Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Feb. 04, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Novelis Inc. | |
Entity Central Index Key | 1,304,280 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,009 | $ 2,933 | $ 9,242 | $ 8,396 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,568 | 2,490 | 7,816 | 7,100 |
Selling, general and administrative expenses | 129 | 122 | 373 | 341 |
Depreciation and amortization | 88 | 86 | 260 | 267 |
Interest expense and amortization of debt issuance costs | 67 | 64 | 201 | 192 |
Research and development expenses | 18 | 17 | 50 | 48 |
Restructuring and impairment, net | 1 | 25 | 2 | 33 |
Gain on sale of a business, net | 0 | 0 | 0 | (318) |
Equity in net (income) loss of non-consolidated affiliates | (1) | 0 | (2) | 1 |
Other expenses, net | 10 | 4 | 33 | 40 |
Business acquisition and other integration related costs | 14 | 0 | 24 | 0 |
Total expenses | 2,894 | 2,808 | 8,757 | 7,704 |
Income before income taxes | 115 | 125 | 485 | 692 |
Income tax provision | 37 | 20 | 154 | 179 |
Net income | 78 | 105 | 331 | 513 |
Net loss attributable to noncontrolling interests | 0 | (16) | 0 | (16) |
Net income attributable to our common shareholder | $ 78 | $ 121 | $ 331 | $ 529 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 78 | $ 105 | $ 331 | $ 513 |
Other comprehensive income (loss): | ||||
Currency translation adjustment | (26) | 58 | (144) | 149 |
Net change in fair value of effective portion of cash flow hedges | 60 | (36) | 3 | (33) |
Net change in pension and other benefits | 13 | 3 | 41 | 8 |
Other comprehensive income (loss) before income tax effect | 47 | 25 | (100) | 124 |
Income tax provision (benefit) related to items of other comprehensive income (loss) | 19 | (10) | 10 | (6) |
Other comprehensive income (loss), net of tax | 28 | 35 | (110) | 130 |
Comprehensive income | 106 | 140 | 221 | 643 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 1 | (16) | 2 | (16) |
Comprehensive income attributable to our common shareholder | $ 105 | $ 156 | $ 219 | $ 659 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 797 | $ 920 |
Accounts receivable, net | ||
— third parties (net of uncollectible accounts of $6 and $7 as of December 31, 2018 and March 31, 2018, respectively) | 1,370 | 1,353 |
— related parties | 169 | 242 |
Inventories | 1,716 | 1,560 |
Prepaid expenses and other current assets | 150 | 125 |
Fair value of derivative instruments | 173 | 159 |
Assets held for sale | 5 | 5 |
Total current assets | 4,380 | 4,364 |
Property, plant and equipment, net | 3,276 | 3,110 |
Goodwill | 607 | 607 |
Intangible assets, net | 366 | 410 |
Investment in and advances to non–consolidated affiliates | 810 | 849 |
Deferred income tax assets | 72 | 75 |
Other long–term assets | ||
— third parties | 94 | 97 |
— related parties | 0 | 3 |
Total assets | 9,605 | 9,515 |
Current liabilities | ||
Current portion of long–term debt | 32 | 121 |
Short–term borrowings | 153 | 49 |
Accounts payable | ||
— third parties | 2,032 | 2,051 |
— related parties | 147 | 205 |
Fair value of derivative instruments | 111 | 106 |
Accrued expenses and other current liabilities | 525 | 591 |
Total current liabilities | 3,000 | 3,123 |
Long–term debt, net of current portion | 4,329 | 4,336 |
Deferred income tax liabilities | 171 | 164 |
Accrued postretirement benefits | 802 | 825 |
Other long–term liabilities | 223 | 244 |
Total liabilities | 8,525 | 8,692 |
Commitments and contingencies | ||
Shareholder’s equity | ||
Common stock, no par value; unlimited number of shares authorized; 1,000 shares issued and outstanding as of December 31, 2018 and March 31, 2018 | 0 | 0 |
Additional paid–in capital | 1,404 | 1,404 |
Accumulated equity (deficit) | 100 | (283) |
Accumulated other comprehensive loss | (389) | (261) |
Total equity of our common shareholder | 1,115 | 860 |
Noncontrolling interests | (35) | (37) |
Total equity | 1,080 | 823 |
Total liabilities and equity | $ 9,605 | $ 9,515 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ (6) | $ (7) |
Common stock, par value (in usd per share) | ||
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 331 | $ 513 |
Adjustments to determine net cash provided by operating activities: | ||
Depreciation and amortization | 260 | 267 |
(Gain) loss on unrealized derivatives and other realized derivatives in investing activities, net | (4) | 4 |
Gain on sale of a business, net | 0 | (318) |
Loss on sale of assets | 4 | 4 |
Impairment charges | 0 | 15 |
Deferred income taxes, net | 38 | 41 |
Equity in net (income) loss of non-consolidated affiliates | (2) | 1 |
Loss on foreign exchange remeasurement of debt | 0 | 3 |
Amortization of debt issuance costs and carrying value adjustments | 14 | 15 |
Other, net | (1) | (1) |
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||
Accounts receivable | 0 | (413) |
Inventories | (214) | (175) |
Accounts payable | (17) | 221 |
Other current assets | (31) | 24 |
Other current liabilities | (58) | 12 |
Other noncurrent assets | 1 | (4) |
Other noncurrent liabilities | 3 | 18 |
Net cash provided by operating activities | 324 | 227 |
INVESTING ACTIVITIES | ||
Capital expenditures | (210) | (136) |
Acquisition of assets under a capital lease | (239) | 0 |
Proceeds from sales of assets, third party, net of transaction fees and hedging | 2 | 1 |
Proceeds from the sale of a business | 0 | 314 |
Proceeds from investment in and advances to non-consolidated affiliates, net | 1 | 9 |
Outflows from the settlement of derivative instruments, net | 2 | (18) |
Other | 10 | 10 |
Net cash (used in) provided by investing activities | (434) | 180 |
FINANCING ACTIVITIES | ||
Principal payments of long-term and short-term borrowings | (95) | (138) |
Revolving credit facilities and other, net | 109 | (140) |
Debt issuance costs | (2) | (5) |
Net cash provided by (used in) financing activities | 12 | (283) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (98) | 124 |
Effect of exchange rate changes on cash | (25) | 39 |
Cash, cash equivalents and restricted cash — beginning of period | 932 | 604 |
Cash, cash equivalents and restricted cash — end of period | $ 809 | $ 767 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | (Accumulated Deficit)/Retained Earnings | Accumulated Other Comprehensive Loss (AOCI) | Non- controlling Interests |
Beginning balance, shares at Mar. 31, 2017 | 1,000 | |||||
Beginning balance at Mar. 31, 2017 | $ (77) | $ 1,404 | $ (918) | $ (545) | $ (18) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 529 | 529 | ||||
Net loss attributable to noncontrolling interests | (16) | (16) | ||||
Currency translation adjustment included in AOCI | 149 | 149 | ||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit, included in AOCI | (24) | (24) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 5 | 5 | ||||
Ending balance, shares at Dec. 31, 2017 | 1,000 | |||||
Ending balance at Dec. 31, 2017 | 566 | 1,404 | (389) | (415) | (34) | |
Beginning balance, shares at Mar. 31, 2018 | 1,000 | |||||
Beginning balance at Mar. 31, 2018 | 823 | 1,404 | (283) | (261) | (37) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of accounting standards updates | 36 | 52 | (16) | |||
Ending balance, shares at Apr. 01, 2018 | 1,000 | |||||
Ending balance at Apr. 01, 2018 | 859 | 1,404 | (231) | (277) | (37) | |
Beginning balance, shares at Mar. 31, 2018 | 1,000 | |||||
Beginning balance at Mar. 31, 2018 | 823 | 1,404 | (283) | (261) | (37) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 331 | |||||
Net loss attributable to noncontrolling interests | 0 | |||||
Ending balance, shares at Dec. 31, 2018 | 1,000 | |||||
Ending balance at Dec. 31, 2018 | 1,080 | 1,404 | 100 | (389) | (35) | |
Beginning balance, shares at Apr. 01, 2018 | 1,000 | |||||
Beginning balance at Apr. 01, 2018 | 859 | 1,404 | (231) | (277) | (37) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 331 | |||||
Currency translation adjustment included in AOCI | (144) | (144) | ||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit, included in AOCI | 5 | 5 | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 29 | 27 | 2 | |||
Ending balance, shares at Dec. 31, 2018 | 1,000 | |||||
Ending balance at Dec. 31, 2018 | $ 1,080 | $ 1,404 | $ 100 | $ (389) | $ (35) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Tax provision on change in fair value of cash flow hedges | $ 2 | $ 9 |
Tax benefit on change in pension and other benefits | $ 12 | $ 3 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 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. Organization and Description of Business Novelis is the leading producer of flat-rolled aluminum products and the world's largest recycler of aluminum. We work alongside our customers to provide innovative solutions to the beverage can, automotive and high-end specialty markets. Operating an integrated network of technologically advanced rolling and recycling facilities across North America, South America, Europe and Asia, Novelis leverages its global manufacturing and recycling footprint to deliver consistent, high-quality products around the world. As of December 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. The March 31, 2018 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our Form 10-K for the year-ended March 31, 2018 filed with the United States Securities and Exchange Commission (SEC) on May 8, 2018 . Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated "Net income attributable to our common shareholder" includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the condensed consolidated financial statements for consolidated entities, compared to a two-line presentation of "Investment in and advances to non-consolidated affiliates" and "Equity in net (income) loss of non-consolidated affiliates." Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with 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 condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Revision of Previously Issued Financial Statements " Net sales " and " Cost of goods sold (exclusive of depreciation and amortization) " for the quarter and year to date periods 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 assessed the materiality of the misstatement and concluded that it was 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 as described above. Reclassification Certain prior period amounts have been adjusted as a result of the adoption of new accounting standards, as discussed in the section below. Recently Adopted Accounting Standards Effective for the second quarter of fiscal 2019, we early adopted Accounting Standards Update (ASU) 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework - Change to the Disclosure Requirements for Fair Value Measurement, which modified the disclosure requirements on fair value measurements in Topic 820 including the consideration of costs and benefits. The amendments relate to changes in disclosures on unrealized gains and losses, the disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty were applied prospectively, where applicable. Due to the immateriality of the electricity swap, which is our only Level 3 derivative contract, the adoption of this standard does not have a material impact on the condensed consolidated financial statements and disclosures. Effective for the first quarter of fiscal 2019, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all the related amendments, which supersedes the standard in former ASC 605, Revenue Recognition . The new standard 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. We adopted Topic 606 using the modified retrospective transition approach. We determined that our existing revenue recognition practices were in compliance with Topic 606. Accordingly, there was no cumulative effect adjustment to the opening balance of retained earnings in the condensed consolidated balance sheet in the first quarter of fiscal 2018, as the adoption did not result in a change to our timing of revenue recognition. See Note 2 — Revenue from Contracts with Customers for additional disclosures related to the adoption of this standard. The adoption of this standard does not have a material impact on the condensed consolidated financial statements and disclosures. Effective for the first quarter of fiscal 2019, we adopted 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) (AOCI) 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 adoption is permitted. Additionally, the ASU requires new disclosures by all companies. Other than those effects related to the Act, the Company releases the income tax effect from AOCI in the period when the underlying transaction impacts earnings. We early adopted this accounting standard in the first quarter of fiscal 2019 and reclassified $16 million into retained earnings of our common shareholder from AOCI. This reclassification consists of deferred taxes originally recorded in AOCI at rates that exceeded the newly enacted U.S. federal corporate tax rate. There was no impact to net income. Effective for the first quarter of fiscal 2019, we adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): 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 standard 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 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 standard 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. We adopted this standard on a retrospective basis and utilized the practical expedient. As a result, we reclassified the net periodic benefit cost, exclusive of service cost, to " Other expenses, net " for the comparative periods. We reclassified, with no impact to net income, net periodic benefit cost totaling $10 million ( $4 million from "Cost of goods sold (exclusive of depreciation and amortization)" and $6 million from "Selling, general and administrative expenses") for the three months ended December 31, 2017 and $33 million ( $16 million from "Cost of goods sold (exclusive of depreciation and amortization") and $17 million from "Selling, general and administrative expenses") for the nine months ended December 31, 2017 into " Other expenses, net ". Effective for the first quarter of fiscal 2019, we adopted ASU 2016-18, Statement of Cash Flows (Topic 230) -Restricted Cash. The new standard requires 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. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the condensed consolidated statement of cash flows. Transfers between restricted cash and cash and cash equivalents will no longer be presented in the operating section of the condensed consolidated statement of cash flows. We adopted this standard on a retrospective basis and disclose the nature of the restrictions for material balances of restricted cash. Amounts included in restricted cash largely represent those required to be set aside for employee benefits. The following table reconciles cash and cash equivalents as reported on the condensed consolidated balance sheet to cash, cash equivalents and restricted cash as reported on the condensed consolidated statement of cash flows (in millions). Prior period amounts have been adjusted to conform to the current period presentation. December 31, 2018 March 31, 2018 Cash and cash equivalents $ 797 $ 920 Restricted cash (included in "Other long-term assets") 12 12 Total cash, cash equivalents, and restricted cash $ 809 $ 932 Effective for the first quarter of fiscal 2019, we adopted ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Asset Transfers of Assets Other than Inventory . The new standard eliminates the exception for all intra-entity sales of assets other than inventory. It requires the tax effect of intra-entity sales of assets other than inventory to be recognized currently which will impact Novelis’ effective tax rate. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. We have adopted this standard on a modified retrospective basis and the cumulative effect of the change on retained earnings is $36 million with a corresponding impact to deferred tax balances. Effective for the first quarter of fiscal 2019, we adopted ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. The new standard 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. We adopted this standard on a retrospective basis and we reclassified the cash received related to beneficial interest in certain factored accounts receivables from operating activities to investing activities. For the nine months ended December 31, 2017 , we reclassified $10 million from accounts receivable within operating activities into the line item "Other" within investing activities on the condensed consolidated statement of cash flows. Recently Issued Accounting Standards In October 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities , to eliminate the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity will consider such indirect interests on a proportionate basis. These changes become effective for Novelis on April 1, 2020 and interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the impact of this standard. