Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2020 | Nov. 09, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-32312 | |
Entity Registrant Name | Novelis Inc. | |
Entity Tax Identification Number | 98-0442987 | |
Entity Address, Address Line One | 3560 Lenox Road, Suite 2000 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 760-4000 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001304280 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Document Quarterly Report | true |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,978 | $ 2,851 | $ 5,404 | $ 5,776 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,384 | 2,348 | 4,485 | 4,762 |
Selling, general and administrative expenses | 129 | 122 | 251 | 249 |
Depreciation and amortization | 141 | 88 | 259 | 176 |
Interest expense and amortization of debt issuance costs | 70 | 61 | 140 | 126 |
Research and development expenses | 18 | 18 | 37 | 37 |
Restructuring and impairment, net | 7 | 32 | 8 | 33 |
Equity in net income of non-consolidated affiliates | (1) | 0 | (2) | 0 |
Business acquisition and other related costs | 0 | 12 | 11 | 29 |
Other expenses, net | 18 | 2 | 93 | 6 |
Total expenses | 2,766 | 2,683 | 5,282 | 5,418 |
Income from continuing operations before income tax provision | 212 | 168 | 122 | 358 |
Income tax provision | 68 | 45 | 39 | 108 |
Net income from continuing operations | 144 | 123 | 83 | 250 |
Loss from discontinued operations, net of tax | (11) | 0 | (29) | 0 |
Net (loss) income | (37) | 123 | (116) | 250 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net (loss) income attributable to our common shareholder | (37) | 123 | (116) | 250 |
Net sales | 2,978 | 2,851 | 5,404 | 5,776 |
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization | 2,384 | 2,348 | 4,485 | 4,762 |
Selling, General and Administrative Expense | 129 | 122 | 251 | 249 |
Depreciation, Depletion and Amortization | 141 | 88 | 259 | 176 |
Interest Expense | 70 | 61 | 140 | 126 |
Research and Development Expense | 18 | 18 | 37 | 37 |
Restructuring and impairment, net | 7 | 32 | 8 | 33 |
Income (Loss) from Equity Method Investments | 1 | 0 | 2 | 0 |
Business acquisition and other related costs | 0 | 12 | 11 | 29 |
Other expenses, net | (18) | (2) | (93) | (6) |
Costs and Expenses | 2,766 | 2,683 | 5,282 | 5,418 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 212 | 168 | 122 | 358 |
Income tax provision | 68 | 45 | 39 | 108 |
Net income from continuing operations | 144 | 123 | 83 | 250 |
Loss from discontinued operations, net of tax | (11) | 0 | (29) | 0 |
Net (loss) income | (37) | 123 | (116) | 250 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net income attributable to our common shareholder | (37) | 123 | (116) | 250 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (170) | 0 | (170) | 0 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | (181) | 0 | (199) | 0 |
Retained Earnings [Member] | ||||
Income Statement [Abstract] | ||||
Net (loss) income attributable to our common shareholder | (37) | 123 | (116) | 250 |
Net income attributable to our common shareholder | $ (37) | $ 123 | $ (116) | $ 250 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (37) | $ 123 | $ (116) | $ 250 |
Other comprehensive income: | ||||
Currency translation adjustment | 96 | (86) | 151 | (81) |
Net change in fair value of effective portion of cash flow hedges | (6) | (36) | 71 | (16) |
Net change in pension and other benefits | (79) | 18 | (87) | 26 |
Other comprehensive income (loss) before income tax effect | 181 | (104) | 167 | (71) |
Income tax provision (benefit) related to items of other comprehensive income | 21 | (5) | 2 | 3 |
Other comprehensive income (loss), net of tax | 160 | (99) | 165 | (74) |
Comprehensive income | 123 | 24 | 49 | 176 |
Comprehensive income attributable to noncontrolling interest, net of tax | 2 | 1 | 3 | 3 |
Comprehensive income attributable to our common shareholder | $ 121 | $ 23 | $ 46 | $ 173 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 1,627,000,000 | $ 2,392,000,000 | $ 935,000,000 |
Accounts receivable, net | |||
— third parties (net of allowance for uncollectible accounts of $7 and $8 as of September 30, 2020 and March 31, 2020, respectively) | 1,317,000,000 | 1,067,000,000 | |
— related parties | 163,000,000 | 164,000,000 | |
Inventories | 1,639,000,000 | 1,409,000,000 | |
Prepaid expenses and other current assets | 164,000,000 | 145,000,000 | |
Fair value of derivative instruments | 65,000,000 | 202,000,000 | |
Assets held for sale | 5,000,000 | 5,000,000 | |
Current assets of discontinued operations | 256,000,000 | 0 | |
Total current assets | 5,236,000,000 | 5,384,000,000 | |
Property, plant and equipment, net | 4,625,000,000 | 3,580,000,000 | |
Goodwill | 1,023,000,000 | 607,000,000 | |
Intangible assets, net | 676,000,000 | 299,000,000 | |
Investment in and advances to non–consolidated affiliates | 812,000,000 | 760,000,000 | |
Deferred income tax assets | 181,000,000 | 140,000,000 | |
Other long–term assets | 343,000,000 | 219,000,000 | |
Long–term assets of discontinued operations | 214,000,000 | 0 | |
Total assets | 13,112,000,000 | 10,989,000,000 | |
Current liabilities: | |||
Current portion of long–term debt | 55,000,000 | 19,000,000 | |
Short–term borrowings | 393,000,000 | 176,000,000 | |
Accounts payable | |||
— third parties | 1,832,000,000 | 1,732,000,000 | |
— related parties | 220,000,000 | 176,000,000 | |
Fair value of derivative instruments | 153,000,000 | 214,000,000 | |
Accrued expenses and other current liabilities | 616,000,000 | 613,000,000 | |
Current liabilities of discontinued operations | 144,000,000 | 0 | |
Total current liabilities | 3,413,000,000 | 2,930,000,000 | |
Long–term debt, net of current portion | 6,767,000,000 | 5,345,000,000 | |
Deferred income tax liabilities | 126,000,000 | 194,000,000 | |
Accrued postretirement benefits | 1,023,000,000 | 930,000,000 | |
Other long–term liabilities | 244,000,000 | 229,000,000 | |
Long–term liabilities of discontinued operations | 129,000,000 | 0 | |
Total liabilities | 11,702,000,000 | 9,628,000,000 | |
Commitments and contingencies | |||
Shareholder’s equity: | |||
Common stock, no par value; Unlimited number of shares authorized; 1,000 shares issued and outstanding as of September 30, 2020 and March 31, 2020 | 0 | 0 | |
Additional paid–in capital | 1,404,000,000 | 1,404,000,000 | |
Retained earnings | 512,000,000 | 628,000,000 | |
Accumulated other comprehensive loss | (458,000,000) | (620,000,000) | (583,000,000) |
Total equity of our common shareholder | 1,458,000,000 | 1,412,000,000 | |
Noncontrolling interests | (48,000,000) | (51,000,000) | |
Total equity | 1,410,000,000 | 1,361,000,000 | $ 1,247,000,000 |
Total liabilities and equity | $ 13,112,000,000 | $ 10,989,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Financial Position [Abstract] | ||||
Accounts Receivable, Allowance for Credit Loss | $ 7 | $ 8 | ||
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited | ||
Common stock, shares issued | 1 | 1 | ||
Common stock, shares outstanding | 1 | 1 | ||
Other long–term assets | $ 343 | |||
Due from Other Related Parties, Noncurrent | $ 2 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
OPERATING ACTIVITIES | ||||
Net income from continuing operations | $ 144 | $ 123 | $ 83 | $ 250 |
Adjustments to determine net cash provided by operating activities: | ||||
Depreciation and amortization | 141 | 88 | 259 | 176 |
Loss (gain) on unrealized derivatives and other realized derivatives in investing activities, net | 11 | (21) | ||
Gain on sale of assets | 0 | (1) | (2) | (2) |
Impairment charges | 0 | 11 | ||
Deferred income taxes, net | (33) | 32 | ||
Equity in net income of non-consolidated affiliates | (1) | 0 | (2) | 0 |
Amortization of debt issuance costs and carrying value adjustments | 14 | 9 | ||
Other, net | (1) | 0 | ||
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||||
Accounts receivable | 52 | 51 | ||
Inventories | 195 | (22) | ||
Accounts payable | (70) | (52) | ||
Other assets | 52 | (2) | ||
Other liabilities | (189) | (128) | ||
Net cash provided by operating activities - continuing operations | 369 | 302 | ||
Net cash used in operating activities - discontinued operations | (21) | 0 | ||
Net cash provided by operating activities | 348 | 302 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | (113) | (141) | (222) | (305) |
Acquisition of business, net of cash and restricted cash acquired | (2,614) | 0 | ||
Proceeds from sales of assets, third party, net of transaction fees and hedging | 2 | 3 | ||
Proceeds from investment in and advances to non-consolidated affiliates, net | 8 | 11 | ||
(Outflows) proceeds from the settlement of derivative instruments, net | (1) | 3 | ||
Other | 5 | 7 | ||
Net cash used in investing activities - continuing operations | (2,822) | (281) | ||
Net cash provided by investing activities - discontinued operations | 207 | 0 | ||
Net cash used in investing activities | (2,615) | (281) | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term and short-term borrowings | 1,910 | 12 | ||
Principal payments of long-term and short-term borrowings | (30) | (11) | ||
Revolving credit facilities and other, net | (358) | (23) | ||
Debt issuance costs | (24) | (2) | ||
Net cash provided by (used in) financing activities - continuing operations | 1,498 | (24) | ||
Net cash used in financing activities - discontinued operations | (2) | 0 | ||
Net cash provided by (used in) financing activities | 1,496 | (24) | ||
Net decrease in cash, cash equivalents and restricted cash | (771) | (3) | ||
Effect of exchange rate changes on cash | 19 | (11) | ||
Cash, cash equivalents and restricted cash — beginning of period | 2,402 | 960 | ||
Cash, cash equivalents and restricted cash — end of period | 1,650 | 946 | 1,650 | 946 |
Cash and cash equivalents | 1,627 | 935 | 1,627 | 935 |
Restricted cash (Included in "Other long–term assets") | 14 | 11 | 14 | 11 |
Restricted cash (Included in "Prepaid expenses and other current assets") | 9 | 0 | 9 | 0 |
Cash and cash equivalents of discontinued operations | $ 0 | $ 0 | 0 | 0 |
Supplemental Disclosures: | ||||
Accrued capital expenditures as of September 30 | 52 | 57 | ||
Accrued merger consideration as of September 30 | $ 10 | $ 0 |
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, 2019 | 1,000 | |||||
Beginning balance at Mar. 31, 2019 | $ 1,071 | $ 0 | $ 1,404 | $ 208 | $ (506) | $ (35) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 250 | 250 | ||||
Currency translation adjustment included in AOCI | (81) | (81) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (11) | (11) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (18) | (15) | (3) | |||
Ending balance, shares at Sep. 30, 2019 | 1,000 | |||||
Ending balance at Sep. 30, 2019 | 1,247 | $ 0 | 1,404 | 458 | (583) | (32) |
Beginning balance, shares at Jun. 30, 2019 | 1,000 | |||||
Beginning balance at Jun. 30, 2019 | 1,223 | $ 0 | 1,404 | 335 | (483) | (33) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 123 | 123 | ||||
Currency translation adjustment included in AOCI | (86) | (86) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (25) | (25) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (12) | (11) | (1) | |||
Ending balance, shares at Sep. 30, 2019 | 1,000 | |||||
Ending balance at Sep. 30, 2019 | 1,247 | $ 0 | 1,404 | 458 | (583) | (32) |
Beginning balance, shares at Mar. 31, 2020 | 1,000 | |||||
Beginning balance at Mar. 31, 2020 | 1,361 | $ 0 | 1,404 | 628 | (620) | (51) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | (116) | (116) | ||||
Currency translation adjustment included in AOCI | 151 | 151 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (52) | (52) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (66) | (63) | (3) | |||
Ending balance, shares at Sep. 30, 2020 | 1,000 | |||||
Ending balance at Sep. 30, 2020 | 1,410 | $ 0 | 1,404 | 512 | (458) | (48) |
Beginning balance, shares at Jun. 30, 2020 | 1,000 | |||||
Beginning balance at Jun. 30, 2020 | 1,287 | $ 0 | 1,404 | 549 | (616) | (50) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | (37) | (37) | ||||
Currency translation adjustment included in AOCI | 96 | 96 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 4 | 4 | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (60) | (58) | (2) | |||
Ending balance, shares at Sep. 30, 2020 | 1,000 | |||||
Ending balance at Sep. 30, 2020 | $ 1,410 | $ 0 | $ 1,404 | $ 512 | $ (458) | $ (48) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,410 | $ 1,247 | $ 1,410 | $ 1,247 |
Net income attributable to our common shareholder | (37) | 123 | (116) | 250 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 96 | (86) | 151 | (81) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 4 | (25) | (52) | (11) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 60 | 12 | 66 | 18 |
Accumulated Other Comprehensive Loss (AOCI) | ||||
Statement of Stockholders' Equity [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 2 | (11) | (19) | (5) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 19 | 6 | 21 | 8 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 2 | (11) | (19) | (5) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 19 | 6 | 21 | 8 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (458) | (583) | (458) | (583) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 96 | (86) | 151 | (81) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 4 | (25) | (52) | (11) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 58 | $ 11 | $ 63 | $ 15 |
Common Stock [Member] | ||||
Shares, Issued | 1,000 | 1,000 | 1,000 | 1,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 0 | $ 0 | $ 0 |
Additional Paid-in Capital [Member] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,404 | 1,404 | 1,404 | 1,404 |
Retained Earnings [Member] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 512 | 458 | 512 | 458 |
Net income attributable to our common shareholder | (37) | 123 | (116) | 250 |
