management objectives, activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The impact of the adoption will now allow us to (1) defer the entire change in fair value of the hedging instrument to OCI, (2) apply hedge accounting to a specific pricing component and no longer to all pricing components, for our aluminum and natural gas programs and (3) eliminate the separate measurement and reporting of hedge ineffectiveness. The updated guidance will simplify the application of hedge accounting and increase the transparency of the results of our hedging programs. We did not record a cumulative effect adjustment as we elected to de-designate and re-designate existing hedge accounting relationships at the adoption date. Please refer to Note 14 — Financial Instruments and Commodity Contracts for additional disclosures related to the adoption of this standard. Effective for the first quarter of fiscal 2018, we early adopted FASB ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which addresses a lack of guidance in existing US GAAP related to the impact of derivative contract novations on existing hedge accounting relationships under Accounting Standards Codification Topic 815, Derivatives and Hedging (ASC 815). The new guidance clarifies that a change in one of the parties (a novation) to a derivative contract that is part of an existing hedge accounting relationship under ASC 815 does not, in and of itself, require a de-designation of that hedge accounting relationship. The impact of the adoption will prospectively allow hedge accounting treatment to continue on existing hedges when a novation event occurs. There was no impact upon adoption. Recently Issued Accounting Standards In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income/(loss) to retained earnings due to the U.S. federal corporate income tax rate change in the U.S. Tax Cuts and Jobs Act of 2017 (the “Act”). This standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adopting is permitted. Additionally, the ASU requires new disclosures by all companies, whether they opt to do the reclassification or not. Management is currently evaluating the potential impact of this guidance on the consolidated financial statements. 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. These changes became effective for Novelis on April 1, 2018. Management has determined that the adoption of this standard is not expected to have a material impact on the Consolidated Financial Statements. This guidance will need to be considered if Novelis initiates a modification that is determined to be a substantive change to an outstanding stock-based award. 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 the other components with other current compensation costs for related employees within non-operating income 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. These changes became effective for Novelis on April 1, 2018 and will be applied retrospectively. Currently, all post retirement costs fall within the line item “Selling, general and administrative expenses” and "Cost of goods sold (exclusive of depreciation and amortization)" within the consolidated results of operations. These changes will result in a change in the presentation of non-service cost components of net periodic benefit cost on the statement of operations and providing additional disclosure. We are currently evaluating the impact of this standard. 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. These changes became effective for Novelis on April 1, 2018, and interim periods within those annual periods. Early adoption is permitted. Management has determined that the adoption of these changes will not have a material impact on the Consolidated Financial Statements. 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. These changes become effective for Novelis on April 1, 2020. This guidance will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. We are currently evaluating the impact of this standard and we do not expect the adoption of this standard will have an impact on the Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, C larifying 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. These changes became effective for Novelis on April 1, 2018. Management has determined that the adoption of this guidance will not have an impact on our Consolidated Financial Statements. 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. Transfers between restricted cash and restricted cash equivalents and cash and cash equivalents will no longer be presented as cash flow activities in the statement of cash flows and for material balances of restricted cash and restricted cash equivalents an entity must disclose information regarding the nature of the restrictions. Restricted Cash be disclosed as a separate line item as a change of cash on the face of the Balance Sheet and Cash Flow Statement. These changes became effective for Novelis on April 1, 2018. Management has determined that the adoption of this guidance will not have a material impact and will result in presentational change to the face of the Consolidated Balance Sheet and Consolidated Statement of Cash Flows. 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 changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. The exception to defer the tax consequences of inventory transactions is maintained. Early adoption is permitted. These changes became effective for Novelis on April 1, 2018. The Company is currently evaluating the impact of the new standard. 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 eight specific cash flow items to provide clarification and reduce the diversity in presentation of these items. These changes became effective for Novelis on April 1, 2018. As of result of the adoption, Novelis will reclassify cash received related to beneficial interest in certain factored accounts receivables from operating activities to investing activities in the Statement of Consolidated Cash Flows. This reclassification is not expected to have a material impact on operating and investing cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which when effective, will require organizations that lease assets to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. A lessee will be required to recognize assets and liabilities for leases with terms that exceed twelve months. The standard will also require disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. These changes become effective for Novelis April 1, 2019 for the annual reporting period (including interim periods therein). Novelis has established a cross-functional project team to lead the implementation effort. The Company is currently evaluating the impact of the new standard. 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. Additional technical improvements, practical expedients, and clarifications have since been issued. 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. ASU 2014-09 defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. In August 2015, the FASB deferred the effective date by one year, making these changes effective for Novelis on April 1, 2018. Novelis will adopt the new guidance using the modified retrospective transition approach, reflecting the cumulative effect of initially applying the new standard to revenue recognition in the first quarter of fiscal year 2019. Through previously established project implementation and adoption teams, Novelis completed a detailed review of the terms and provisions of our customer contracts and concluded that Novelis' current revenue recognition practices are in compliance with this new guidance. Novelis is in the process of preparing the additional required disclosures. |
Business and Summary of Signi32
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Range of Estimated Useful Lives | The ranges of estimated useful lives are as follows: Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under capital lease obligations 5 to 15 |
Restructuring and Impairment (T
Restructuring and Impairment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring reserve activity | The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2015 $ 32 Fiscal 2016 Activity: -Provisions 23 -Reversal of expense (2 ) Expenses 21 $ 24 $ 45 $ 3 $ 48 Cash payments (22 ) Foreign currency translation and other (C) (4 ) Balance as of March 31, 2016 27 Fiscal 2017 Activity: Expenses 8 $ — $ 8 — $ 2 $ 10 Cash payments (13 ) Foreign currency translation and other (C) 2 Balance as of March 31, 2017 24 Fiscal 2018 Activity: Expenses 19 $ 9 $ 28 $ 6 $ 34 Cash payments (7 ) Balance as of March 31, 2018 $ 36 _________________________ (A) Other restructuring charges include period expenses that were not recorded through the restructuring liability and impairments related to a restructuring activity. (B) Other impairment charges not related to a restructuring activity. (C) This primarily relates to the remeasurement of Brazilian real denominated restructuring liabilities. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of accounts receivable | “Accounts receivable, net” consists of the following (in millions). March 31, 2018 2017 Trade accounts receivable $ 1,260 $ 971 Other accounts receivable 100 102 Accounts receivable — third parties 1,360 1,073 Allowance for doubtful accounts — third parties (7 ) (6 ) Accounts receivable, net — third parties $ 1,353 $ 1,067 Accounts receivable, net — related parties $ 242 $ 60 |
Activity in the allowance for doubtful accounts | Activity in the allowance for doubtful accounts is as follows (in millions). Balance at Additions Accounts Foreign Balance at Year Ended March 31, 2018 $ 6 $ 1 $ — $ — $ 7 Year Ended March 31, 2017 $ 3 $ 3 $ — $ — $ 6 Year Ended March 31, 2016 $ 3 $ — $ — $ — $ 3 |
Summary disclosures of financial amounts | The following tables summarize amounts relating to our factoring activities (in millions). Year Ended March 31, 2018 2017 2016 Factoring expense $ 39 $ 16 $ 19 March 31, 2018 2017 Factored receivables outstanding $ 547 $ 679 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | “Inventories” consists of the following (in millions). March 31, 2018 2017 Finished goods $ 416 $ 389 Work in process 730 576 Raw materials 248 213 Supplies 166 155 Inventories $ 1,560 $ 1,333 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | “Property, plant and equipment, net” consists of the following (in millions). March 31, 2018 2017 Land and property rights $ 148 $ 173 Buildings 1,259 1,309 Machinery and equipment 4,179 4,312 5,586 5,794 Accumulated depreciation and amortization (2,644 ) (2,575 ) 2,942 3,219 Construction in progress 168 138 Property, plant and equipment, net $ 3,110 $ 3,357 |
Schedule of depreciation expense | Depreciation expense related to property, plant, and equipment, net is shown in the table below (in millions). Year Ended March 31, 2018 2017 2016 Depreciation expense related to property, plant and equipment, net $ 290 $ 299 $ 294 |
Schedule of rent expense | The following table summarizes rent expense included in our consolidated statements of operations (in millions): Year Ended March 31, 2018 2017 2016 Rent expense $ 27 $ 24 $ 22 |
Schedule of future minimum lease payments for operating and capital leases | Future minimum lease payments as of March 31, 2018 , for our operating and capital leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Year Ending March 31, Operating leases Capital lease obligations 2019 $ 31 $ 7 2020 24 5 2021 18 — 2022 14 — 2023 12 — Thereafter 24 — Total minimum lease payments $ 123 $ 12 Less: interest portion on capital lease 1 Principal obligation on capital leases $ 11 |
Schedule of capital leased assets | Assets and related accumulated amortization under capital lease obligations as of March 31, 2018 and 2017 are as follows (in millions). March 31, 2018 2017 Assets under capital lease obligations: Buildings $ 12 $ 11 Machinery and equipment 76 73 CWIP 2 2 90 86 Accumulated amortization (77 ) (70 ) $ 13 $ 16 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes “Goodwill” (in millions). March 31, 2018 March 31, 2017 Gross Carrying Amount Accumulated Impairment Net Carrying Value Gross Accumulated Net North America $ 1,145 $ (860 ) $ 285 $ 1,145 $ (860 ) $ 285 Europe 511 (330 ) 181 511 (330 ) 181 South America 291 (150 ) 141 291 (150 ) 141 $ 1,947 $ (1,340 ) $ 607 $ 1,947 $ (1,340 ) $ 607 |
Schedule of intangible assets, net | The components of “Intangible assets, net” are as follows (in millions). March 31, 2018 March 31, 2017 Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradenames 20 years $ 142 $ (77 ) $ 65 $ 142 $ (70 ) $ 72 Technology and software 9.2 years 382 (246 ) 136 369 (209 ) 160 Customer-related intangible assets 20 years 456 (247 ) 209 443 (218 ) 225 15.8 years $ 980 $ (570 ) $ 410 $ 954 $ (497 ) $ 457 |
Schedule of amortization expense | Amortization expense related to “Intangible assets, net” is as follows (in millions). Year Ended March 31, 2018 2017 2016 Total amortization expense related to intangible assets $ 64 $ 69 $ 71 Less: Amortization expense related to intangible assets included in “Cost of goods sold (exclusive of depreciation and amortization)” (A) — (8 ) (12 ) Amortization expense related to intangible assets included in “Depreciation and amortization” $ 64 $ 61 $ 59 ________________________ (A) Relates to amortization of favorable energy supply contract |
Schedule of finite-lived intangible assets, future amortization expense | Estimated total amortization expense related to “Intangible assets, net” for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions and other events. Fiscal Year Ending March 31, 2019 $ 71 2020 71 2021 71 2022 71 2023 71 |
Consolidation (Tables)
Consolidation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Consolidation [Abstract] | |
Schedule of variable interest entity | The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our consolidated balance sheets (in millions). March 31, 2018 2017 Assets Current assets Cash and cash equivalents $ — $ 2 Accounts receivable 39 29 Inventories 67 62 Prepaid expenses and other current assets 1 2 Total current assets 107 95 Property, plant and equipment, net 27 25 Goodwill 12 12 Deferred income taxes 67 89 Other long-term assets 26 30 Total assets $ 239 $ 251 Liabilities Current liabilities Accounts payable $ 43 $ 32 Accrued expenses and other current liabilities 22 21 Total current liabilities 65 53 Accrued postretirement benefits 245 224 Other long-term liabilities 1 3 Total liabilities $ 311 $ 280 |
Investment in and Advances to39
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | |
Schedule of equity method investments, ownership percentage | The following table summarizes the ownership structure and our ownership percentage of the non-consolidated affiliates in which we have investments in as of March 31, 2018 and 2017 , and which we account for using the equity method. Affiliate Name Ownership Structure Ownership Percentage Aluminium Norf GmbH (Alunorf) Corporation 50% Ulsan Aluminum, Ltd. (UAL) Corporation 50.1% |
Period-end account balances with non-consolidated affiliates, shown as related party balances | Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with Alunorf and UAL. The following table describes the period-end account balances that we had with Alunorf and UAL, shown as related party balances in the accompanying consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates. March 31, 2018 2017 Accounts receivable-related parties $ 242 $ 60 Other long-term assets-related parties $ 3 $ 15 Accounts payable-related parties $ 205 $ 51 The following table summarizes the assets, liabilities and equity of our equity method affiliates in the aggregate as of March 31, 2018 and 2017 (in millions). March 31, 2018 2017 Assets: Current assets $ 396 $ 143 Non-current assets 944 355 Total assets $ 1,340 $ 498 Liabilities: Current liabilities $ 281 $ 53 Non-current liabilities 342 283 Total liabilities 623 336 Equity: Total equity 717 162 Total liabilities and equity $ 1,340 $ 498 |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2018 , 2017 and 2016 ; and the nature and amounts of significant transactions that we had with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Year Ended March 31, 2018 2017 2016 Net sales $ 866 $ 447 $ 464 Costs and expenses related to net sales 836 463 463 Provision (benefit) for taxes on income 4 (5 ) 2 Net income (loss) $ 26 $ (11 ) $ (1 ) Purchase of tolling services from Alunorf $ 245 $ 224 $ 232 |
Accrued Expenses and Other Cu40