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , to permit the use of the OIS based on the SOFR as a U.S. benchmark interest rate for purposes of hedge accounting under Topic 815 as requested by the Federal Reserve Board during deliberations leading to the issuance of ASU 2017-12. The FASB recognized that although the OIS rate based on SOFR is not yet widely recognized and quoted within the U.S. financial market, the attributes of the repo rates underlying the calculation of SOFR are recognized. As we have already adopted ASU 2017-12, these changes become effective for Novelis on April 1, 2019 and interim periods within those fiscal years. Early adoption is permitted in any interim period if an entity already has adopted ASU 2017-12. The Company does not currently have any interest rate derivative instruments, but is currently evaluating the potential future impact of this standard. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other Internal-Use Software (Topic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract, which requires capitalization of implementation costs incurred in a hosting arrangement that is a service contract. This change will better align with requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected. These changes become effective for Novelis on April 1, 2020 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the new standard. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715 to add, remove and clarify requirements related to defined benefit pension and other postretirement plans. The ASU added requirements for new disclosures such as now requiring a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period and also an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the ASU removes some currently required disclosures such as (a) the requirement (for public entities) to disclose the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits and (b) the amounts in accumulated other comprehensive income "OCI" expected to be recognized in net periodic benefit costs over the next fiscal year. These changes become effective for Novelis for fiscal year ended March 31, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this standard. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, 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 standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company is currently evaluating the impact of this standard and does not expect that adoption of this standard will have a material impact on the consolidated financial statements. 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. Novelis has established a cross-functional project team to lead the implementation effort including the implementation of an enterprise-wide lease management system and evaluation of additional changes to our processes and internal controls. In addition, Novelis is evaluating certain practical expedients. These changes become effective for Novelis on April 1, 2019 for the annual reporting period (including interim periods therein). The Company is currently evaluating the impact of the new standard. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company's contracts with customers are comprised of purchase orders along with standard terms and conditions. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer at a point in time. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). The length of payment terms can vary per contract but none extend beyond one year. Revenue is recognized net of any volume rebates or other incentives. We disaggregate revenue from contracts with customers on a geographic basis based on our segment view. This disaggregation also achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. We manage our activities on the basis of geographical regions and are organized under four operating segments: North America, South America, Asia and Europe. See Note 16 — Segment, Major Customer and Major Supplier Information for further information about our segment revenue. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES "Inventories" consist of the following (in millions). December 31, March 31, Finished goods $ 423 $ 416 Work in process 812 730 Raw materials 313 248 Supplies 168 166 Inventories $ 1,716 $ 1,560 |
Consolidation
Consolidation | 9 Months Ended |
Dec. 31, 2018 | |
Consolidation [Abstract] | |
CONSOLIDATION | CONSOLIDATION Variable Interest Entities (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 a thinly capitalized variable interest entity ("VIE") that relies on the regular reimbursement of costs and expenses from its investors, Novelis and Tri-Arrows, to fund its operations. Novelis is considered the primary beneficiary and consolidates Logan since it has the power to direct the production operations and other activities that most significantly impact Logan's economic performance, an obligation to absorb expected losses and the right to receive benefits that could potentially be significant. Other than the contractually required reimbursements, we do not provide other material support to Logan. Logan's creditors do not have recourse to our general credit. There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets (in millions). December 31, March 31, Assets Current assets Cash and cash equivalents $ 1 $ — Accounts receivable 45 39 Inventories 71 67 Prepaid expenses and other current assets 1 1 Total current assets 118 107 Property, plant and equipment, net 19 27 Goodwill 12 12 Deferred income taxes 67 67 Other long-term assets 22 26 Total assets $ 238 $ 239 Liabilities Current liabilities Accounts payable $ 41 $ 43 Accrued expenses and other current liabilities 17 22 Total current liabilities 58 65 Accrued postretirement benefits 245 245 Other long-term liabilities 1 1 Total liabilities $ 304 $ 311 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 9 Months Ended |
Dec. 31, 2018 | |
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 Included in the accompanying condensed consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates, which we classify as related party transactions and balances. We account for these affiliates using the equity method. Alunorf Aluminum Norf GmbH (Alunorf) is a joint venture investment between Novelis Deutschland GmbH, a subsidiary of Novelis, and Hydro Aluminum Deutschland GmbH (Hydro). Each of the parties to the joint venture hold a 50% interest in the equity, profits and losses, shareholder voting, management control and rights to use the production capacity of the facility. Alunorf tolls aluminum and charges the respective partner a fee to cover the associated expenses. UAL Ulsan Aluminum, Ltd. (UAL) is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe Steel Ltd. (Kobe). UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from its investors, Novelis and Kobe. UAL is ultimately controlled by the Board of Directors and neither entity has the ability to take the majority share of production and associated costs over the life of the joint venture, therefore, it is accounted for as an equity method investment and Novelis is not considered the primary beneficiary. UAL currently produces flat rolled aluminum products exclusively for Novelis and Kobe. As of December 31, 2018 , Novelis and Kobe both hold 50% interests in UAL. AluInfra In July 2018, Novelis Switzerland SA (Novelis Switzerland), a subsidiary of Novelis, entered into definitive agreements with Constellium Valais SA (Constellium), an unrelated party, under which Novelis Switzerland and Constellium will jointly own and operate AluInfra Services SA (AluInfra), the joint venture investment. Each of the parties to the joint venture hold a 50% interest in the equity, profits and losses, shareholder voting, management control and rights to use the facility. The following table summarizes the results of operations of our equity method affiliates, and the nature and amounts of significant transactions we have with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Net sales $ 288 $ 308 $ 938 $ 549 Costs, expenses 284 309 926 551 Tax provision (benefit) 2 (1 ) 5 (1 ) Net income (loss) $ 2 $ — $ 7 $ (1 ) Purchases of tolling services from Alunorf (Novelis' share) $ 60 $ 59 $ 189 $ 180 The following table describes the period-end account balances that we had with these non-consolidated affiliates, shown as related party balances in the accompanying condensed consolidated balance sheets (in millions). We had no other material related party balances with these affiliates. December 31, March 31, Accounts receivable-related parties $ 169 $ 242 Other long-term assets-related parties $ — $ 3 Accounts payable-related parties $ 147 $ 205 For the year ended March 31, 2018 and nine months ended December 31, 2018 , we earned less than $1 million of interest income on a loan receivable from Alunorf. We believed collection of the full receivable was probable; thus no allowance for loan loss was recorded as of March 31, 2018 or December 31, 2018 . Transactions with Hindalco We occasionally have related party transactions with our indirect parent company, Hindalco. During the nine months ended December 31, 2018 and 2017 , “Net sales” were less than $1 million , respectively, between Novelis and Hindalco. As of December 31, 2018 and March 31, 2018 , there were less than $1 million in "Accounts receivable, net - related parties", respectively, outstanding related to transactions with Hindalco. During the nine months ended December 31, 2018 and 2017 , Novelis purchased less than $1 million of raw materials from Hindalco. |
Debt
Debt | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in millions). December 31, 2018 March 31, 2018 Interest Rates (A) Principal Unamortized Carrying Value Adjustments (B) Carrying Value Principal Unamortized Carrying Value Adjustments (B) Carrying Value Third party debt: Short-term borrowings 2.22 % $ 153 $ — $ 153 $ 49 $ — $ 49 Novelis Inc. Floating rate Term Loan Facility, due June 2022 4.65 % 1,764 (35 ) 1,729 1,778 (43 ) 1,735 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (19 ) 1,481 1,500 (21 ) 1,479 6.25% Senior Notes, due August 2024 6.25 % 1,150 (14 ) 1,136 1,150 (17 ) 1,133 Novelis Korea Limited Bank loans, due through September 2020 (KRW 15 billion) 2.81 % 14 — 14 95 — 95 Other Capital lease obligations and other debt, due through December 2026 6.20 % 1 — 1 15 — 15 Total debt 4,582 (68 ) 4,514 4,587 (81 ) 4,506 Less: Short-term borrowings (153 ) — (153 ) (49 ) — (49 ) Less: Current portion of long-term debt (32 ) — (32 ) (121 ) — (121 ) Long-term debt, net of current portion $ 4,397 $ (68 ) $ 4,329 $ 4,417 $ (81 ) $ 4,336 _________________________ (A) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of December 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 December 31, 2018 (for our debt denominated in foreign currencies) are as follows (in millions). As of December 31, 2018 Amount Short-term borrowings and current portion of long-term debt due within one year $ 185 2 years 19 3 years 18 4 years 1,710 5 years — Thereafter 2,650 Total $ 4,582 Refer to our Form 10-K for the year-ended March 31, 2018 for details on the issuances and respective covenants of our senior notes and senior secured credit facilities, which includes the Term Loan Facility and ABL Revolver facility. In November 2018 , the Company amended the existing Term Loan Facility to, among other things, allow the incurrence of the financing contemplated to achieve closure of the pending Aleris Corporation (Aleris) acquisition, which is subject to customary closing conditions and approvals. We also secured financing by entering into a commitment letter with certain financial institutions, which was subsequently superseded by the agreements detailed below. In December 2018 , we entered into an amendment (the “Term Loan Increase Joinder Amendment”) to our existing Term Loan Facility, which governs the commitments of certain financial institutions to provide up to $775 million of incremental term loans under our existing term loan credit agreement for purposes of funding a portion of the consideration payable in connection with the proposed Aleris acquisition. The incremental term loans, once borrowed, will be subject to the same voluntary and mandatory prepayment provisions, events of default and affirmative and negative covenants as the existing Term Loan Facility (as amended by the November 2018 amendments), will mature in five years from the borrowing date of the incremental loans), will be subject to 0.25% quarterly amortization payments and will accrue interest at LIBOR (as defined in the Term Loan Facility) plus 1.75% . The incremental term loans will be guaranteed by AV Metals Inc., the Company and certain other subsidiaries (including subsidiaries of Aleris following closing of the proposed acquisition) and secured on a pari passu basis with our existing term loans by security interests in substantially all of the assets of the Company and the guarantors, subject to the existing intercreditor agreement. In December 2018, we entered into a credit agreement (the “Short Term Credit Agreement”), which governs the commitments of certain financial institutions to provide, subject to customary closing conditions (including the concurrent closing of the Aleris acquisition), and the amendment of our ABL Revolver to, among other things, permit the new loans, up to $1.5 billion of short term loans for purposes of funding a portion of the consideration payable in connection with the proposed acquisition of the proposed Aleris acquisition or repaying certain indebtedness of Aleris and its subsidiaries. The short term loans, once borrowed, will be unsecured, will mature in one year from the borrowing date of the loans, will not be subject to any amortization payments and will accrue interest at LIBOR (as defined in the Term Loan Facility) plus 0.95%. The short term loans will be unsecured and guaranteed by the same entities that have provided guarantees under the Term Loan Facility and ABL Revolver. The Short Term Credit Agreement contains voluntary prepayment provisions, affirmative and negative covenants and events of default substantially similar to those under the Term Loan Facility, as amended, other than changes to reflect the unsecured nature of the short term loans. The Company will be required to apply the net cash proceeds we receive from any debt and equity raised on or after the borrowing date to repay the short term loans, subject to certain exceptions. We will be required to apply the net cash proceeds we receive on or after the borrowing date from asset sales required by regulatory approvals related to the proposed acquisition of Aleris to repay the short term loans, the incremental term loans and the existing term loans on a pro rata basis and the net cash proceeds we receive from any other asset sales, casualty losses, or condemnations on or after the borrowing date to repay short term loans, subject to certain exceptions, but only to the extent any funds remain after making any mandatory prepayments owed under the Term Loan Facility, as amended, and the agreement governing our ABL Revolver. Senior Notes As of December 31, 2018 , we were in compliance with the covenants for our Senior Notes. Term Loan Facility As of December 31, 2018 , the Term Loan Facility (excluding the incremental term loans) consisted of a $1.8 billion five -year secured term loan with $18 million due within one year. As of December 31, 2018 , we were in compliance with the covenants for our Term Loan Facility. Short-Term Borrowings As of December 31, 2018 , the facility (ABL Revolver) consisted of a $1 billion asset based loan. As of December 31, 2018 , there were $103 million in borrowings, of which $8 million was utilized for letters of credit. We had $776 million in remaining availability and were in compliance with the covenants for our ABL Revolver. As of December 31, 2018 , our short-term borrowings totaled $153 million consisting of $103 million in ABL borrowings, $49 million in China loans (CNY 334 million ) and $1 million in other short-term borrowings. As of December 31, 2018 , we had availability under our Novelis Korea and Novelis China revolving credit facilities totaling $108 million . Korean Bank Loans The Korean Bank Loans have variable interest rates with base rates tied to Korea's 91-day CD rate plus 1.20% . |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION During the nine months ended December 31, 2018 , we granted 2,263,104 Hindalco phantom restricted stock units (RSUs) and 2,359,601 Hindalco Stock Appreciation Rights (Hindalco SARs). Total compensation expense related to all plans for the respective periods was $14 million and $23 million for the nine months ended December 31, 2018 and 2017 , respectively. As of December 31, 2018 , the outstanding liability related to share-based compensation was $20 million . The cash payments made to settle all SAR liabilities were $4 million and $9 million in the nine months ended December 31, 2018 and 2017 , respectively. Total cash payments made to settle RSUs were $14 million and $8 million in the nine months ended December 31, 2018 and 2017 , respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $4 million , which is expected to be recognized over a weighted average period of 0.8 years . Unrecognized compensation expense related to the RSUs was $7 million , which will be recognized over the remaining weighted average vesting period of 0.9 years . For a further description of authorized long term incentive plans (LTIPs), including Hindalco SARs, RSUs, and Novelis Performance Units, please refer to our Form 10-K for the year ended March 31, 2018. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 9 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended December 31, Three Months Ended December 31, 2018 2017 2018 2017 Service cost $ 10 $ 11 $ 2 $ 1 Interest cost 15 15 2 2 Expected return on assets (17 ) (16 ) — — Amortization — losses, net 8 9 — — Termination benefits / curtailments 2 — — — Net periodic benefit cost (A) $ 18 $ 19 $ 4 $ 3 Pension Benefit Plans Other Benefit Plans Nine Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Service cost $ 30 $ 33 $ 6 $ 5 Interest cost 45 44 6 5 Expected return on assets (49 ) (46 ) — — Amortization — losses, net 24 26 2 1 Termination benefits / curtailments 2 2 — — Net periodic benefit cost (A) $ 52 $ 59 $ 14 $ 11 _________________________ (A) Service cost is included within " Cost of goods sold (exclusive of depreciation and amortization) " and " Selling, general and administrative expenses " and all other cost components are recorded within " Other expenses, net ". The average expected long-term rate of return on plan assets is 5.2% in fiscal 2019 . 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. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Funded pension plans $ 5 $ 8 $ 21 $ 42 Unfunded pension plans 3 3 9 10 Savings and defined contribution pension plans 8 7 24 21 Total contributions $ 16 $ 18 $ 54 $ 73 During the remainder of fiscal 2019 , we expect to contribute an additional $6 million to our funded pension plans, $4 million to our unfunded pension plans and $7 million to our savings and defined contribution pension plans. |