Noncontrolling Interest [Member] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (48) | (32) | (48) | (32) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 2 | $ 1 | $ 3 | $ 3 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References herein to "Novelis," the "Company," "we," "our," or "us" refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to "Hindalco" refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco. Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, aerospace, electronics, architectural, and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of September 30, 2020, we had manufacturing operations in nine countries on four continents: North America, South America, Asia, and Europe, through 33 operating facilities, which may include any combination of hot or cold rolling, finishing, casting, or recycling capabilities. We have recycling operations in 18 of our operating facilities. The March 31, 2020 condensed consolidated balance sheet data was derived from the March 31, 2020 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 fiscal year ended March 31, 2020 filed with the United States Securities and Exchange Commission (SEC) on May 7, 2020. 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 intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control but have the ability to exercise significant influence over operating and financial policies. Consolidated "Net (loss) 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 of non-consolidated affiliates." Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities 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) impairment of goodwill; (2) impairment of long lived assets and other intangible assets; (3) impairment of equity investments; (4) actuarial assumptions related to pension and other postretirement benefit plans; (5) tax uncertainties and valuation allowances; (6) assessment of loss contingencies, including environmental and litigation liabilities; (7) the fair value of derivative financial instruments; and (8) the fair value of the contingent consideration resulting from the sale of Duffel. 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. For more information regarding our use of estimates in the determination of fair values of assets acquired and liabilities assumed in the acquisition of Aleris Corporation (Aleris), see Note 2 – Business Combination. Risks & Uncertainty resulting from COVID-19 Beginning late in the fourth quarter of fiscal year ended March 31, 2020 and carrying into the current fiscal year, a novel strain of the coronavirus, or COVID-19, and its unprecedented negative economic implications, affected production and sales across a range of industries, including the automotive industry. Since then, the spread of COVID-19 has developed into a global pandemic, significantly affecting the economies of most countries around the world. Our global operations, similar to those of many other large, multi-national corporations, were also impacted. We were required to partially shut down or temporarily close certain facilities in the United States and abroad to comply with state orders and governmental decrees and adjust schedules at some of our facilities based on customer demand. The plant shut downs and adjusted schedules resulting from COVID-19 resulted in disruptions to our supply chain, interruptions to our production, and delays of shipments to our customers, mainly during the first quarter of the current fiscal year. While much of our customer demand and shipments recovered in the majority of our end markets during the second fiscal quarter, the overall extent of the impact of the COVID-19 pandemic on our operating results, cash flows, liquidity, and financial condition will depend on certain developments, including the duration and spread of the outbreak and its impact on our customers, employees, and vendors. We believe this will be primarily driven by the severity and duration of the pandemic, the pandemic’s impact on the US and global economies and the timing, scope, and effectiveness of federal, state, and local governmental responses. Our application of U.S. GAAP requires the pervasive use of estimates and assumptions in preparing the unaudited condensed consolidated financial statements. The global COVID-19 pandemic has required greater use of estimates and assumptions. More specifically, those estimates and assumptions that are utilized in our forecasted cash flows that form the basis in developing the fair values utilized in impairment assessments as well as annual effective tax rate. This has included assumptions as to the duration and severity of the pandemic, timing and amount of demand shifts amongst sales channels (primarily in the automotive industry), workforce availability, and supply chain continuity. We have experienced short-term disruptions and anticipate such disruptions may continue for the foreseeable future, but anticipate an eventual return to normal demand. Although we have made our best estimates based upon current information, the effects of the COVID-19 pandemic on our business may result in future changes to our estimates and assumptions based on its duration. Actual results could materially differ from the estimates and assumptions developed by management. If so, we may be subject to future impairment charges as well as changes to recorded reserves and valuations. Business Combinations Occasionally, we may enter into business combinations. In accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations (ASC 805), we generally recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration, and contingencies. Significant estimates and assumptions include subjective and/or complex judgements regarding items such as discount rates, customer attrition rates, economic lives, and other factors, including estimating future cash flows that we expect to generate from the acquired assets. The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record future impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased or the acquired asset could be impaired. Reclassifications and Revisions of Previously Issued Financial Statements Certain prior period amounts have been reclassified to conform with current period presentations or as a result of recently adopted accounting standards. During the preparation of the consolidated financial statements for the fiscal year ended March 31, 2020, we identified a misstatement related to the sale of land within the previously issued Form 10-Ks for the year ended March 31, 2019 and previously issued Form 10-Qs for the quarters ended June 30, 2019 and September 30, 2019. The previously disclosed amounts for "Property, plant and equipment, net" and "Retained earnings" were understated by $5 million in the aforementioned periods. We assessed the materiality of the misstatement and concluded it was not material to the Company’s previously issued financial statements for the year ended March 31, 2019 and that amendments of previously filed financial statements were therefore not required. However, we elected to revise the previously reported amounts in the condensed consolidated statements of shareholder's equity to correct the misstatement. This revision applies to the previously reported amounts for "Retained earnings" in the condensed consolidated statements of shareholder's equity for the interim periods ended June 30, 2019 and September 30, 2019 included within this filing. In addition, during the preparation of the condensed consolidated financial statements for the period ended September 30, 2020, we identified a misstatement related to the calculation of accrued capital expenditures within the statement of cash flows in our previously issued Form 10-Ks for the years ended March 31, 2019 and March 31, 2020 and the interim periods within these years. As a result, the previously reported amounts for "Capital expenditures" were understated by $5 million and changes in accounts payable were overstated by $5 million for the six months ending September 30, 2019. We assessed the materiality of the misstatement and concluded it was not material to the company's previously issued financial statements for the years ended March 31, 2019 and March 31, 2020 and the interim periods within these years. However, we elected to revise the previously reported amounts for "Capital expenditures" and changes in accounts payable within the condensed consolidated statement of cash flows and "Capital expenditures" within Note 19 – Segment, Geographical Area, Major Customer and Major Supplier Information. Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Issued March 2020) April 1, 2020 The standard provides transitional guidance and optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships which reference LIBOR or another reference rate expected to be discontinued. The Company has evaluated the impact of this standard, noting that there is no impact to our current contracts or hedging relationships. The Company will monitor the impact on future transactions through December 31, 2022. ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (Issued December 2019) April 1, 2020 The standard simplifies the accounting for income taxes by eliminating certain exceptions in ASC 740 related to the methodology for calculating income taxes in an interim period. It also clarifies and simplifies other aspects of the accounting for income taxes, improving the consistent application and simplification of U.S. GAAP. The Company elected to early adopt the standard on a prospective basis. The most significant impact to the Company is the removal of a limit on the tax benefit recognized on pre-tax losses in interim periods. The adoption of this standard removed the limit on the tax benefit recognized on pre-tax losses during an interim period, which allowed the Company to recognize a higher tax benefit this quarter than previously allowable. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (Issued October 2018) April 1, 2020 This standard eliminates 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 must consider such indirect interests on a proportionate basis. The Company has evaluated the impact of this standard, noting that there is no impact to our current variable interests. We have updated our accounting policies to ensure appropriate treatment if these are entered into in the future. As such, the adoption of this standard did not have an impact on the condensed consolidated financial statements or disclosures. 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 (Issued August 2018) April 1, 2020 This standard 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. The Company has evaluated the impact of this standard, noting that we do not have these types of arrangements. We have updated our accounting policies to ensure appropriate treatment if these are entered into in the future. As such, the adoption of this standard did not have an impact on the condensed consolidated financial statements or disclosures. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Issued August 2018) April 1, 2020 This standard added requirements for new disclosures such as 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 standard 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 expected to be recognized in net periodic benefit costs over the next fiscal year. The Company has evaluated the impact of this standard. We have updated our pension and postretirement disclosure accordingly, which did not have a material impact on the condensed consolidated financial statements. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Issued January 2017) April 1, 2020 This standard 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. This standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company has evaluated the impact of this standard. We have updated our goodwill impairment assessment process accordingly, which did not have a material impact on the condensed consolidated financial statements. ASU 2016-13 , Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with additional technical improvements and clarifications since issued. (Issued June 2016) April 1, 2020 The standard provides financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The "current expected credit loss" (CECL) model requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. We have updated our policies and processes for reserves against our financial instruments to factor in expected credit losses. This adoption did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Standards (Not yet adopted) Standard Adoption Description Disclosure Impact ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Various The standard provides various codification updates and improvements to address comments received. The Company is currently evaluating the impact of this standard. |
Business Combination
Business Combination | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
2. BUSINESS COMBINATION | 2. BUSINESS COMBINATION On April 14, 2020, Novelis completed its acquisition of 100% of the issued and outstanding shares of Aleris Corporation, a global supplier of rolled aluminum products, pursuant to an Agreement and Plan of Merger, dated as of July 26, 2018 (the “Merger Agreement”). The closing purchase price of $2.8 billion consists of $775 million less transaction costs for the equity value, as well as approximately $2.0 billion for the extinguishment of Aleris’ current outstanding debt, and a $50 million earn-out payment. The $775 million base equity payment was reduced by $64 million of Aleris transaction costs, resulting in $711 million of estimated cash for equity consideration. As a result, the acquisition increases the Company’s footprint as an aluminum rolled products manufacturer by expanding the portfolio of services provided to its customers. Refer to Note 3 – Discontinued Operations for more details on the Duffel and Lewisport divestitures required as a condition of the acquisition. As a condition to the sale of the Duffel plant, we were required by the European Union (EU) to make a €55 million payment (approximately $60 million at the date of acquisition) to support capital improvements at the Duffel plant upon sale. The total preliminary calculation of estimated merger consideration paid to Aleris is as follows: in millions Preliminary calculation of estimated Merger consideration Amount Estimated cash for equity consideration (i) $ 711 Estimated repayment of Aleris' debt (including prepayment penalties and accrued interest) (ii) 1,954 Earn-out consideration (iii) 50 Payment associated with Duffel capital expenditures (iv) 60 Preliminary fair value of estimated merger consideration $ 2,775 (i) Under the terms of the Merger Agreement, this represents the estimated cash consideration, which is the base consideration for the settlement of all shares of common stock outstanding, including shares issued in connection with the conversion of the 6% Senior Subordinated Exchangeable Notes due 2020 issued by Aleris International, Inc. (the “Exchangeable Notes”) into Aleris common shares, and the settlement of stock options and restricted stock units, less transaction costs of $64 million. The transaction costs are removed from the base consideration as these costs were incurred by Aleris prior to the closing date and were not reimbursed by Novelis. Additionally, under the terms of the Merger Agreement, there is a €8 million (approximately $9 million at the date of acquisition) German tax indemnification included in the estimated cash for equity consideration that will be payable to the selling shareholders upon the condition that the existing Aleris German tax receivable is received from the German tax authorities. (ii) On the closing date, all of the outstanding historical debt of Aleris, except for certain non-recourse multi-currency secured term loan facilities (collectively, the “Zhenjiang Term Loans”), was repaid in connection with the merger. In addition, prepayment penalties and accrued interest of approximately $12 million and $16 million, respectively, associated with the Aleris debt were paid in connection with such repayment. (iii) Under the terms of the Merger Agreement, this represents the fair value of the earn-out consideration of $50 million which is based upon Aleris meeting specified commercial margin targets. On the closing date, Aleris had met all of the specified targets in the Merger Agreement and selling shareholders received the $50 million cash payment. (iv) In connection with obtaining the regulatory antitrust approvals, the European Commission required Novelis to pay the buyer of Duffel an additional €55 million (approximately $60 million at the date of acquisition) to fund capital expenditures that would be required so that Duffel can operate as a standalone business. This amount was paid on September 30, 2020 and is included in "Acquisition of business, net of cash and restricted cash acquired" in the condensed consolidated statements of cash flows. The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805. The purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. Goodwill is primarily attributed to synergies from future expected economic benefits, including enhanced revenue growth from expanded capabilities and geographic presence as well as cost savings from duplicative overhead, streamlined operations, and enhanced operational efficiency. The allocation of goodwill to reporting units has not been completed as of the date of this filing. The condensed consolidated balance sheet as of September 30, 2020 includes the assets and liabilities of Aleris, which have been measured at fair value as of the acquisition date. The discontinued operations financial statement line items in the