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued liabilities | “Accrued expenses and other current liabilities” consists of the following (in millions). March 31, 2018 2017 Accrued compensation and benefits $ 193 $ 191 Accrued interest payable 44 60 Accrued income taxes 29 26 Other current liabilities 325 301 Accrued expenses and other current liabilities — third parties $ 591 $ 578 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consists of the following (in millions). March 31, 2018 March 31, 2017 Interest Rates (A) Principal Unamortized Carrying Value Principal Unamortized Carrying Value Third party debt: Short term borrowings 3.49 % $ 49 $ — $ 49 $ 294 $ — $ 294 Novelis Inc. Floating rate Term Loan Facility, due June 2022 4.15 % 1,778 (43 ) 1,735 1,796 (53 ) 1,743 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (21 ) 1,479 1,500 (23 ) 1,477 6.25% Senior Notes, due August 2024 6.25 % 1,150 (17 ) 1,133 1,150 (19 ) 1,131 Novelis Korea Limited Bank loans, due through September 2020 (KRW 102 billion) 2.88 % 95 — 95 184 — 184 Novelis Switzerland S.A. Capital lease obligation, due through December 2019 (Swiss francs (CHF) 11 million) 7.50 % 12 — 12 17 (1 ) 16 Novelis do Brasil Ltda. BNDES loans, due through April 2021 (BRL 6 million) 6.06 % 2 — 2 4 — 4 Other Capital Lease Obligations and Other debt, due through December 2020 5.56 % 1 — 1 3 — 3 Total debt 4,587 (81 ) 4,506 4,948 (96 ) 4,852 Less: Short term borrowings (49 ) — (49 ) (294 ) — (294 ) Current portion of long-term debt (121 ) — (121 ) (121 ) — (121 ) Long-term debt, net of current portion $ 4,417 $ (81 ) $ 4,336 $ 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 March 31, 2018 , 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 | Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of March 31, 2018 for our debt denominated in foreign currencies are as follows (in millions). As of March 31, 2018 Amount Short-term borrowings and current portion of long term debt due within one year $ 170 2 years 24 3 years 20 4 years 18 5 years 1,705 Thereafter 2,650 Total $ 4,587 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total compensation expense related to SARs and RSUs under the long term incentive plans | Total compensation expense related to Hindalco SARs, Novelis SARs, and RSUs under the plans for the respective periods is presented in the table below (in millions). These amounts are included in “Selling, general and administrative expenses” in our consolidated statements of operations. As the performance criteria for fiscal years 2019, 2020, and 2021 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. Year Ended March 31, 2018 2017 2016 Total compensation expense (income) $ 21 $ 21 $ (2 ) |
RSUs activity and SARs activity under LTIP | The table below shows the RSUs activity for the year ended March 31, 2018 . Number of RSUs Grant Date Fair Value (in Indian Rupees) Aggregate Intrinsic Value (USD in millions) RSUs outstanding as of March 31, 2017 7,712,984 105.68 $ 23 Granted 2,594,805 186.96 — Exercised (2,826,252 ) 112.52 8 Forfeited/Cancelled (367,480 ) 126.06 — RSUs outstanding as of March 31, 2018 7,114,057 131.74 $ 23 The table below shows Hindalco SARs activity for the year ended March 31, 2018 . Number of Hindalco SARs Weighted Average Exercise Price (in Indian Rupees) Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2017 15,161,233 122.16 4.4 $ 18 Granted 2,324,230 186.11 6.1 — Exercised (5,928,524 ) 123.54 0.0 10 Forfeited/Cancelled (358,965 ) 131.94 0.0 — SARs outstanding as of March 31, 2018 11,197,974 134.32 4.3 14 SARs exercisable as of March 31, 2018 2,923,178 134.62 2.8 $ 4 The table below shows the Novelis SARs activity for the year ended March 31, 2018 . Number of Weighted Weighted Average Aggregate SARs outstanding as of March 31, 2017 108,549 $ 83.57 3.5 $ — Exercised (8,808 ) 63.54 0.0 — Forfeited/Cancelled (7,518 ) 87.25 0.0 — SARs outstanding as of March 31, 2018 92,223 85.18 2.8 — SARs exercisable as of March 31, 2018 71,153 $ 88.22 2.5 $ — |
Assumptions used in estimating fair value of each SAR under LTIP | The fair value of each unvested Hindalco SAR was estimated using the following assumptions: Year ended March 31, 2018 2017 2016 Risk-free interest rate 6.14% - 7.67% 5.82% - 6.99% 7.23% - 7.68% Dividend yield 0.53 % 0.51 % 1.14 % Volatility 29% - 42% 35% - 44% 43% - 44% The fair value of each unvested Novelis SAR was estimated using the following assumptions: Year ended March 31, 2018 2017 2016 Risk-free interest rate 1.71% - 2.55% 0.78% - 1.95% 0.89% - 1.39% Dividend yield — % — % — % Volatility 20% - 25% 25% - 28% 38% - 41% |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Contributions to employee benefit plans | We contributed the following amounts (in millions) to all plans. Year Ended March 31, 2018 2017 2016 Funded pension plans $ 57 $ 26 $ 28 Unfunded pension plans 12 15 12 Savings and defined contribution pension plans 27 25 24 Total contributions $ 96 $ 66 $ 64 |
Schedule of changes in projected benefit obligations | The following tables present the change in benefit obligation, change in fair value of plan assets and the funded status for pension and other benefits (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2018 2017 2018 2017 Benefit obligation at beginning of period $ 1,865 $ 1,868 $ 153 $ 151 Service cost 44 45 7 6 Interest cost 60 59 7 6 Members’ contributions 5 4 — — Benefits paid (60 ) (74 ) (8 ) (8 ) Amendments (8 ) 2 3 — Curtailments, settlements and special termination benefits (25 ) (4 ) — — Actuarial losses (gains) 17 35 14 (3 ) Other (3 ) (4 ) — — Currency losses (gains) 88 (66 ) — 1 Benefit obligation at end of period $ 1,983 $ 1,865 $ 176 $ 153 Benefit obligation of funded plans $ 1,677 $ 1,594 $ — $ — Benefit obligation of unfunded plans 306 271 176 153 Benefit obligation at end of period $ 1,983 $ 1,865 $ 176 $ 153 |
Schedule of changes in fair value of plan assets | Pension Benefits Year Ended March 31, 2018 2017 Change in fair value of plan assets Fair value of plan assets at beginning of period $ 1,200 $ 1,177 Actual return on plan assets 85 106 Members’ contributions 5 4 Benefits paid (60 ) (74 ) Company contributions 69 37 Settlements (A) (24 ) (4 ) Other (3 ) (3 ) Currency 45 (43 ) Fair value of plan assets at end of period $ 1,317 $ 1,200 |
Schedule of net funded status | March 31, 2018 2017 Pension Benefits Other Benefits Pension Benefits Other Benefits Funded status Funded status at end of period: Assets less the benefit obligation of funded plans $ (360 ) $ — $ (394 ) $ — Benefit obligation of unfunded plans (306 ) (176 ) (271 ) (153 ) $ (666 ) $ (176 ) $ (665 ) $ (153 ) As included in our consolidated balance sheets within Total assets / (Total liabilities) Other non- current assets $ 3 $ — $ 2 $ — Accrued expenses and other current liabilities (13 ) (6 ) (12 ) (10 ) Accrued postretirement benefits (656 ) (169 ) (655 ) (143 ) $ (666 ) $ (175 ) $ (665 ) $ (153 ) |
Schedule of amounts recognized in other comprehensive income (loss) | The postretirement amounts recognized in “ Accumulated other comprehensive loss ,” before tax effects, are presented in the table below (in millions), and includes the impact related to our equity method investments. Amounts are amortized to net periodic benefit cost over the group’s average future service life of the employees or the group's average life expectancy. March 31, 2018 2017 Pension Benefits Other Benefits Pension Benefits Other Benefits Net actuarial losses $ (355 ) $ (29 ) $ (375 ) $ (16 ) Prior service credit 13 5 4 7 Total postretirement amounts recognized in Accumulated other comprehensive income $ (342 ) $ (24 ) $ (371 ) $ (9 ) |
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss) | The postretirement changes recognized in “ Accumulated other comprehensive loss ,” before tax effects, are presented in the table below (in millions), and include the impact related to our equity method investments. March 31, 2018 2017 Pension Benefits Other Benefits Pension Benefits Other Benefits Beginning balance in Accumulated other comprehensive loss $ (371 ) $ (9 ) $ (435 ) $ (16 ) Curtailments, settlements, and special termination benefits 1 — 1 — Plan amendment — (3 ) — — Net actuarial gain (loss) 7 (15 ) 11 2 Prior service cost 8 — (2 ) — Amortization of: Prior service credits (1 ) 1 (2 ) 1 Actuarial losses 40 2 43 4 Effect of currency exchange (26 ) — 13 — Total postretirement amounts recognized in Accumulated other comprehensive income $ (342 ) $ (24 ) $ (371 ) $ (9 ) |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets are presented in the table below (in millions). March 31, 2018 2017 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans: Projected benefit obligation $ 1,983 $ 1,865 Accumulated benefit obligation $ 1,830 $ 1,711 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 1,880 $ 1,769 Fair value of plan assets $ 1,211 $ 1,103 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 1,733 $ 1,581 Fair value of plan assets $ 1,171 $ 1,049 Pension plans with projected benefit obligations less than plan assets: Projected benefit obligation $ 103 $ 96 Fair value of plan assets $ 106 $ 97 |
Schedule of expected benefit payments | Expected benefit payments to be made during the next ten fiscal years are listed in the table below (in millions). Pension Benefits Other Benefits 2019 $ 74 $ 6 2020 79 8 2021 82 9 2022 86 9 2023 89 10 2024 through 2028 509 59 Total $ 919 $ 101 |
Components of net periodic benefit cost for all significant postretirement benefit plans | The components of net periodic benefit cost for the respective periods are listed in the table below (in millions). Pension Benefits Other Benefits Year Ended March 31, Year Ended 2018 2017 2016 2018 2017 2016 Net periodic benefit costs Service cost $ 44 $ 45 $ 47 $ 7 $ 6 $ 5 Interest cost 60 59 59 7 6 5 Expected return on assets (63 ) (61 ) (67 ) — — — Amortization — losses 36 40 37 1 4 4 Amortization — prior service credit (1 ) (2 ) (2 ) — 2 (27 ) Curtailment, settlement, and special termination losses 2 1 — — — — Net periodic benefit cost (income) $ 78 $ 82 $ 74 $ 15 $ 18 $ (13 ) Proportionate share of non-consolidated affiliates’ pension costs 9 8 9 — — — Total net periodic benefit costs (income) recognized $ 87 $ 90 $ 83 $ 15 $ 18 $ (13 ) |
Schedule of assumptions used | The weighted average assumptions used to determine benefit obligations and net periodic benefit costs for the respective periods are listed in the table below. Pension Benefits Other Benefits Year Ended March 31, Year Ended March 31, 2018 2017 2016 2018 2017 2016 Weighted average assumptions used to determine benefit obligations Discount rate 3.1 % 3.2 % 3.3 % 4.0 % 4.1 % 4.0 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Weighted average assumptions used to determine net periodic benefit cost Discount rate 3.2 % 3.3 % 3.1 % 4.1 % 4.0 % 3.6 % Average compensation growth 3.1 % 3.1 % 3.1 % 3.5 % 3.5 % 3.5 % Expected return on plan assets 5.2 % 5.4 % 5.6 % — % — % — % |
Schedule of effect of one-percentage-point change in assumed health care cost trend rates | A change of one percentage point in the assumed health care cost trend rates would have the following effects on our other benefits (in millions). 1% Increase 1% Decrease Sensitivity Analysis Effect on service and interest costs $ 2 $ (2 ) Effect on benefit obligation $ 17 $ (15 ) |
Target and actual allocation of plan assets | The targeted allocation ranges by asset class, and the actual allocation percentages for each class are listed in the table below. Asset Category Target Allocation Ranges Allocation in Aggregate as of March 31, 2018 2017 Equity 14-54% 33% 32% Fixed income 46-78% 55% 49% Real estate 0-15% 3% 3% Other 0-18% 9% 17% |
Schedule of fair value of pension and postretirement plan assets table | The following pension plan assets are measured and recognized at fair value on a recurring basis (in millions). Please see Note 16 — Fair Value Measurements for a description of the fair value hierarchy. The U.S. and Canadian pension plan assets are invested exclusively in commingled funds and classified in Level 2, and the U.K., Switzerland, and South Korea pension plan assets are invested in both direct investments (Levels 1 and 2) and commingled funds (Level 2). Pension Plan Assets March 31, 2018 March 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equity — — — — — — — — Fixed income 163 41 — 204 136 54 — 190 Real estate — — — — — — — — Cash and cash equivalents 7 — — 7 8 — — 8 Other — — — — — — — — Investments measured at net asset value (A) — — — 1,106 — — — 1,002 Total $ 170 $ 41 $ — $ 1,317 $ 144 $ 54 $ — $ 1,200 _________________________ (A) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in "Other (income) expense, net" | The following currency losses (gains) are included in “Other expense (income), net” in the accompanying consolidated statements of operations (in millions). Year Ended March 31, 2018 2017 2016 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (46 ) $ 30 $ (55 ) Loss released from accumulated other comprehensive loss — — 1 Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net 47 (35 ) 52 Currency losses (gains), net $ 1 $ (5 ) $ (2 ) |
Currency gains (losses) included in "AOCI," net of tax and "Noncontrolling interests" | The following currency losses are included in "Accumulated other comprehensive loss, net of tax" and “Noncontrolling interests” in the accompanying consolidated balance sheets (in millions). Year Ended March 31, 2018 2017 2016 Cumulative currency translation adjustment — beginning of period $ (256 ) $ (197 ) $ (214 ) Effect of changes in exchange rates 191 (75 ) 17 Sale of investment in foreign entities (A) — 16 — Cumulative currency translation adjustment — end of period $ (65 ) $ (256 ) $ (197 ) _________________________ (A) We reclassified $16 million of cumulative currency losses from AOCI to "(Gain) loss on sale of a business, net" during the year-ended March 31, 2017 due to the sale of our equity interest in Aluminium Company of Malaysia Berhad (ALCOM). |
Financial Instruments and Com45
Financial Instruments and Commodity Contracts (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of financial instruments and commodity contracts | The following tables summarize the gross fair values of our financial instruments and commodity contracts as of March 31, 2018 and 2017 (in millions): March 31, 2018 Assets Liabilities Net Fair Value Current Noncurrent(A) Current Noncurrent(A) Assets/(Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Aluminum contracts $ 63 $ 1 $ (1 ) $ — $ 63 Currency exchange contracts 5 — (7 ) — (2 ) Energy contracts — 1 (2 ) (7 ) (8 ) Total derivatives designated as hedging instruments 68 2 (10 ) (7 ) 53 Derivatives not designated as hedging instruments Aluminum contracts 75 — (64 ) — 11 Currency exchange contracts 15 — (32 ) (1 ) (18 ) Energy contracts 1 — — — 1 Total derivatives not designated as hedging instruments 91 — (96 ) (1 ) (6 ) Total derivative fair value $ 159 $ 2 $ (106 ) $ (8 ) $ 47 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 consolidated balance sheets. |
Summary of notional amount | The following table summarizes our notional amount (in kt). March 31, 2018 2017 Hedge type Purchase (sale) Cash flow sales (423 ) (391 ) Not designated (74 ) (89 ) Total, net (497 ) (480 ) |
Summary of gains (losses) associated with the change in the fair value derivative instruments recognized in "Other (income) expense, net" | The following table summarizes the 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 consolidated statement of operations are separately disclosed within this footnote. Year Ended March 31, 2018 2017 2016 Derivative instruments not designated as hedges Aluminum contracts $ 10 $ (44 ) $ 47 Currency exchange contracts (57 ) 40 (60 ) Energy contracts (A) 7 8 3 (Loss) gain recognized in "Other expense (income), net" (40 ) 4 (10 ) Derivative instruments designated as hedges (Loss) gain recognized in "Other expense (income), net" (B) (7 ) (25 ) 17 Total (loss) gain recognized in "Other expense (income), net" $ (47 ) $ (21 ) $ 7 Balance sheet remeasurement currency exchange contract (losses) gains $ (47 ) $ 35 $ (53 ) Realized (losses) gains, net (20 ) (61 ) 64 Unrealized gains (losses) on other derivative instruments, net 20 5 (4 ) Total (loss) gain recognized in "Other expense (income), net" $ (47 ) $ (21 ) $ 7 _________________________ (A) Includes amounts related to de-designated electricity swap and natural gas and diesel swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum contracts; releases to income from AOCI on balance sheet remeasurement contracts; and ineffectiveness of fair value hedges involving aluminum derivatives. |