Currency Losses (Gains)
Currency Losses (Gains) | 9 Months Ended |
Dec. 31, 2018 | |
Foreign Currency [Abstract] | |
CURRENCY GAINS | CURRENCY GAINS The following currency (gains) losses are included in “ Other expenses, net ” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Gain on remeasurement of monetary assets and liabilities, net $ (1 ) $ (4 ) $ (7 ) $ (43 ) Loss recognized on balance sheet remeasurement currency exchange contracts, net 1 4 7 43 Currency gains, net $ — $ — $ — $ — The following currency gains (losses) are included in “ Accumulated other comprehensive loss ," net of tax and “Noncontrolling interests” in the accompanying condensed consolidated balance sheets (in millions). Nine Months Ended December 31, 2018 Year Ended March 31, 2018 Cumulative currency translation adjustment — beginning of period $ (65 ) $ (256 ) Effect of changes in exchange rates (144 ) 191 Cumulative currency translation adjustment — end of period $ (209 ) $ (65 ) |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 9 Months Ended |
Dec. 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 December 31, 2018 and March 31, 2018 (in millions). December 31, 2018 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 61 $ — $ — $ — $ 61 Currency exchange contracts 4 1 (16 ) (3 ) (14 ) Energy contracts — — (1 ) (4 ) (5 ) Total derivatives designated as hedging instruments 65 1 (17 ) (7 ) 42 Derivatives not designated as hedging instruments: Metal contracts 92 — (76 ) (1 ) 15 Currency exchange contracts 15 2 (17 ) (1 ) (1 ) Energy contracts 1 — (1 ) (1 ) (1 ) Total derivatives not designated as hedging instruments 108 2 (94 ) (3 ) 13 Total derivative fair value $ 173 $ 3 $ (111 ) $ (10 ) $ 55 March 31, 2018 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent(A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal 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: Metal 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 _________________________ (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. Metal We use derivative instruments to preserve our conversion margins and manage the timing differences associated with metal price lag. We use over-the-counter derivatives indexed to the 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 December 31, 2018 and March 31, 2018 . 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 December 31, 2018 and March 31, 2018 . Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year . In addition to aluminum, in the first quarter of fiscal year 2019, we entered into LME copper forward contracts. As of December 31, 2018 , the fair value of these contracts was a liability of less than $1 million . These contracts are undesignated with an average duration of less than one year . The following table summarizes our metal notional amounts (in kt). December 31, March 31, Hedge type Purchase (sale) Cash flow sales (362 ) (423 ) Not designated (25 ) (74 ) Total, net (387 ) (497 ) 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 $770 million and $499 million in outstanding foreign currency forwards designated as cash flow hedges as of December 31, 2018 and March 31, 2018 , respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We did no t have any outstanding foreign currency forwards designated as net investment hedges as of December 31, 2018 and March 31, 2018 . As of December 31, 2018 and March 31, 2018 , we had outstanding foreign currency exchange contracts with a total notional amount of $771 million and $1,024 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 fourth quarter of fiscal 2019 and offset the remeasurement impact. Energy We own an interest in an electricity swap contract to hedge our exposure to fluctuating electricity prices. As of December 31, 2018 and March 31, 2018 , there was 1 million of notional megawatt hours outstanding, and the fair value of the swap was a liability of $2 million and $7 million , respectively. The electricity swap is designated as a cash flow hedge. We use natural gas forward purchase contracts ("forward contracts") to manage our exposure to fluctuating natural gas prices in North America. We had a notional of 16 million MMBTUs designated as cash flow hedges as of December 31, 2018 , and the fair value was a liability of $3 million . There was a notional of 20 million MMBTU forward contracts designated as cash flow hedges as of March 31, 2018 and the fair value was a liability of $1 million . The average duration of designated contracts is three years. As of December 31, 2018 and March 31, 2018 , we had notionals of less than 1 million MMBTU forward contracts that were not designated as hedges. The fair value for the forward contracts not designated as hedges as of December 31, 2018 was an asset of less than $1 million , and as of March 31, 2018 was 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 contracts to manage our exposure to fluctuating fuel prices in North America, which were not designated as hedges as of December 31, 2018 . As of December 31, 2018 and March 31, 2018 , we had 6 million gallons and 5 million gallons, respectively, of diesel fuel forward purchase contracts outstanding. The fair value as of December 31, 2018 was a liability of $ 2 million , and as of March 31, 2018 was an asset of $2 million . The average duration of undesignated contracts is less than two years in length. Interest Rate As of December 31, 2018 , we had no outstanding interest rate swaps, as all swaps expired concurrent with the maturity of the related loans. As of March 31, 2018 , $28 million ( KRW 30 billion ) of interest rate swaps 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 and excluded portion of designated derivatives recognized in “ Other expenses, net ” (in millions). Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Derivative instruments not designated as hedges Metal contracts $ (1 ) $ 6 $ (7 ) $ 8 Currency exchange contracts 1 (2 ) (8 ) (51 ) Energy contracts (A) (2 ) 3 3 6 Gain (loss) recognized in "Other expenses, net" (2 ) 7 (12 ) (37 ) Derivative instruments designated as hedges Loss recognized in "Other expenses, net" (B) 2 (1 ) 2 (8 ) Total gain (loss) recognized in "Other expenses, net" $ — $ 6 $ (10 ) $ (45 ) Balance sheet remeasurement currency exchange contract losses $ (1 ) $ (4 ) $ (7 ) $ (43 ) Realized gains (losses), net 7 (5 ) 6 (15 ) Unrealized gains (losses) on other derivative instruments, net (6 ) 15 (9 ) 13 Total gain (loss) recognized in "Other expenses, net" $ — $ 6 $ (10 ) $ (45 ) _________________________ (A) Includes amounts related to diesel and natural gas swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts. 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 $72 million of gains from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Amount of Gain (Loss) “Other Expenses, net” (Ineffective and Amount of Gain (Loss) “Other Expenses, net” Three Months Ended December 31, Nine Months Ended December 31, Three Months Ended December 31, Nine Months Ended December 31, Cash flow hedging derivatives 2018 2017 2018 2017 2018 2017 2018 2017 Metal contracts $ 95 $ (66 ) $ 59 $ (89 ) $ — $ — $ — $ (9 ) Currency exchange contracts (3 ) — (38 ) (7 ) 2 — 2 1 Energy contracts 3 (2 ) 4 (4 ) — — — 1 Total cash flow hedging derivatives $ 95 $ (68 ) $ 25 $ (100 ) $ 2 $ — $ 2 $ (7 ) Net investment derivatives Currency exchange contracts — (17 ) — (17 ) — — — — Total $ 95 $ (85 ) $ 25 $ (117 ) $ 2 $ — $ 2 $ (7 ) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended December 31, Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Nine Months Ended December 31, Location of Gain (Loss) Cash flow hedging derivatives 2018 2017 2018 2017 Energy contracts (A) $ (1 ) $ (1 ) $ (2 ) $ (2 ) Cost of goods sold (B) Metal contracts — (36 ) — (79 ) Cost of goods sold (B) Metal contracts 42 — 42 — Net sales Currency exchange contracts (3 ) 4 (10 ) 11 Cost of goods sold (B) Currency exchange contracts — — (1 ) 1 Selling, general and administrative expenses Currency exchange contracts (3 ) 1 (6 ) 3 Net sales Currency exchange contracts — — (1 ) (1 ) Depreciation and amortization Total 35 (32 ) 22 (67 ) Income (loss) before taxes (9 ) 11 (7 ) 23 Income tax (provision) benefit $ 26 $ (21 ) $ 15 $ (44 ) Net gain (loss) _________________________ (A) Includes amounts related to electricity and natural gas swaps. (B) "Cost of goods sold" is exclusive of depreciation and amortization. The following tables summarize the location and amount of gains (losses) that were reclassified from " Accumulated other comprehensive loss " into earnings and the amount excluded from the assessment of effectiveness for the three and nine months ended December 31, 2018 (in millions). Three Months Ended December 31, 2018 Net Sales Cost of Goods Sold Selling, General and Administrative Expenses Depreciation and Amortization Other Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 42 $ — $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (1 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (3 ) $ (3 ) $ — $ — $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 Nine Months Ended December 31, 2018 Net Sales Cost of Goods Sold Selling, General and Administrative Expenses Depreciation and Amortization Other Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 42 $ — $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (2 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (6 ) $ (10 ) $ (1 ) $ (1 ) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the change in the components o f Accumulated other comprehensive loss , net of tax and excluding "Noncontrolling interests", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Total Balance as of September 30, 2018 $ (183 ) $ (12 ) $ (221 ) $ (416 ) Other comprehensive (loss) income before reclassifications (26 ) 71 2 47 Amounts reclassified from AOCI, net — (26 ) 6 (20 ) Net current-period other comprehensive (loss) income (26 ) 45 8 27 Balance as of December 31, 2018 $ (209 ) $ 33 $ (213 ) $ (389 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of September 30, 2017 $ (165 ) $ (44 ) $ (241 ) $ (450 ) Other comprehensive income (loss) before reclassifications 58 (46 ) (10 ) 2 Amounts reclassified from AOCI, net — 20 13 33 Net current-period other comprehensive income (loss) 58 (26 ) 3 35 Balance as of December 31, 2017 $ (107 ) $ (70 ) $ (238 ) $ (415 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2018 $ (65 ) $ 31 $ (227 ) $ (261 ) Amounts reclassified from AOCI, net - due to adoption of accounting standard updates — (3 ) (13 ) (16 ) Balance as of April 1, 2018 (65 ) 28 (240 ) (277 ) Other comprehensive (loss) income before reclassifications (144 ) 20 7 (117 ) Amounts reclassified from AOCI, net — (15 ) 20 5 Net current-period other comprehensive (loss) income (144 ) 5 27 (112 ) Balance as of December 31, 2018 $ (209 ) $ 33 $ (213 ) $ (389 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2017 $ (256 ) $ (46 ) $ (243 ) $ (545 ) Other comprehensive income (loss) before reclassifications 149 (67 ) (14 ) 68 Amounts reclassified from AOCI, net — 43 19 62 Net current-period other comprehensive income (loss) 149 (24 ) 5 130 Balance as of December 31, 2017 $ (107 ) $ (70 ) $ (238 ) $ (415 ) _________________________ (A) For additional information on our cash flow hedges, see Note 10 — Financial Instruments and Commodity Contracts . (B) For additional information on our postretirement benefit plans, see Note 8 — Postretirement Benefit Plans . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our condensed consolidated balance sheets at fair value. We also disclose the fair value of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions we used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, foreign exchange, natural gas and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum and copper forward contracts, natural gas and diesel fuel forward contracts. We classify derivative contracts that are valued based on models with significant unobservable market inputs as Level 3 of the valuation hierarchy. Our electricity swap, which is our only Level 3 derivative contract, represents an agreement to buy electricity at a fixed price at our Oswego, New York facility. Forward prices are not observable for this market, so we must make certain assumptions based on available information we believe to be relevant to market participants. We use observable forward prices for a geographically nearby market and adjust for 1) historical spreads between the cash prices of the two markets, and 2) historical spreads between retail and wholesale prices. For the electricity swap, the average forward price at December 31, 2018 , estimated using the method described above, was $44 per megawatt hour, which represented a $3 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $44 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 December 31, 2018 and March 31, 2018 , we did not have any Level 1 derivative contracts. No amounts were transferred between levels in the fair value hierarchy. All of the Company's derivative instruments are carried at fair value in the statements of financial position prior to considering master netting agreements. The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as of December 31, 2018 and March 31, 2018 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. December 31, 2018 March 31, 2018 Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 153 $ (77 ) $ 139 $ (65 ) Currency exchange contracts 22 (37 ) 20 (40 ) Energy contracts 1 (5 ) 2 (2 ) Total level 2 instruments $ 176 $ (119 ) $ 161 $ (107 ) Level 3 instruments: Energy contracts — (2 ) — (7 ) Total level 3 instruments — (2 ) — (7 ) Total gross $ 176 $ (121 ) $ 161 $ (114 ) Netting adjustment (A) $ (60 ) $ 60 $ (57 ) $ 57 Total net $ 116 $ (61 ) $ 104 $ (57 ) _________________________ (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. We recognized unrealized gains of $1 million for the nine months ended December 31, 2018 related to Level 3 financial instruments that were still held as of December 31, 2018 . These unrealized gains were included in “ Other expenses, 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, 2018 $ (7 ) Unrealized/realized gain included in earnings (B) 4 Unrealized gain included in AOCI (C) 4 Settlements (B) (3 ) Balance as of December 31, 2018 $ (2 ) _________________________ (A) Represents net derivative liabilities. (B) Included in “ Other expenses, net .” (C) Included in "Net change in fair value of effective portion of cash flow hedges." 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. December 31, 2018 March 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ — $ — $ 3 $ 3 Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,361 $ 4,224 $ 4,457 $ 4,569 |