table below relate to Duffel and Lewisport. The preliminary allocation of purchase price recorded for Aleris as of June 30, 2020, and subsequently revised for measurement period adjustments, was as follows: in millions Assets Acquired as of June 30, 2020 (1) Measurement Period Adjustments Assets Acquired as of September 30, 2020 (1) Cash and cash equivalents $ 105 $ — $ 105 Accounts receivable (2) 251 17 268 Inventories 379 — 379 Prepaid expenses and other current assets (3) 24 — 24 Fair value of derivative instruments 46 — 46 Current assets of discontinued operations (4) 463 1 464 Property, plant and equipment 949 — 949 Goodwill (5)(6)(7) 328 88 416 Intangible assets, net (5) 149 261 410 Deferred income tax assets (6) 114 (34) 80 Other long-term assets 39 — 39 Long–term assets of discontinued operations (7) 944 (315) 629 Total assets $ 3,791 $ 18 $ 3,809 Liabilities Assumed as of June 30, 2020 (1) Measurement Period Adjustments Liabilities Assumed as of September 30, 2020 (1) Current portion of long–term debt $ 24 $ — $ 24 Accounts Payable (2) 141 17 158 Fair value of derivative instruments 25 — 25 Accrued expenses and other current liabilities 143 1 144 Current liabilities of discontinued operations 166 — 166 Long–term debt, net of current portion 125 — 125 Deferred income tax liabilities 37 — 37 Accrued postretirement benefits 164 — 164 Other long–term liabilities 41 — 41 Long–term liabilities of discontinued operations 150 — 150 Total liabilities $ 1,016 $ 18 $ 1,034 Net assets acquired $ 2,775 Total purchase price $ 2,775 (1) In connection with the acquisition of Aleris, the Company acquired two businesses which are required to be sold. Therefore, such businesses were classified as held for sale and were included within the "Current assets of discontinued operations," "Long–term assets of discontinued operations," "Current liabilities of discontinued operations," and "Long–term liabilities of discontinued operations" line items in the above preliminary allocation of purchase price (see Note 3 – Discontinued Operations). (2) Measurement period adjustment related to the presentational alignment of pending derivative settlements on a gross basis, in accordance with Novelis' policy. (3) Included in "Prepaid expenses and other current assets" is $9 million of restricted cash acquired related to cash deposits restricted for the payment of the Zhenjiang Term Loans. (4) Included in "Current assets of discontinued operations" is $41 million of cash and cash equivalents acquired related to our discontinued operations. (5) Measurement period adjustment related to revisions in the valuation of intangible assets based on refinements to key assumptions, such as discount rates and growth rates. (6) Measurement period adjustment related to the deferred tax impacts of the above measurement period adjustments and other tax adjustments. (7) Measurement period adjustments related to estimated costs to sell the Duffel and Lewisport businesses, in addition to revisions to key assumptions of the valuation of Lewisport's property, plant and equipment. The fair values of assets acquired and liabilities assumed are preliminary and are based on the information that was available as of the reporting date. The preliminary fair values of the assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, future expected cash flows, and other future events that are judgmental and subject to change. The fair value measurements are primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement in the fair value hierarchy as defined in ASC 820, Fair Value Measurements (ASC 820). Intangible assets consisting of customer relationships, technology, and trade names are valued using the multi-period excess earnings method (MPEEM), or the relief from royalty (RFR) method, both of which are forms of the income approach. A cost and market approach has been applied, as appropriate, for property and equipment, including land, and inventory. • Customer relationship intangible assets are valued using the MPEEM method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue and profit attributable to the asset, retention rate, applicable tax rate, and contributory asset charges, among other factors), the discount rate, reflecting the risks inherent in the future cash flow stream, an assessment of the asset’s life cycle, and the tax amortization benefit, among other factors. • Technology and trade name intangible assets are valued using the RFR method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue attributable to the asset, applicable tax rate, royalty rate, and other factors such as technology related obsolescence rates), the discount rate, reflecting the risks inherent in the future cash flow stream, and the tax amortization benefit, among other factors. • Inventory has been valued using the replacement cost or market approach, as appropriate. The replacement cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, has been used to determine the estimated replacement cost of raw materials. The market approach has been used to determine the estimated selling price less costs to sale for work in progress and finished goods. • Property and equipment, including land, are valued using the cost or market approach, as appropriate. For assets valued using the cost approach, the cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. The market approach, which estimates value by leveraging comparable land sale data/listings and qualitatively comparing them to the in-scope properties, has been used to value the land. • The assumed long-term debt in China has been valued using an income approach. The significant assumptions used include the estimated annual cash flows and interest and credit spreads, among other factors. • The assumed pension and postretirement liabilities have been valued using an income approach. The significant assumptions used include the estimated annual cash flows, the discount rate, the estimated return on asset rate, among other factors. The fair value of the assets acquired includes current accounts receivables of $268 million related to continuing operations and $78 million related to discontinued operations. The gross amount due is $346 million, of which less than $1 million is expected to be uncollectible. The fair value of the assets acquired includes $22 million and $7 million of operating lease right-of-use assets and finance lease assets, respectively. The fair value of liabilities assumed includes $9 million and $7 million of operating lease liabilities and finance lease liabilities, respectively, of which, $4 million and $3 million of operating lease liabilities and finance lease liabilities, respectively, are current liabilities. The Company believes that the information provides a reasonable basis for estimating the fair values of the acquired assets and assumed liabilities, but the potential for measurement period adjustments exists based on the Company’s continued review of matters related to the acquisition. We are in the process of analyzing the estimated values of all assets acquired and liabilities assumed including, among other things, finalizing third-party valuations and the determination of certain tax balances; therefore, the allocation of the purchase price is preliminary and subject to measurement period adjustments. The Company expects to complete the purchase price allocation no later than one year from the acquisition date. The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows: in millions Gross Carrying Amount (1) Weighted-Average Useful Life Trade name $ 10 2.5 years Technology 46 14 years Customer relationships 352 25 years Other intangibles 2 N/A Total $ 410 23 years (1) In connection with the acquisition of Aleris, Novelis acquired two businesses which we are obligated to sell. As such, gross carrying amounts exclude amounts held for sale (see Note 3 – Discontinued Operations). Since the acquisition date, the results of continuing operations for Aleris of $648 million of net sales and $50 million of net loss have been included within the accompanying condensed consolidated statements of operations for the six months ended September 30, 2020. The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations as of September 30, 2020 and 2019 as if the acquisition of Aleris had occurred on April 1, 2019. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of Aleris been completed on April 1, 2019. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Aleris. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Net sales $ 2,979 $ 3,378 $ 5,459 $ 6,838 Net income (loss) 17 149 (81) 175 The unaudited pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the acquisition had occurred on April 1, 2019 to give effect to certain events the Company believes to be directly attributable to the acquisition. These pro forma adjustments primarily include: • the elimination of Aleris historical depreciation and amortization expense and the recognition of new depreciation and amortization expense; • an adjustment to interest expense to reflect (i) the additional borrowings of the Company in conjunction with the acquisition (ii) the repayment of Aleris’ historical debt in conjunction with the acquisition; • an adjustment to present acquisition-related transaction costs and other one-time costs directly attributable to the acquisition as if they were incurred in the earliest period presented; and • the related income tax effects of the adjustments noted above. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On April 14, 2020, we closed the acquisition of Aleris for $2.8 billion. See Note 2 – Business Combination for more details on the acquisition and related accounting treatment. As a result of the antitrust review processes in the EU, the US, and China required for approval of the acquisition, we were obligated to divest Aleris' European and North American automotive assets, including plants in Duffel, Belgium (Duffel) and Lewisport, Kentucky (Lewisport). Duffel On September 30, 2020, we completed the sale of Duffel to Liberty House Group through its subsidiary, ALVANCE, the international aluminum business of the GFG Alliance. Previously, the European Commission and Chinese State Administration for Market Regulation determined that our acquisition of Aleris, which closed earlier this year, could proceed on the condition that we divest Duffel to a third party that met certain buyer suitability requirements. ALVANCE agreed to acquire Duffel for €310 million ($364 million as of September 30, 2020). Both regulators approved ALVANCE as a suitable buyer. At closing on September 30, 2020, we received €210 million ($246 million as of September 30, 2020) in cash and a €100 million ($117 million as of September 30, 2020) receivable that is deemed to be contingent consideration subject to the results of a binding arbitration proceeding under German law that is currently expected to be commenced after the conclusion of a three month contractual cooling off period. The arbitration will determine the responsibility of ALVANCE to Novelis based on the parties’ relative culpability for certain breaches of obligations under the purchase and sale agreement, reduced by certain claims of ALVANCE against Novelis. Arbitration results are inherently uncertain and unpredictable, and there can be no assurance of the result the arbitral tribunal will reach. The arbitrators may award Novelis no more than €100 million and may not award any damages to ALVANCE. In addition, we have recorded a €15 million ($18 million as of September 30, 2020) receivable for net debt and working capital adjustments. We have elected to account for the contingent consideration at fair value and will mark to fair value on a quarterly basis. At September 30, 2020, the estimated fair value of the purchase price subject to arbitration was €93 million ($109 million). We have recorded the contingent consideration in "Other long–term assets — third parties" and changes to the estimated fair value resulting from quarterly revaluations will be recorded to “Net income (loss) from discontinued operations, net of tax." The results of operations and cash flows of Duffel have been presented as discontinued operations in the accompanying condensed consolidated statements of operations and cash flows or the period ended September 30, 2020. Lewisport On August 21, 2020, the United States District Court for the Northern District of Ohio appointed a divestiture trustee to oversee the sale of the Lewisport plant and to make a recommendation to the U.S. Department of Justice (DOJ) regarding a buyer. On November 6, 2020, the DOJ notified us that American Industrial Partners (AIP) was approved as the acquirer of Lewisport. On November 8, 2020, we entered into a definitive agreement with AIP for the sale of Lewisport. We have adjusted the asset value of the Lewisport plant based on our best estimate of the net cash proceeds. This sale is expected to be consummated during the third quarter of fiscal year 2021. The balance sheet position, results of operations, and cash flows of Lewisport have been presented as discontinued operations in the accompanying condensed consolidated balance sheet, statements of operations, and statements of cash flows for the period ended September 30, 2020. Loss on Sale of Discontinued Operations As a result of the transactions above, we recorded a loss on sale of discontinued operations of $170 million, net of taxes, associated with the sale of Duffel and the impairment of the assets of Lewisport to the expected cash proceeds. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
4. REVENUE FROM CONTRACTS WITH CUSTOMERS | 4. 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 occasionally receive advance payments to secure product to be delivered in future periods. These advance payments are recorded as deferred revenue, and revenue is recognized as our performance obligations are satisfied throughout the term of the applicable contract. The following table details the deferred revenue for which our performance obligations have not been satisfied: Total Deferred Revenue Deferred revenue at March 31, 2020 (1) $ 1 Additions 29 Revenue recognized (22) Amounts assumed through acquisition of Aleris 1 Deferred revenue at September 30, 2020 (1) $ 9 ____________________ (1) Deferred revenue is included in "Accrued expenses and other current liabilities" and "Other long–term liabilities" in our condensed consolidated balance sheet. Certain of our contracts contain take-or-pay clauses which allow us to recover an agreed upon penalty if a buyer does not purchase contractual minimums as defined in the underlying contract within a set timeframe, generally within one fiscal year. Additionally, certain of our contracts may contain incentive payments to our customers which are deferred and amortized as a reduction to the amount of revenue recorded on a straight-line basis over the term of these contracts. 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 19 – Segment, Geographical Area, Major Customer and Major Supplier Information for further information about our segment revenue. |
Restructuring and Impairment, N
Restructuring and Impairment, Net | 6 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