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 $64 million of gains from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Recognized in “Other (Income) Expense, net” (Ineffective and Excluded Portion) Year Ended March 31, Year Ended March 31, 2018 2017 2016 2018 2017 2016 Cash flow hedging derivatives Aluminum contracts $ 35 $ (137 ) $ 84 $ (9 ) $ (27 ) $ 17 Currency exchange contracts (5 ) 48 (7 ) 1 2 1 Energy contracts (4 ) (7 ) (5 ) 1 (1 ) (1 ) Interest rate swaps — — (1 ) — — — Total cash flow hedging derivatives 26 (96 ) 71 (7 ) (26 ) 17 Net investment derivatives Currency exchange contracts (17 ) — (2 ) — — — Total $ 9 $ (96 ) $ 69 $ (7 ) $ (26 ) $ 17 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Year Ended March 31, Location of Gain (Loss) Reclassified from AOCI into Earnings Cash flow hedging derivatives 2018 2017 2016 Energy contracts (A) $ — $ (4 ) $ (5 ) Other expense (income), net Energy contracts (C) (3 ) (4 ) (10 ) Cost of goods sold (B) Aluminum contracts (78 ) (55 ) 83 Cost of goods sold (B) Aluminum contracts (22 ) (3 ) — Net sales Currency exchange contracts 14 18 (44 ) Cost of goods sold (B) Currency exchange contracts 1 2 (4 ) Selling, general and administrative expenses Currency exchange contracts 7 7 (9 ) Net sales Currency exchange contracts — — (1 ) Other expense (income), net Currency exchange contracts (1 ) (1 ) (1 ) Depreciation and amortization Interest rate swaps — — (1 ) Interest expense Total (82 ) (40 ) 8 (Loss) income before income taxes 24 12 (19 ) Income tax benefit (provision) $ (58 ) $ (28 ) $ (11 ) Net loss _________________________ (A) Includes amounts related to de-designated electricity swap. AOCI related to this swap was 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 electricity, natural gas, and diesel swaps. The following table summarizes the location and amount of gain (loss) that was reclassified from accumulated other comprehensive income into earnings and the amount excluded from the assessment of effectiveness for the three months ended March 31, 2018 . Net Sales Cost of Goods Sold Selling, General and Administrative Expenses Depreciation and Amortization Interest Expense Other Expense (Income), Net Gain (loss) on cash flow hedging relationships: Aluminum commodity contracts: Amount of loss reclassified from AOCI into income (22 ) — — — — — Energy commodity contracts: Amount of loss reclassified from AOCI into income — (1 ) — — — — Foreign exchange contracts: Amount of gain reclassified from AOCI into income 4 3 — — — — |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the change in the components of " Accumulated other comprehensive loss , net of tax" and excluding "Noncontrolling interests", for the periods presented (in millions). Currency Translation (B) Cash Flow Hedges (C) Postretirement Benefit Plans Total Balance as of March 31, 2015 $ (213 ) $ (63 ) $ (285 ) $ (561 ) Other comprehensive income (loss) before reclassifications 17 41 (15 ) 43 Amounts reclassified from AOCI, net — 11 7 18 Net current-period other comprehensive income (loss) 17 52 (8 ) 61 Balance as of March 31, 2016 (196 ) (11 ) (293 ) (500 ) Other comprehensive (loss) income before reclassifications (76 ) (63 ) 22 (117 ) Amounts reclassified from AOCI, net (A) 16 28 28 72 Net current-period other comprehensive (loss) income (60 ) (35 ) 50 (45 ) Balance as of March 31, 2017 (256 ) (46 ) (243 ) (545 ) Other comprehensive income before reclassifications 191 19 29 239 Amounts reclassified from AOCI, net — 58 (13 ) 45 Net current-period other comprehensive income 191 77 16 284 Balance as of March 31, 2018 $ (65 ) $ 31 $ (227 ) $ (261 ) _________________________ (A) The $16 million in currency translation reclassified from AOCI relates to CTA that was written off as part of our sale of the Aluminium Company of Malaysia Berhad (ALCOM) business. Refer to Note 17 — Other Expense (Income) for additional information. (B) For additional information on our cash flow hedges see Note 14 — Financial Instruments and Commodity Contracts . (C) For additional information on our postretirement benefit plans see Note 12 — Postretirement Benefit Plans . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivative assets and liabilities measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy | The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of March 31, 2018 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. March 31, 2018 2017 Assets Liabilities Assets Liabilities Level 2 instruments Aluminum contracts $ 139 $ (65 ) $ 58 $ (138 ) Currency exchange contracts 20 (40 ) 56 (17 ) Energy contracts 2 (2 ) 1 — Total level 2 instruments 161 (107 ) 115 (155 ) Level 3 instruments Energy contracts — (7 ) — (9 ) Total level 3 instruments — (7 ) — (9 ) Total gross $ 161 $ (114 ) $ 115 $ (164 ) Netting adjustment (A) $ (57 ) $ 57 $ (46 ) $ 46 Total net $ 104 $ (57 ) $ 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, 2016 $ (8 ) Unrealized/realized gain included in earnings (B) 11 Unrealized/realized (loss) included in AOCI (C) (9 ) Settlements (3 ) Balance as of March 31, 2017 $ (9 ) Unrealized/realized gain included in earnings (B) 5 Settlements (B) (3 ) Balance as of March 31, 2018 $ (7 ) _________________________ (A) Represents net derivative liabilities. (B) Included in "Other expense (income), 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. March 31, 2018 2017 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ 3 $ 3 $ 15 $ 14 Liabilities Total debt — third parties (excluding short term borrowings) $ 4,457 $ 4,569 $ 4,558 $ 4,797 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | “ Other expense (income), net ” is comprised of the following (in millions). Year Ended March 31, 2018 2017 2016 Currency losses (gains), net (A) $ 1 $ (5 ) $ (2 ) Unrealized (gains) losses on change in fair value of derivative instruments, net (B) (20 ) (5 ) 4 Realized losses (gains) on change in fair value of derivative instruments, net (B) 20 61 (64 ) Loss on sale of assets, net 7 6 4 Loss on Brazilian tax litigation, net (C) 3 5 5 Interest income (9 ) (11 ) (13 ) Gain on business interruption insurance recovery (D) — — (10 ) Other, net 7 17 8 Other expense (income), net (E) $ 9 $ 68 $ (68 ) _________________________ (A) Includes “(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net.” (B) See Note 14 — Financial Instruments and Commodity Contracts for further details. (C) See Note 19 — Commitments and Contingencies – Brazil Tax and Legal Matters for further details. (D) We experienced an outage at a facility in North America in fiscal 2015. As a result, we recognized gains of $(10) million during the year ended March 31, 2016. (E) We have reclassified the "Loss on sale of a business" for the year ended March 31, 2017 of $27 million from " Other expense (income), net " to "(Gain) loss on sale of a business, net" in the consolidated statement of operations for presentation purposes. In fiscal 2017, we sold our equity interest in Aluminium Company of Malaysia Berhad (ALCOM), a previously consolidated subsidiary. The sale resulted in a loss of $27 million during the year ended March 31, 2017 . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before income taxes, domestic and foreign | The domestic (Canada) and foreign components of our "Income before income taxes" (and after removing our "Equity in net loss of non-consolidated affiliates") are as follows (in millions). Year Ended March 31, 2018 2017 2016 Domestic (Canada) $ (50 ) $ (286 ) $ (313 ) Foreign (all other countries) 906 491 324 Pre-tax income before equity in net loss of non-consolidated affiliates $ 856 $ 205 $ 11 |
Schedule of components of income tax provision | The components of the "Income tax provision" are as follows (in millions). Year Ended March 31, 2018 2017 2016 Current provision: Domestic (Canada) $ 4 $ 8 $ 5 Foreign (all other countries) 176 137 134 Total current 180 145 139 Deferred provision (benefit): Domestic (Canada) — — — Foreign (all other countries) 53 6 (93 ) Total deferred 53 6 (93 ) Income tax provision $ 233 $ 151 $ 46 |
Reconciliation of Canadian statutory tax rates to effective tax rates | The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below (in millions, except percentages). Year Ended March 31, 2018 2017 2016 Pre-tax income before equity in net loss on non-consolidated affiliates $ 856 $ 205 $ 11 Canadian statutory tax rate 25 % 25 % 25 % Provision at the Canadian statutory rate $ 214 $ 51 $ 3 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 10 9 16 Exchange remeasurement of deferred income taxes (3 ) 8 (8 ) Change in valuation allowances 22 67 104 Tax credits (22 ) (14 ) (22 ) Income items not subject to tax (5 ) (3 ) — State tax expense, net 4 1 (10 ) Dividends not subject to tax — (23 ) (52 ) Enacted tax rate changes (19 ) 1 5 Tax rate differences on foreign earnings 23 36 4 Uncertain tax positions 7 6 7 Prior year adjustments 1 4 (2 ) Income tax settlements 1 6 — Other — net — 2 1 Income tax provision $ 233 $ 151 $ 46 Effective tax rate 27 % 73 % 411 % |
Schedule of deferred tax assets and liabilities | Our deferred income tax assets and deferred income tax liabilities are as follows (in millions). March 31, 2018 2017 Deferred income tax assets: Provisions not currently deductible for tax purposes $ 323 $ 418 Tax losses/benefit carryforwards, net 767 771 Depreciation and amortization 46 45 Other assets 6 4 Total deferred income tax assets 1,142 1,238 Less: valuation allowance (727 ) (688 ) Net deferred income tax assets $ 415 $ 550 Deferred income tax liabilities: Depreciation and amortization $ 384 $ 442 Inventory valuation reserves 83 84 Monetary exchange gains, net 12 14 Other liabilities 37 24 Total deferred income tax liabilities $ 516 $ 564 Net deferred income tax liabilities $ 101 $ 14 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year Ended March 31, 2018 2017 2016 Beginning balance $ 36 $ 34 $ 37 Additions based on tax positions related to the current period 4 5 6 Additions based on tax positions of prior years 6 — 3 Reductions based on tax positions of prior years (7 ) — (6 ) Settlements — (1 ) (10 ) Foreign exchange 5 (2 ) 4 Ending Balance $ 44 $ 36 $ 34 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The assets and liabilities related to these settlements are presented in the table below (in millions). March 31, 2018 2017 Cash deposits (A) $ 7 $ 7 Short-term settlement liability (B) $ 9 $ 9 Long-term settlement liability (B) 49 59 Total settlement liability $ 58 $ 68 Liability for other disputes and claims (C) $ 29 $ 22 _________________________ (A) Effective in the third quarter of fiscal 2018, management defines “Cash deposits” to include cash deposits related to tax, labor, and civil disputes. To conform with current year presentation, we have updated prior period amounts to also include cash deposits related to labor and civil disputes. We have maintained these cash deposits as a result of legal proceedings with Brazil's tax authorities, labor courts, or designated civil courts. These deposits, which are included in “Other long-term assets - third parties” in our accompanying consolidated balance sheets, will be expended toward these legal proceedings. (B) The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying consolidated balance sheets. (C) In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. The related liabilities are included in "Other long-term liabilities" in our accompanying consolidated balance sheets. The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposits is included in the table below (in millions). Year Ended March 31, 2018 2017 2016 Loss on Brazilian tax litigation, net $ 3 $ 5 $ 5 |
Segment, Geographical Area, M51
Segment, Geographical Area, Major Customer and Major Supplier Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Selected segment financial information | Selected Segment Financial Information Selected Operating Results Year Ended March 31, 2018 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,933 $ 3,390 $ 2,066 $ 1,851 $ 222 $ 11,462 Net sales - intersegment 18 57 44 80 (199 ) — Net sales $ 3,951 $ 3,447 $ 2,110 $ 1,931 $ 23 $ 11,462 Depreciation and amortization $ 149 $ 112 $ 65 $ 65 $ (37 ) $ 354 Income tax provision $ 13 $ 19 $ 108 $ 77 $ 16 $ 233 Capital expenditures $ 78 $ 71 $ 36 $ 38 $ 3 $ 226 March 31, 2018 Investment in and advances to non–consolidated affiliates $ — $ 522 $ 327 $ — $ — $ 849 Total assets $ 2,569 $ 3,151 $ 1,796 $ 1,781 $ 206 $ 9,503 Selected Operating Results Year Ended March 31, 2017 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,226 $ 2,930 $ 1,771 $ 1,448 $ 216 $ 9,591 Net sales - intersegment 2 38 20 62 (122 ) — Net sales $ 3,228 $ 2,968 $ 1,791 $ 1,510 $ 94 $ 9,591 Depreciation and amortization $ 149 $ 106 $ 59 $ 63 $ (17 ) $ 360 Income tax provision $ 18 $ 12 $ 20 $ 88 $ 13 $ 151 Capital expenditures $ 80 $ 65 $ 38 $ 39 $ 2 $ 224 March 31, 2017 Investment in and advances to non–consolidated affiliates $ — $ 451 $ — $ — $ — $ 451 Total assets $ 2,358 $ 2,683 $ 1,602 $ 1,637 $ 93 $ 8,373 Selected Operating Results Year Ended March 31, 2016 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 3,262 $ 3,055 $ 1,879 $ 1,482 $ 194 $ 9,872 Net sales - intersegment 4 168 113 93 (378 ) — Net sales $ 3,266 $ 3,223 $ 1,992 $ 1,575 $ (184 ) $ 9,872 Depreciation and amortization $ 143 $ 106 $ 61 $ 61 $ (18 ) $ 353 Income tax (benefit) provision $ (53 ) $ (11 ) $ 12 $ 81 $ 17 $ 46 Capital expenditures $ 143 $ 146 $ 35 $ 39 $ 7 $ 370 The following table displays "Segment income" from reportable segments by region. Year Ended March 31, 2018 2017 2016 North America $ 474 $ 380 $ 338 Europe 219 208 203 Asia 167 163 142 South America 363 337 280 Intersegment eliminations (8 ) (3 ) — Total of reportable segments $ 1,215 $ 1,085 $ 963 |
Reconciliation from income from reportable segments to net income attributable to out common shareholder | The following table displays the reconciliation from “Net income attributable to our common shareholder” to "Segment income" from reportable segments (in millions). Year Ended March 31, 2018 2017 2016 Net income (loss) attributable to our common shareholder $ 635 $ 45 $ (38 ) Noncontrolling interests (13 ) 1 — Income tax provision 233 151 46 Depreciation and amortization 354 360 353 Interest expense and amortization of debt issuance costs 255 294 327 Adjustment to reconcile proportional consolidation 51 28 30 Unrealized (gains) losses on change in fair value of derivative instruments, net (20 ) (5 ) 4 Realized (gains) losses on derivative instruments not included in segment income — (5 ) 1 Gain on assets held for sale — (2 ) — Loss on extinguishment of debt — 134 13 Restructuring and impairment, net 34 10 48 Loss on sale of fixed assets 7 6 4 (Gain) loss on sale of a business (A) (318 ) 27 — Metal price lag (B) (4 ) 31 172 Other, net 1 10 3 Total of reportable segments $ 1,215 $ 1,085 $ 963 |
Schedule of revenue from external customers attributed to foreign countries by geographic area | The tables below present “Net sales” and “Long-lived assets and other intangible assets” by geographical area (in millions). “Net sales” are attributed to geographical areas based on the origin of the sale. “Long-lived assets and other intangible assets” are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill. Year Ended March 31, 2018 2017 2016 Net sales: United States $ 4,041 $ 3,336 $ 3,334 Asia and Other Pacific 2,068 1,771 1,879 Brazil 1,851 1,448 1,482 Canada 113 106 121 Germany 2,853 2,428 2,506 Other Europe 536 502 550 Total Net sales $ 11,462 $ 9,591 $ 9,872 |
Schedule of disclosure on geographic areas, long-lived assets in individual foreign countries by country | March 31, 2018 2017 Long-lived assets and other intangibles: United States $ 1,338 $ 1,400 Asia and Other Pacific 490 756 Brazil 796 823 Canada 60 64 Germany 287 260 United Kingdom 43 39 Other Europe 506 472 Total long-lived assets $ 3,520 $ 3,814 |
Net sales to largest customers, as a percentage of total net sales | The following table displays our net sales to the Affiliates of Ball Corporation (Ball) and Ford Motor Company (Ford), our two largest customers, as a percentage of total “Net sales.” Year Ended March 31, 2018 2017 2016 Ball (A) 21 % 27 % 30 % Ford 10 % 10 % 4 % _________________________ (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. For the year ended March 31, 2018 combined sales to Ball and Rexam totaled 29% . For the years ended March 31, 2017 and March 31, 2016 , combined sales to Ball, Rexam, and Ardagh totaled 30% |