Other Expense (Income), Net
Other Expense (Income), Net | 9 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER EXPENSES, NET “ Other expenses, net ” is comprised of the following (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Unrealized losses (gains) on change in fair value of derivative instruments, net (A) $ 6 $ (15 ) $ 9 $ (13 ) Realized (gains) losses on change in fair value of derivative instruments, net (A) (7 ) 5 (6 ) 15 Loss on sale of assets, net 2 2 4 4 Loss on Brazilian tax litigation, net — — 1 2 Interest income (3 ) (2 ) (8 ) (6 ) Non-operating net periodic benefit cost (B) 8 10 24 33 Other, net 4 4 9 5 Other expenses, net $ 10 $ 4 $ 33 $ 40 _________________________ (A) See Note 10 — Financial Instruments and Commodity Contracts for further details. (B) Represents net periodic benefit cost, exclusive of service cost for the Company's pension and other post-retirement plans. For further details, refer to Note 1 — Business and Summary of Significant Accounting Policies . |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES A reconciliation of the Canadian statutory tax rate to our effective tax rate was as follows (in millions, except percentages). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Pre-tax income before equity in net loss of non-consolidated affiliates and noncontrolling interests $ 113 $ 125 $ 483 $ 692 Canadian statutory tax rate 25 % 25 % 25 % 25 % Provision at the Canadian statutory rate $ 28 $ 31 $ 121 $ 173 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 1 2 11 8 Exchange remeasurement of deferred income taxes 2 (3 ) (9 ) (3 ) Change in valuation allowances 7 7 19 10 Tax credits (6 ) (8 ) (12 ) (14 ) Income items not subject to tax (6 ) (4 ) (6 ) (4 ) Legislative changes including enacted tax rates — (18 ) — (18 ) Tax rate differences on foreign earnings 9 9 21 22 Income tax settlements (5 ) — (4 ) — State expense, net 2 1 7 3 Uncertain tax positions — 2 3 5 Non-deductible expenses and other - net 5 1 3 (3 ) Income tax provision $ 37 $ 20 $ 154 $ 179 Effective tax rate 33 % 16 % 32 % 26 % Our effective tax rate differs from the Canadian statutory rate due primarily to the following factors: (1) pre-tax foreign currency gains or losses with no tax effect and the tax effect of U.S. dollar denominated currency gains or losses with no pre-tax effect, which are shown above as exchange translation items; (2) the remeasurement of deferred income taxes due to foreign currency changes, which is shown above as exchange remeasurement of deferred income taxes; (3) changes in valuation allowances; (4) differences between Canadian and foreign statutory tax rates applied to earnings in foreign jurisdictions and foreign withholding tax expense shown above as tax rate differences on foreign earnings. As of December 31, 2018 , we had a net deferred tax liability of $99 million . This amount included gross deferred tax assets of approximately $1.1 billion and a valuation allowance of $745 million . It is reasonably possible that our estimates of future taxable income may change within the next twelve months resulting in a change to the valuation allowance in one or more jurisdictions. 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, 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. Simultaneous with the Act, the SEC Staff released Accounting Bulletin No. 118 ("SAB 118"), which allows the use of provisional amounts (reasonable estimates) if the analysis of the impacts of the Act have not been completed when financial statements are issued. During the third quarter of fiscal year 2019, we finalized the computations of the income tax effects of the Act. As such, in accordance with SAB 118, our accounting for the effects of the Act is complete. We did not significantly adjust provisional amounts recorded in the prior fiscal year and the SAB 118 measurement period subsequently ended on December 22, 2018. Although we no longer consider these amounts to be provisional, the determination of the Act’s income tax effects may change following future legislation or further interpretation of the Act based on the publication of recently proposed U.S. Treasury regulations and guidance from the Internal Revenue Service and state tax authorities. Tax authorities continue to examine certain of our tax filings for fiscal years 2005 through 2018 . As a result of audit settlements, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations, our reserves for unrecognized tax benefits, as well as reserves for interest and penalties, may decrease in the next twelve months by an amount up to approximately $1 million . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 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. 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 $75 million . This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified, including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. Environmental Matters We have established liabilities based on our estimates for currently anticipated costs associated with environmental matters. We estimate that the costs related to our environmental liabilities as of December 31, 2018 and March 31, 2018 were approximately $11 million and $14 million , respectively. Of the total $11 million , $8 million was associated with restructuring actions and the remaining $3 million is associated with undiscounted environmental clean-up costs. The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities", respectively, in our accompanying condensed consolidated balance sheets. Brazilian Tax Litigation Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. The short-term and long-term settlement liabilities are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities," respectively, in our accompanying condensed consolidated balance sheets. Total settlement liabilities were $45 million and $58 million for the periods ended December 31, 2018 and March 31, 2018 , respectively. In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. Total liabilities for other disputes and claims were $23 million and $29 million for the periods ended December 31, 2018 and March 31, 2018 , respectively. The related liabilities are included in "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. Additionally, we have included in the range of reasonably possible losses disclosed above, any unresolved tax disputes or other contingencies for which a loss is reasonably possible and estimable. For additional information, please refer to our Form 10-K for the year ended March 31, 2018 . |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | SEGMENT, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia and South America. All of our segments manufacture aluminum sheet and light gauge products. The following is a description of our operating segments: North America. Headquartered in Atlanta, Georgia, this segment operates eight plants, including two fully dedicated recycling facilities and one facility with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including three facilities with recycling operations, in three countries. South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operations, and operates two plants, including a facility with recycling operations, in Brazil. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies shown in our Form 10-K for the year ended March 31, 2018 . 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; (p) metal price lag; and (q) business acquisition and other integration costs. 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 partner, 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 4 — Consolidation for further information about this affiliate. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis. Selected Segment Financial Information December 31, 2018 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 493 $ 317 $ — $ — $ 810 Total assets $ 2,774 $ 3,008 $ 1,768 $ 1,860 $ 195 $ 9,605 March 31, 2018 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 522 $ 327 $ — $ — $ 849 Total assets $ 2,569 $ 3,163 $ 1,796 $ 1,781 $ 206 $ 9,515 Selected Operating Results Three Months Ended December 31, 2018 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 1,116 $ 745 $ 532 $ 547 $ 69 $ 3,009 Net sales-intersegment — 41 17 7 (65 ) — Net sales $ 1,116 $ 786 $ 549 $ 554 $ 4 $ 3,009 Depreciation and amortization $ 38 $ 30 $ 14 $ 16 $ (10 ) $ 88 Income tax provision $ 10 $ (4 ) $ 5 $ 18 $ 8 $ 37 Capital expenditures $ 39 $ 20 $ 24 $ 17 $ (4 ) $ 96 Selected Operating Results Three Months Ended December 31, 2017 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 985 $ 820 $ 533 $ 542 $ 53 $ 2,933 Net sales-intersegment 1 17 14 25 (57 ) — Net sales $ 986 $ 837 $ 547 $ 567 $ (4 ) $ 2,933 Depreciation and amortization $ 37 $ 29 $ 18 $ 16 $ (14 ) $ 86 Income tax provision $ (11 ) $ (6 ) $ 9 $ 18 $ 10 $ 20 Capital expenditures $ 19 $ 19 $ 7 $ 10 $ (1 ) $ 54 Selected Operating Results Nine Months Ended December 31, 2018 North Europe Asia South Eliminations and Other Total Net sales-third party $ 3,448 $ 2,430 $ 1,591 $ 1,577 $ 196 $ 9,242 Net sales-intersegment 1 87 33 23 (144 ) — Net sales $ 3,449 $ 2,517 $ 1,624 $ 1,600 $ 52 $ 9,242 Depreciation and amortization $ 112 $ 86 $ 47 $ 49 $ (34 ) $ 260 Income tax provision $ 42 $ 4 $ 17 $ 75 $ 16 $ 154 Capital expenditures $ 89 $ 50 $ 35 $ 38 $ (2 ) $ 210 Selected Operating Results Nine Months Ended December 31, 2017 North Europe Asia South Eliminations and Other Total Net sales-third party $ 2,878 $ 2,480 $ 1,533 $ 1,348 $ 157 $ 8,396 Net sales-intersegment 17 39 32 62 (150 ) — Net sales $ 2,895 $ 2,519 $ 1,565 $ 1,410 $ 7 $ 8,396 Depreciation and amortization $ 112 $ 83 $ 47 $ 48 $ (23 ) $ 267 Income tax provision $ 10 $ 5 $ 98 $ 54 $ 12 $ 179 Capital expenditures $ 52 $ 40 $ 19 $ 22 $ 3 $ 136 The table below reconciles “ Net income attributable to our common shareholder ” to Segment income from reportable segments for the three and nine months ended December 31, 2018 and 2017 (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Net income attributable to our common shareholder $ 78 $ 121 $ 331 $ 529 Noncontrolling interests — (16 ) — (16 ) Income tax provision 37 20 154 179 Depreciation and amortization 88 86 260 267 Interest expense and amortization of debt issuance costs 67 64 201 192 Adjustment to reconcile proportional consolidation 14 17 45 33 Unrealized losses (gains) on change in fair value of derivative instruments, net 6 (15 ) 9 (13 ) Realized losses (gains) on derivative instruments not included in segment income — 1 (1 ) — Restructuring and impairment, net 1 25 2 33 Loss on sale of fixed assets 2 2 4 4 Gain on sale of a business (A) — — — (318 ) Metal price lag expense (income) 13 (1 ) (21 ) 5 Business acquisition and other integration costs (B) 14 — 24 — Other, net 2 1 3 1 Total of reportable segments $ 322 $ 305 $ 1,011 $ 896 _________________________ (A) In September 2017, Novelis Korea, Ltd, a subsidiary of Novelis, sold a portion of its shares in Ulsan Aluminum, Ltd., which resulted in a gain. (B) Effective in the second quarter of fiscal 2019, management removed the impact of business acquisition and other integration costs from Segment income in order to enhance the visibility of the underlying operating performance of the Company. The impact of "Business acquisition and other integration costs", which are primarily legal and professional fees incurred in the periods presented above associated with our pending acquisition of Aleris, is now reported as a separate line item in this reconciliation and on our condensed consolidated statement of operations. This change in presentation does not impact our condensed consolidated financial statements. “ Adjustment to reconcile proportional consolidation ” relates to depreciation, amortization and income taxes of our equity method investments. Income taxes related to our equity method investments are reflected in the carrying value of the investment and not in our consolidated “Income tax provision.” “ Realized losses (gains) on derivative instruments not included in segment income ” represents realized gains (losses) on foreign currency derivatives related to capital expenditures. " Other, net " is related primarily to losses on certain indirect tax expenses in Brazil and interest income. The table below displays income from reportable segments for the three and nine months ended December 31, 2018 and 2017 , respectively (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 North America $ 125 $ 111 $ 395 $ 351 Europe 48 50 170 158 Asia 49 43 151 124 South America 100 107 295 269 Eliminations and other — (6 ) — (6 ) Total of reportable segments $ 322 $ 305 $ 1,011 $ 896 Information about Product Sales, Major Customers and Primary Supplier Product Sales The following table displays our Net sales by value stream (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Can $ 1,636 $ 1,565 $ 4,976 $ 4,386 Automotive 715 703 2,212 2,004 Specialty (and other) 658 665 2,054 2,006 Net sales $ 3,009 $ 2,933 $ 9,242 $ 8,396 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 "Net sales". Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Ball 22 % 21 % 22 % 21 % Ford 11 % 10 % 10 % 10 % Primary Supplier Rio Tinto (RT) is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from RT as a percentage of our total combined metal purchases. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Purchases from RT as a percentage of total combined metal purchases 10 % 9 % 10 % 10 % |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Novelis is the leading producer of flat-rolled aluminum products and the world's largest recycler of aluminum. We work alongside our customers to provide innovative solutions to the beverage can, automotive and high-end specialty markets. Operating an integrated network of technologically advanced rolling and recycling facilities across North America, South America, Europe and Asia, Novelis leverages its global manufacturing and recycling footprint to deliver consistent, high-quality products around the world. As of December 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. The March 31, 2018 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our Form 10-K for the year-ended March 31, 2018 filed with the United States Securities and Exchange Commission (SEC) on May 8, 2018 . Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. |
Consolidation Policy | Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated "Net income attributable to our common shareholder" includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the condensed consolidated financial statements for consolidated entities, compared to a two-line presentation of "Investment in and advances to non-consolidated affiliates" and "Equity in net (income) loss of non-consolidated affiliates." |