5. RESTRUCTURING AND IMPAIRMENT | 5. RESTRUCTURING AND IMPAIRMENT "Restructuring and impairment, net" includes restructuring costs, impairments, and other related expenses. "Restructuring and impairment, net" for the three and six months ended September 30, 2020 totaled $7 million and $8 million, respectively, and primarily relates to reorganization activities resulting from the Aleris acquisition. Of the $8 million recognized during the six months ended September 30, 2020, $5 million relates to employee severance. "Restructuring and impairment, net" for the three and six months ended September 30, 2019 totaled $32 million and $33 million, respectively, and primarily related to portfolio optimization efforts from closures of certain non-core operations in Europe. As of September 30, 2020, the restructuring liability totaled $26 million with $18 million included in "Accrued expenses and other current liabilities" and the remaining is within "Other long–term liabilities" on our accompanying condensed consolidated balance sheet. As of September 30, 2020, the restructuring liability totaled $10 million for the Europe segment, $9 million for South America segment, $4 million for corporate, and $3 million for the North America segment. The following table summarizes our restructuring liability activity and other restructuring and impairment charges. in millions Total restructuring Balance as of March 31, 2020 $ 34 Restructuring expenses 8 Cash payments (16) Balance as of September 30, 2020 $ 26 |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
6. INVENTORIES | 6. INVENTORIES "Inventories" consists of the following. in millions September 30, March 31, Finished goods $ 381 $ 398 Work in process 738 643 Raw materials 328 192 Supplies 192 176 Inventories $ 1,639 $ 1,409 |
Consolidation
Consolidation | 6 Months Ended |
Sep. 30, 2020 | |
Consolidation [Abstract] | |
7. CONSOLIDATION | 7. CONSOLIDATION Variable Interest Entities (VIE) The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. An entity is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Logan Aluminum Inc. (Logan) is a consolidated joint venture in which we hold 40% ownership. Our joint venture partner is 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 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 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 September 30, March 31, ASSETS Current assets: Cash and cash equivalents $ 11 $ 8 Accounts receivable, net 51 24 Inventories 90 92 Prepaid expenses and other current assets 3 3 Total current assets 155 127 Property, plant and equipment, net 12 19 Goodwill 12 12 Deferred income tax assets 75 76 Other long–term assets 7 35 Total assets $ 261 $ 269 LIABILITIES Current liabilities: Accounts payable $ 41 $ 38 Accrued expenses and other current liabilities 24 30 Total current liabilities 65 68 Accrued postretirement benefits 276 287 Other long–term liabilities 4 3 Total liabilities $ 345 $ 358 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 6 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
8. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | 8. 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. See Note 19 – Segment, Geographical Area, Major Customer and Major Supplier Information for the respective carrying values by segment as reported in our condensed consolidated balance sheets. Alunorf Aluminium 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 holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the production capacity of the facility. Alunorf tolls aluminum and charges the respective partner a fee to cover the associated expense. UAL Ulsan Aluminum, Ltd. (UAL) is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe Steel Ltd (Kobe). UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of September 30, 2020, Novelis and Kobe both hold 50% interests in UAL. UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from its investors, Novelis and Kobe. UAL is controlled by an equally represented Board of Directors in which neither entity has sole decision-making ability regarding production operations or other significant decisions. Furthermore, neither entity has the ability to take the majority share of production or associated costs over the life of the joint venture. Our risk of loss is limited to the carrying value of our investment in and inventory-related receivables from UAL. UAL's creditors do not have recourse to our general credit. Therefore, UAL is accounted for as an equity method investment, and Novelis is not considered the primary beneficiary. AluInfra AluInfra Services (AluInfra) is a joint venture investment between Novelis Switzerland SA (Novelis Switzerland), a subsidiary of Novelis, and Constellium N.V. (Constellium). Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the facility. The following table summarizes the results of operations of our equity method affiliates in the aggregate and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Net sales $ 285 $ 308 $ 565 $ 608 Costs and expenses related to net sales 277 302 551 595 Income tax provision 3 2 5 3 Net income $ 5 $ 4 $ 9 $ 10 Purchases of tolling services from Alunorf $ 64 $ 63 $ 125 $ 127 The following table describes the period-end account balances, shown as related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. in millions September 30, March 31, Accounts receivable — related parties $ 163 $ 164 Other long-term assets — related parties 2 — Accounts payable — related parties 220 176 Transactions with Hindalco We occasionally have related party transactions with Hindalco. During the three and six months ended September 30, 2020 and 2019, we recorded "Net sales" of less than $1 million between Novelis and Hindalco related primarily to sales of equipment and other services. As of September 30, 2020 and March 31, 2020, there was $1 million of outstanding "Accounts receivable, net — related parties" net of "Accounts payable — related parties" related to transactions with Hindalco. During each of the three and six months ended September 30, 2020 and 2019, Novelis purchased less than $1 million in raw materials from Hindalco. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
9. DEBT | 9. DEBT Debt consisted of the following. September 30, 2020 March 31, 2020 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short-term borrowings 2.56 % $ 393 $ — $ 393 $ 176 $ — $ 176 ABL Revolver (3) — — — 555 — 555 Novelis Holdings Inc. Short Term Credit Facility, due April 2022 1.21 % 1,100 (7) 1,093 — — — Novelis Inc. Floating rate Term Loan Facility, due June 2022 2.07 % 1,733 (19) 1,714 1,742 (22) 1,720 Aleris Corporation Floating rate Incremental Term Loan Facility, due January 2025 1.97 % 771 (17) 754 — — — Aleris Aluminum (Zhenjiang) Co., Ltd. Zhenjiang Term Loans 5.37 % 134 2 136 — — — Novelis Corporation 4.75% Senior Notes, due January 2030 4.75 % 1,600 (30) 1,570 1,600 (32) 1,568 5.875% Senior Notes, due September 2026 5.875 % 1,500 (15) 1,485 1,500 (16) 1,484 Novelis China Bank loans, due through June 2027 (CNY 409 million) 4.90 % 60 — 60 36 — 36 Other Finance lease obligations and other debt, due through December 2026 2.51 % 10 — 10 1 — 1 Total debt $ 7,301 $ (86) $ 7,215 $ 5,610 $ (70) $ 5,540 Less: Short-term borrowings (393) — (393) (176) — (176) Less: Current portion of long-term debt (55) — (55) (19) — (19) Long-term debt, net of current portion $ 6,853 $ (86) $ 6,767 $ 5,415 $ (70) $ 5,345 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of September 30, 2020, 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. (2) Amounts include unamortized debt issuance costs, fair value adjustments, and debt discounts. (3) As of September 30, 2020, there were $148 million in outstanding borrowings on our ABL revolver classified as "Short-term borrowings." Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of September 30, 2020 (for our debt denominated in foreign currencies) are as follows (in millions). As of September 30, 2020 Amount Short-term borrowings and current portion of long-term debt due within one year $ 448 2 years 2,865 3 years 50 4 years 56 5 years 750 Thereafter 3,132 Total $ 7,301 Short-Term Borrowings As of September 30, 2020, our short-term borrowings totaled $393 million, consisting of $148 million in borrowings on our ABL revolver, $129 million in Korea loans (KRW 152 billion), $68 million in Brazil loans (BRL 384 million), and $48 million in China loans (CNY 324 million). Short Term Credit Agreement In April 2020, Novelis Holdings Inc. borrowed a $1.1 billion short term loan under our existing credit agreement (the "Short Term Credit Agreement") for purposes of funding a portion of the consideration payable in the acquisition of Aleris. The short term loans are not subject to any amortization payments and accrue interest at LIBOR (as defined in the Short Term Credit Agreement) plus 0.95%. The short term loans are 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, other than changes to reflect the unsecured nature of the short term loans. We 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 acquisition of Aleris to repay the short term loans, the incremental term loans and the existing term loans on a pro rata basis, subject to certain reinvestment rights. We will be required to apply 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 reinvestment rights and exceptions, but only to the extent any funds remain after making any mandatory prepayments owed under the Term Loan Facility and the agreement governing our ABL Revolver. In August 2020, we entered into an amendment (the “Short Term Credit Agreement Amendment”) to our existing Short Term Credit Agreement. This amendment extends the maturity of the $1.1 billion facility from April 13, 2021 (the “Original Short Term Maturity Date”) to April 13, 2022 (the “Extended Short Term Maturity Date”). Under the terms of the Short Term Credit Agreement Amendment, $1,049 million of the outstanding short term loans will cashlessly roll on the Original Short Term Maturity Date into new short term loans maturing on the Extended Short Term Maturity Date, and existing lenders have provided commitments to extend $51 million of new short term loans, with a maturity date of the Extended Short Term Maturity Date, on the Original Short Term Maturity Date to refinance the remaining outstanding short term loans. The Short Term Credit Agreement Amendment provides that the Company and certain of its U.S. and Canadian subsidiaries will grant a third-ranking security interest, subject to the terms of our existing intercreditor agreement, dated as of December 17, 2010, in certain assets to secure the Amended Short Term Credit Agreement if the short term loans remain outstanding on the Original Short Term Maturity Date. The short term loans accrue interest at LIBOR (as defined in the Amended Short Term Credit Agreement) plus (a) through the Original Short Term Maturity Date, 0.95%, (b) from the Original Short Term Maturity Date through October 13, 2021, 1.50%, and (c) from October 14, 2021 through the Extended Short Term Maturity Date, 2.00% per annum. The Short Term Credit Agreement Amendment also modifies certain other credit agreement terms to increase our operating flexibility. As of September 30, 2020, we were in compliance with the covenants of our Short Term Credit Agreement. Term Loan Facility In April 2020, Novelis Acquisitions LLC borrowed $775 million under the Company's existing secured term loan credit agreement ("Term Loan Facility") prior to its merger into Aleris Corporation. The proceeds of the incremental term loans were used to pay a portion of the consideration payable in the acquisition of Aleris (including the repayment of Aleris' outstanding indebtedness) as well as fees and expenses related to the acquisition, and the incremental term loans. The incremental term loans will mature on January 21, 2025, subject to 0.25% quarterly amortization payments. The incremental term loans accrue interest at LIBOR (as defined in the Term Loan Facility) plus 1.75%. The incremental term loans are subject to the same voluntary and mandatory prepayment provisions, affirmative and negative covenants and events of default as those applicable to the existing term loans outstanding under our Term Loan Facility. The incremental term loans are guaranteed by the same entities that have provided guarantees under our Term Loan Facility 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 our existing intercreditor agreement. As of September 30, 2020, we were in compliance with the covenants of our Term Loan Facility. Zhenjiang Loans Through the acquisition of Aleris on April 14, 2020, the Company assumed $141 million in debt borrowed by Aleris Aluminum (Zhenjiang) Co., Ltd. ("Aleris Zhenjiang") under a loan agreement comprised of non-recourse multi-currency secured term loan facilities and a revolving facility (collectively the "Zhenjiang Loans"), which consisted of a $29 million U.S. dollar term loan facility, a $112 million (RMB 791 million) term loan facility (collectively, the “Zhenjiang Term Loans”) and a revolving facility (the “Zhenjiang Revolver”). The Zhenjiang Revolver has certain restrictions that have limited our ability to borrow funds on the Zhenjiang Revolver and will continue to limit our ability to borrow funds in the future. All borrowings under the Zhenjiang Revolver mature May 18, 2021. As of September 30, 2020, we had no amounts outstanding under the Zhenjiang Revolver. The Zhenjiang Loans contain certain customary covenants and events of default. The Zhenjiang Loans require Aleris Zhenjiang to, among other things, maintain a certain ratio of outstanding term loans to invested equity capital. In addition, among other things and subject to certain exceptions, Aleris Zhenjiang is restricted in its ability to (1) repay loans extended by the shareholder of Aleris Zhenjiang prior to repaying loans under the Zhenjiang Loans or make the Zhenjiang Loans junior to any other debts incurred of the same class for the project, (2) distribute any dividend or bonus to the shareholder of Aleris Zhenjiang before fully repaying the loans under the Zhenjiang Loans, (3) dispose of any assets in a manner that will materially impair its ability to repay debts, (4) provide guarantees to third parties above a certain threshold that use assets that are financed by the Zhenjiang Loans, (5) permit any individual investor or key management personnel changes that result in a material adverse effect, (6) use any proceeds from the Zhenjiang Loans for any purpose other than as set forth therein; and (7) enter into additional financing to expand or increase the production capacity of the project to manufacture large scale and high strength aluminum alloy plates. The interest rate on the U.S. dollar term facility is six month U.S. dollar LIBOR plus 5.0% and the interest rate on the RMB term facility and the Zhenjiang Revolver is 110% of the base rate applicable to any loan denominated in RMB of the same tenor, as announced by the People’s Bank of China. As of September 30, 2020, $136 million was outstanding on the Zhenjiang Term Loans and the final maturity date for all borrowings is May 16, 2024. The repayment of borrowings under the Zhenjiang Term Loans is due semi-annually. As of September 30, 2020, we were in compliance with the covenants of our Zhenjiang Loans. Senior Notes As of September 30, 2020, we were in compliance with the covenants of our Senior Notes. ABL Revolver As of September 30, 2020, the revolver had an $148 million balance, and $51 million was utilized for letters of credit. There was $930 million in remaining availability, including $124 million of remaining availability that can be utilized for letters of credit, and we were in compliance with the covenants of our ABL Revolver Facility. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
10. SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION During the six months ended September 30, 2020, we granted 4,942,391 Hindalco phantom restricted stock units (RSUs) and 6,815,414 Hindalco Stock Appreciation Rights (Hindalco SARs). Total compensation expense was $5 million and $12 million for the three and six months ended September 30, 2020, respectively. Total compensation expense was $2 million and $6 million for the three and six months ended September 30, 2019, respectively. As of September 30, 2020, the outstanding liability related to share-based compensation was $14 million. The cash payments made to settle all SAR liabilities were $1 million and $3 million in the six months ended September 30, 2020 and 2019, respectively. Total cash payments made to settle RSUs were $4 million and $9 million in the six months ended September 30, 2020 and 2019, respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $6 million, which is expected to be recognized over a weighted average period of 1.6 years. Unrecognized compensation expense related to the RSUs was $11 million, which will be recognized over the remaining weighted average vesting period of 1.6 years. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