Percentage of total combined metal purchases | The table below shows our purchases from RT as a percentage of our total combined metal purchases. Year Ended March 31, 2018 2017 2016 Purchases from RT as a percentage of total combined metal purchases 10 % 10 % 12 % |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information is as follows (in millions). Year Ended March 31, 2018 2017 2016 Supplemental disclosures of cash flow information: Interest paid $ 254 $ 288 $ 308 Income taxes paid $ 191 $ 128 $ 123 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The tables below present select operating results (in millions) by period: (Unaudited) Quarter Ended June 30, September 30, December 31, 2017 March 31, Net sales (A) $ 2,669 $ 2,794 $ 2,933 $ 3,066 Cost of goods sold (exclusive of depreciation and amortization) (A) 2,261 2,361 2,494 2,603 Selling, general and administrative expenses 106 124 128 131 Depreciation and amortization 90 91 86 87 Interest expense and amortization of debt issuance costs 64 64 64 63 Research and development expenses 15 16 17 16 Gain on sale of a business, net — (318 ) — — Restructuring and impairment, net 1 7 25 1 Equity in net loss of non-consolidated affiliates — 1 — — Other (income) expense, net (12 ) 25 (6 ) 2 Income tax provision 43 116 20 54 Net income 101 307 105 109 Net loss (income) attributable to noncontrolling interests — — (16 ) 3 Net income attributable to our common shareholder $ 101 $ 307 $ 121 $ 106 (A) "Net Sales" and "Cost of goods sold (exclusive of depreciation and amortization)" for the quarter ended December 31, 2017 have each been reduced from amounts previously reported by $152 million to correct a misstatement in the presentation of certain transactions. We have determined this misstatement to be immaterial to our previously issued financial statements. (Unaudited) Quarter Ended June 30, September 30, December 31, March 31, Net sales $ 2,296 $ 2,361 $ 2,313 $ 2,621 Cost of goods sold (exclusive of depreciation and amortization) 1,930 1,980 1,924 2,182 Selling, general and administrative expenses 92 108 103 118 Depreciation and amortization 89 90 88 93 Interest expense and amortization of debt issuance costs 83 81 67 63 Research and development expenses 13 14 14 17 Loss on sale of a business, net — 27 — — Gain on assets held for sale, net (1 ) (1 ) — — Loss on extinguishment of debt — 112 — 22 Restructuring and impairment, net 2 1 1 6 Equity in net loss of non-consolidated affiliates — — 8 — Other expense (income), net 28 11 (3 ) 32 Income tax provision 36 27 47 41 Net income (loss) 24 (89 ) 64 47 Net income attributable to noncontrolling interests — — 1 — Net income (loss) attributable to our common shareholder $ 24 $ (89 ) $ 63 $ 47 |
Business and Summary of Signi54
Business and Summary of Significant Accounting Policies (Details Textual) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($)countrycontinentplant | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of countries Company operates in | country | 10 | |||
Numer of continents Company operates in | continent | 4 | |||
Number of operating plants | plant | 24 | |||
Number of plants with recycling operations | plant | 11 | |||
Aggregated receivables factored | $ 3,495 | $ 2,816 | ||
Accrued expenses and other current liabilities | $ 591 | 578 | ||
Deferred income tax assets | 63 | 85 | ||
Tax losses/benefit carryforwards, net | 767 | 771 | ||
Provisions not currently deductible for tax purposes | 323 | 418 | ||
Deferred tax assets, valuation allowance | $ 727 | 688 | ||
Reclassification between other (income) expense, net and (gain) loss on the sale of a business, net | $ (27) | |||
Maximum amortization period of unfunded actuarial liability | 15 years | |||
Minimum [Member] | Large scale machinery [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 15 years | |||
Minimum [Member] | Other Machinery and Equipment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Maximum [Member] | Large scale machinery [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 25 years | |||
Maximum [Member] | Other Machinery and Equipment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 15 years | |||
Prepaid Expenses And Other Current Assets And Accrued Expenses Other Current Liabilities [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Immaterial error correction amount | 26 | |||
Deferred Income Tax Assets And Deferred Income Tax Liabilities [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Immaterial error correction amount | 4 | |||
Immaterial Misstatement In Prior Period [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accrued expenses and other current liabilities | 2 | |||
Deferred income tax assets | 2 | |||
Tax losses/benefit carryforwards, net | 41 | |||
Provisions not currently deductible for tax purposes | 47 | |||
Deferred tax assets, valuation allowance | 9 | |||
Scenario, Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Aggregated receivables factored | $ 5,149 | $ 3,314 |
Business and Summary of Signi55
Business and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Equipment under Capital Lease Obligations [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Equipment under Capital Lease Obligations [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Large scale machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Large scale machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Other Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Other Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Restructuring and Impairment (D
Restructuring and Impairment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and impairment, net | $ 1 | $ 25 | $ 7 | $ 1 | $ 6 | $ 1 | $ 1 | $ 2 | $ 34 | $ 10 | $ 48 | ||
Restructuring liability | 36 | $ 24 | 36 | 24 | 27 | $ 32 | |||||||
Restructuring charges | 19 | 8 | 21 | ||||||||||
Impairment charges | 15 | 2 | 25 | ||||||||||
Other restructuring charges | 9 | 0 | 24 | ||||||||||
North America [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 1 | $ 39 | |||||||||||
Impairment charges | 2 | 1 | 32 | ||||||||||
Severance costs | 7 | ||||||||||||
North America [Member] | Computer Software, Intangible Asset [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Impairment charges | 4 | ||||||||||||
North America [Member] | Environmental, Contract Termination and Other Exit Related Costs [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liability | 1 | 1 | |||||||||||
Europe [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 25 | 2 | 4 | 46 | |||||||||
Severance costs | 16 | ||||||||||||
Europe [Member] | Maximum [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Impairment charges | 2 | ||||||||||||
Europe [Member] | Severance [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liability | 17 | 17 | |||||||||||
Asia [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and impairment, net | 2 | ||||||||||||
Restructuring liabilities, short-term | 1 | 1 | |||||||||||
Impairment charges | 1 | ||||||||||||
Asia [Member] | Maximum [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Impairment charges | 1 | ||||||||||||
South America [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liability | 16 | 16 | |||||||||||
Restructuring charges | 3 | $ 5 | 3 | $ 79 | |||||||||
South America [Member] | Maximum [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Impairment charges | 2 | ||||||||||||
South America [Member] | Environmental, Contract Termination and Other Exit Related Costs [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liability | 9 | 9 | |||||||||||
South America [Member] | Contract Termination [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liability | 7 | 7 | |||||||||||
Corporate Segment [Member] | Corporate Restructuring Program [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 35 | ||||||||||||
Corporate Segment [Member] | Severance [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liability | 1 | 1 | |||||||||||
Accrued Expenses and Other Current Liabilities [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liabilities, short-term | 31 | 31 | |||||||||||
Other Long-term Liabilities [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring liabilities, long-term | $ 5 | $ 5 |
Restructuring and Impairment (R
Restructuring and Impairment (Restructuring Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||||||||||||
Balance as of beginning of period | $ 24 | $ 27 | $ 24 | $ 27 | $ 32 | |||||||
Provisions | $ 23 | |||||||||||
Reversal of expense | 2 | |||||||||||
Expenses | 19 | 8 | 21 | |||||||||
Other restructuring charges | 9 | 0 | 24 | |||||||||
Restructuring Costs | 28 | 8 | 45 | |||||||||
Other impairments | 6 | 2 | 3 | |||||||||
Total restructuring and impairments, net | $ 1 | $ 25 | $ 7 | $ 1 | $ 6 | $ 1 | $ 1 | $ 2 | 34 | 10 | 48 | |
Cash payments | (7) | (13) | (22) | |||||||||
Foreign currency translation and other | 2 | (4) | ||||||||||
Balance as of end of period | $ 36 | $ 24 | $ 36 | $ 24 | $ 27 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Receivables [Abstract] | ||||
Trade accounts receivable | $ 1,260 | $ 971 | ||
Other accounts receivable | 100 | 102 | ||
Accounts receivable — third parties | 1,360 | 1,073 | ||
Allowance for doubtful accounts — third parties | (7) | (6) | $ (3) | $ (3) |
Accounts receivable, net — third parties | 1,353 | 1,067 | ||
Accounts receivable, net — related parties | $ 242 | $ 60 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Period | $ 6 | $ 3 | $ 3 |
Additions Charged to Expense | 1 | 3 | 0 |
Accounts Recovered/ (Written- Off) | 0 | 0 | 0 |
Foreign Exchange and Other | 0 | 0 | 0 |
Balance at End of Period | $ 7 | $ 6 | $ 3 |
Accounts Receivable (Factoring
Accounts Receivable (Factoring Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Receivables [Abstract] | |||
Factoring expense | $ 39 | $ 16 | $ 19 |
Factored receivables outstanding | $ 547 | $ 679 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) | Mar. 31, 2018 | Mar. 31, 2017 |
Receivables [Abstract] | ||
Allowance as a percentage of gross accounts receivable | 0.50% | 0.60% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of inventories | ||
Finished goods | $ 416 | $ 389 |
Work in process | 730 | 576 |
Raw materials | 248 | 213 |
Supplies | 166 | 155 |
Inventories | $ 1,560 | $ 1,333 |
Property, Plant and Equipment63
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land and property rights | $ 148 | $ 173 |
Buildings | 1,259 | 1,309 |
Machinery and equipment | 4,179 | 4,312 |
Property, plant and equipment, gross | 5,586 | 5,794 |
Accumulated depreciation and amortization | (2,644) | (2,575) |
Property, pant and equipment, net excluding construction in progress | 2,942 | 3,219 |
Construction in progress | 168 | 138 |
Property, plant and equipment, net | $ 3,110 | $ 3,357 |
Property, Plant and Equipment64
Property, Plant and Equipment (Details Textual) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)option | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Capitalized interest costs | $ | $ 1 | $ 2 | $ 14 |
Number of renewal options | option | 1 | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease term | 10 years |
Property, Plant and Equipment65
Property, Plant and Equipment (Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment, net | $ 290 | $ 299 | $ 294 |
Property, Plant and Equipment66
Property, Plant and Equipment (Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Rent expense | $ 27 | $ 24 | $ 22 |
Property, Plant and Equipment67
Property, Plant and Equipment (Future Minimum Lease Payment) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Operating leases | |
2,016 | $ 31 |
2,017 | 24 |
2,018 | 18 |
2,019 | 14 |
2,020 | 12 |
Thereafter | 24 |
Total minimum lease payments | 123 |
Capital lease obligations | |
2,016 | 7 |
2,017 | 5 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total minimum lease payments | 12 |
Less: interest portion on capital lease | 1 |
Principal obligation on capital leases | $ 11 |
Property, Plant and Equipment68
Property, Plant and Equipment (Capital Lease Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | $ 90 | $ 86 |
Accumulated amortization | (77) | (70) |
Assets under capital lease obligations, net | 13 | 16 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | 12 | 11 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | 76 | 73 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets under capital lease obligations, gross | $ 2 | $ 2 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 1,947 | $ 1,947 |
Accumulated Impairment | (1,340) | (1,340) |
Net Carrying Value | 607 | 607 |
North America [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 1,145 | 1,145 |
Accumulated Impairment | (860) | (860) |
Net Carrying Value | 285 | 285 |
Europe [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 511 | 511 |
Accumulated Impairment | (330) | (330) |
Net Carrying Value | 181 | 181 |
South America [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 291 | 291 |
Accumulated Impairment | (150) | (150) |
Net Carrying Value | $ 141 | $ 141 |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets (Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 15 years 9 months | |
Gross Carrying Amount | $ 980 | $ 954 |
Accumulated Amortization | (570) | (497) |
Net Carrying Amount | $ 410 | 457 |
Tradenames [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 20 years | |
Gross Carrying Amount | $ 142 | 142 |
Accumulated Amortization | (77) | (70) |
Net Carrying Amount | $ 65 | 72 |
Technology and Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 9 years 2 months | |
Gross Carrying Amount | $ 382 | 369 |
Accumulated Amortization | (246) | (209) |
Net Carrying Amount | $ 136 | 160 |
Customer-related Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 20 years | |
Gross Carrying Amount | $ 456 | 443 |
Accumulated Amortization | (247) | (218) |
Net Carrying Amount | $ 209 | $ 225 |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets (Amortization of Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible Asset Amortization Expense [Line Items] | |||
Amortization expense related to intangible assets | $ (64) | $ (69) | $ (71) |
Amortization of Intangibles, Cost of Goods Sold [Member] | |||
Intangible Asset Amortization Expense [Line Items] | |||
Amortization expense related to intangible assets | 0 | (8) | (12) |
Amortization of Intangibles, Depreciation and Amortization [Member] | |||
Intangible Asset Amortization Expense [Line Items] | |||
Amortization expense related to intangible assets | $ (64) | $ (61) | $ (59) |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 71 |
2,020 | 71 |
2,021 | 71 |
2,022 | 71 |
2,023 | $ 71 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 920 | $ 594 | $ 556 | $ 628 |
Inventories | 1,560 | 1,333 | ||
Prepaid expenses and other current assets | 125 | 137 | ||
Total current assets | 4,364 | 3,307 | ||
Property, plant and equipment, net | 3,110 | 3,357 | ||
Goodwill | 607 | 607 | ||
Deferred income taxes | 63 | 85 | ||
Other long-term assets | 97 | 94 | ||
Total assets | 9,503 | 8,373 | ||
Current liabilities | ||||
Accounts payable | 2,051 | 1,722 | ||
Accrued expenses and other current liabilities | 591 | 578 | ||
Total current liabilities | 3,123 | 2,917 | ||
Accrued postretirement benefits | 825 | 799 | ||
Other long–term liabilities | 232 | 198 | ||
Total liabilities | 8,680 | 8,450 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 2 | ||
Accounts receivable | 39 | 29 | ||
Inventories | 67 | 62 | ||
Prepaid expenses and other current assets | 1 | 2 | ||
Property, plant and equipment, net | 27 | 25 | ||
Goodwill | 12 | 12 | ||
Deferred income taxes | 67 | 89 | ||
Other long-term assets | 26 | 30 | ||
Current liabilities | ||||
Accounts payable | 43 | 32 | ||
Accrued expenses and other current liabilities | 22 | 21 | ||
Accrued postretirement benefits | 245 | 224 | ||
Other long–term liabilities | 1 | 3 | ||
Logan [Member] | ||||
Current assets | ||||
Total current assets | 107 | 95 | ||
Total assets | 239 | 251 | ||
Current liabilities | ||||
Total current liabilities | 65 | 53 | ||
Total liabilities | $ 311 | $ 280 |
Investment in and Advances to74
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Details Textual) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2018EUR (€) | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
(Gain) loss on sale of a business, net | $ 0 | $ 0 | $ 318,000,000 | $ 0 | $ 0 | $ 0 | $ (27,000,000) | $ 0 | $ 318,000,000 | $ (27,000,000) | $ 0 | ||
Accounts receivable - related parties | 242,000,000 | 60,000,000 | 242,000,000 | 60,000,000 | |||||||||
Alunorf [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Interest income on loan (less than) | 1,000,000 | ||||||||||||
Allowance for loan loss | 0 | 0 | $ 0 | 0 | |||||||||
Equity Method Investee [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Guarantee as percentage of outstanding debt | 50.00% | ||||||||||||
Maximum exposure for gauranteed obligation | € | € 6 | ||||||||||||
Accounts receivable - related parties | 242,000,000 | 60,000,000 | $ 242,000,000 | 60,000,000 | |||||||||
Equity Method Investee [Member] | Supplemental Employee Retirement Plan [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Maximum exposure for gauranteed obligation | 2,000,000 | 2,000,000 | |||||||||||
Hindalco [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Revenue from related party | 1,000,000 | ||||||||||||
Parent [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Accounts receivable - related parties | $ 1,000,000 | 1,000,000 | |||||||||||
Purchases from related party | $ 3,000,000 | ||||||||||||
Parent [Member] | Maximum [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Purchases from related party | 1,000,000 | ||||||||||||
UAL [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Disposal group, consideration | $ 314,000,000 | $ 314,000,000 | $ 314,000,000 | ||||||||||
(Gain) loss on sale of a business, net | 318,000,000 | ||||||||||||
UAL [Member] | Discontinued Operations, Disposed of by Sale [Member] | Gain Related To Difference Between Fair Value and Carrying Value [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
(Gain) loss on sale of a business, net | 168,000,000 | ||||||||||||
UAL [Member] | Discontinued Operations, Disposed of by Sale [Member] | Gain Related To Remeasurement Of Retained Investment [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