Use of Estimates and Assumptions | Use of Estimates and Assumptions |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective for the second quarter of fiscal 2019, we early adopted Accounting Standards Update (ASU) 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework - Change to the Disclosure Requirements for Fair Value Measurement, which modified the disclosure requirements on fair value measurements in Topic 820 including the consideration of costs and benefits. The amendments relate to changes in disclosures on unrealized gains and losses, the disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty were applied prospectively, where applicable. Due to the immateriality of the electricity swap, which is our only Level 3 derivative contract, the adoption of this standard does not have a material impact on the condensed consolidated financial statements and disclosures. Effective for the first quarter of fiscal 2019, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all the related amendments, which supersedes the standard in former ASC 605, Revenue Recognition . The new standard 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. We adopted Topic 606 using the modified retrospective transition approach. We determined that our existing revenue recognition practices were in compliance with Topic 606. Accordingly, there was no cumulative effect adjustment to the opening balance of retained earnings in the condensed consolidated balance sheet in the first quarter of fiscal 2018, as the adoption did not result in a change to our timing of revenue recognition. See Note 2 — Revenue from Contracts with Customers for additional disclosures related to the adoption of this standard. The adoption of this standard does not have a material impact on the condensed consolidated financial statements and disclosures. Effective for the first quarter of fiscal 2019, we adopted 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) (AOCI) 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 adoption is permitted. Additionally, the ASU requires new disclosures by all companies. Other than those effects related to the Act, the Company releases the income tax effect from AOCI in the period when the underlying transaction impacts earnings. We early adopted this accounting standard in the first quarter of fiscal 2019 and reclassified $16 million into retained earnings of our common shareholder from AOCI. This reclassification consists of deferred taxes originally recorded in AOCI at rates that exceeded the newly enacted U.S. federal corporate tax rate. There was no impact to net income. Effective for the first quarter of fiscal 2019, we adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): 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 standard 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 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 standard 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. We adopted this standard on a retrospective basis and utilized the practical expedient. As a result, we reclassified the net periodic benefit cost, exclusive of service cost, to " Other expenses, net " for the comparative periods. We reclassified, with no impact to net income, net periodic benefit cost totaling $10 million ( $4 million from "Cost of goods sold (exclusive of depreciation and amortization)" and $6 million from "Selling, general and administrative expenses") for the three months ended December 31, 2017 and $33 million ( $16 million from "Cost of goods sold (exclusive of depreciation and amortization") and $17 million from "Selling, general and administrative expenses") for the nine months ended December 31, 2017 into " Other expenses, net ". Effective for the first quarter of fiscal 2019, we adopted ASU 2016-18, Statement of Cash Flows (Topic 230) -Restricted Cash. The new standard requires 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. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the condensed consolidated statement of cash flows. Transfers between restricted cash and cash and cash equivalents will no longer be presented in the operating section of the condensed consolidated statement of cash flows. We adopted this standard on a retrospective basis and disclose the nature of the restrictions for material balances of restricted cash. Amounts included in restricted cash largely represent those required to be set aside for employee benefits. The following table reconciles cash and cash equivalents as reported on the condensed consolidated balance sheet to cash, cash equivalents and restricted cash as reported on the condensed consolidated statement of cash flows (in millions). Prior period amounts have been adjusted to conform to the current period presentation. December 31, 2018 March 31, 2018 Cash and cash equivalents $ 797 $ 920 Restricted cash (included in "Other long-term assets") 12 12 Total cash, cash equivalents, and restricted cash $ 809 $ 932 Effective for the first quarter of fiscal 2019, we adopted ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Asset Transfers of Assets Other than Inventory . The new standard eliminates the exception for all intra-entity sales of assets other than inventory. It requires the tax effect of intra-entity sales of assets other than inventory to be recognized currently which will impact Novelis’ effective tax rate. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. We have adopted this standard on a modified retrospective basis and the cumulative effect of the change on retained earnings is $36 million with a corresponding impact to deferred tax balances. Effective for the first quarter of fiscal 2019, we adopted ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. The new standard 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. We adopted this standard on a retrospective basis and we reclassified the cash received related to beneficial interest in certain factored accounts receivables from operating activities to investing activities. For the nine months ended December 31, 2017 , we reclassified $10 million from accounts receivable within operating activities into the line item "Other" within investing activities on the condensed consolidated statement of cash flows. Recently Issued Accounting Standards In October 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities , to eliminate the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity will consider such indirect interests on a proportionate basis. These changes become effective for Novelis on April 1, 2020 and interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the impact of this standard. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , to permit the use of the OIS based on the SOFR as a U.S. benchmark interest rate for purposes of hedge accounting under Topic 815 as requested by the Federal Reserve Board during deliberations leading to the issuance of ASU 2017-12. The FASB recognized that although the OIS rate based on SOFR is not yet widely recognized and quoted within the U.S. financial market, the attributes of the repo rates underlying the calculation of SOFR are recognized. As we have already adopted ASU 2017-12, these changes become effective for Novelis on April 1, 2019 and interim periods within those fiscal years. Early adoption is permitted in any interim period if an entity already has adopted ASU 2017-12. The Company does not currently have any interest rate derivative instruments, but is currently evaluating the potential future impact of this standard. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other Internal-Use Software (Topic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract, which requires capitalization of implementation costs incurred in a hosting arrangement that is a service contract. This change will better align with requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected. These changes become effective for Novelis on April 1, 2020 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the new standard. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715 to add, remove and clarify requirements related to defined benefit pension and other postretirement plans. The ASU added requirements for new disclosures such as now requiring a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period and also an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the ASU removes some currently required disclosures such as (a) the requirement (for public entities) to disclose the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits and (b) the amounts in accumulated other comprehensive income "OCI" expected to be recognized in net periodic benefit costs over the next fiscal year. These changes become effective for Novelis for fiscal year ended March 31, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this standard. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, 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 standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company is currently evaluating the impact of this standard and does not expect that adoption of this standard will have a material impact on the consolidated financial statements. 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. Novelis has established a cross-functional project team to lead the implementation effort including the implementation of an enterprise-wide lease management system and evaluation of additional changes to our processes and internal controls. In addition, Novelis is evaluating certain practical expedients. These changes become effective for Novelis on April 1, 2019 for the annual reporting period (including interim periods therein). The Company is currently evaluating the impact of the new standard. |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company's contracts with customers are comprised of purchase orders along with standard terms and conditions. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer at a point in time. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). The length of payment terms can vary per contract but none extend beyond one year. Revenue is recognized net of any volume rebates or other incentives. We disaggregate revenue from contracts with customers on a geographic basis based on our segment view. This disaggregation also achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. We manage our activities on the basis of geographical regions and are organized under four operating segments: North America, South America, Asia and Europe. See Note 16 — Segment, Major Customer and Major Supplier Information for further information about our segment revenue. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table reconciles cash and cash equivalents as reported on the condensed consolidated balance sheet to cash, cash equivalents and restricted cash as reported on the condensed consolidated statement of cash flows (in millions). Prior period amounts have been adjusted to conform to the current period presentation. December 31, 2018 March 31, 2018 Cash and cash equivalents $ 797 $ 920 Restricted cash (included in "Other long-term assets") 12 12 Total cash, cash equivalents, and restricted cash $ 809 $ 932 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | "Inventories" consist of the following (in millions). December 31, March 31, Finished goods $ 423 $ 416 Work in process 812 730 Raw materials 313 248 Supplies 168 166 Inventories $ 1,716 $ 1,560 |
Consolidation (Tables)
Consolidation (Tables) | 9 Months Ended |
Dec. 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 condensed consolidated balance sheets (in millions). December 31, March 31, Assets Current assets Cash and cash equivalents $ 1 $ — Accounts receivable 45 39 Inventories 71 67 Prepaid expenses and other current assets 1 1 Total current assets 118 107 Property, plant and equipment, net 19 27 Goodwill 12 12 Deferred income taxes 67 67 Other long-term assets 22 26 Total assets $ 238 $ 239 Liabilities Current liabilities Accounts payable $ 41 $ 43 Accrued expenses and other current liabilities 17 22 Total current liabilities 58 65 Accrued postretirement benefits 245 245 Other long-term liabilities 1 1 Total liabilities $ 304 $ 311 |
Investment In and Advances to_2
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliates, and the nature and amounts of significant transactions we have with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Net sales $ 288 $ 308 $ 938 $ 549 Costs, expenses 284 309 926 551 Tax provision (benefit) 2 (1 ) 5 (1 ) Net income (loss) $ 2 $ — $ 7 $ (1 ) Purchases of tolling services from Alunorf (Novelis' share) $ 60 $ 59 $ 189 $ 180 |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table describes the period-end account balances that we had with these non-consolidated affiliates, shown as related party balances in the accompanying condensed consolidated balance sheets (in millions). We had no other material related party balances with these affiliates. December 31, March 31, Accounts receivable-related parties $ 169 $ 242 Other long-term assets-related parties $ — $ 3 Accounts payable-related parties $ 147 $ 205 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consisted of the following (in millions). December 31, 2018 March 31, 2018 Interest Rates (A) Principal Unamortized Carrying Value Adjustments (B) Carrying Value Principal Unamortized Carrying Value Adjustments (B) Carrying Value Third party debt: Short-term borrowings 2.22 % $ 153 $ — $ 153 $ 49 $ — $ 49 Novelis Inc. Floating rate Term Loan Facility, due June 2022 4.65 % 1,764 (35 ) 1,729 1,778 (43 ) 1,735 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (19 ) 1,481 1,500 (21 ) 1,479 6.25% Senior Notes, due August 2024 6.25 % 1,150 (14 ) 1,136 1,150 (17 ) 1,133 Novelis Korea Limited Bank loans, due through September 2020 (KRW 15 billion) 2.81 % 14 — 14 95 — 95 Other Capital lease obligations and other debt, due through December 2026 6.20 % 1 — 1 15 — 15 Total debt 4,582 (68 ) 4,514 4,587 (81 ) 4,506 Less: Short-term borrowings (153 ) — (153 ) (49 ) — (49 ) Less: Current portion of long-term debt (32 ) — (32 ) (121 ) — (121 ) Long-term debt, net of current portion $ 4,397 $ (68 ) $ 4,329 $ 4,417 $ (81 ) $ 4,336 _________________________ (A) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of December 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 December 31, 2018 (for our debt denominated in foreign currencies) are as follows (in millions). As of December 31, 2018 Amount Short-term borrowings and current portion of long-term debt due within one year $ 185 2 years 19 3 years 18 4 years 1,710 5 years — Thereafter 2,650 Total $ 4,582 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended December 31, Three Months Ended December 31, 2018 2017 2018 2017 Service cost $ 10 $ 11 $ 2 $ 1 Interest cost 15 15 2 2 Expected return on assets (17 ) (16 ) — — Amortization — losses, net 8 9 — — Termination benefits / curtailments 2 — — — Net periodic benefit cost (A) $ 18 $ 19 $ 4 $ 3 Pension Benefit Plans Other Benefit Plans Nine Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Service cost $ 30 $ 33 $ 6 $ 5 Interest cost 45 44 6 5 Expected return on assets (49 ) (46 ) — — Amortization — losses, net 24 26 2 1 Termination benefits / curtailments 2 2 — — Net periodic benefit cost (A) $ 52 $ 59 $ 14 $ 11 _________________________ (A) Service cost is included within " Cost of goods sold (exclusive of depreciation and amortization) " and " Selling, general and administrative expenses " and all other cost components are recorded within " Other expenses, net ". |
Contributions to employee benefit plans | We contributed the following amounts (in millions) to all plans. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Funded pension plans $ 5 $ 8 $ 21 $ 42 Unfunded pension plans 3 3 9 10 Savings and defined contribution pension plans 8 7 24 21 Total contributions $ 16 $ 18 $ 54 $ 73 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in Other (income) expense, net | The following currency (gains) losses are included in “ Other expenses, net ” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Gain on remeasurement of monetary assets and liabilities, net $ (1 ) $ (4 ) $ (7 ) $ (43 ) Loss recognized on balance sheet remeasurement currency exchange contracts, net 1 4 7 43 Currency gains, net $ — $ — $ — $ — |
Currency losses included in AOCI, net of tax and noncontrolling interests | The following currency gains (losses) are included in “ Accumulated other comprehensive loss ," net of tax and “Noncontrolling interests” in the accompanying condensed consolidated balance sheets (in millions). Nine Months Ended December 31, 2018 Year Ended March 31, 2018 Cumulative currency translation adjustment — beginning of period $ (65 ) $ (256 ) Effect of changes in exchange rates (144 ) 191 Cumulative currency translation adjustment — end of period $ (209 ) $ (65 ) |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 9 Months Ended |
Dec. 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 December 31, 2018 and March 31, 2018 (in millions). December 31, 2018 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 61 $ — $ — $ — $ 61 Currency exchange contracts 4 1 (16 ) (3 ) (14 ) Energy contracts — — (1 ) (4 ) (5 ) Total derivatives designated as hedging instruments 65 1 (17 ) (7 ) 42 Derivatives not designated as hedging instruments: Metal contracts 92 — (76 ) (1 ) 15 Currency exchange contracts 15 2 (17 ) (1 ) (1 ) Energy contracts 1 — (1 ) (1 ) (1 ) Total derivatives not designated as hedging instruments 108 2 (94 ) (3 ) 13 Total derivative fair value $ 173 $ 3 $ (111 ) $ (10 ) $ 55 March 31, 2018 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent(A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal 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: Metal 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 _________________________ (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. |
Derivative instruments, gain (loss) recognition | The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the ineffectiveness and excluded portion of designated derivatives recognized in “ Other expenses, net ” (in millions). Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Derivative instruments not designated as hedges Metal contracts $ (1 ) $ 6 $ (7 ) $ 8 Currency exchange contracts 1 (2 ) (8 ) (51 ) Energy contracts (A) (2 ) 3 3 6 Gain (loss) recognized in "Other expenses, net" (2 ) 7 (12 ) (37 ) Derivative instruments designated as hedges Loss recognized in "Other expenses, net" (B) 2 (1 ) 2 (8 ) Total gain (loss) recognized in "Other expenses, net" $ — $ 6 $ (10 ) $ (45 ) Balance sheet remeasurement currency exchange contract losses $ (1 ) $ (4 ) $ (7 ) $ (43 ) Realized gains (losses), net 7 (5 ) 6 (15 ) Unrealized gains (losses) on other derivative instruments, net (6 ) 15 (9 ) 13 Total gain (loss) recognized in "Other expenses, net" $ — $ 6 $ (10 ) $ (45 ) _________________________ (A) Includes amounts related to diesel and natural gas swaps not designated as hedges. (B) Amount includes: forward market premium/discount excluded from hedging relationship and ineffectiveness on designated aluminum and foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts. |