11. POSTRETIREMENT BENEFIT PLANS | 11. POSTRETIREMENT BENEFIT PLANS In connection with the acquisition of Aleris Corporation, the Company acquired postretirement benefit plans covering certain employees in Europe and the United States. Upon acquisition, the Company recognized the funded status of the defined benefit plans as an asset or a liability within other long-term assets or other long-term liabilities in the consolidated balance sheet. The plan assets are recognized at fair value. The Company recognizes actuarial gains and losses and prior service costs in the consolidated balance sheet and recognizes changes in these amounts during the year in which changes occur through other comprehensive income. The Company uses various assumptions when computing amounts relating to its defined benefit pension plan obligations and their associated expenses (including the discount rate and the expected rate of return on plan assets). During the second quarter of fiscal 2021, Novelis announced the freeze of future benefit accruals under the Novelis Pension Plan and the Terre Haute Pension Plan in the U.S., effective December 31, 2020. Novelis elected to remeasure both plans’ plan assets and obligations as of August 31, 2020, which was the nearest calendar month-end date to the announcements of said freezes. A curtailment loss of $1 million was recorded related to the Terre Haute plan. Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below. Pension Benefit Plans Other Benefit Plans Three Months Ended September 30, Three Months Ended September 30, in millions 2020 2019 2020 2019 Service cost $ 12 $ 10 $ 2 $ 3 Interest cost 15 15 2 2 Expected return on assets (19) (18) — — Amortization — losses, net 11 9 — — Termination benefits / curtailments 1 — — — Net periodic benefit cost (1) $ 20 $ 16 $ 4 $ 5 Pension Benefit Plans Other Benefit Plans Six Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Service cost $ 24 $ 20 $ 5 $ 6 Interest cost 30 30 4 4 Expected return on assets (38) (36) — — Amortization — losses, net 23 17 — — Termination benefits / curtailments 1 — — — Net periodic benefit cost (1) $ 40 $ 31 $ 9 $ 10 ____________________ (1) Service cost is included within "Cost of goods sold (exclusive of depreciation and amortization)" and "Selling, general and administrative expenses" while all other cost components are recorded within "Other expenses, net." Service costs of $1 million, interest cost of $2 million, and expected return on assets of $2 million included in the table above relate to discontinued operations. The average expected long-term rate of return on all plan assets is 5.3% in fiscal 2021. Employer Contributions to Plans For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to date, and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., U.K., Canada, Germany, Italy, Switzerland, and Brazil. We contributed the following amounts to all plans. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Funded pension plans $ 39 $ 33 $ 49 $ 38 Unfunded pension plans 4 3 7 5 Savings and defined contribution pension plans 7 7 18 17 Total contributions $ 50 $ 43 $ 74 $ 60 |
Currency Losses (Gains)
Currency Losses (Gains) | 6 Months Ended |
Sep. 30, 2020 | |
Foreign Currency [Abstract] | |
12. CURRENCY LOSSES (GAINS) | 12. CURRENCY LOSSES (GAINS) The following currency losses are included in "Other expenses, net" in the accompanying condensed consolidated statements of operations. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Gain on remeasurement of monetary assets and liabilities, net $ (4) $ (1) $ (8) $ (6) Loss recognized on balance sheet remeasurement currency exchange contracts, net 9 2 11 8 Currency losses, net $ 5 $ 1 $ 3 $ 2 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. Six Months Ended September 30, 2020 Fiscal Year Ended March 31, 2020 in millions Cumulative currency translation adjustment — beginning of period $ (309) $ (236) Effect of changes in exchange rates 121 (73) Amounts reclassified from AOCI, net (1) 30 — Cumulative currency translation adjustment — end of period $ (158) $ (309) |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 6 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
13. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | 13. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of the periods presented. September 30, 2020 Assets Liabilities Net Fair Value in millions Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 8 $ — $ (31) $ — $ (23) Currency exchange contracts 3 1 (39) (5) (40) Energy contracts 1 1 (4) (1) (3) Total derivatives designated as hedging instruments $ 12 $ 2 $ (74) $ (6) $ (66) Derivatives not designated as hedging instruments: Metal contracts $ 44 $ 1 $ (62) $ — $ (17) Currency exchange contracts 9 — (16) — (7) Energy contracts — 1 (1) — — Total derivatives not designated as hedging instruments $ 53 $ 2 $ (79) $ — $ (24) Total derivative fair value $ 65 $ 4 $ (153) $ (6) $ (90) March 31, 2020 Assets Liabilities Net Fair Value Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 84 $ — $ (11) $ (3) $ 70 Currency exchange contracts 2 — (68) (7) (73) Energy contracts — — (11) (4) (15) Total derivatives designated as hedging instruments $ 86 $ — $ (90) $ (14) $ (18) Derivatives not designated as hedging instruments: Metal contracts $ 103 $ — $ (92) $ (1) $ 10 Currency exchange contracts 13 — (31) — (18) Energy contracts — — (1) — (1) Total derivatives not designated as hedging instruments $ 116 $ — $ (124) $ (1) $ (9) Total derivative fair value $ 202 $ — $ (214) $ (15) $ (27) ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in "Other long–term assets" 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 September 30, 2020 and March 31, 2020. Price risk arises due to fluctuating aluminum prices between the time the sales order is committed and the time the order is shipped. We identify and designate certain LME aluminum forward purchase contracts as cash flow hedges of the metal price risk associated with our future metal purchases that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year. Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year. In addition to aluminum, we entered into LME copper and zinc, as well as LMP forward contracts. As of September 30, 2020 and March 31, 2020, the fair value of these contracts represented an asset of $3 million and a liability of less than $1 million, respectively. These contracts are undesignated with an average duration of less than three years. The following table summarizes our metal notional amounts in kilotonnes (kt). One kt is 1,000 metric tonnes. in kt September 30, March 31, Hedge type Purchase (sale) Cash flow purchases 29 63 Cash flow sales (491) (395) Not designated (52) (19) Total, net (514) (351) 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 $585 million and $680 million in outstanding foreign currency forwards designated as cash flow hedges as of September 30, 2020 and March 31, 2020, respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We did not have any outstanding foreign currency forwards designated as net investment hedges as of September 30, 2020 and March 31, 2020. As of September 30, 2020 and March 31, 2020, we had outstanding foreign currency exchange contracts with a total notional amount of $803 million and $620 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 third quarter of fiscal year 2021 and offset the remeasurement impact. Energy We own an interest in an electricity swap contract to hedge our exposure to fluctuating electricity prices, which matures on January 5, 2022. As of September 30, 2020 and March 31, 2020, less than 1 million and 1 million of notional megawatt hours was outstanding, respectively. The fair value of this swap was a liability of $3 million and $6 million, respectively. The electricity swap is designated as a cash flow hedge. We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 16 million MMBTUs designated as cash flow hedges as of September 30, 2020, and the fair value was a an asset of $1 million. There was a notional of 15 million MMBTU forward contracts designated as cash flow hedges as of March 31, 2020 and the fair value was a liability of $5 million. As of September 30, 2020 and March 31, 2020, we had notionals of 2 million and less than 1 million MMBTU forward contracts that were not designated as hedges, respectively. The fair value of forward contracts not designated as hedges as of September 30, 2020 and March 31, 2020 were both a liability of less than $1 million. The average duration of undesignated contracts is less than two years in length. One MMBTU is the equivalent of one decatherm, or one million British Thermal Units. We use diesel fuel forward contracts to manage our exposure to fluctuating fuel prices in North America. We had a notional of 4 million gallons designated as cash flow hedges as of September 30, 2020, and the fair value was a liability of $1 million. There was a notional of 7 million gallons designated as cash flow hedges as of March 31, 2020, and the fair value was a liability of $4 million. As of September 30, 2020, we had a notional of less than 1 million gallons forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of September 30, 2020 was liability of less than $1 million, and the average duration of those undesignated contracts is less than one year in length. Interest Rate As of September 30, 2020 and March 31, 2020, we had no outstanding interest rate swaps. Gain (Loss) Recognition In connection with the acquisition of Aleris, the Company acquired a portfolio of derivative financial instruments executed to hedge metal, foreign currency and energy price risk exposures. Historically, Aleris did not designate derivative financial instruments as hedges and therefore, both realized and unrealized gains and losses on derivatives were recorded immediately in the condensed consolidated statement of operations. As of September 30, 2020, we had certain Aleris LME aluminum forward sales contracts designated as cash flow hedges of the metal price risk associated with our future metal sales. The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in "Other expenses, net." Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended September 30 Six Months Ended September 30 in millions 2020 2019 2020 2019 Derivative instruments not designated as hedges Metal contracts $ (7) $ (2) $ (32) $ (4) Currency exchange contracts (8) (2) (11) (8) Energy contracts (1) 3 2 5 3 Loss recognized in "Other expenses, net" (12) (2) (38) (9) Derivative instruments designated as hedges Gain recognized in "Other expenses, net" (2) — 2 — 2 Total loss recognized in "Other expenses, net" $ (12) $ — $ (38) $ (7) Loss recognized on balance sheet remeasurement currency exchange contracts, net $ (9) $ (2) $ (11) $ (8) Realized losses, net (9) (1) — (8) Unrealized gains (losses) on other derivative instruments, net 6 3 (27) 9 Total loss recognized in "Other expenses, net" $ (12) $ — $ (38) $ (7) _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges, and electricity swap settlements. The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow hedges. Within the next twelve months, we expect to reclassify $61 million of losses from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Amount of Gain (Loss) Amount of Gain (Loss) Three Months Ended September 30, Six Months Ended September 30, Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 2020 2019 2020 2019 Cash flow hedging derivatives Metal contracts $ (37) $ 28 $ (59) $ 76 $ — $ — $ — $ — Currency exchange contracts — (43) (8) (42) — 2 — 2 Energy contracts 3 (5) 5 (9) — — — — Total $ (34) $ (20) $ (62) $ 25 $ — $ 2 $ — $ 2 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended September 30, Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Six Months Ended September 30, Location of Gain (Loss) Reclassified in millions 2020 2019 2020 2019 Cash flow hedging derivatives Energy contracts (1) $ (4) $ (1) $ (7) $ (2) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (6) (1) (10) (1) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (15) 23 55 53 Net sales Currency exchange contracts (12) — (23) (1) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts (1) — (2) — Selling, general and administrative expenses Currency exchange contracts (1) (4) (3) (7) Net sales Currency exchange contracts (1) (1) (1) (1) Depreciation and amortization Total $ (40) $ 16 $ 9 $ 41 Income from continuing operations before income tax provision 11 (4) (2) (10) Income tax provision $ (29) $ 12 $ 7 $ 31 Net (loss) gain _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gains (losses) that were reclassified from " Accumulated other comprehensive income (loss) " into earnings and the amount excluded from the assessment of effectiveness for the periods presented. Three Months Ended September 30, 2020 Six Months Ended September 30, 2020 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ (15) $ (6) $ — $ — $ — $ 55 $ (10) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (4) $ — $ — $ — $ — $ (7) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (1) $ (12) $ (1) $ (1) $ — $ (3) $ (23) $ (2) $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 23 $ (1) $ — $ — $ — $ 53 $ (1) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (1) $ — $ — $ — $ — $ (2) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (4) $ — $ — $ (1) $ — $ (7) $ (1) $ — $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 $ — $ — $ — $ — $ 2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
14. ACCUMULATED OTHER COMPREHENSIVE LOSS | 14. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the change in the components o f Accumulated other comprehensive income (loss), net of tax and excluding "Noncontrolling interest," for the periods presented. in millions Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of June 30, 2020 $ (254) $ (82) $ (280) $ (616) Other comprehensive income (loss) before reclassifications 66 (25) 49 90 Amounts reclassified from AOCI, net (3) 30 29 9 68 Net current-period other comprehensive income 96 4 58 158 Balance as of September 30, 2020 $ (158) $ (78) $ (222) $ (458) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of June 30, 2019 $ (231) $ (8) $ (244) $ (483) Other comprehensive (loss) income before reclassifications (86) (13) 5 (94) Amounts reclassified from AOCI, net — (12) 6 (6) Net current-period other comprehensive (loss) income (86) (25) 11 (100) Balance as of September 30, 2019 $ (317) $ (33) $ (233) $ (583) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 121 (45) 45 121 Amounts reclassified from AOCI, net (3) 30 (7) 18 41 Net current-period other comprehensive income (loss) 151 (52) 63 162 Balance as of September 30, 2020 $ (158) $ (78) $ (222) $ (458) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2019 $ (236) $ (22) $ (248) $ (506) Other comprehensive (loss) income before reclassifications (81) 20 3 (58) Amounts reclassified from AOCI, net — (31) 12 (19) Net current-period other comprehensive income (loss) (81) (11) 15 (77) Balance as of September 30, 2019 $ (317) $ (33) $ (233) $ (583) _________________________ (1) For additional information on our cash flow hedges, see Note 13 – Financial Instruments and Commodity Contracts. (2) For additional information on our postretirement benefit plans, see Note 11 – Postretirement Benefit Plans. (3) Amounts reclassified from AOCI relate to currency translation are due to the sale of Duffel. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