(Gain) loss on sale of a business, net | 163,000,000 | ||||||||||||
UAL [Member] | Discontinued Operations, Disposed of by Sale [Member] | Transaction Fees [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
(Gain) loss on sale of a business, net | 11,000,000 | ||||||||||||
UAL [Member] | Discontinued Operations, Disposed of by Sale [Member] | Pension Settlement Losses [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
(Gain) loss on sale of a business, net | $ 2,000,000 | ||||||||||||
Kobe Steel Ltd. [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.90% | 49.90% | |||||||||||
Alunorf [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Difference between carrying amount and underlying equity | 441,000,000 | 441,000,000 | |||||||||||
Ulsan Aluminum, Ltd. [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Difference between carrying amount and underlying equity | $ 47,000,000 | $ 47,000,000 |
Investment in and Advances to75
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Ownership Structure and Percentage of Non-consolidated Affiliates) (Details) | Mar. 31, 2018 |
Aluminium Norf GmbH (Alunorf) [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership Percentage | 50.00% |
Ulsan Aluminum, Ltd. [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership Percentage | 50.10% |
Investment in and Advances to76
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Assets, Liabilities and Equity of Equity Method Affiliates) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | ||
Current assets | $ 396 | $ 143 |
Non-current assets | 944 | 355 |
Total assets | 1,340 | 498 |
Current liabilities | 281 | 53 |
Non-current liabilities | 342 | 283 |
Total liabilities | 623 | 336 |
Total equity | 717 | 162 |
Total liabilities and equity | $ 1,340 | $ 498 |
Investment in and Advances to77
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Results of Operations of Equity Method Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Summary of the share of the condensed results of operations of equity method affiliates | |||
Net sales | $ 866 | $ 447 | $ 464 |
Costs and expenses related to net sales | 836 | 463 | 463 |
Provision for taxes on income | 4 | (5) | 2 |
Net income (loss) | 26 | (11) | (1) |
Purchase of tolling services from Alunorf | $ 245 | $ 224 | $ 232 |
Investment in and Advances to78
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Period-end Account Balances with Non-consolidated Affiliates) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Related Party Transaction [Line Items] | ||
Accounts receivable - related parties | $ 242 | $ 60 |
Other long-term assets-related parties | 3 | 15 |
Accounts payable-related parties | 205 | 51 |
Parent Company [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - related parties | 1 | |
Equity Method Investee [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable - related parties | 242 | 60 |
Other long-term assets-related parties | 3 | 15 |
Accounts payable-related parties | $ 205 | $ 51 |
Accrued Expenses and Other Cu79
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued compensation and benefits | $ 193 | $ 191 |
Accrued interest payable | 44 | 60 |
Accrued income taxes | 29 | 26 |
Other current liabilities | 325 | 301 |
Accrued expenses and other current liabilities — third parties | $ 591 | $ 578 |
(Schedule of Debt) (Details)
(Schedule of Debt) (Details) SFr in Millions, R$ in Millions, $ in Millions, ₩ in Billions | Mar. 31, 2018USD ($) | Mar. 31, 2018KRW (₩) | Mar. 31, 2018BRL (R$) | Mar. 31, 2018CHF (SFr) | Mar. 31, 2017USD ($) | Jan. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 49 | $ 294 | ||||
Total debt | 4,587 | 4,948 | ||||
Long-term debt | 4,457 | 4,558 | ||||
Total debt, carrying value | 4,506 | 4,852 | ||||
Debt instrument, unamortized carrying value adjustment | (81) | (96) | ||||
Current portion of long-term debt | (121) | (121) | ||||
Long-term debt, net of current portion, principal | 4,417 | 4,533 | ||||
Long–term debt, net of current portion | 4,336 | 4,437 | ||||
Principal obligation on capital leases | $ 11 | |||||
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 4.15% | 4.15% | 4.15% | 4.15% | ||
Long-term debt, principal | $ 1,778 | 1,796 | ||||
Long-term debt, unamortized carrying value adjustments | (43) | (53) | ||||
Long-term debt | $ 1,735 | 1,743 | ||||
Principal amount | $ 1,796 | |||||
Senior Notes due September 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 5.875% | 5.875% | 5.875% | 5.875% | ||
Long-term debt, principal | $ 1,500 | 1,500 | ||||
Long-term debt, unamortized carrying value adjustments | (21) | (23) | ||||
Long-term debt | $ 1,479 | 1,477 | ||||
Senior Notes due August 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 6.25% | 6.25% | 6.25% | 6.25% | ||
Long-term debt, principal | $ 1,150 | 1,150 | ||||
Long-term debt, unamortized carrying value adjustments | (17) | (19) | ||||
Long-term debt | $ 1,133 | 1,131 | ||||
Loans due November 2015 to September 2020 [Member] | Korea [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 2.88% | 2.88% | 2.88% | 2.88% | ||
Long-term debt, current | $ 94 | ₩ 100 | ||||
Long-term debt, principal | 95 | 184 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 95 | 184 | ||||
Principal amount | ₩ | ₩ 102 | |||||
Capital Lease Obligation, due December 2019 [Member] | Switzerland [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 7.50% | 7.50% | 7.50% | 7.50% | ||
Capital lease obligations, principal | $ 12 | 17 | ||||
Capital lease obligations, carrying value adjustment | 0 | (1) | ||||
Capital lease obligations, carrying value | $ 12 | 16 | ||||
Principal obligation on capital leases | SFr | SFr 11 | |||||
BNDES Loans due February 2015 through April 2021 [Member] | Brazil [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 6.06% | 6.06% | 6.06% | 6.06% | ||
Long-term debt, current | $ 2 | |||||
Long-term debt, principal | 4 | |||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 2 | 4 | ||||
Principal amount | R$ | R$ 6 | |||||
Other Debt, due through December 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 5.56% | 5.56% | 5.56% | 5.56% | ||
Long-term debt, principal | $ 1 | 3 | ||||
Long-term debt, unamortized carrying value adjustments | 0 | 0 | ||||
Long-term debt | $ 1 | 3 | ||||
Short-term Borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rates | 3.49% | 3.49% | 3.49% | 3.49% | ||
Short-term borrowings | $ 49 | 294 | ||||
Long-term debt, unamortized carrying value adjustments | $ 0 | $ 0 |
Debt (Principal Payment Require
Debt (Principal Payment Requirements) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long term debt due within one year | $ 170 | |
2 years | 24 | |
3 years | 20 | |
4 years | 18 | |
5 years | 1,705 | |
Thereafter | 2,650 | |
Total debt | $ 4,587 | $ 4,948 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) | 12 Months Ended |
Mar. 31, 2018USD ($) | |
ABL Facility [Member] | Seven-year Secured Term Loan Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 1,800,000,000 |
Debt term | 5 years |
Long-term debt, current | $ 18,000,000 |
Debt covenant, minimum senior net leverage ratio | 3.50 |
Aggregate principal amount (more than) | $ 100,000,000 |
ABL Revolver [Member] | |
Line of Credit Facility [Line Items] | |
Current borrowing capacity | $ 1,000,000,000 |
Debt (Term Loan Facility) (Deta
Debt (Term Loan Facility) (Details) | 1 Months Ended | 3 Months Ended |
Jan. 31, 2017USD ($) | Dec. 31, 2016 | |
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 1,796,000,000 | |
Secured Debt [Member] | Term Loan Credit Agreement, Due June 2, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly amortization payment percentage | 0.25% | |
Debt covenant, minimum senior net leverage ratio | 3 | 1 |
Secured Debt [Member] | Term Loan Credit Agreement, Due June 2, 2022 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, potential additional borrowing capacity | $ 300,000,000 | |
Secured Debt [Member] | Term Loan Credit Agreement, Due June 2, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.85% |
Debt (ABL Revolver) (Details)
Debt (ABL Revolver) (Details) - ABL Revolver [Member] | 1 Months Ended | ||
Sep. 30, 2017 | Oct. 31, 2014USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Line of credit facility, 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 | $ 90,000,000 | ||
Debt covenant, percentage applied on lesser of ABL revolver commitment and applicable borrowing base | 10.00% | ||
Percentage of the lesser of total revolver commitment to applicable borrowing base | 20.00% | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of the lesser of total revolver commitment to applicable borrowing base | 15.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Prime Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Prime Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% |
Debt (Short-term Borrowings (De
Debt (Short-term Borrowings (Details) ¥ in Millions, $ in Millions, ₩ in Billions | Mar. 31, 2018USD ($) | Mar. 31, 2018KRW (₩) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 49 | $ 294 | |||
China [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 5 | ¥ 35 | |||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding amount | 12 | ||||
Remaining borrowing capacity | 789 | ||||
Revolving Credit Facility [Member] | Korea [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 184 | ₩ 196 | |||
Revolving Credit Facility [Member] | Middle East and Africa [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 20 | ||||
Short-term Loan [Member] | ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 12 | ||||
Bank Loan Obligations [Member] | China [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 36 | ¥ 234 | |||
Other Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 1 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) | Dec. 17, 2010 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||||
Refinance premiums and insurance costs | $ 139,000,000 | ||||||||
Loss on extinguishment of debt | $ (22,000,000) | $ 0 | $ 112,000,000 | $ 0 | 0 | $ 134,000,000 | $ 13,000,000 | ||
Aggregate principal amount (more than) | $ 100,000,000 | ||||||||
Debt Issuance Costs Incurred [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, principal | $ 45,000,000 | ||||||||
Senior Notes due August 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, principal | 1,150,000,000 | $ 1,150,000,000 | 1,150,000,000 | ||||||
Interest rate | 6.25% | ||||||||
Senior Notes due September 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, principal | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | ||||||
Interest rate | 5.875% | ||||||||
8.375% Senior Notes, due December 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 8.375% | ||||||||
8.75% Senior Notes, due December 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 8.75% |
Debt (Bank Loans) (Details)
Debt (Bank Loans) (Details) - 12 months ended Mar. 31, 2018 $ in Millions, ₩ in Billions | USD ($) | KRW (₩) |
Korea [Member] | Loans due November 2015 to September 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, current | $ 94 | ₩ 100 |
Korea [Member] | Loans due November 2015 to September 2020 [Member] | Korea 91-day Certificate of Deposit Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.80% | |
Korea [Member] | Loans due November 2015 to September 2020 [Member] | Korea 91-day Certificate of Deposit Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.58% | |
Brazil [Member] | BNDES Loans due February 2015 through April 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, current | $ 2 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017$ / shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | |
Share-based Compensation by Award [Line Items] | ||||
Award vesting percentage | 75.00% | |||
Performance based units value | $ / shares | $ 100 | |||
Total share-based liabilities paid | $ 10 | $ 7 | $ 2 | |
Minimum [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Award target payout multiple | 2.5 | |||
SARs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Award vesting percentage | 25.00% | |||
Award expiration period | 7 years | |||
SARs [Member] | Novelis SARs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
SARs granted (in shares) | shares | 1,000,000 | |||
SARs outstanding (in shares) | shares | 92,223 | 108,549 | ||
Unrecognized compensation expense | $ 1 | |||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year | |||
SARs [Member] | Hindalco SARs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
SARs granted (in shares) | shares | 2,324,230 | |||
SARs outstanding (in shares) | shares | 11,197,974 | 15,161,233 | ||
Unrecognized compensation expense | $ 5 | |||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 2 months 12 days | |||
SARs [Member] | Maximum [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Award vesting percentage | 33.00% | |||
Award target payout multiple | 3 | |||
RSUs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Requisite service period (years) | 3 years | |||
Total share-based liabilities paid | $ 8 | $ 2 | $ 5 | |
Unrecognized compensation expense | $ 6 | |||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 3 months 18 days | |||
RSUs [Member] | Maximum [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Award target payout multiple | 3 |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Two Zero One Zero LTIP [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Total compensation expense (income) | $ 21 | $ 21 | $ (2) |
Share-Based Compensation (RSUs
Share-Based Compensation (RSUs Activity) (Details) - 12 months ended Mar. 31, 2018 - RSUs [Member] $ / shares in Units, $ in Millions | USD ($)$ / sharesshares | ₨ / shares |
Number of RSUs | ||
Outstanding, beginning of period (shares) | shares | 7,712,984 | |
Granted (shares) | shares | 2,594,805 | |
Exercised (shares) | shares | (2,826,252) | |
Forteited/Cancelled (shares) | shares | (367,480) | |
Outstanding, end of period (shares) | shares | 7,114,057 | |
Grant Date Fair Value | ||
Outstanding, beginning of period (Indian Rupees per share) | ₨ / shares | ₨ 105.68 | |
Granted (Indian Rupees per share) | ₨ / shares | 186.96 | |
Exercised (Indian Rupees per share) | ₨ / shares | 112.52 | |
Forfeited/Cancelled (Indian Rupees per share) | ₨ / shares | 126.06 | |
Outstanding, end of period (Indian Rupees per share) | ₨ / shares | ₨ 131.74 | |
Aggregate Intrinsic Value | ||
Outstanding, end of period | $ | $ 23 | |
Granted | $ | 0 | |
Exercised | $ | $ 8 | |
Forfeited/Cancelled | $ / shares | $ 0 | |
Outstanding, beginning of period | $ | $ 23 |
Share-Based Compensation (SARs
Share-Based Compensation (SARs Activity) (Details) - SARs [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |||
Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / shares₨ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2018₨ / shares | |
Hindalco SARs [Member] | ||||
Number of SARs | ||||
Outstanding, beginning of period (shares) | 15,161,233 | |||
Granted (shares) | 2,324,230 | |||
Exercised (shares) | (5,928,524) | |||
Forfeited/Cancelled (shares) | (358,965) | |||
Outstanding, end of period (shares) | 11,197,974 | 15,161,233 | ||
Number of Shares, Exercisable | 2,923,178 | 2,923,178 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (Indian Rupees/USD per share) | ₨ / shares | ₨ 122.16 | |||
Granted (Indian Rupees/USD per share) | ₨ / shares | 186.11 | |||
Exercised (Indian Rupees/USD per share) | ₨ / shares | 123.54 | |||
Forfeited/Cancelled (Indian Rupees/USD per share) | ₨ / shares | 131.94 | |||
Outstanding, end of period (Indian Rupees/USD per share) | ₨ / shares | ₨ 134.32 | |||
Weighted Average Exercise Price (Indian Rupees/USD per share), Exercisable | ₨ / shares | ₨ 134.62 | |||
Weighted Average Remaining Contractual Term | ||||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 3 months 18 days | 4 years 5 months | ||
Weighted Average Remaining Contractual Term, Granted | P6Y1M6D | |||
Weighted Average Remaining Contractual Term, Exercised | 0 days | |||
Weighted Average Remaining Contractual Term, Forfeited/Cancelled | 0 days | |||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 3 months 18 days | 4 years 5 months | ||
Weighted Average Remaining Contractual Term, Exercisable | 2 years 9 months 18 days | |||
Aggregate Intrinsic Value (USD in millions) | ||||
Aggregate Intrinsic Value, Outstanding | $ | $ 18 | |||
Aggregate Intrinsic Value, Granted | $ / shares | $ 0 | |||
Aggregate Intrinsic Value, Exercised | $ | $ 10 | |||
Aggregate Intrinsic Value, Forfeited/Cancelled | $ / shares | $ 0 | |||
Aggregate Intrinsic Value, Outstanding | $ | $ 14 | $ 18 | ||
Aggregate Intrinsic Value, Exercisable | $ | $ 4 | ₨ 4 | ||
Novelis SARs [Member] | ||||
Number of SARs | ||||
Outstanding, beginning of period (shares) | 108,549 | |||
Granted (shares) | 1,000,000 | |||
Exercised (shares) | (8,808) | |||
Forfeited/Cancelled (shares) | (7,518) | |||
Outstanding, end of period (shares) | 92,223 | 108,549 | ||