Summary of notional amount | The following table summarizes our metal notional amounts (in kt). December 31, March 31, Hedge type Purchase (sale) Cash flow sales (362 ) (423 ) Not designated (25 ) (74 ) Total, net (387 ) (497 ) |
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 $72 million of gains from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Amount of Gain (Loss) “Other Expenses, net” (Ineffective and Amount of Gain (Loss) “Other Expenses, net” Three Months Ended December 31, Nine Months Ended December 31, Three Months Ended December 31, Nine Months Ended December 31, Cash flow hedging derivatives 2018 2017 2018 2017 2018 2017 2018 2017 Metal contracts $ 95 $ (66 ) $ 59 $ (89 ) $ — $ — $ — $ (9 ) Currency exchange contracts (3 ) — (38 ) (7 ) 2 — 2 1 Energy contracts 3 (2 ) 4 (4 ) — — — 1 Total cash flow hedging derivatives $ 95 $ (68 ) $ 25 $ (100 ) $ 2 $ — $ 2 $ (7 ) Net investment derivatives Currency exchange contracts — (17 ) — (17 ) — — — — Total $ 95 $ (85 ) $ 25 $ (117 ) $ 2 $ — $ 2 $ (7 ) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended December 31, Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Nine Months Ended December 31, Location of Gain (Loss) Cash flow hedging derivatives 2018 2017 2018 2017 Energy contracts (A) $ (1 ) $ (1 ) $ (2 ) $ (2 ) Cost of goods sold (B) Metal contracts — (36 ) — (79 ) Cost of goods sold (B) Metal contracts 42 — 42 — Net sales Currency exchange contracts (3 ) 4 (10 ) 11 Cost of goods sold (B) Currency exchange contracts — — (1 ) 1 Selling, general and administrative expenses Currency exchange contracts (3 ) 1 (6 ) 3 Net sales Currency exchange contracts — — (1 ) (1 ) Depreciation and amortization Total 35 (32 ) 22 (67 ) Income (loss) before taxes (9 ) 11 (7 ) 23 Income tax (provision) benefit $ 26 $ (21 ) $ 15 $ (44 ) Net gain (loss) _________________________ (A) Includes amounts related to electricity and natural gas swaps. (B) "Cost of goods sold" is exclusive of depreciation and amortization. The following tables summarize the location and amount of gains (losses) that were reclassified from " Accumulated other comprehensive loss " into earnings and the amount excluded from the assessment of effectiveness for the three and nine months ended December 31, 2018 (in millions). Three Months Ended December 31, 2018 Net Sales Cost of Goods Sold Selling, General and Administrative Expenses Depreciation and Amortization Other Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 42 $ — $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (1 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (3 ) $ (3 ) $ — $ — $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 Nine Months Ended December 31, 2018 Net Sales Cost of Goods Sold Selling, General and Administrative Expenses Depreciation and Amortization Other Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 42 $ — $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (2 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (6 ) $ (10 ) $ (1 ) $ (1 ) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated other comprehensive income, net of tax | The following tables summarize the change in the components o f Accumulated other comprehensive loss , net of tax and excluding "Noncontrolling interests", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Total Balance as of September 30, 2018 $ (183 ) $ (12 ) $ (221 ) $ (416 ) Other comprehensive (loss) income before reclassifications (26 ) 71 2 47 Amounts reclassified from AOCI, net — (26 ) 6 (20 ) Net current-period other comprehensive (loss) income (26 ) 45 8 27 Balance as of December 31, 2018 $ (209 ) $ 33 $ (213 ) $ (389 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of September 30, 2017 $ (165 ) $ (44 ) $ (241 ) $ (450 ) Other comprehensive income (loss) before reclassifications 58 (46 ) (10 ) 2 Amounts reclassified from AOCI, net — 20 13 33 Net current-period other comprehensive income (loss) 58 (26 ) 3 35 Balance as of December 31, 2017 $ (107 ) $ (70 ) $ (238 ) $ (415 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2018 $ (65 ) $ 31 $ (227 ) $ (261 ) Amounts reclassified from AOCI, net - due to adoption of accounting standard updates — (3 ) (13 ) (16 ) Balance as of April 1, 2018 (65 ) 28 (240 ) (277 ) Other comprehensive (loss) income before reclassifications (144 ) 20 7 (117 ) Amounts reclassified from AOCI, net — (15 ) 20 5 Net current-period other comprehensive (loss) income (144 ) 5 27 (112 ) Balance as of December 31, 2018 $ (209 ) $ 33 $ (213 ) $ (389 ) Currency Translation (A) Cash Flow Hedges (B) Total Balance as of March 31, 2017 $ (256 ) $ (46 ) $ (243 ) $ (545 ) Other comprehensive income (loss) before reclassifications 149 (67 ) (14 ) 68 Amounts reclassified from AOCI, net — 43 19 62 Net current-period other comprehensive income (loss) 149 (24 ) 5 130 Balance as of December 31, 2017 $ (107 ) $ (70 ) $ (238 ) $ (415 ) _________________________ (A) For additional information on our cash flow hedges, see Note 10 — Financial Instruments and Commodity Contracts . (B) For additional information on our postretirement benefit plans, see Note 8 — Postretirement Benefit Plans . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 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 and classified under the appropriate level of the fair value hierarchy as of December 31, 2018 and March 31, 2018 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. December 31, 2018 March 31, 2018 Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 153 $ (77 ) $ 139 $ (65 ) Currency exchange contracts 22 (37 ) 20 (40 ) Energy contracts 1 (5 ) 2 (2 ) Total level 2 instruments $ 176 $ (119 ) $ 161 $ (107 ) Level 3 instruments: Energy contracts — (2 ) — (7 ) Total level 3 instruments — (2 ) — (7 ) Total gross $ 176 $ (121 ) $ 161 $ (114 ) Netting adjustment (A) $ (60 ) $ 60 $ (57 ) $ 57 Total net $ 116 $ (61 ) $ 104 $ (57 ) _________________________ (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, 2018 $ (7 ) Unrealized/realized gain included in earnings (B) 4 Unrealized gain included in AOCI (C) 4 Settlements (B) (3 ) Balance as of December 31, 2018 $ (2 ) _________________________ (A) Represents net derivative liabilities. (B) Included in “ Other expenses, net .” (C) Included in "Net change in fair value of effective portion of cash flow hedges." |
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. December 31, 2018 March 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets Long-term receivables from related parties $ — $ — $ 3 $ 3 Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,361 $ 4,224 $ 4,457 $ 4,569 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | “ Other expenses, net ” is comprised of the following (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Unrealized losses (gains) on change in fair value of derivative instruments, net (A) $ 6 $ (15 ) $ 9 $ (13 ) Realized (gains) losses on change in fair value of derivative instruments, net (A) (7 ) 5 (6 ) 15 Loss on sale of assets, net 2 2 4 4 Loss on Brazilian tax litigation, net — — 1 2 Interest income (3 ) (2 ) (8 ) (6 ) Non-operating net periodic benefit cost (B) 8 10 24 33 Other, net 4 4 9 5 Other expenses, net $ 10 $ 4 $ 33 $ 40 _________________________ (A) See Note 10 — Financial Instruments and Commodity Contracts for further details. (B) Represents net periodic benefit cost, exclusive of service cost for the Company's pension and other post-retirement plans. For further details, refer to Note 1 — Business and Summary of Significant Accounting Policies . |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Canadian statutory tax rates to effective tax rates | A reconciliation of the Canadian statutory tax rate to our effective tax rate was as follows (in millions, except percentages). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Pre-tax income before equity in net loss of non-consolidated affiliates and noncontrolling interests $ 113 $ 125 $ 483 $ 692 Canadian statutory tax rate 25 % 25 % 25 % 25 % Provision at the Canadian statutory rate $ 28 $ 31 $ 121 $ 173 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 1 2 11 8 Exchange remeasurement of deferred income taxes 2 (3 ) (9 ) (3 ) Change in valuation allowances 7 7 19 10 Tax credits (6 ) (8 ) (12 ) (14 ) Income items not subject to tax (6 ) (4 ) (6 ) (4 ) Legislative changes including enacted tax rates — (18 ) — (18 ) Tax rate differences on foreign earnings 9 9 21 22 Income tax settlements (5 ) — (4 ) — State expense, net 2 1 7 3 Uncertain tax positions — 2 3 5 Non-deductible expenses and other - net 5 1 3 (3 ) Income tax provision $ 37 $ 20 $ 154 $ 179 Effective tax rate 33 % 16 % 32 % 26 % |
Segment, Major Customer and M_2
Segment, Major Customer and Major Supplier Information (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Selected segment financial information | The following table displays our Net sales by value stream (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Can $ 1,636 $ 1,565 $ 4,976 $ 4,386 Automotive 715 703 2,212 2,004 Specialty (and other) 658 665 2,054 2,006 Net sales $ 3,009 $ 2,933 $ 9,242 $ 8,396 Selected Segment Financial Information December 31, 2018 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 493 $ 317 $ — $ — $ 810 Total assets $ 2,774 $ 3,008 $ 1,768 $ 1,860 $ 195 $ 9,605 March 31, 2018 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 522 $ 327 $ — $ — $ 849 Total assets $ 2,569 $ 3,163 $ 1,796 $ 1,781 $ 206 $ 9,515 Selected Operating Results Three Months Ended December 31, 2018 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 1,116 $ 745 $ 532 $ 547 $ 69 $ 3,009 Net sales-intersegment — 41 17 7 (65 ) — Net sales $ 1,116 $ 786 $ 549 $ 554 $ 4 $ 3,009 Depreciation and amortization $ 38 $ 30 $ 14 $ 16 $ (10 ) $ 88 Income tax provision $ 10 $ (4 ) $ 5 $ 18 $ 8 $ 37 Capital expenditures $ 39 $ 20 $ 24 $ 17 $ (4 ) $ 96 Selected Operating Results Three Months Ended December 31, 2017 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 985 $ 820 $ 533 $ 542 $ 53 $ 2,933 Net sales-intersegment 1 17 14 25 (57 ) — Net sales $ 986 $ 837 $ 547 $ 567 $ (4 ) $ 2,933 Depreciation and amortization $ 37 $ 29 $ 18 $ 16 $ (14 ) $ 86 Income tax provision $ (11 ) $ (6 ) $ 9 $ 18 $ 10 $ 20 Capital expenditures $ 19 $ 19 $ 7 $ 10 $ (1 ) $ 54 Selected Operating Results Nine Months Ended December 31, 2018 North Europe Asia South Eliminations and Other Total Net sales-third party $ 3,448 $ 2,430 $ 1,591 $ 1,577 $ 196 $ 9,242 Net sales-intersegment 1 87 33 23 (144 ) — Net sales $ 3,449 $ 2,517 $ 1,624 $ 1,600 $ 52 $ 9,242 Depreciation and amortization $ 112 $ 86 $ 47 $ 49 $ (34 ) $ 260 Income tax provision $ 42 $ 4 $ 17 $ 75 $ 16 $ 154 Capital expenditures $ 89 $ 50 $ 35 $ 38 $ (2 ) $ 210 Selected Operating Results Nine Months Ended December 31, 2017 North Europe Asia South Eliminations and Other Total Net sales-third party $ 2,878 $ 2,480 $ 1,533 $ 1,348 $ 157 $ 8,396 Net sales-intersegment 17 39 32 62 (150 ) — Net sales $ 2,895 $ 2,519 $ 1,565 $ 1,410 $ 7 $ 8,396 Depreciation and amortization $ 112 $ 83 $ 47 $ 48 $ (23 ) $ 267 Income tax provision $ 10 $ 5 $ 98 $ 54 $ 12 $ 179 Capital expenditures $ 52 $ 40 $ 19 $ 22 $ 3 $ 136 The table below displays income from reportable segments for the three and nine months ended December 31, 2018 and 2017 , respectively (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 North America $ 125 $ 111 $ 395 $ 351 Europe 48 50 170 158 Asia 49 43 151 124 South America 100 107 295 269 Eliminations and other — (6 ) — (6 ) Total of reportable segments $ 322 $ 305 $ 1,011 $ 896 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The table below reconciles “ Net income attributable to our common shareholder ” to Segment income from reportable segments for the three and nine months ended December 31, 2018 and 2017 (in millions). Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Net income attributable to our common shareholder $ 78 $ 121 $ 331 $ 529 Noncontrolling interests — (16 ) — (16 ) Income tax provision 37 20 154 179 Depreciation and amortization 88 86 260 267 Interest expense and amortization of debt issuance costs 67 64 201 192 Adjustment to reconcile proportional consolidation 14 17 45 33 Unrealized losses (gains) on change in fair value of derivative instruments, net 6 (15 ) 9 (13 ) Realized losses (gains) on derivative instruments not included in segment income — 1 (1 ) — Restructuring and impairment, net 1 25 2 33 Loss on sale of fixed assets 2 2 4 4 Gain on sale of a business (A) — — — (318 ) Metal price lag expense (income) 13 (1 ) (21 ) 5 Business acquisition and other integration costs (B) 14 — 24 — Other, net 2 1 3 1 Total of reportable segments $ 322 $ 305 $ 1,011 $ 896 _________________________ (A) In September 2017, Novelis Korea, Ltd, a subsidiary of Novelis, sold a portion of its shares in Ulsan Aluminum, Ltd., which resulted in a gain. (B) Effective in the second quarter of fiscal 2019, management removed the impact of business acquisition and other integration costs from Segment income in order to enhance the visibility of the underlying operating performance of the Company. The impact of "Business acquisition and other integration costs", which are primarily legal and professional fees incurred in the periods presented above associated with our pending acquisition of Aleris, is now reported as a separate line item in this reconciliation and on our condensed consolidated statement of operations. This change in presentation does not impact our condensed consolidated financial statements. |
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 "Net sales". Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Ball 22 % 21 % 22 % 21 % Ford 11 % 10 % 10 % 10 % |
Percentage of total combined metal purchases | The table below shows our purchases from RT as a percentage of our total combined metal purchases. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Purchases from RT as a percentage of total combined metal purchases 10 % 9 % 10 % 10 % |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018USD ($)countrycontinentplant | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)countrycontinentplant | Dec. 31, 2017USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Number of countries Company operates in | country | 10 | 10 | ||
Number of continents Company operates in | continent | 4 | 4 | ||
Number of operating plants | plant | 24 | 24 | ||
Number of plants with recycling operations | plant | 11 | 11 | ||
Net sales and cost of goods sold reduced for correction | $ 152 | $ 152 | ||
Net periodic benefit cost | (8) | $ (10) | (24) | $ (33) |
Cost of goods sold (exclusive of depreciation and amortization) | (2,568) | (2,490) | (7,816) | (7,100) |
Selling, general and administrative expenses | (129) | (122) | (373) | (341) |
Accounts receivable | 0 | (413) | ||
Other investing activities | $ (10) | (10) | ||
Accounting Standards Update 2018-02 [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cumulative effect on retained earnings | 16 | |||
Accounting Standards Update 2017-07 [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net periodic benefit cost | 10 | 33 | ||
Cost of goods sold (exclusive of depreciation and amortization) | 4 | 16 | ||
Selling, general and administrative expenses | $ 6 | 17 | ||
Accounting Standards Update 2016-16 [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cumulative effect on retained earnings | $ 36 | |||
Accounting Standards Update 2016-15 [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable | 10 | |||
Other investing activities | $ 10 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Restrictions on Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 797 | $ 920 | ||
Total cash, cash equivalents, and restricted cash | 809 | 932 | $ 767 | $ 604 |
Other Long-Term Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 12 | $ 12 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) - segment | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | 4 | 4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule of inventories | ||
Finished goods | $ 423 | $ 416 |
Work in process | 812 | 730 |
Raw materials | 313 | 248 |
Supplies | 168 | 166 |
Inventories | $ 1,716 | $ 1,560 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 797 | $ 920 |
Inventories | 1,716 | 1,560 |
Prepaid expenses and other current assets | 150 | 125 |
Total current assets | 4,380 | 4,364 |
Property, plant and equipment, net | 3,276 | 3,110 |