Number of Shares, Exercisable | 71,153 | 71,153 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (Indian Rupees/USD per share) | $ / shares | $ 83.57 | |||
Exercised (Indian Rupees/USD per share) | $ / shares | 63.54 | |||
Forfeited/Cancelled (Indian Rupees/USD per share) | $ / shares | 87.25 | |||
Outstanding, end of period (Indian Rupees/USD per share) | $ / shares | 85.18 | $ 83.57 | ||
Weighted Average Exercise Price (Indian Rupees/USD per share), Exercisable | $ / shares | $ 88.22 | ₨ 88.22 | ||
Weighted Average Remaining Contractual Term | ||||
Weighted Average Remaining Contractual Term, Outstanding | 2 years 9 months 18 days | 3 years 6 months | ||
Weighted Average Remaining Contractual Term, Exercised | 0 days | |||
Weighted Average Remaining Contractual Term, Forfeited/Cancelled | 0 days | |||
Weighted Average Remaining Contractual Term, Outstanding | 2 years 9 months 18 days | 3 years 6 months | ||
Weighted Average Remaining Contractual Term, Exercisable | 2 years 6 months | |||
Aggregate Intrinsic Value (USD in millions) | ||||
Aggregate Intrinsic Value, Outstanding | $ | $ 0 | |||
Aggregate Intrinsic Value, Exercised | $ | $ 0 | |||
Aggregate Intrinsic Value, Forfeited/Cancelled | $ / shares | $ 0 | |||
Aggregate Intrinsic Value, Outstanding | $ | $ 0 | $ 0 | ||
Aggregate Intrinsic Value, Exercisable | $ | $ 0 | ₨ 0 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value Assumptions) (Details) - SARs [Member] | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Hindalco SARs [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Dividend yield | 0.53% | 0.51% | 1.14% |
Hindalco SARs [Member] | Minimum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 6.14% | 5.82% | 7.23% |
Volatility | 29.00% | 35.00% | 43.00% |
Hindalco SARs [Member] | Maximum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 7.67% | 6.99% | 7.68% |
Volatility | 42.00% | 44.00% | 44.00% |
Novelis SARs [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Novelis SARs [Member] | Minimum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 1.71% | 0.78% | 0.89% |
Volatility | 20.00% | 25.00% | 38.00% |
Novelis SARs [Member] | Maximum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 2.55% | 1.95% | 1.39% |
Volatility | 25.00% | 28.00% | 41.00% |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of foreign benefit obligation to total benefit obligation | 95.00% | ||
Maximum amortization period of unfunded actuarial liability | 15 years | ||
Expected additional contribution to funded pension plan | $ 26 | ||
Expected additional contribution to unfunded pension plan | 14 | ||
Employer discretionary contribution amount | $ 28 | ||
Expected long-term rate of return on plan assets | 5.20% | ||
Health care cost trend rate assumed for fiscal 2015 | 7.50% | ||
Ultimate health care cost trend rate in 2019 | 5.00% | ||
Long-term Growth Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 50.00% | ||
Near-term Benefit Payments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 50.00% | ||
Other Long-term Liabilities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postemployment benefits liability, noncurrent | $ 10 | $ 9 | |
Accrued Expenses and Other Current Liabilities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postemployment benefits lability, current | 4 | $ 4 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 32 | ||
Future amortization of net actuarial losses | 33 | ||
Future amortization of prior service costs (credits) | $ 1 | ||
Expected long-term rate of return on plan assets | 5.20% | 5.40% | 5.60% |
Benefits paid | $ 60 | $ 74 | |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 2 | ||
Future amortization of prior service costs (credits) | $ 2 | ||
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Benefits paid | $ 8 | $ 8 | $ 10 |
Postretirement Benefit Plans (E
Postretirement Benefit Plans (Employer Contributions to Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Contributions to employee benefit plans | |||
Funded pension plans | $ 57 | $ 26 | $ 28 |
Unfunded pension plans | 12 | 15 | 12 |
Savings and defined contribution pension plans | 27 | 25 | 24 |
Total contributions | $ 96 | $ 66 | $ 64 |
(Change in Benefit Obligation)
(Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | $ 1,865 | $ 1,868 | |
Service cost | 44 | 45 | $ 47 |
Interest cost | 60 | 59 | 59 |
Members’ contributions | 5 | 4 | |
Benefits paid | (60) | (74) | |
Amendments | (8) | 2 | |
Curtailments, settlements and special termination benefits | (25) | (4) | |
Actuarial losses (gains) | 17 | 35 | |
Other | (3) | (4) | |
Currency losses (gains) | 88 | (66) | |
Benefit obligation at end of period | 1,983 | 1,865 | 1,868 |
Other Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 153 | 151 | |
Service cost | 7 | 6 | 5 |
Interest cost | 7 | 6 | 5 |
Members’ contributions | 0 | 0 | |
Benefits paid | (8) | (8) | (10) |
Amendments | 3 | 0 | |
Curtailments, settlements and special termination benefits | 0 | 0 | |
Actuarial losses (gains) | 14 | (3) | |
Other | 0 | 0 | |
Currency losses (gains) | 0 | 1 | |
Benefit obligation at end of period | 176 | 153 | $ 151 |
Funded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 1,594 | ||
Benefit obligation at end of period | 1,677 | 1,594 | |
Funded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 0 | ||
Benefit obligation at end of period | 0 | 0 | |
Unfunded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 271 | ||
Benefit obligation at end of period | 306 | 271 | |
Unfunded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 153 | ||
Benefit obligation at end of period | $ 176 | $ 153 |
Postretirement Benefit Plans (C
Postretirement Benefit Plans (Change in Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 1,200 | |
Fair value of plan assets at end of period | 1,317 | $ 1,200 |
Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 1,200 | 1,177 |
Actual return on plan assets | 85 | 106 |
Members’ contributions | 5 | 4 |
Benefits paid | 60 | 74 |
Company contributions | 69 | 37 |
Settlements (A) | (24) | (4) |
Other | (3) | (3) |
Currency | 45 | (43) |
Fair value of plan assets at end of period | $ 1,317 | $ 1,200 |
Postretirement Benefit Plans (F
Postretirement Benefit Plans (Funded Status and Amounts Recognized) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued postretirement benefits | $ (825) | $ (799) | |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | (666) | (665) | |
Benefit obligation of unfunded plans | (1,983) | (1,865) | $ (1,868) |
Other non- current assets | 3 | 2 | |
Accrued expenses and other current liabilities | (13) | (12) | |
Accrued postretirement benefits | (656) | (655) | |
As included in our consolidated balance sheets within Total assets / (Total liabilities) | (666) | (665) | |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | (176) | (153) | |
Benefit obligation of unfunded plans | (176) | (153) | $ (151) |
Other non- current assets | 0 | 0 | |
Accrued expenses and other current liabilities | (6) | (10) | |
Accrued postretirement benefits | (169) | (143) | |
As included in our consolidated balance sheets within Total assets / (Total liabilities) | (175) | (153) | |
Funded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | (360) | (394) | |
Benefit obligation of unfunded plans | (1,677) | (1,594) | |
Funded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded status at end of period | 0 | 0 | |
Benefit obligation of unfunded plans | 0 | 0 | |
Unfunded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | (306) | (271) | |
Unfunded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | $ (176) | $ (153) |
Postretirement Benefit Plans (P
Postretirement Benefit Plans (Postretirement Amounts Recognized in AOCI) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial losses | $ (355) | $ (375) | |
Prior service credit | 13 | 4 | |
Total postretirement amounts recognized in Accumulated other comprehensive income | (342) | (371) | $ (435) |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial losses | (29) | (16) | |
Prior service credit | 5 | 7 | |
Total postretirement amounts recognized in Accumulated other comprehensive income | $ (24) | $ (9) | $ (16) |
Postretirement Benefit Plans 99
Postretirement Benefit Plans (Postretirement Changes Recognized in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance in Accumulated other comprehensive loss | $ (371) | $ (435) |
Curtailments, settlements, and special termination benefits | 1 | 1 |
Plan amendment | 0 | 0 |
Net actuarial gain (loss) | 7 | 11 |
Prior service cost | 8 | (2) |
Amortization of prior service credits | (1) | (2) |
Amortization of actuarial loss | 40 | 43 |
Effect of currency exchange | (26) | 13 |
Total postretirement amounts recognized in Accumulated other comprehensive income | (342) | (371) |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance in Accumulated other comprehensive loss | (9) | (16) |
Curtailments, settlements, and special termination benefits | 0 | 0 |
Plan amendment | (3) | 0 |
Net actuarial gain (loss) | (15) | 2 |
Prior service cost | 0 | 0 |
Amortization of prior service credits | 1 | 1 |
Amortization of actuarial loss | 2 | 4 |
Effect of currency exchange | 0 | 0 |
Total postretirement amounts recognized in Accumulated other comprehensive income | $ (24) | $ (9) |
Postretirement Benefit Plans100
Postretirement Benefit Plans (Pension Plan Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 1,983 | $ 1,865 | $ 1,868 |
Accumulated benefit obligation | 1,830 | 1,711 | |
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 1,733 | 1,581 | |
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets | 1,171 | 1,049 | |
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plans with projected benefit obligations in excess of plan assets, projected benefit obligation | 1,880 | 1,769 | |
Pension plans with projected benefit obligations in excess of plan assets, fair value of plan assets | 1,211 | 1,103 | |
Pension plans with accumulated benefit obligations in excess of plan assets, projected benefit obligation | 103 | 96 | |
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets | $ 106 | $ 97 |
Postretirement Benefit Plans101
Postretirement Benefit Plans (Future Benefit Payments) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | $ 919 |
Pension Benefits [Member] | 2019 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 74 |
Pension Benefits [Member] | 2020 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 79 |
Pension Benefits [Member] | 2021 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 82 |
Pension Benefits [Member] | 2022 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 86 |
Pension Benefits [Member] | 2023 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 89 |
Pension Benefits [Member] | 2024 through 2028 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 509 |
Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 101 |
Other Benefits [Member] | 2019 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 6 |
Other Benefits [Member] | 2020 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 8 |
Other Benefits [Member] | 2021 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 9 |
Other Benefits [Member] | 2022 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 9 |
Other Benefits [Member] | 2023 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 10 |
Other Benefits [Member] | 2024 through 2028 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | $ 59 |
Postretirement Benefit Plans102
Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 44 | $ 45 | $ 47 |
Interest cost | 60 | 59 | 59 |
Expected return on assets | (63) | (61) | (67) |
Amortization — losses | 36 | 40 | 37 |
Amortization — prior service credit | (1) | (2) | (2) |
Curtailment, settlement, and special termination losses | 2 | 1 | 0 |
Net periodic benefit cost (income) | 78 | 82 | 74 |
Proportionate share of non-consolidated affiliates’ pension costs | 9 | 8 | 9 |
Total net periodic benefit costs (income) recognized | 87 | 90 | 83 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 7 | 6 | 5 |
Interest cost | 7 | 6 | 5 |
Expected return on assets | 0 | 0 | 0 |
Amortization — losses | 1 | 4 | 4 |
Amortization — prior service credit | 0 | 2 | (27) |
Curtailment, settlement, and special termination losses | 0 | 0 | 0 |
Net periodic benefit cost (income) | 15 | 18 | (13) |
Proportionate share of non-consolidated affiliates’ pension costs | 0 | 0 | 0 |
Total net periodic benefit costs (income) recognized | $ 15 | $ 18 | $ (13) |
Postretirement Benefit Plans (A
Postretirement Benefit Plans (Actuarial Assumptions and Sensitivity Analysis) (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 5.20% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 3.10% | 3.20% | 3.30% |
Weighted average assumptions used to determine benefit obligations, Average compensation growth | 3.10% | 3.10% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Discount rate | 3.20% | 3.30% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Average compensation growth | 3.10% | 3.10% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 5.20% | 5.40% | 5.60% |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 4.00% | 4.10% | 4.00% |
Weighted average assumptions used to determine benefit obligations, Average compensation growth | 3.50% | 3.50% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost, Discount rate | 4.10% | 4.00% | 3.60% |
Weighted average assumptions used to determine net periodic benefit cost, Average compensation growth | 3.50% | 3.50% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Postretirement Benefit Plans104
Postretirement Benefit Plans (Change of One Percentage Point) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Retirement Benefits [Abstract] | |
Effect on service and interest costs, 1% Increase | $ 2 |
Effect on benefit obligation, 1% Increase | 17 |
Effect on service and interest costs, 1% Decrease | (2) |
Effect on benefit obligation, 1% Decrease | $ (15) |
Postretirement Benefit Plans105
Postretirement Benefit Plans (Target and Actual Allocation Percentages) (Details) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 14-54% | |
Allocation in aggregate | 33.00% | 32.00% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 46-78% | |
Allocation in aggregate | 55.00% | 49.00% |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0-15% | |
Allocation in aggregate | 3.00% | 3.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0-18% | |
Allocation in aggregate | 9.00% | 17.00% |
Minimum [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0.14 | |
Minimum [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0.46 | |
Minimum [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0 | |
Minimum [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0 | |
Maximum [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0.54 | |
Maximum [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0.78 | |
Maximum [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0.15 | |
Maximum [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage | 0.18 |
Postretirement Benefit Plans106
Postretirement Benefit Plans (Pension Plan Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 1,317 | $ 1,200 |
Investments measured at net asset value | 1,106 | 1,002 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 170 | 144 |
Investments measured at net asset value | 0 | 0 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 41 | 54 |
Investments measured at net asset value | 0 | 0 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Investments measured at net asset value | 0 | 0 |
Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Equity [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Equity [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Equity [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 204 | 190 |
Fixed Income [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 163 | 136 |
Fixed Income [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 41 | 54 |
Fixed Income [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Real Estate [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Real Estate [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Real Estate [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 7 | 8 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 7 | 8 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 0 | $ 0 |
Currency Losses (Gains) (Includ
Currency Losses (Gains) (Included in Other Expense (Income), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Currency (gains) losses included in other income expense | |||
(Gain) loss on remeasurement of monetary assets and liabilities, net | $ (46) | $ 30 | $ (55) |
Loss (gain) recognized on balance sheet remeasurement currency exchange contracts, net | 0 | 0 | 1 |
Loss released from accumulated other comprehensive loss | 47 | (35) | 52 |
Currency losses (gains), net | $ 1 | $ (5) | $ (2) |
Currency Losses (Gains) (Inc108
Currency Losses (Gains) (Included in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Currency gains included in AOCI, net of tax and Non controlling interests | |||
Cumulative currency translation adjustment — beginning of period | $ (256) | $ (197) | $ (214) |
Effect of changes in exchange rates | 191 | (75) | 17 |
Sale of investment in foreign entities | 0 | 16 | 0 |
Cumulative currency translation adjustment — end of period | $ (65) | $ (256) | $ (197) |
Financial Instruments and Co109
Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Assets | ||
Derivative Assets, Current | $ 159 | $ 113 |
Derivative Asset, Noncurrent | 2 | 2 |
Liabilities | ||
Derivative Liabilities, Current | (106) | (151) |
Derivative Liabilities, Noncurrent | (8) | (13) |
Derivative Assets (Liabilities), at Fair Value, Net | 47 | (49) |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 68 | 27 |
Derivative Asset, Noncurrent | 2 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (10) | (70) |
Derivative Liabilities, Noncurrent | (7) | (12) |
Derivative Assets (Liabilities), at Fair Value, Net | 53 | (54) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 63 | 0 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (1) | (69) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 63 | (69) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 5 | 26 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (7) | (1) |
Derivative Liabilities, Noncurrent | 0 | (3) |
Derivative Assets (Liabilities), at Fair Value, Net | (2) | 23 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 1 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (2) | 0 |
Derivative Liabilities, Noncurrent | (7) | (9) |
Derivative Assets (Liabilities), at Fair Value, Net | (8) | (8) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 91 | 86 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (96) | (81) |
Derivative Liabilities, Noncurrent | (1) | (1) |
Derivative Assets (Liabilities), at Fair Value, Net | (6) | 5 |
Not Designated as Hedging Instrument [Member] | Aluminium Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 75 | 57 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (64) | (68) |
Derivative Liabilities, Noncurrent | 0 | (1) |
Derivative Assets (Liabilities), at Fair Value, Net | 11 | (11) |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 15 | 29 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (32) | (13) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (18) | $ 16 |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 1 | |
Derivative Asset, Noncurrent | 0 | |
Liabilities | ||
Derivative Liabilities, Current | 0 | |
Derivative Liabilities, Noncurrent | 0 | |
Derivative Assets (Liabilities), at Fair Value, Net | $ 1 |
Financial Instruments and Co110
Financial Instruments and Commodity Contracts (Details Textual) MWh in Millions, MMBTU in Millions, $ in Millions, ₩ in Billions | 12 Months Ended | |||
Mar. 31, 2018USD ($)MMBTUMgMWh | Mar. 31, 2018KRW (₩)MMBTUMgMWh | Mar. 31, 2017USD ($)MMBTUMgMWh | Mar. 31, 2017KRW (₩)MMBTUMgMWh | |
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ 47 | $ (49) | ||
Expected reclassification of gains (losses) from AOCI to earnings | 64 | |||
Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | (6) | 5 | ||
Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | 53 | (54) | ||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 1,024 | 683 | ||
Derivative asset (liability) | (18) | 16 | ||
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 499 | 465 | ||
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | (2) | 23 | ||
Currency Exchange Contracts [Member] | Net Investment Hedging [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | 0 | 0 | ||
Extended Electricity Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | $ 1 | |||
Derivative extended period | 5 years | |||
Derivative asset (liability) | $ 7 | 9 | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ (1) | |||
Notional amount (in tons) | MMBTU | 1 | 1 | ||
Derivative, Term of Contract | 2 years | |||
Natural Gas Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ (1) | $ (1) | ||
Notional amount (in tons) | MMBTU | 20 | 20 | 6 | 6 |
Fuel [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ 2 | |||
Notional amount (in tons) | MMBTU | 5 | 5 | 8 | 8 |
Derivative, Term of Contract | 2 years | |||
Fuel [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative asset (liability) | $ 1 | |||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Long-term Debt [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount | $ 28 | ₩ 30 | $ 119 | ₩ 133 |
Interest rate swaps, hedged amount | $ 28 | ₩ 30 | ||
Derivative, fixed interest rate | 3.35% | 3.35% | ||
Forward Contracts [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 0 | 0 | 0 | 0 |
Forward Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | Mg | 0 | 0 | 0 | 0 |
Electricity Swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Notional amount (in tons) | MWh | 0 | 0 | 0 | 0 |
Financial Instruments and Co111
Financial Instruments and Commodity Contracts (Notional Amount (in kt)) (Details) - Mg Mg in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Aluminum Forward Sales Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | (423) | (391) |
Aluminium Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | (497) | (480) |
Aluminium Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | (74) | (89) |
Financial Instruments and Co112
Financial Instruments and Commodity Contracts (Gain (Loss) Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | $ (15) | $ 15 | $ 27 |
Other Expense (Income), Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Balance sheet remeasurement currency exchange contract (losses) gains | (47) | 35 | (53) |
Realized gains (losses), net | (20) | (61) | 64 |
Unrealized gains (losses) on other derivative instruments, net | 20 | 5 | (4) |
Total gain (loss) recognized | (47) | (21) | 7 |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (40) | 4 | (10) |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | Aluminium Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 10 | (44) | 47 |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (57) | 40 | (60) |
Other Expense (Income), Net [Member] | Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 7 | 8 | 3 |
Other Expense (Income), Net [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | $ (7) | $ (25) | $ 17 |
Financial Instruments and Co113
Financial Instruments and Commodity Contracts (Impact on AOCI and Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | $ 9 | $ (96) | $ 69 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (7) | (26) | 17 |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | 26 | (96) | 71 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (7) | (26) | 17 |
Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | 35 | (137) | 84 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (9) | (27) | 17 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (5) | 48 | (7) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 1 | 2 | 1 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (4) | (7) | (5) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 1 | (1) | (1) |
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | 0 | 0 | (1) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | 0 | 0 |
Net Investment Hedging [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (17) | 0 | (2) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | $ 0 | $ 0 | $ 0 |
Financial Instruments and Co114
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
(Loss) income before income taxes | $ 855 | $ 197 | $ 8 | ||||||||
Income tax provision (benefit) | $ (54) | $ (20) | $ (116) | $ (43) | $ (41) | $ (47) | $ (27) | $ (36) | (233) | (151) | (46) |
Net income (loss) | $ 109 | $ 105 | $ 307 | $ 101 | $ 47 | $ 64 | $ (89) | $ 24 | 622 | 46 | (38) |
Cash Flow Hedges [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
(Loss) income before income taxes | (82) | (40) | 8 | ||||||||
Income tax provision (benefit) | 24 | 12 | (19) | ||||||||
Net income (loss) | (58) | (28) | (11) | ||||||||
Other expense (income), net [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | 0 | (4) | (5) | ||||||||
Other expense (income), net [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | 0 | 0 | (1) | ||||||||
Cost of goods sold [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | (3) | (4) | (10) | ||||||||
Cost of goods sold [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | (78) | (55) | 83 | ||||||||
Cost of goods sold [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | 14 | 18 | (44) | ||||||||
Net sales [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | (22) | (3) | 0 | ||||||||
Net sales [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | 7 | 7 | (9) | ||||||||
Selling, general and administrative expenses [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | 1 | 2 | (4) | ||||||||
Depreciation and amortization [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | (1) | (1) | (1) | ||||||||
Interest expense [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI into income(expense), effective portion | $ 0 | $ 0 | $ (1) |
Financial Instruments and Co115
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification Summarization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | $ (7) | $ (26) | $ 17 |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (7) | (26) | 17 |
Aluminium Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (9) | (27) | 17 |
Aluminium Contracts [Member] | Net sales [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (22) | ||
Aluminium Contracts [Member] | Cost of goods sold [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Aluminium Contracts [Member] | Selling, general and administrative expenses [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Aluminium Contracts [Member] | Depreciation and amortization [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Aluminium Contracts [Member] | Interest expense [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Aluminium Contracts [Member] | Other expense (income), net [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Energy Related Derivative [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 1 | (1) | (1) |
Energy Related Derivative [Member] | Net sales [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Energy Related Derivative [Member] | Cost of goods sold [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | (1) | ||
Energy Related Derivative [Member] | Selling, general and administrative expenses [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Energy Related Derivative [Member] | Depreciation and amortization [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Energy Related Derivative [Member] | Interest expense [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Energy Related Derivative [Member] | Other expense (income), net [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 1 | 2 | 1 |
Foreign Exchange Contract [Member] | Net sales [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 4 | ||
Foreign Exchange Contract [Member] | Cost of goods sold [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 3 | ||
Foreign Exchange Contract [Member] | Selling, general and administrative expenses [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Foreign Exchange Contract [Member] | Depreciation and amortization [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Foreign Exchange Contract [Member] | Interest expense [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Foreign Exchange Contract [Member] | Other expense (income), net [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | ||
Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehens116
Accumulated Other Comprehensive Loss (Components of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | $ (545) | $ (500) | $ (561) |
Other comprehensive income before reclassifications | 239 | (117) | 43 |
Amounts reclassified from AOCI, net | 45 | 72 | 18 |
Net current-period other comprehensive income | 284 | (45) | 61 |
Accumulated other comprehensive income (loss), end of period | (261) | (545) | (500) |
Sale of investment in foreign entities | 0 | 16 | 0 |
Currency Translation [Member] | |||
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | (256) | (196) | (213) |
Other comprehensive income before reclassifications | 191 | (76) | 17 |
Amounts reclassified from AOCI, net | 0 | 16 | 0 |
Net current-period other comprehensive income | 191 | (60) | 17 |
Accumulated other comprehensive income (loss), end of period | (65) | (256) | (196) |
Cash Flow Hedges [Member] | |||
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | (46) | (11) | (63) |
Other comprehensive income before reclassifications | 19 | (63) | 41 |
Amounts reclassified from AOCI, net | 58 | 28 | 11 |
Net current-period other comprehensive income | 77 | (35) | 52 |
Accumulated other comprehensive income (loss), end of period | 31 | (46) | (11) |
Postretirement Benefit Plans [Member] | |||
Increase (Decrease) in AOCI [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning of period | (243) | (293) | (285) |
Other comprehensive income before reclassifications | 29 | 22 | (15) |
Amounts reclassified from AOCI, net | (13) | 28 | 7 |
Net current-period other comprehensive income | 16 | 50 | (8) |
Accumulated other comprehensive income (loss), end of period | $ (227) | $ (243) | $ (293) |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($)swap$ / MWh | |
Level 3 Instruments [Member] | |
Fair Value Measurements [Abstract] | |
Unrealized losses related to financial instruments | $ | $ (2) |
Extended Electricity Swaps [Member] | |
Fair Value Measurements [Abstract] | |
Number of swaps held | swap | 2 |
Average forward price (per megawatt hour) | 40 |
Premium over forward prices in nearby observable market (per megawatt hour) | 3 |
Actual swap settlement price (per megawatt hour) | 35 |
Change in valuation per a dollar per megawatt hour decline in price (less than) | $ | $ 1 |
Fair Value Measurements (Det118
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | $ 161 | $ 115 |
Assets, Netting Adjustment | (57) | (46) |
Assets, Total Net | 104 | 69 |
Liabilities | (114) | (164) |
Liabilities, Netting Adjustment | 57 | 46 |
Liabilities, Total Net | (57) | (118) |
Level 2 Instruments [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 161 | 115 |
Liabilities | (107) | (155) |
Level 2 Instruments [Member] | Aluminium Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 139 | 58 |
Liabilities | (65) | (138) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 20 | 56 |
Liabilities | (40) | (17) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 2 | 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 | (7) | (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 | $ (7) | $ (9) |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Fair Value Activity for Level 3) (Details) - Level 3 Instruments [Member] - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of fair value activity for Level 3 derivative contracts | ||
Balance as of beginning of period | $ (9) | $ (8) |
Realized/unrealized gain included in earnings | 5 | 11 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Gain (Loss) Included in Other Comprehensive Income (Loss) | (9) | |
Settlements | (3) | (3) |
Balance as of end of period | $ (7) | $ (9) |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Assets | ||
Long-term receivables from related parties, carrying value | $ 3 | $ 15 |
Long-term receivables from related parties, fair value | 3 | 14 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | 4,457 | 4,558 |
Total debt - third parties (excluding short term borrowings), fair value | $ 4,569 | $ 4,797 |
Other Expense (Income) (Details
Other Expense (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Currency (gains) losses, net | $ 1 | $ (5) | $ (2) | ||||||||
Unrealized losses (gains) on change in fair value of derivative instruments, net | (20) | (5) | 4 | ||||||||
Realized losses on change in fair value of derivative instruments, net | 20 | 61 | (64) | ||||||||
Loss on sale of assets, net | 7 | 6 | 4 | ||||||||
Loss on Brazilian tax litigation, net | 3 | 5 | 5 | ||||||||
Interest income | (9) | (11) | (13) | ||||||||
Gain on business interruption insurance recovery, net | 0 | 0 | (10) | ||||||||
Other, net | 7 | 17 | 8 | ||||||||
Other expense (income), net | $ 2 | $ (6) | $ 25 | $ (12) | $ 32 | $ (3) | $ 11 | $ 28 | 9 | $ 68 | $ (68) |
Aluminum Company of Malaysia Berhad (ALCOM) [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sale of business | $ 27 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic (Canada) | $ (50) | $ (286) | $ (313) |
Foreign (all other countries) | 906 | 491 | 324 |
Pre-tax income before equity in net loss of non-consolidated affiliates | $ 856 | $ 205 | $ 11 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current provision: | |||||||||||
Domestic (Canada) | $ 4 | $ 8 | $ 5 | ||||||||
Foreign (all other countries) | 176 | 137 | 134 | ||||||||
Total current | 180 | 145 | 139 | ||||||||