Goodwill | 607 | 607 |
Deferred income taxes | 72 | 75 |
Other long-term assets | 94 | 97 |
Total assets | 9,605 | 9,515 |
Current liabilities | ||
Accounts payable | 2,032 | 2,051 |
Accrued expenses and other current liabilities | 525 | 591 |
Total current liabilities | 3,000 | 3,123 |
Accrued postretirement benefits | 802 | 825 |
Other long–term liabilities | 223 | 244 |
Total liabilities | 8,525 | 8,692 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | ||
Cash and cash equivalents | 1 | 0 |
Accounts receivable | 45 | 39 |
Inventories | 71 | 67 |
Prepaid expenses and other current assets | 1 | 1 |
Total current assets | 118 | 107 |
Property, plant and equipment, net | 19 | 27 |
Goodwill | 12 | 12 |
Deferred income taxes | 67 | 67 |
Other long-term assets | 22 | 26 |
Total assets | 238 | 239 |
Current liabilities | ||
Accounts payable | 41 | 43 |
Accrued expenses and other current liabilities | 17 | 22 |
Total current liabilities | 58 | 65 |
Accrued postretirement benefits | 245 | 245 |
Other long–term liabilities | 1 | 1 |
Total liabilities | $ 304 | $ 311 |
Investment In and Advances to_3
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Allowance for loan loss | $ 0 | ||
Accounts receivable-related parties (less than) | $ 169,000,000 | 242,000,000 | |
Alunorf [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest income on a loan due from a non-consolidated affiliate (less than) | 1,000,000 | ||
Allowance for loan loss | 0 | ||
Accounts receivable-related parties (less than) | 169,000,000 | 242,000,000 | |
Parent Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties (less than) | 1,000,000 | $ 1,000,000 | |
Accounts receivable-related parties (less than) | $ 1,000,000 | $ 1,000,000 | |
Aluminum Norf GmbH [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Aluminum Norf GmbH [Member] | Hydro Aluminum Deutschland GmbH [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 | 50.00% | ||
AluInfra Services SA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Investment In and Advances to_4
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Summary of Results of Operations) (Details) - Equity Method Investments [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of the share of the condensed results of operations of equity method affiliates | ||||
Net sales | $ 288 | $ 308 | $ 938 | $ 549 |
Costs, expenses | 284 | 309 | 926 | 551 |
Tax provision (benefit) | 2 | (1) | 5 | (1) |
Net income (loss) | 2 | 0 | 7 | (1) |
Purchases of tolling services from Alunorf (Novelis' share) | $ 60 | $ 59 | $ 189 | $ 180 |
Investment In and Advances to_5
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Period End Account Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | $ 169 | $ 242 |
Other long-term assets-related parties | 0 | 3 |
Accounts payable-related parties | 147 | 205 |
Alunorf [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | 169 | 242 |
Other long-term assets-related parties | $ 0 | 3 |
Accounts payable-related parties | $ 205 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ (153,000,000) | $ (49,000,000) |
Long-term debt, Principal | 4,397,000,000 | 4,417,000,000 |
Long-term debt, Carrying Value | 4,361,000,000 | 4,457,000,000 |
Total debt | 4,582,000,000 | 4,587,000,000 |
Total debt, Unamortized Carrying Value Adjustment | (68,000,000) | (81,000,000) |
Total debt, carrying value | 4,514,000,000 | 4,506,000,000 |
Current portion of long-term debt | (32,000,000) | (121,000,000) |
Long-term debt, net of current portion, Carrying Value | $ 4,329,000,000 | 4,336,000,000 |
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rates (A) | 4.65% | |
Long-term debt, Principal | $ 1,764,000,000 | 1,778,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (35,000,000) | (43,000,000) |
Long-term debt, Carrying Value | $ 1,729,000,000 | 1,735,000,000 |
Senior Notes due September 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rates (A) | 5.875% | |
Long-term debt, Principal | $ 1,500,000,000 | 1,500,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (19,000,000) | (21,000,000) |
Long-term debt, Carrying Value | $ 1,481,000,000 | 1,479,000,000 |
Senior Notes due August 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rates (A) | 6.25% | |
Long-term debt, Principal | $ 1,150,000,000 | 1,150,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (14,000,000) | (17,000,000) |
Long-term debt, Carrying Value | $ 1,136,000,000 | 1,133,000,000 |
Loans due through September 2020 [Member] | Korea [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rates (A) | 2.81% | |
Long-term debt, Principal | $ 14,000,000 | 95,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | 14,000,000 | 95,000,000 |
Debt face amount | $ 15,000,000,000 | |
Other Debt, due through December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rates (A) | 6.20% | |
Long-term debt, Principal | $ 1,000,000 | 15,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 1,000,000 | 15,000,000 |
Short term borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rates (A) | 2.22% | |
Short-term borrowings | $ (153,000,000) | (49,000,000) |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
current portion of long term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | $ 0 |
Debt (Principal Repayments) (De
Debt (Principal Repayments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 185 | |
2 years | 19 | |
3 years | 18 | |
4 years | 1,710 | |
5 years | 0 | |
Thereafter | 2,650 | |
Total debt | $ 4,582 | $ 4,587 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) $ in Millions | 1 Months Ended | 9 Months Ended |
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 1,800 | $ 1,800 |
Debt term | 5 years | |
Debt due within one year | 18 | $ 18 |
Term Loan Increase Joinder Amendment [Member] | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 775 | $ 775 |
Debt term | 5 years | |
Quarterly amortization payments | 0.25% | 0.25% |
Basis spread on variable rate | 1.75% | |
Short Term Credit Agreement [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 1,500 | $ 1,500 |
Debt term | 1 year | |
Short Term Credit Agreement [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.95% |
Debt (Short-Term Borrowings) (D
Debt (Short-Term Borrowings) (Details) ¥ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Mar. 31, 2018USD ($) |
Short-term Debt [Line Items] | |||
Short–term borrowings | $ 153 | $ 49 | |
ABL Revolver [Member] | |||
Short-term Debt [Line Items] | |||
Current borrowing capacity | 1,000 | ||
Amount outstanding | 103 | ||
Remaining borrowing capacity | 776 | ||
Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Remaining borrowing capacity | 108 | ||
Letter of Credit [Member] | ABL Revolver [Member] | |||
Short-term Debt [Line Items] | |||
Amount outstanding | 8 | ||
Bank Loan Obligations [Member] | China [Member] | |||
Short-term Debt [Line Items] | |||
Short–term borrowings | 49 | ¥ 334 | |
Other Debt Obligations [Member] | |||
Short-term Debt [Line Items] | |||
Short–term borrowings | $ 1 |
Debt Debt (Korean Bank Loans) (
Debt Debt (Korean Bank Loans) (Details) | 9 Months Ended |
Dec. 31, 2018 | |
Korea 91-day Certificate of Deposit Rate [Member] | Korea [Member] | Loans due through September 2020 [Member] | |
Short-term Debt [Line Items] | |
Basis spread on variable rate | 1.20% |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation by Award [Line Items] | ||||
Share-based compensation liability | $ 20 | $ 20 | ||
2010 LTIP [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Total compensation expense | 14 | $ 23 | ||
SARs [Member] | Hindalco SARs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of SARs granted (in shares) | 2,359,601 | |||
Unrecognized compensation expense | $ 4 | $ 4 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 9 months 18 days | |||
RSUs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of RSUs granted (in shares) | 2,263,104 | |||
Cash payments to settle liabilities | $ 14 | $ 8 | ||
Unrecognized compensation expense | $ 7 | $ 7 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 10 months 25 days | |||
Cash [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Cash payments to settle liabilities | $ 4 | $ 9 |
Postretirement Benefit Plans (C
Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of net periodic benefit cost for postretirement benefit plans | ||||
Net periodic benefit cost (A) | $ 8 | $ 10 | $ 24 | $ 33 |
Pension Benefit Plans [Member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 10 | 11 | 30 | 33 |
Interest cost | 15 | 15 | 45 | 44 |
Expected return on assets | (17) | (16) | (49) | (46) |
Amortization — losses, net | 8 | 9 | 24 | 26 |
Termination benefits / curtailments | 2 | 0 | 2 | 2 |
Net periodic benefit cost (A) | 18 | 19 | 52 | 59 |
Other Benefit Plans [member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 2 | 1 | 6 | 5 |
Interest cost | 2 | 2 | 6 | 5 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization — losses, net | 0 | 0 | 2 | 1 |
Termination benefits / curtailments | 0 | 0 | 0 | 0 |
Net periodic benefit cost (A) | $ 4 | $ 3 | $ 14 | $ 11 |
Postretirement Benefit Plans (E
Postretirement Benefit Plans (Employer Contributions to Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contributions to employee benefit plans | ||||
Funded pension plans | $ 5 | $ 8 | $ 21 | $ 42 |
Unfunded pension plans | 3 | 3 | 9 | 10 |
Savings and defined contribution pension plans | 8 | 7 | 24 | 21 |
Total contributions | $ 16 | $ 18 | $ 54 | $ 73 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details Textual) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Retirement Benefits [Abstract] | |
Expected long-term rate of return on plan assets | 5.20% |
Maximum amortization period of unfunded actuarial liability | 15 years |
Expected additional contribution to funded pension plan | $ 6 |
Expected additional contribution to unfunded pension plan | 4 |
Expected additional contribution to savings and defined contribution plans | $ 7 |
Currency Losses (Gains) (Includ
Currency Losses (Gains) (Included in Other (Income) Expense, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Currency (gains) losses included in other income expense | ||||
Gain on remeasurement of monetary assets and liabilities, net | $ (1) | $ (4) | $ (7) | $ (43) |
Loss recognized on balance sheet remeasurement currency exchange contracts, net | 1 | 4 | 7 | 43 |
Currency gains, net | $ 0 | $ 0 | $ 0 | $ 0 |
Currency Losses (Gains) (Incl_2
Currency Losses (Gains) (Included in AOCI) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Mar. 31, 2018 | |
Currency gains included in AOCI, net of tax and Non controlling interests | ||
Cumulative currency translation adjustment — beginning of period | $ (65) | $ (256) |
Effect of changes in exchange rates | (144) | (191) |
Cumulative currency translation adjustment — end of period | $ (209) | $ (65) |
Financial Instruments and Com_3
Financial Instruments and Commodity Contracts (Summary of Gross Fair Values of Financial Instruments and Commodity Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | ||
Derivative Assets, Current | $ 173 | $ 159 |
Derivative Asset, Noncurrent | 3 | 2 |
Liabilities | ||
Derivative Liabilities, Current | (111) | (106) |
Derivative Liabilities, Noncurrent | (10) | (8) |
Net Fair Value Assets/Liabilities | 55 | 47 |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 65 | 68 |
Derivative Asset, Noncurrent | 1 | 2 |
Liabilities | ||
Derivative Liabilities, Current | (17) | (10) |
Derivative Liabilities, Noncurrent | (7) | (7) |
Net Fair Value Assets/Liabilities | 42 | 53 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 61 | 63 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | 0 | (1) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | 61 | 63 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 4 | 5 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (16) | (7) |
Derivative Liabilities, Noncurrent | (3) | 0 |
Net Fair Value Assets/Liabilities | (14) | (2) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (1) | (2) |
Derivative Liabilities, Noncurrent | (4) | (7) |
Net Fair Value Assets/Liabilities | (5) | (8) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 108 | 91 |
Derivative Asset, Noncurrent | 2 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (94) | (96) |
Derivative Liabilities, Noncurrent | (3) | (1) |
Net Fair Value Assets/Liabilities | 13 | (6) |
Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 92 | 75 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (76) | (64) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Net Fair Value Assets/Liabilities | 15 | 11 |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 15 | 15 |
Derivative Asset, Noncurrent | 2 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (17) | (32) |
Derivative Liabilities, Noncurrent | (1) | (1) |
Net Fair Value Assets/Liabilities | (1) | (18) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 1 | 1 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (1) | 0 |
Derivative Liabilities, Noncurrent | (1) | 0 |
Net Fair Value Assets/Liabilities | $ (1) | $ 1 |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018USD ($)gallonMMBTUMWh | Dec. 31, 2018USD ($)gallonMMBTUMWh | Mar. 31, 2018USD ($)gallonMMBTU | Mar. 31, 2018KRW (₩)gallonMMBTU | |
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of derivative, liability (less than) | $ 61,000,000 | $ 61,000,000 | $ 57,000,000 | |
Fair value of derivative, asset | 116,000,000 | $ 116,000,000 | 104,000,000 | |
Expected reclassification of losses from AOCI to earnings | $ 72,000,000 | |||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative remaining maturity | 1 year | |||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative remaining maturity | 2 years | |||
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative remaining maturity | 1 year | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | ||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative notional amounts | 771,000,000 | 771,000,000 | 1,024,000,000 | |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative notional amounts | 770,000,000 | 770,000,000 | 499,000,000 | |
Currency Exchange Contracts [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative notional amounts | 0 | 0 | 0 | |
Electricity Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Fair value of derivative, liability (less than) | $ 0 | $ 0 | 0 | |
Notional amount (in MMBTU, mwh, gallons, and kt) | MWh | 1,000,000 | 1,000,000 | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative remaining maturity | 2 years | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | |||
Notional amount (in MMBTU, mwh, gallons, and kt) | MMBTU | 1,000,000 | 1,000,000 | ||
Fair value of derivative, asset | $ 1,000,000 | $ 1,000,000 | ||
Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative remaining maturity | 3 years | |||
Fair value of derivative, liability (less than) | $ 3,000,000 | $ 3,000,000 | $ 1,000,000 | |
Notional amount (in MMBTU, mwh, gallons, and kt) | MMBTU | 16,000,000 | 16,000,000 | 20,000,000 | 20,000,000 |
Fuel [Member] | Not Designated as Hedging Instrument [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative remaining maturity | 2 years | |||
Fair value of derivative, liability (less than) | $ 2,000,000 | $ 2,000,000 | ||
Notional amount (in MMBTU, mwh, gallons, and kt) | gallon | 6,000,000 | 6,000,000 | 5,000,000 | 5,000,000 |
Fair value of derivative, asset | $ 2,000,000 | |||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Korea [Member] | Long-term Debt [Member] | ||||
Financial Instruments And Commodity Contracts [Abstract] | ||||
Derivative notional amounts | $ 28,000,000 | ₩ 30,000,000,000 |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts (Summary of Notional Amount) (Details) - Metal Contracts [Member] - Mg Mg in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Derivative [Line Items] | ||
Notional amount (in tons) | 387 | 497 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 362 | 423 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 25 | 74 |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts (Gain (Loss) Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | $ 4 | $ (4) | ||
Other Operating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance sheet remeasurement currency exchange contract losses | $ (1) | $ (4) | (7) | (43) |
Realized gains (losses), net | 7 | (5) | 6 | (15) |
Unrealized gains (losses) on other derivative instruments, net | (6) | 15 | (9) | 13 |
Total gain (loss) recognized | 0 | 6 | (10) | (45) |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (2) | 7 | (12) | (37) |
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | 2 | (1) | 2 | (8) |
Other Operating Income (Expense) [Member] | Metal Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (1) | 6 | (7) | 8 |