Deferred provision (benefit): | |||||||||||
Domestic (Canada) | 0 | 0 | 0 | ||||||||
Foreign (all other countries) | 53 | 6 | (93) | ||||||||
Total deferred | 53 | 6 | (93) | ||||||||
Income tax provision (benefit) | $ 54 | $ 20 | $ 116 | $ 43 | $ 41 | $ 47 | $ 27 | $ 36 | $ 233 | $ 151 | $ 46 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Tax Rates) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of Canadian statutory tax rates | |||||||||||
Pre-tax income before equity in net loss on non-consolidated affiliates | $ 856 | $ 205 | $ 11 | ||||||||
Canadian statutory tax rate | 25.00% | 25.00% | 25.00% | ||||||||
Provision at the Canadian statutory rate | $ 214 | $ 51 | $ 3 | ||||||||
Increase (decrease) for taxes on income (loss) resulting from: | |||||||||||
Exchange translation items | 10 | 9 | 16 | ||||||||
Exchange remeasurement of deferred income taxes | (3) | 8 | (8) | ||||||||
Change in valuation allowances | 22 | 67 | 104 | ||||||||
Tax credits | (22) | (14) | (22) | ||||||||
Income items not subject to tax | (5) | (3) | 0 | ||||||||
State tax expense, net | 4 | 1 | (10) | ||||||||
Dividends not subject to tax | 0 | (23) | (52) | ||||||||
Enacted tax rate changes | (19) | 1 | 5 | ||||||||
Tax rate differences on foreign earnings | 23 | 36 | 4 | ||||||||
Uncertain tax positions | 7 | 6 | 7 | ||||||||
Prior year adjustments | 1 | 4 | (2) | ||||||||
Income tax settlements | 1 | 6 | 0 | ||||||||
Other — net | 0 | 2 | 1 | ||||||||
Income tax provision (benefit) | $ 54 | $ 20 | $ 116 | $ 43 | $ 41 | $ 47 | $ 27 | $ 36 | $ 233 | $ 151 | $ 46 |
Effective tax rate | 27.00% | 73.00% | 411.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Details [Line Items] | ||||
Blended corporate tax rate | 31.55% | |||
Tax Cuts and Jobs Act of 2017, income tax expense (benefit) | $ 19 | |||
Increase in income tax provision related to tax losses | 22 | $ 67 | $ 104 | |
Impact on income tax provision of the credits | 22 | 14 | 22 | |
Income tax holiday, amount | 4 | |||
Deferred tax assets, valuation allowance | (727) | (688) | ||
Net operating loss carryforwards | 627 | |||
Tax credit carryforward | 140 | 116 | ||
Other deferred tax assets | 6 | 4 | ||
Operating loss carryforwards, valuation allowance | 541 | 531 | ||
Tax credit carryforward, valuation allowance | 119 | 98 | ||
Other deferred taxes, valuation allowance | 67 | 59 | ||
Operating loss carryforwards | 655 | |||
Undistributed earnings of foreign subsidiaries (outside Canada) | 3,000 | |||
Unrecognized tax benefits | 44 | 36 | 34 | $ 37 |
Maximum amount by which reserves for interest and penalties for unrecognized tax benefits may decrease in the next 12 months | 26 | |||
Accrued income tax penalties and interest | 9 | 5 | 4 | |
Income tax penalties and interest expense | 3 | 1 | ||
Settlement with taxing authorities including interest | $ 2 | |||
Taxes payable | 38 | 44 | ||
Taxes payable, current | 29 | $ 26 | ||
New York [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 6 | |||
United Kingdom [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 8 | |||
Canada [Member] | ||||
Income Tax Details [Line Items] | ||||
Deferred tax assets, valuation allowance | (618) | |||
Tax credit carryforward | 51 | |||
Other deferred tax assets | 67 | |||
Operating loss carryforwards | $ 500 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred income tax assets: | ||
Provisions not currently deductible for tax purposes | $ 323 | $ 418 |
Tax losses/benefit carryforwards, net | 767 | 771 |
Depreciation and amortization | 46 | 45 |
Other assets | 6 | 4 |
Total deferred income tax assets | 1,142 | 1,238 |
Less: valuation allowance | (727) | (688) |
Net deferred income tax assets | 415 | 550 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 384 | 442 |
Inventory valuation reserves | 83 | 84 |
Monetary exchange gains, net | 12 | 14 |
Other liabilities | 37 | 24 |
Total deferred income tax liabilities | 516 | 564 |
Net deferred income tax liabilities | $ 101 | $ 14 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 36 | $ 34 | $ 37 |
Additions based on tax positions related to the current period | 4 | 5 | 6 |
Additions based on tax positions of prior years | 6 | 0 | 3 |
Reductions based on tax positions of prior years | (7) | 0 | (6) |
Settlements | 0 | (1) | (10) |
Foreign exchange | 5 | (2) | 4 |
Ending Balance | $ 44 | $ 36 | $ 34 |
Commitments and Contingencie128
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies, noncurrent | $ 14,000,000 | ||
Accrual for environmental loss contingencies | $ 4,000,000 | ||
Loss Contingency Accrual [Abstract] | |||
Settlement agreement, term | 180 months | ||
Loss on Brazilian tax litigation, net | $ 3,000,000 | $ 5,000,000 | $ 5,000,000 |
Accrued Expenses and Other Current Liabilities [Member] | |||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies, current | 7,000,000 | 5,000,000 | |
Other Long-term Liabilities [Member] | |||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies, noncurrent | 7,000,000 | 10,000,000 | |
Brazilian Tax Authorities and Other Third Parties [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 29,000,000 | 22,000,000 | |
Brazil [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 58,000,000 | 68,000,000 | |
Brazil [Member] | Settlement with Taxing Authority [Member] | Other Long-term Assets - Third Parties [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Cash deposits | 7,000,000 | 7,000,000 | |
Brazil [Member] | Settlement with Taxing Authority [Member] | Accrued Expenses and Other Current Liabilities [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 9,000,000 | 9,000,000 | |
Brazil [Member] | Settlement with Taxing Authority [Member] | Other Long-term Liabilities [Member] | |||
Loss Contingency Accrual [Abstract] | |||
Settlement liabilities | 49,000,000 | $ 59,000,000 | |
Restructuring Action [Member] | |||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental loss contingencies | 10,000,000 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 0 | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 110,000,000 |
Segment, Geographical Area, 129
Segment, Geographical Area, Major Customer and Major Supplier Information (Details Textual) | 12 Months Ended |
Mar. 31, 2018countryplantsegment | |
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 |
Segment, Geographical Area, 130
Segment, Geographical Area, Major Customer and Major Supplier Information (Selected Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | $ 11,462 | $ 9,591 | $ 9,872 | ||||||||
Net sales - intersegment | 0 | 0 | 0 | ||||||||
Net sales | $ 3,066 | $ 2,933 | $ 2,794 | $ 2,669 | $ 2,621 | $ 2,313 | $ 2,361 | $ 2,296 | 11,462 | 9,591 | 9,872 |
Depreciation and amortization | 87 | 86 | 91 | 90 | 93 | 88 | 90 | 89 | 354 | 360 | 353 |
Income tax provision (benefit) | 54 | $ 20 | $ 116 | $ 43 | 41 | $ 47 | $ 27 | $ 36 | 233 | 151 | 46 |
Capital expenditures | 226 | 224 | 370 | ||||||||
Investment in and advances to non–consolidated affiliate | 849 | 451 | 849 | 451 | |||||||
Total assets | 9,503 | 8,373 | 9,503 | 8,373 | |||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 222 | 216 | 194 | ||||||||
Net sales - intersegment | (199) | (122) | (378) | ||||||||
Net sales | 23 | 94 | (184) | ||||||||
Depreciation and amortization | (37) | (17) | (18) | ||||||||
Income tax provision (benefit) | 16 | 13 | 17 | ||||||||
Capital expenditures | 3 | 2 | 7 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | 206 | 93 | 206 | 93 | |||||||
North America [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 3,933 | 3,226 | 3,262 | ||||||||
Net sales - intersegment | 18 | 2 | 4 | ||||||||
Net sales | 3,951 | 3,228 | 3,266 | ||||||||
Depreciation and amortization | 149 | 149 | 143 | ||||||||
Income tax provision (benefit) | 13 | 18 | (53) | ||||||||
Capital expenditures | 78 | 80 | 143 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | 2,569 | 2,358 | 2,569 | 2,358 | |||||||
Europe [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 3,390 | 2,930 | 3,055 | ||||||||
Net sales - intersegment | 57 | 38 | 168 | ||||||||
Net sales | 3,447 | 2,968 | 3,223 | ||||||||
Depreciation and amortization | 112 | 106 | 106 | ||||||||
Income tax provision (benefit) | 19 | 12 | (11) | ||||||||
Capital expenditures | 71 | 65 | 146 | ||||||||
Investment in and advances to non–consolidated affiliate | 522 | 451 | 522 | 451 | |||||||
Total assets | 3,151 | 2,683 | 3,151 | 2,683 | |||||||
Asia [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 2,066 | 1,771 | 1,879 | ||||||||
Net sales - intersegment | 44 | 20 | 113 | ||||||||
Net sales | 2,110 | 1,791 | 1,992 | ||||||||
Depreciation and amortization | 65 | 59 | 61 | ||||||||
Income tax provision (benefit) | 108 | 20 | 12 | ||||||||
Capital expenditures | 36 | 38 | 35 | ||||||||
Investment in and advances to non–consolidated affiliate | 327 | 0 | 327 | 0 | |||||||
Total assets | 1,796 | 1,602 | 1,796 | 1,602 | |||||||
South America [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales - third party | 1,851 | 1,448 | 1,482 | ||||||||
Net sales - intersegment | 80 | 62 | 93 | ||||||||
Net sales | 1,931 | 1,510 | 1,575 | ||||||||
Depreciation and amortization | 65 | 63 | 61 | ||||||||
Income tax provision (benefit) | 77 | 88 | 81 | ||||||||
Capital expenditures | 38 | 39 | $ 39 | ||||||||
Investment in and advances to non–consolidated affiliate | 0 | 0 | 0 | 0 | |||||||
Total assets | $ 1,781 | $ 1,637 | $ 1,781 | $ 1,637 |
Segment, Geographical Area, 131
Segment, Geographical Area, Major Customer and Major Supplier Information (Income Reconciliation) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of income from reportable segments to net income attributable to common shareholder | ||||||||||||
Net income (loss) attributable to our common shareholder | $ 106 | $ 121 | $ 307 | $ 101 | $ 47 | $ 63 | $ (89) | $ 24 | $ 635 | $ 45 | $ (38) | |
Net (loss) income attributable to noncontrolling interests | 3 | (16) | 0 | 0 | 0 | 1 | 0 | 0 | (13) | 1 | 0 | |
Income tax provision | 54 | 20 | 116 | 43 | 41 | 47 | 27 | 36 | 233 | 151 | 46 | |
Depreciation and amortization | (87) | (86) | (91) | (90) | (93) | (88) | (90) | (89) | (354) | (360) | (353) | |
Interest expense and amortization of debt issuance costs | (63) | (64) | (64) | (64) | (63) | (67) | (81) | (83) | (255) | (294) | (327) | |
Adjustment to reconcile proportional consolidation | (51) | (28) | (30) | |||||||||
Unrealized (gains) losses on change in fair value of derivative instruments, net | 20 | 5 | (4) | |||||||||
Realized (gains) losses on derivative instruments not included in segment income | 0 | (5) | 1 | |||||||||
Gain on assets held for sale | 0 | (2) | 0 | |||||||||
Loss on extinguishment of debt | 22 | 0 | (112) | 0 | 0 | (134) | (13) | |||||
Loss on sale of assets | 7 | 6 | 4 | |||||||||
Restructuring and impairment, net | (1) | (25) | (7) | (1) | (6) | (1) | (1) | (2) | (34) | (10) | (48) | |
Loss on sale of business | $ 0 | 0 | 318 | $ 0 | $ 0 | $ 0 | $ (27) | $ 0 | 318 | (27) | 0 | |
Metal price lag | (4) | 31 | 172 | |||||||||
Other, net | 1 | 10 | 3 | |||||||||
Income before income taxes | 855 | 197 | 8 | |||||||||
Operating Segments [Member] | ||||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | ||||||||||||
Net income (loss) attributable to our common shareholder | $ 1,215 | $ 1,085 | $ 963 | |||||||||
UAL [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | ||||||||||||
Loss on sale of business | $ 318 | |||||||||||
Disposal group, consideration | $ 314 | $ 314 | $ 314 |
Segment, Geographical Area, 132
Segment, Geographical Area, Major Customer and Major Supplier Information (Income From Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | $ 106 | $ 121 | $ 307 | $ 101 | $ 47 | $ 63 | $ (89) | $ 24 | $ 635 | $ 45 | $ (38) |
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | (8) | (3) | 0 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | 1,215 | 1,085 | 963 | ||||||||
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | 474 | 380 | 338 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | 219 | 208 | 203 | ||||||||
Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | 167 | 163 | 142 | ||||||||
South America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net loss attributable to our common shareholder | $ 363 | $ 337 | $ 280 |
Segment, Geographical Area, 133
Segment, Geographical Area, Major Customer and Major Supplier Information (Geographical Information - Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 3,066 | $ 2,933 | $ 2,794 | $ 2,669 | $ 2,621 | $ 2,313 | $ 2,361 | $ 2,296 | $ 11,462 | $ 9,591 | $ 9,872 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 4,041 | 3,336 | 3,334 | ||||||||
Asia and Other Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,068 | 1,771 | 1,879 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,851 | 1,448 | 1,482 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 113 | 106 | 121 | ||||||||
Germany [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,853 | 2,428 | 2,506 | ||||||||
Other Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 536 | $ 502 | $ 550 |
Segment, Geographical Area, 134
Segment, Geographical Area, Major Customer and Major Supplier Information (Geographical Information - Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 3,520 | $ 3,814 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,338 | 1,400 |
Asia and Other Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 490 | 756 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 796 | 823 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 60 | 64 |
Germany [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 287 | 260 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 43 | 39 |
Other Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 506 | $ 472 |
Segment, Geographical Area, 135
Segment, Geographical Area, Major Customer and Major Supplier Information (3 Largest Customers) (Details) - Net sales [Member] | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Ball [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 21.00% | 27.00% | 30.00% |
Ford [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 10.00% | 10.00% | 4.00% |
Ball, Rexam, and Ardagh | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 29.00% | 30.00% | |
Beverage and Food Can Products [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 52.00% | 52.00% | 55.00% |
Automotive Products [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 24.00% | 23.00% | 20.00% |
Segment, Geographical Area, 136
Segment, Geographical Area, Major Customer and Major Supplier Information (Purchases - RTA) (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cost of Goods Sold [Member] | RTA [Member] | |||
Purchases from primary supplier | |||
Purchases from RT as a percentage of total combined metal purchases | 10.00% | 10.00% | 12.00% |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental cash flow information | |||
Interest paid | $ 254 | $ 288 | $ 308 |
Income taxes paid | $ 191 | $ 128 | $ 123 |
Supplemental Information (De138
Supplemental Information (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 53,000,000 | ||
Capital lease obligations incurred (less than) | $ 0 | $ 2,000,000 | $ 0 |
Quarterly Results (Unaudited139
Quarterly Results (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | $ 3,066 | $ 2,933 | $ 2,794 | $ 2,669 | $ 2,621 | $ 2,313 | $ 2,361 | $ 2,296 | $ 11,462 | $ 9,591 | $ 9,872 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,603 | 2,494 | 2,361 | 2,261 | 2,182 | 1,924 | 1,980 | 1,930 | 9,719 | 8,016 | 8,727 |
Selling, general and administrative expenses | 131 | 128 | 124 | 106 | 118 | 103 | 108 | 92 | 489 | 421 | 407 |
Depreciation and amortization | 87 | 86 | 91 | 90 | 93 | 88 | 90 | 89 | 354 | 360 | 353 |
Interest expense and amortization of debt issuance costs | 63 | 64 | 64 | 64 | 63 | 67 | 81 | 83 | 255 | 294 | 327 |
Research and development expenses | 16 | 17 | 16 | 15 | 17 | 14 | 14 | 13 | 64 | 58 | 54 |
Gain on sale of a business, net | 0 | 0 | (318) | 0 | 0 | 0 | 27 | 0 | (318) | 27 | 0 |
(Gain) loss on assets held for sale | 0 | 0 | (1) | (1) | |||||||
Loss on extinguishment of debt | 22 | 0 | (112) | 0 | 0 | (134) | (13) | ||||
Restructuring and impairment, net | 1 | 25 | 7 | 1 | 6 | 1 | 1 | 2 | 34 | 10 | 48 |
Equity in net loss of non-consolidated affiliates | 0 | 0 | 1 | 0 | 0 | 8 | 0 | 0 | 1 | 8 | 3 |
Other expense (income), net | 2 | (6) | 25 | (12) | 32 | (3) | 11 | 28 | 9 | 68 | (68) |
Income tax provision | 54 | 20 | 116 | 43 | 41 | 47 | 27 | 36 | 233 | 151 | 46 |
Net income (loss) | 109 | 105 | 307 | 101 | 47 | 64 | (89) | 24 | 622 | 46 | (38) |
Net (loss) income attributable to noncontrolling interests | 3 | (16) | 0 | 0 | 0 | 1 | 0 | 0 | (13) | 1 | 0 |
Net income (loss) attributable to our common shareholder | $ 106 | 121 | $ 307 | $ 101 | $ 47 | $ 63 | $ (89) | $ 24 | $ 635 | $ 45 | $ (38) |
Immaterial Misstatement In Prior Period [Member] | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | (152) | ||||||||||
Cost of goods sold (exclusive of depreciation and amortization) | $ 152 |