Other Operating Income (Expense) [Member] | Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | 1 | (2) | (8) | (51) |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | $ (2) | $ 3 | $ 3 | $ 6 |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts (Summary of the Impact on AOCI and Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ 95 | $ (85) | $ 25 | $ (117) |
Amount of Gain (Loss) Recognized in “Other Expenses, net” (Ineffective and Excluded Portion) | 2 | 0 | 2 | (7) |
Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 95 | (68) | 25 | (100) |
Amount of Gain (Loss) Recognized in “Other Expenses, net” (Ineffective and Excluded Portion) | 2 | 0 | 2 | (7) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 95 | (66) | 59 | (89) |
Amount of Gain (Loss) Recognized in “Other Expenses, net” (Ineffective and Excluded Portion) | 0 | 0 | 0 | (9) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (3) | 0 | (38) | (7) |
Amount of Gain (Loss) Recognized in “Other Expenses, net” (Ineffective and Excluded Portion) | 2 | 0 | 2 | 1 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 3 | (2) | 4 | (4) |
Amount of Gain (Loss) Recognized in “Other Expenses, net” (Ineffective and Excluded Portion) | 0 | 0 | 0 | 1 |
Net Investment Hedging [Member] | Currency Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 0 | (17) | 0 | (17) |
Amount of Gain (Loss) Recognized in “Other Expenses, net” (Ineffective and Excluded Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments and Com_8
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income tax (provision) benefit | $ (37) | $ (20) | $ (154) | $ (179) |
Net income | $ 78 | $ 105 | $ 331 | $ 513 |
Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 35 | (32) | 22 | (67) |
Income tax (provision) benefit | $ (9) | $ 11 | $ (7) | $ 23 |
Net income | $ 26 | $ (21) | $ 15 | $ (44) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (1) | (1) | (2) | (2) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | (36) | 0 | (79) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 42 | 0 | 42 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (3) | 4 | (10) | 11 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (3) | 1 | (6) | 3 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | 0 | (1) | 1 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | 0 | (1) | (1) |
Financial Instruments and Com_9
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification Summarization) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | $ 2 | $ 0 | $ 2 | $ (7) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 2 | 0 | 2 | (7) |
Metal Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | (9) |
Metal Contracts [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 42 | 42 | ||
Metal Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Metal Contracts [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 1 |
Energy Related Derivative [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Energy Related Derivative [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (1) | (2) | ||
Energy Related Derivative [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Energy Related Derivative [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Currency Exchange Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 2 | $ 0 | 2 | $ 1 |
Currency Exchange Contracts [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (3) | (6) | ||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (3) | (10) | ||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | (1) | ||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | (1) | ||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | $ 2 | $ 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | $ (261) | $ (416) | $ (450) | $ (277) | $ (545) |
Amounts reclassified from AOCI, net | (16) | (20) | 33 | 5 | 62 |
Other comprehensive (loss) income before reclassifications | 47 | 2 | (117) | 68 | |
Other comprehensive income, net of tax | 27 | 35 | (112) | 130 | |
Balance as of end of period | (277) | (389) | (415) | (389) | (415) |
Currency Translation [Member] | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | (65) | (183) | (165) | (65) | (256) |
Amounts reclassified from AOCI, net | 0 | 0 | 0 | 0 | 0 |
Other comprehensive (loss) income before reclassifications | (26) | 58 | (144) | 149 | |
Other comprehensive income, net of tax | (26) | 58 | (144) | 149 | |
Balance as of end of period | (65) | (209) | (107) | (209) | (107) |
Cash Flow Hedges [Member] | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | 31 | (12) | (44) | 28 | (46) |
Amounts reclassified from AOCI, net | (3) | (26) | 20 | (15) | 43 |
Other comprehensive (loss) income before reclassifications | 71 | (46) | 20 | (67) | |
Other comprehensive income, net of tax | 45 | (26) | 5 | (24) | |
Balance as of end of period | 28 | 33 | (70) | 33 | (70) |
Postretirement Benefit Plans [Member] | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | (227) | (221) | (241) | (240) | (243) |
Amounts reclassified from AOCI, net | (13) | 6 | 13 | 20 | 19 |
Other comprehensive (loss) income before reclassifications | 2 | (10) | 7 | (14) | |
Other comprehensive income, net of tax | 8 | 3 | 27 | 5 | |
Balance as of end of period | $ (240) | $ (213) | $ (238) | $ (213) | $ (238) |
Fair Value Measurements (Deriva
Fair Value Measurements (Derivative Assets and Liabilities on Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | $ 176 | $ 161 |
Liabilities | (121) | (114) |
Derivative Asset, Master Netting Adjustment | (60) | (57) |
Derivative Liability, Master Netting Adjustment | 60 | 57 |
Derivative Asset | 116 | 104 |
Derivative Liability | (61) | (57) |
Level 2 Instruments [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 176 | 161 |
Liabilities | (119) | (107) |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 153 | 139 |
Liabilities | (77) | (65) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 22 | 20 |
Liabilities | (37) | (40) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 1 | 2 |
Liabilities | (5) | (2) |
Level 3 Instruments [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 0 | 0 |
Liabilities | (2) | (7) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Derivative assets and liabilities measured and recognized at fair value on recurring basis | ||
Assets | 0 | 0 |
Liabilities | $ (2) | $ (7) |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Fair Value Activity for Level 3 Contracts) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Level 3 Derivative Instruments [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Balance as of beginning of period | $ (7) |
Realized/unrealized gain included in earnings | 4 |
Settlements | (3) |
Balance as of end of period | (2) |
Accumulated Other Comprehensive Loss (AOCI) [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Realized/unrealized gain included in earnings | $ 4 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | ||
Long-term receivables from related parties, carrying value | $ 0 | $ 3 |
Long-term receivables from related parties, fair value | 0 | 3 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | 4,361 | 4,457 |
Total debt - third parties (excluding short term borrowings), fair value | $ 4,224 | $ 4,569 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018USD ($)$ / MWh | Dec. 31, 2018USD ($)$ / MWh | |
Level 3 Instruments [Member] | ||
Fair Value Measurements [Abstract] | ||
Unrealized gains related to financial instruments | $ | $ 1,000,000 | |
Electricity Swaps [Member] | ||
Fair Value Measurements [Abstract] | ||
Premium over forward prices in nearby observable market (per megawatt hour) | $ / MWh | 44 | 44 |
Actual swap settlement price (per megawatt hour) | $ / MWh | 44 | 44 |
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1,000,000 | |
Extended Electricity Swaps [Member] | ||
Fair Value Measurements [Abstract] | ||
Premium over forward prices in nearby observable market (per megawatt hour) | $ / MWh | 3 | 3 |
Derivatives, unit per hour | $ | $ 1 | $ 1 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | ||||
Unrealized losses (gains) on change in fair value of derivative instruments, net | $ 6 | $ (15) | $ 9 | $ (13) |
(Gain) loss on change in fair value of other realized derivative instruments, net | (7) | 5 | (6) | 15 |
Loss on sale of assets, net | 2 | 2 | 4 | 4 |
Loss on Brazilian tax litigation, net | 0 | 0 | 1 | 2 |
Interest income | (3) | (2) | (8) | (6) |
Non-operating net periodic benefit cost | 8 | 10 | 24 | 33 |
Other, net | 4 | 4 | 9 | 5 |
Other expenses, net | $ 10 | $ 4 | $ 33 | $ 40 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Canadian statutory tax rates | ||||
Pre-tax income before equity in net loss of non-consolidated affiliates and noncontrolling interests | $ 113 | $ 125 | $ 483 | $ 692 |
Canadian statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Provision at the Canadian statutory rate | $ 28 | $ 31 | $ 121 | $ 173 |
Exchange translation items | 1 | 2 | 11 | 8 |
Exchange remeasurement of deferred income taxes | 2 | (3) | (9) | (3) |
Change in valuation allowances | 7 | 7 | 19 | 10 |
Tax credits | (6) | (8) | (12) | (14) |
Income items not subject to tax | (6) | (4) | (6) | (4) |
Legislative changes including enacted tax rates | 0 | (18) | 0 | (18) |
Tax rate differences on foreign earnings | 9 | 9 | 21 | 22 |
Income tax settlements | (5) | 0 | (4) | 0 |
State expense, net | 2 | 1 | 7 | 3 |
Uncertain tax positions | 0 | 2 | 3 | 5 |
Non-deductible expenses and other - net | 5 | 1 | 3 | (3) |
Income tax provision | $ 37 | $ 20 | $ 154 | $ 179 |
Effective tax rate | 33.00% | 16.00% | 32.00% | 26.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net deferred tax liability | $ (99) | |
Gross deferred tax assets | 1,100 | |
Valuation allowance | $ 745 | |
US corporate tax rate | 21.00% | 35.00% |
Decrease in unrecognized tax benefits | $ 1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | $ 11,000,000 | $ 14,000,000 |
Brazil [Member] | Accrued expenses and other current liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, current | 45,000,000 | 58,000,000 |
Brazil [Member] | Other long-term liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | 23,000,000 | $ 29,000,000 |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Range of possible loss | 0 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Range of possible loss | 75,000,000 | |
Restructuring Action | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 8,000,000 | |
Undiscounted Environmental Clean-Up Costs | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 3,000,000 |
Segment, Major Customer and M_3
Segment, Major Customer and Major Supplier Information (Details Textual) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018countrysegmentplant | Dec. 31, 2018countrysegmentplant | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 4 | 4 |
Number of operating plants | 24 | 24 |
Number of plants with recycling operations | 11 | 11 |
Number of countries Company operates in | country | 10 | 10 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 8 | 8 |
Number of fully dedicated recycling facilities | 2 | 2 |
Number of plants with recycling operations | 1 | 1 |
Number of countries Company operates in | country | 2 | 2 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 10 | 10 |
Number of fully dedicated recycling facilities | 2 | 2 |
Number of plants with recycling operations | 2 | 2 |
Number of countries Company operates in | country | 4 | 4 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 4 | 4 |
Number of plants with recycling operations | 3 | 3 |
Number of countries Company operates in | country | 3 | 3 |
South America [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 2 | 2 |
(Selected Segment Financial Inf
(Selected Segment Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | $ 810 | $ 810 | $ 849 | ||
Total assets | 9,605 | 9,605 | 9,515 | ||
Net sales-third party | 3,009 | $ 2,933 | 9,242 | $ 8,396 | |
Net sales-intersegment | 0 | 0 | 0 | 0 | |
Net sales | 3,009 | 2,933 | 9,242 | 8,396 | |
Depreciation and amortization | 88 | 86 | 260 | 267 | |
Income tax provision | 37 | 20 | 154 | 179 | |
Capital expenditures | 96 | 54 | 210 | 136 | |
Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 2,774 | 2,774 | 2,569 | ||
Net sales-third party | 1,116 | 985 | 3,448 | 2,878 | |
Net sales-intersegment | 0 | 1 | 1 | 17 | |
Net sales | 1,116 | 986 | 3,449 | 2,895 | |
Depreciation and amortization | 38 | 37 | 112 | 112 | |
Income tax provision | 10 | (11) | 42 | 10 | |
Capital expenditures | 39 | 19 | 89 | 52 | |
Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 493 | 493 | 522 | ||
Total assets | 3,008 | 3,008 | 3,163 | ||
Net sales-third party | 745 | 820 | 2,430 | 2,480 | |
Net sales-intersegment | 41 | 17 | 87 | 39 | |
Net sales | 786 | 837 | 2,517 | 2,519 | |
Depreciation and amortization | 30 | 29 | 86 | 83 | |
Income tax provision | (4) | (6) | 4 | 5 | |
Capital expenditures | 20 | 19 | 50 | 40 | |
Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 317 | 317 | 327 | ||
Total assets | 1,768 | 1,768 | 1,796 | ||
Net sales-third party | 532 | 533 | 1,591 | 1,533 | |
Net sales-intersegment | 17 | 14 | 33 | 32 | |
Net sales | 549 | 547 | 1,624 | 1,565 | |
Depreciation and amortization | 14 | 18 | 47 | 47 | |
Income tax provision | 5 | 9 | 17 | 98 | |
Capital expenditures | 24 | 7 | 35 | 19 | |
Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 1,860 | 1,860 | 1,781 | ||
Net sales-third party | 547 | 542 | 1,577 | 1,348 | |
Net sales-intersegment | 7 | 25 | 23 | 62 | |
Net sales | 554 | 567 | 1,600 | 1,410 | |
Depreciation and amortization | 16 | 16 | 49 | 48 | |
Income tax provision | 18 | 18 | 75 | 54 | |
Capital expenditures | 17 | 10 | 38 | 22 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 195 | 195 | $ 206 | ||
Net sales-third party | 69 | 53 | 196 | 157 | |
Net sales-intersegment | (65) | (57) | (144) | (150) | |
Net sales | 4 | (4) | 52 | 7 | |
Depreciation and amortization | (10) | (14) | (34) | (23) | |
Income tax provision | 8 | 10 | 16 | 12 | |
Capital expenditures | $ (4) | $ (1) | $ (2) | $ 3 |
Segment, Major Customer and M_4
Segment, Major Customer and Major Supplier Information (Reconciliation from Segment Income to Consolidated Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||
Net income attributable to our common shareholder | $ 78 | $ 121 | $ 331 | $ 331 | $ 529 |
Noncontrolling interests | 0 | (16) | 0 | (16) | |
Income tax provision | 37 | 20 | 154 | 179 | |
Depreciation and amortization | 88 | 86 | 260 | 267 | |
Interest expense and amortization of debt issuance costs | 67 | 64 | 201 | 192 | |
Adjustment to reconcile proportional consolidation | 14 | 17 | 45 | 33 | |
Unrealized losses (gains) on change in fair value of derivative instruments, net | 6 | (15) | 9 | (13) | |
Realized losses (gains) on derivative instruments not included in segment income | 0 | 1 | (1) | 0 | |
Restructuring and impairment, net | 1 | 25 | 2 | 33 | |
Loss on sale of assets | 2 | 2 | 4 | 4 | |
Gain on sale of a business, net | 0 | 0 | 0 | (318) | |
Metal price lag expense (income) | 13 | (1) | (21) | 5 | |
Business acquisition and other integration related costs | 14 | 0 | 24 | 0 | |
Other costs, net | 2 | 1 | 3 | 1 | |
Total of reportable segments | $ 322 | $ 305 | $ 1,011 | $ 896 |
Segment, Major Customer and M_5
Segment, Major Customer and Major Supplier Information (Income from Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 322 | $ 305 | $ 1,011 | $ 896 |
Operating Segments [Member] | North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 125 | 111 | 395 | 351 |
Operating Segments [Member] | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 48 | 50 | 170 | 158 |
Operating Segments [Member] | Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 49 | 43 | 151 | 124 |
Operating Segments [Member] | South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 100 | 107 | 295 | 269 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 0 | $ (6) | $ 0 | $ (6) |
Segment, Major Customer and M_6
Segment, Major Customer and Major Supplier Information (Net Sales by Value Stream) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 3,009 | $ 2,933 | $ 9,242 | $ 8,396 |
Can | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,636 | 1,565 | 4,976 | 4,386 |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 715 | 703 | 2,212 | 2,004 |
Specialty (and other) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 658 | $ 665 | $ 2,054 | $ 2,006 |
Segment, Major Customer and M_7
Segment, Major Customer and Major Supplier Information (Information About Major Customers and Primary Supplier) (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of Goods Sold [Member] | Rio Tinto Alcan [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10.00% | 9.00% | 10.00% | 10.00% |
Ball [Member] | Net Sales [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 22.00% | 21.00% | 22.00% | 21.00% |
Ford [Member] | Net Sales [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 11.00% | 10.00% | 10.00% | 10.00% |