15. FAIR VALUE MEASUREMENTS | 15. FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our condensed consolidated balance sheets at fair value. We also disclose the fair values of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions 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, zinc, copper, foreign exchange, natural gas and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum, copper and zinc forward contracts, 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 September 30, 2020, estimated using the method described above, was $40 per megawatt hour, which represented an approximately $3 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $30 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by less than $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 September 30, 2020 and March 31, 2020, 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 September 30, 2020 and March 31, 2020. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. September 30, 2020 March 31, 2020 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 53 $ (93) $ 187 $ (107) Currency exchange contracts 13 (60) 15 (106) Energy contracts 3 (3) — (10) Total level 2 instruments $ 69 $ (156) $ 202 $ (223) Level 3 instruments: Energy contracts — (3) — (6) Total level 3 instruments $ — $ (3) $ — $ (6) Total gross $ 69 $ (159) $ 202 $ (229) Netting adjustment (1) $ (41) $ 41 $ (72) $ 72 Total net $ 28 $ (118) $ 130 $ (157) _________________________ (1) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. There were no unrealized gains (losses) recognized in "Other expenses, net" for the three and six months ended September 30, 2020 related to Level 3 financial instruments. The following table presents a reconciliation of fair value activity for Level 3 derivative contracts. in millions Level 3 – Derivative Instruments (1) Balance as of March 31, 2020 $ (6) Unrealized/realized gain (loss) included in earnings (2) 3 Unrealized/realized gain (loss) included in AOCI (3) 1 Settlements (2) (1) Balance as of September 30, 2020 $ (3) _________________________ (1) Represents net derivative liabilities. (2) Included in "Other expenses, net." (3) Included in "Net change in fair value of effective portion of cash flow hedges." In addition to our derivative assets and liabilities held at fair value, we have a Level 3 receivable related to the contingent consideration for the sale of Duffel to ALVANCE. We have recorded a receivable at a fair value of €93 million ($109 million as of September 30, 2020) measured based on the anticipated outcome, timeline of arbitration of greater than one year, and a discount rate of 5%. See Note 3 – Discontinued Operations for more information. Financial Instruments Not Recorded at Fair Value The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis. The table excludes finance leases and short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term receivables and long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. September 30, 2020 March 31, 2020 in millions Carrying Fair Carrying Fair Long-term receivables from related parties $ 2 $ 2 $ — $ — Total debt — third parties (excluding finance leases and short-term borrowings) 6,812 6,916 5,364 5,267 |
Other Expense (Income), Net
Other Expense (Income), Net | 6 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
16. OTHER EXPENSES, NET | 16. OTHER EXPENSES, NET "Other expenses, net" is comprised of the following. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Currency losses, net (1) $ 5 $ 1 $ 3 $ 2 Unrealized (gains) losses on change in fair value of derivative instruments, net (2) (6) (3) 27 (9) Realized losses on change in fair value of derivative instruments, net (2) 9 1 — 8 Gain on sale of assets, net — (1) (2) (2) Loss on Brazilian tax litigation, net (3) — 1 — 1 Interest income (1) (3) (4) (6) Non-operating net periodic benefit cost (4) 10 8 20 15 Charitable contribution (5) — — 50 — Other, net 1 (2) (1) (3) Other expenses, net $ 18 $ 2 $ 93 $ 6 _________________________ (1) Includes "Loss recognized on balance sheet remeasurement currency exchange contracts, net." See Note 12 – Currency Losses (Gains) for further details. (2) See Note 13 – Financial Instruments and Commodity Contracts for further details. (3) See Note 18 – Commitments and Contingencies for further details. (4) Represents net periodic benefit cost, exclusive of service cost for the Company's pension and other post-retirement plans. (5) Represents a charitable contribution for COVID-19 relief. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
17. INCOME TAXES | 17. INCOME TAXES For the three and six months ended September 30, 2020, we had an effective tax rate of 32% and 33%, respectively. For the three and six months ended September 30, 2019, we had an effective tax rate of 27% and 30%, respectively. These tax rates are primarily due to the results of operations taxed at foreign statutory tax rates that differ from the 25% Canadian tax rate, including withholding taxes, changes to the Brazilian real foreign exchange rate, and certain other non-deductible expenses, offset by tax credits. As of September 30, 2020, we had a net deferred tax asset of $55 million. This amount included gross deferred tax assets of approximately $1,616 million and a valuation allowance of $814 million. It is reasonably possible that our estimates of future taxable income may change within the next twelve months resulting in a change to the valuation allowance in one or more jurisdictions. Tax authorities continue to examine certain of our tax filings for fiscal year 2005 and fiscal years 2011 through 2019. 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 estimated to be up to approximately $1 million. With few exceptions, tax returns for all jurisdictions for all tax years before 2005 are no longer subject to examination by taxing authorities. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted and signed into law in the United States. Certain provisions of the CARES Act impacted the 2020 income tax provision computations by the Company and were reflected in the fourth quarter of fiscal 2020, or the period of enactment. The CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 (fiscal 2020) and 2020 (fiscal 2021). The modifications to Section 163(j) increase the allowable business interest deduction from 30% to 50% of adjusted taxable income (ATI) as well as allow the election to apply 2019 ATI to compute 163(j) for the current year. This modification significantly increased the allowable interest expense deduction of the Company and resulted in significantly less taxable income for the fiscal year ended March 31, 2020 and increased the tax losses for the quarter ended September 30, 2020. Prior to being acquired by Novelis, Aleris entities had significant attributes in the U.S., Germany, and China which required evaluation after the acquisition. For U.S. purposes, a corporation’s ability to deduct its U.S. NOL Carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of IRC Section 382 if it undergoes an ownership change defined as a cumulative stock ownership change among material stockholders exceeding 50% during a rolling three-year period. Based on our preliminary analysis under Section 382, we believe that approximately $202 million of Aleris US federal NOL carryforwards are limited by Section 382 as of September 30, 2020. For state tax purposes, management believes it is more likely than not that a limitation under Section 382 will impair the realizability of the net deferred tax assets and a $16 million valuation allowance has been recorded on the state attributes. Additionally, Aleris Germany had interest carryforwards that were not subject to expiration. However, the business combination will result in an ownership change for German income tax purposes. Therefore, the interest carryforwards are limited and consequently were written off as part of the acquisition in the amount of $4 million. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
18. COMMITMENTS AND CONTINGENCIES | 18. 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 $64 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 September 30, 2020 and March 31, 2020 were approximately $22 million and $8 million, respectively. Of the total $22 million at September 30, 2020, $5 million was associated with restructuring actions and the remaining $17 million is associated with undiscounted environmental clean-up costs. As of September 30, 2020, $7 million is included in "Accrued expenses and other current liabilities" and the remaining is within "Other long–term liabilities" in our accompanying condensed consolidated balance sheets. Brazilian Tax Litigation Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. Total settlement liabilities as of September 30, 2020 and March 31, 2020 were $23 million and $27 million, respectively. As of September 30, 2020, $6 million is included in "Accrued expenses and other current liabilities" and the remaining is within "Other long–term liabilities" in our accompanying condensed consolidated balance sheets. In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. Total liabilities for other disputes and claims were $17 million as of September 30, 2020 and $18 million as of March 31, 2020. As of September 30, 2020, $1 million is included in "Accrued expenses and other current liabilities" and the remaining is within "Other long–term liabilities" in our accompanying condensed consolidated balance sheets. Additionally, we have included in the range of reasonably possible losses disclosed above, any unresolved tax disputes or other contingencies for which a loss is reasonably possible and estimable. The interest cost recorded on these settlement liabilities offset by interest earned on the cash deposits is reported in "Other expenses, net" on the condensed consolidated statement of operations. For additional information, please refer to our Form 10-K for the fiscal year ended March 31, 2020. |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
19. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | 19. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia and South America. All of our segments manufacture aluminum sheet and light gauge products. The following is a description of our operating segments: North America. Headquartered in Atlanta, Georgia, this segment operates 16 plants, including seven with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates 11 plants, including seven with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including three with recycling operations, in two countries. South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operations and operates two plants in Brazil, including one with recycling operations. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 – Business and Summary of Significant Accounting Policies shown in our Form 10-K for the fiscal year ended March 31, 2020. 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) loss on extinguishment of debt"; (g) noncontrolling interest's 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) "income tax provision (benefit)"; (o) cumulative effect of accounting change, net of tax; (p) metal price lag; (q) "business acquisition and other integration related costs"; (r) purchase price accounting adjustments; (s) "income (loss) from discontinued operations, net of tax"; and (t) "loss on sale of discontinued operations, net of tax." The tables below show selected segment financial information (in millions). The "Eliminations and Other" column in the table below includes eliminations and functions that are managed directly from our corporate office that have not been allocated to our operating segments, as well as the adjustments for proportional consolidation and eliminations of intersegment "Net sales." The financial information for our segments includes the results of our affiliates on a proportionately consolidated basis, which is consistent with the way we manage our business segments. In order to reconcile the financial information for the segments shown in the tables below to the relevant U.S. GAAP based measures, we must adjust proportional consolidation of each line item. The "Eliminations and Other" in "Net sales - third party" includes the net sales attributable to our joint venture party, Tri-Arrows, for our Logan affiliate because we consolidate 100% of the Logan joint venture for U.S. GAAP, but we manage our Logan affiliate on a proportionately consolidated basis. See Note 7 – Consolidation and Note 8 – Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis. Selected Segment Financial Information September 30, 2020 North America Europe Asia South America Eliminations and Other (1) Total Investment in and advances to non–consolidated affiliates $ — $ 502 $ 310 $ — $ — $ 812 Total assets 4,809 4,334 2,308 1,629 32 13,112 March 31, 2020 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 465 $ 295 $ — $ — $ 760 Total assets 4,274 3,075 1,737 1,626 277 10,989 Selected Operating Results Three Months Ended September 30, 2020 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 1,192 $ 792 $ 480 $ 425 $ 89 $ 2,978 Net sales - intersegment — 25 4 — (29) — Net sales $ 1,192 $ 817 $ 484 $ 425 $ 60 $ 2,978 Depreciation and amortization $ 65 $ 43 $ 22 $ 17 $ (6) $ 141 Income tax provision 17 2 14 29 6 68 Capital expenditures 41 17 28 29 (2) 113 Selected Operating Results Three Months Ended September 30, 2019 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 1,070 $ 770 $ 478 $ 457 $ 76 $ 2,851 Net sales - intersegment — 38 3 13 (54) — Net sales $ 1,070 $ 808 $ 481 $ 470 $ 22 $ 2,851 Depreciation and amortization $ 38 $ 28 $ 15 $ 17 $ (10) $ 88 Income tax provision (benefit) 11 (3) 5 28 4 45 Capital expenditures 75 13 34 19 — 141 Selected Operating Results Six Months Ended September 30, 2020 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 2,020 $ 1,461 $ 979 $ 770 $ 174 $ 5,404 Net sales - intersegment — 43 10 7 (60) — Net sales $ 2,020 $ 1,504 $ 989 $ 777 $ 114 $ 5,404 Depreciation and amortization $ 114 $ 81 $ 42 $ 35 $ (13) $ 259 Income tax (benefit) provision (16) (8) 24 54 (15) 39 Capital expenditures 89 32 51 53 (3) 222 Selected Operating Results Six Months Ended September 30, 2019 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 2,186 $ 1,522 $ 990 $ 924 $ 154 $ 5,776 Net sales - intersegment — 84 5 25 (114) — Net sales $ 2,186 $ 1,606 $ 995 $ 949 $ 40 $ 5,776 Depreciation and amortization $ 76 $ 57 $ 31 $ 33 $ (21) $ 176 Income tax provision 28 — 13 55 12 108 Capital expenditures 169 23 72 38 3 305 _________________________ (1) Includes assets of discontinued operations. The table below displays the reconciliation from "Net (loss) income attributable to our common shareholder" to segment income from reportable segments. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Net (loss) income attributable to our common shareholder $ (37) $ 123 $ (116) $ 250 Income tax provision 68 45 39 108 Depreciation and amortization 141 88 259 176 Interest expense and amortization of debt issuance costs 70 61 140 126 Adjustment to reconcile proportional consolidation 15 14 29 29 Unrealized (gains) losses on change in fair value of derivative instruments, net (6) (3) 27 (9) Realized losses on derivative instruments not included in segment income 1 1 4 3 Restructuring and impairment, net 7 32 8 33 Gain on sale of fixed assets — (1) (2) (2) Purchase price accounting adjustments 1 — 29 — Loss from discontinued operations, net of tax 11 — 29 — Loss on sale of discontinued operations, net of tax 170 — 170 — Metal price lag 12 5 32 7 Business acquisition and other integration related costs — 12 11 29 Other, net 2 (3) 49 (4) Segment income from reportable segments $ 455 $ 374 $ 708 $ 746 "Business acquisition and other integration related costs" are primarily legal and professional fees associated with our acquisition of Aleris. "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 on derivative instruments not included in segment income" represents foreign currency derivatives not related to operations. "Purchase price accounting adjustments" primarily relates to the relief of the inventory step-up related to the acquired Aleris business. "Other, net" related primarily relates to a charitable contribution as well as interest income. The table below displays segment income from reportable segments by region. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 North America $ 205 $ 171 $ 283 $ 341 Europe 63 60 83 113 Asia 74 46 149 99 South America 112 97 188 193 Eliminations and other 1 — 5 — Segment income from reportable segments $ 455 $ 374 $ 708 $ 746 Information about Product Sales, Major Customers and Primary Supplier Product Sales The following table displays our "Net sales" by value stream. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Can $ 1,455 $ 1,591 $ 2,835 $ 3,178 Automotive 654 672 967 1,381 Aerospace and industrial plate 93 — 195 — Specialty 776 588 1,407 1,217 Net sales $ 2,978 $ 2,851 $ 5,404 $ 5,776 Major Customers The following table displays net sales to customers representing 10% or more of our total "Net sales" for any of the periods presented. Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Ball 14 % 23 % 15 % 22 % Ford 9 10 7 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 September 30, Six Months Ended September 30, 2020 2019 2020 2019 Purchases from RT as a percentage of total combined metal purchases 9 % 11 % 8 % 11 % |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, aerospace, electronics, architectural, and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of September 30, 2020, we had manufacturing operations in nine countries on four continents: North America, South America, Asia, and Europe, through 33 operating facilities, which may include any combination of hot or cold rolling, finishing, casting, or recycling capabilities. We have recycling operations in 18 of our operating facilities. The March 31, 2020 condensed consolidated balance sheet data was derived from the March 31, 2020 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 fiscal year ended March 31, 2020 filed with the United States Securities and Exchange Commission (SEC) on May 7, 2020. 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 intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control but have the ability to exercise significant influence over operating and financial policies. Consolidated "Net (loss) 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 of non-consolidated affiliates." |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities 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) impairment of goodwill; (2) impairment of long lived assets and other intangible assets; (3) impairment of equity investments; (4) actuarial assumptions related to pension and other postretirement benefit plans; (5) tax uncertainties and valuation allowances; (6) assessment of loss contingencies, including environmental and litigation liabilities; (7) the fair value of derivative financial instruments; and (8) the fair value of the contingent consideration resulting from the sale of Duffel. 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. For more information regarding our use of estimates in the determination of fair values of assets acquired and liabilities assumed in the acquisition of Aleris Corporation (Aleris), see Note 2 – Business Combination. |
Business Combinations Policy | Business Combinations Occasionally, we may enter into business combinations. In accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations (ASC 805), we generally recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition. We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities including those related to debt, pensions and other postretirement plans, uncertain tax positions, contingent consideration, and contingencies. Significant estimates and assumptions include subjective and/or complex judgements regarding items such as discount rates, customer attrition rates, economic lives, and other factors, including estimating future cash flows that we expect to generate from the acquired assets. The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record future impairment charges. In addition, we have estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation or amortization expenses could be increased or decreased or the acquired asset could be impaired. |
Reclassification, Comparability Adjustment | Reclassifications and Revisions of Previously Issued Financial Statements Certain prior period amounts have been reclassified to conform with current period presentations or as a result of recently adopted accounting standards. During the preparation of the consolidated financial statements for the fiscal year ended March 31, 2020, we identified a misstatement related to the sale of land within the previously issued Form 10-Ks for the year ended March 31, 2019 and previously issued Form 10-Qs for the quarters ended June 30, 2019 and September 30, 2019. The previously disclosed amounts for "Property, plant and equipment, net" and "Retained earnings" were understated by $5 million in the aforementioned periods. We assessed the materiality of the misstatement and concluded it was not material to the Company’s previously issued financial statements for the year ended March 31, 2019 and that amendments of previously filed financial statements were therefore not required. However, we elected to revise the previously reported amounts in the condensed consolidated statements of shareholder's equity to correct the misstatement. This revision applies to the previously reported amounts for "Retained earnings" in the condensed consolidated statements of shareholder's equity for the interim periods ended June 30, 2019 and September 30, 2019 included within this filing. In addition, during the preparation of the condensed consolidated financial statements for the period ended September 30, 2020, we identified a misstatement related to the calculation of accrued capital expenditures within the statement of cash flows in our previously issued Form 10-Ks for the years ended March 31, 2019 and March 31, 2020 and the interim periods within these years. As a result, the previously reported amounts for "Capital expenditures" were understated by $5 million and changes in accounts payable were overstated by $5 million for the six months ending September 30, 2019. We assessed the materiality of the misstatement and concluded it was not material to the company's previously issued financial statements for the years ended March 31, 2019 and March 31, 2020 and the interim periods within these years. However, we elected to revise the previously reported amounts for "Capital expenditures" and changes in accounts payable within the condensed consolidated statement of cash flows and "Capital expenditures" within Note 19 – Segment, Geographical Area, Major Customer and Major Supplier Information. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Issued March 2020) April 1, 2020 The standard provides transitional guidance and optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships which reference LIBOR or another reference rate expected to be discontinued. The Company has evaluated the impact of this standard, noting that there is no impact to our current contracts or hedging relationships. The Company will monitor the impact on future transactions through December 31, 2022. ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (Issued December 2019) April 1, 2020 The standard simplifies the accounting for income taxes by eliminating certain exceptions in ASC 740 related to the methodology for calculating income taxes in an interim period. It also clarifies and simplifies other aspects of the accounting for income taxes, improving the consistent application and simplification of U.S. GAAP. The Company elected to early adopt the standard on a prospective basis. The most significant impact to the Company is the removal of a limit on the tax benefit recognized on pre-tax losses in interim periods. The adoption of this standard removed the limit on the tax benefit recognized on pre-tax losses during an interim period, which allowed the Company to recognize a higher tax benefit this quarter than previously allowable. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (Issued October 2018) April 1, 2020 This standard eliminates 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 must consider such indirect interests on a proportionate basis. The Company has evaluated the impact of this standard, noting that there is no impact to our current variable interests. We have updated our accounting policies to ensure appropriate treatment if these are entered into in the future. As such, the adoption of this standard did not have an impact on the condensed consolidated financial statements or disclosures. 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 (Issued August 2018) April 1, 2020 This standard 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. The Company has evaluated the impact of this standard, noting that we do not have these types of arrangements. We have updated our accounting policies to ensure appropriate treatment if these are entered into in the future. As such, the adoption of this standard did not have an impact on the condensed consolidated financial statements or disclosures. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Issued August 2018) April 1, 2020 This standard added requirements for new disclosures such as 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 standard 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 expected to be recognized in net periodic benefit costs over the next fiscal year. The Company has evaluated the impact of this standard. We have updated our pension and postretirement disclosure accordingly, which did not have a material impact on the condensed consolidated financial statements. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Issued January 2017) April 1, 2020 This standard 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. This standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company has evaluated the impact of this standard. We have updated our goodwill impairment assessment process accordingly, which did not have a material impact on the condensed consolidated financial statements. ASU 2016-13 , Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with additional technical improvements and clarifications since issued. (Issued June 2016) April 1, 2020 The standard provides financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The "current expected credit loss" (CECL) model requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. We have updated our policies and processes for reserves against our financial instruments to factor in expected credit losses. This adoption did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Standards (Not yet adopted) Standard Adoption Description Disclosure Impact ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Various The standard provides various codification updates and improvements to address comments received. The Company is currently evaluating the impact of this standard. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Issued March 2020) April 1, 2020 The standard provides transitional guidance and optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships which reference LIBOR or another reference rate expected to be discontinued. The Company has evaluated the impact of this standard, noting that there is no impact to our current contracts or hedging relationships. The Company will monitor the impact on future transactions through December 31, 2022. ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (Issued December 2019) April 1, 2020 The standard simplifies the accounting for income taxes by eliminating certain exceptions in ASC 740 related to the methodology for calculating income taxes in an interim period. It also clarifies and simplifies other aspects of the accounting for income taxes, improving the consistent application and simplification of U.S. GAAP. The Company elected to early adopt the standard on a prospective basis. The most significant impact to the Company is the removal of a limit on the tax benefit recognized on pre-tax losses in interim periods. The adoption of this standard removed the limit on the tax benefit recognized on pre-tax losses during an interim period, which allowed the Company to recognize a higher tax benefit this quarter than previously allowable. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (Issued October 2018) April 1, 2020 This standard eliminates 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 must consider such indirect interests on a proportionate basis. The Company has evaluated the impact of this standard, noting that there is no impact to our current variable interests. We have updated our accounting policies to ensure appropriate treatment if these are entered into in the future. As such, the adoption of this standard did not have an impact on the condensed consolidated financial statements or disclosures. 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 (Issued August 2018) April 1, 2020 This standard 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. The Company has evaluated the impact of this standard, noting that we do not have these types of arrangements. We have updated our accounting policies to ensure appropriate treatment if these are entered into in the future. As such, the adoption of this standard did not have an impact on the condensed consolidated financial statements or disclosures. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Issued August 2018) April 1, 2020 This standard added requirements for new disclosures such as 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 standard 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 expected to be recognized in net periodic benefit costs over the next fiscal year. The Company has evaluated the impact of this standard. We have updated our pension and postretirement disclosure accordingly, which did not have a material impact on the condensed consolidated financial statements. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Issued January 2017) April 1, 2020 This standard 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. This standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company has evaluated the impact of this standard. We have updated our goodwill impairment assessment process accordingly, which did not have a material impact on the condensed consolidated financial statements. ASU 2016-13 , Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with additional technical improvements and clarifications since issued. (Issued June 2016) April 1, 2020 The standard provides financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The "current expected credit loss" (CECL) model requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. We have updated our policies and processes for reserves against our financial instruments to factor in expected credit losses. This adoption did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Standards (Not yet adopted) Standard Adoption Description Disclosure Impact ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Various The standard provides various codification updates and improvements to address comments received. The Company is currently evaluating the impact of this standard. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The total preliminary calculation of estimated merger consideration paid to Aleris is as follows: in millions Preliminary calculation of estimated Merger consideration Amount Estimated cash for equity consideration (i) $ 711 Estimated repayment of Aleris' debt (including prepayment penalties and accrued interest) (ii) 1,954 Earn-out consideration (iii) 50 Payment associated with Duffel capital expenditures (iv) 60 Preliminary fair value of estimated merger consideration $ 2,775 (i) Under the terms of the Merger Agreement, this represents the estimated cash consideration, which is the base consideration for the settlement of all shares of common stock outstanding, including shares issued in connection with the conversion of the 6% Senior Subordinated Exchangeable Notes due 2020 issued by Aleris International, Inc. (the “Exchangeable Notes”) into Aleris common shares, and the settlement of stock options and restricted stock units, less transaction costs of $64 million. The transaction costs are removed from the base consideration as these costs were incurred by Aleris prior to the closing date and were not reimbursed by Novelis. Additionally, under the terms of the Merger Agreement, there is a €8 million (approximately $9 million at the date of acquisition) German tax indemnification included in the estimated cash for equity consideration that will be payable to the selling shareholders upon the condition that the existing Aleris German tax receivable is received from the German tax authorities. (ii) On the closing date, all of the outstanding historical debt of Aleris, except for certain non-recourse multi-currency secured term loan facilities (collectively, the “Zhenjiang Term Loans”), was repaid in connection with the merger. In addition, prepayment penalties and accrued interest of approximately $12 million and $16 million, respectively, associated with the Aleris debt were paid in connection with such repayment. (iii) Under the terms of the Merger Agreement, this represents the fair value of the earn-out consideration of $50 million which is based upon Aleris meeting specified commercial margin targets. On the closing date, Aleris had met all of the specified targets in the Merger Agreement and selling shareholders received the $50 million cash payment. (iv) In connection with obtaining the regulatory antitrust approvals, the European Commission required Novelis to pay the buyer of Duffel an additional €55 million (approximately $60 million at the date of acquisition) to fund capital expenditures that would be required so that Duffel can operate as a standalone business. This amount was paid on September 30, 2020 and is included in "Acquisition of business, net of cash and restricted cash acquired" in the condensed consolidated statements of cash flows. The condensed consolidated balance sheet as of September 30, 2020 includes the assets and liabilities of Aleris, which have been measured at fair value as of the acquisition date. The discontinued operations financial statement line items in the table below relate to Duffel and Lewisport. The preliminary allocation of purchase price recorded for Aleris as of June 30, 2020, and subsequently revised for measurement period adjustments, was as follows: in millions Assets Acquired as of June 30, 2020 (1) Measurement Period Adjustments Assets Acquired as of September 30, 2020 (1) Cash and cash equivalents $ 105 $ — $ 105 Accounts receivable (2) 251 17 268 Inventories 379 — 379 Prepaid expenses and other current assets (3) 24 — 24 Fair value of derivative instruments 46 — 46 Current assets of discontinued operations (4) 463 1 464 Property, plant and equipment 949 — 949 Goodwill (5)(6)(7) 328 88 416 Intangible assets, net (5) 149 261 410 Deferred income tax assets (6) 114 (34) 80 Other long-term assets 39 — 39 Long–term assets of discontinued operations (7) 944 (315) 629 Total assets $ 3,791 $ 18 $ 3,809 Liabilities Assumed as of June 30, 2020 (1) Measurement Period Adjustments Liabilities Assumed as of September 30, 2020 (1) Current portion of long–term debt $ 24 $ — $ 24 Accounts Payable (2) 141 17 158 Fair value of derivative instruments 25 — 25 Accrued expenses and other current liabilities 143 1 144 Current liabilities of discontinued operations 166 — 166 Long–term debt, net of current portion 125 — 125 Deferred income tax liabilities 37 — 37 Accrued postretirement benefits 164 — 164 Other long–term liabilities 41 — 41 Long–term liabilities of discontinued operations 150 — 150 Total liabilities $ 1,016 $ 18 $ 1,034 Net assets acquired $ 2,775 Total purchase price $ 2,775 (1) In connection with the acquisition of Aleris, the Company acquired two businesses which are required to be sold. Therefore, such businesses were classified as held for sale and were included within the "Current assets of discontinued operations," "Long–term assets of discontinued operations," "Current liabilities of discontinued operations," and "Long–term liabilities of discontinued operations" line items in the above preliminary allocation of purchase price (see Note 3 – Discontinued Operations). (2) Measurement period adjustment related to the presentational alignment of pending derivative settlements on a gross basis, in accordance with Novelis' policy. (3) Included in "Prepaid expenses and other current assets" is $9 million of restricted cash acquired related to cash deposits restricted for the payment of the Zhenjiang Term Loans. (4) Included in "Current assets of discontinued operations" is $41 million of cash and cash equivalents acquired related to our discontinued operations. (5) Measurement period adjustment related to revisions in the valuation of intangible assets based on refinements to key assumptions, such as discount rates and growth rates. (6) Measurement period adjustment related to the deferred tax impacts of the above measurement period adjustments and other tax adjustments. (7) Measurement period adjustments related to estimated costs to sell the Duffel and Lewisport businesses, in addition to revisions to key assumptions of the valuation of Lewisport's property, plant and equipment. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows: in millions Gross Carrying Amount (1) Weighted-Average Useful Life Trade name $ 10 2.5 years Technology 46 14 years Customer relationships 352 25 years Other intangibles 2 N/A Total $ 410 23 years (1) In connection with the acquisition of Aleris, Novelis acquired two businesses which we are obligated to sell. As such, gross carrying amounts exclude amounts held for sale (see Note 3 – Discontinued Operations). |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations as of September 30, 2020 and 2019 as if the acquisition of Aleris had occurred on April 1, 2019. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of Aleris been completed on April 1, 2019. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Aleris. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Net sales $ 2,979 $ 3,378 $ 5,459 $ 6,838 Net income (loss) 17 149 (81) 175 |
Revenue from Contract with Cust
Revenue from Contract with Customer (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure | The following table details the deferred revenue for which our performance obligations have not been satisfied: Total Deferred Revenue Deferred revenue at March 31, 2020 (1) $ 1 Additions 29 Revenue recognized (22) Amounts assumed through acquisition of Aleris 1 Deferred revenue at September 30, 2020 (1) $ 9 ____________________ (1) Deferred revenue is included in "Accrued expenses and other current liabilities" and "Other long–term liabilities" in our condensed consolidated balance sheet. |
Restructuring and Impairment,_2
Restructuring and Impairment, Net (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Liability Activity | The following table summarizes our restructuring liability activity and other restructuring and impairment charges. in millions Total restructuring Balance as of March 31, 2020 $ 34 Restructuring expenses 8 Cash payments (16) Balance as of September 30, 2020 $ 26 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | "Inventories" consists of the following. in millions September 30, March 31, Finished goods $ 381 $ 398 Work in process 738 643 Raw materials 328 192 Supplies 192 176 Inventories $ 1,639 $ 1,409 |
Consolidation (Tables)
Consolidation (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Consolidation [Abstract] | |
Schedule of variable interest entity | The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets. in millions September 30, March 31, ASSETS Current assets: Cash and cash equivalents $ 11 $ 8 Accounts receivable, net 51 24 Inventories 90 92 Prepaid expenses and other current assets 3 3 Total current assets 155 127 Property, plant and equipment, net 12 19 Goodwill 12 12 Deferred income tax assets 75 76 Other long–term assets 7 35 Total assets $ 261 $ 269 LIABILITIES Current liabilities: Accounts payable $ 41 $ 38 Accrued expenses and other current liabilities 24 30 Total current liabilities 65 68 Accrued postretirement benefits 276 287 Other long–term liabilities 4 3 Total liabilities $ 345 $ 358 |
Investment In and Advances to_2
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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 in the aggregate and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Net sales $ 285 $ 308 $ 565 $ 608 Costs and expenses related to net sales 277 302 551 595 Income tax provision 3 2 5 3 Net income $ 5 $ 4 $ 9 $ 10 Purchases of tolling services from Alunorf $ 64 $ 63 $ 125 $ 127 |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table describes the period-end account balances, shown as related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. in millions September 30, March 31, Accounts receivable — related parties $ 163 $ 164 Other long-term assets — related parties 2 — Accounts payable — related parties 220 176 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consisted of the following. September 30, 2020 March 31, 2020 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short-term borrowings 2.56 % $ 393 $ — $ 393 $ 176 $ — $ 176 ABL Revolver (3) — — — 555 — 555 Novelis Holdings Inc. Short Term Credit Facility, due April 2022 1.21 % 1,100 (7) 1,093 — — — Novelis Inc. Floating rate Term Loan Facility, due June 2022 2.07 % 1,733 (19) 1,714 1,742 (22) 1,720 Aleris Corporation Floating rate Incremental Term Loan Facility, due January 2025 1.97 % 771 (17) 754 — — — Aleris Aluminum (Zhenjiang) Co., Ltd. Zhenjiang Term Loans 5.37 % 134 2 136 — — — Novelis Corporation 4.75% Senior Notes, due January 2030 4.75 % 1,600 (30) 1,570 1,600 (32) 1,568 5.875% Senior Notes, due September 2026 5.875 % 1,500 (15) 1,485 1,500 (16) 1,484 Novelis China Bank loans, due through June 2027 (CNY 409 million) 4.90 % 60 — 60 36 — 36 Other Finance lease obligations and other debt, due through December 2026 2.51 % 10 — 10 1 — 1 Total debt $ 7,301 $ (86) $ 7,215 $ 5,610 $ (70) $ 5,540 Less: Short-term borrowings (393) — (393) (176) — (176) Less: Current portion of long-term debt (55) — (55) (19) — (19) Long-term debt, net of current portion $ 6,853 $ (86) $ 6,767 $ 5,415 $ (70) $ 5,345 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of September 30, 2020, 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. (2) Amounts include unamortized debt issuance costs, fair value adjustments, and debt discounts. (3) As of September 30, 2020, there were $148 million in outstanding borrowings on our ABL revolver classified as "Short-term borrowings." |
Principal repayment requirements for total debt over the next five years and thereafter | Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of September 30, 2020 (for our debt denominated in foreign currencies) are as follows (in millions). As of September 30, 2020 Amount Short-term borrowings and current portion of long-term debt due within one year $ 448 2 years 2,865 3 years 50 4 years 56 5 years 750 Thereafter 3,132 Total $ 7,301 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below. Pension Benefit Plans Other Benefit Plans Three Months Ended September 30, Three Months Ended September 30, in millions 2020 2019 2020 2019 Service cost $ 12 $ 10 $ 2 $ 3 Interest cost 15 15 2 2 Expected return on assets (19) (18) — — Amortization — losses, net 11 9 — — Termination benefits / curtailments 1 — — — Net periodic benefit cost (1) $ 20 $ 16 $ 4 $ 5 Pension Benefit Plans Other Benefit Plans Six Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Service cost $ 24 $ 20 $ 5 $ 6 Interest cost 30 30 4 4 Expected return on assets (38) (36) — — Amortization — losses, net 23 17 — — Termination benefits / curtailments 1 — — — Net periodic benefit cost (1) $ 40 $ 31 $ 9 $ 10 ____________________ |
Contributions to employee benefit plans | We contributed the following amounts to all plans. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Funded pension plans $ 39 $ 33 $ 49 $ 38 Unfunded pension plans 4 3 7 5 Savings and defined contribution pension plans 7 7 18 17 Total contributions $ 50 $ 43 $ 74 $ 60 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Foreign Currency [Abstract] | |
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. Six Months Ended September 30, 2020 Fiscal Year Ended March 31, 2020 in millions Cumulative currency translation adjustment — beginning of period $ (309) $ (236) Effect of changes in exchange rates 121 (73) Amounts reclassified from AOCI, net (1) 30 — Cumulative currency translation adjustment — end of period $ (158) $ (309) |
Currency (gains) losses included in Other (income) expense, net | The following currency losses are included in "Other expenses, net" in the accompanying condensed consolidated statements of operations. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Gain on remeasurement of monetary assets and liabilities, net $ (4) $ (1) $ (8) $ (6) Loss recognized on balance sheet remeasurement currency exchange contracts, net 9 2 11 8 Currency losses, net $ 5 $ 1 $ 3 $ 2 |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of financial instruments and commodity contracts | The following tables summarize the gross fair values of our financial instruments and commodity contracts as of the periods presented. September 30, 2020 Assets Liabilities Net Fair Value in millions Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 8 $ — $ (31) $ — $ (23) Currency exchange contracts 3 1 (39) (5) (40) Energy contracts 1 1 (4) (1) (3) Total derivatives designated as hedging instruments $ 12 $ 2 $ (74) $ (6) $ (66) Derivatives not designated as hedging instruments: Metal contracts $ 44 $ 1 $ (62) $ — $ (17) Currency exchange contracts 9 — (16) — (7) Energy contracts — 1 (1) — — Total derivatives not designated as hedging instruments $ 53 $ 2 $ (79) $ — $ (24) Total derivative fair value $ 65 $ 4 $ (153) $ (6) $ (90) March 31, 2020 Assets Liabilities Net Fair Value Current Noncurrent (1) Current Noncurrent (1) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 84 $ — $ (11) $ (3) $ 70 Currency exchange contracts 2 — (68) (7) (73) Energy contracts — — (11) (4) (15) Total derivatives designated as hedging instruments $ 86 $ — $ (90) $ (14) $ (18) Derivatives not designated as hedging instruments: Metal contracts $ 103 $ — $ (92) $ (1) $ 10 Currency exchange contracts 13 — (31) — (18) Energy contracts — — (1) — (1) Total derivatives not designated as hedging instruments $ 116 $ — $ (124) $ (1) $ (9) Total derivative fair value $ 202 $ — $ (214) $ (15) $ (27) ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in "Other long–term assets" and in "Other long–term liabilities," respectively, in the accompanying condensed consolidated balance sheets . |
Summary of notional amount | The following table summarizes our metal notional amounts in kilotonnes (kt). One kt is 1,000 metric tonnes. in kt September 30, March 31, Hedge type Purchase (sale) Cash flow purchases 29 63 Cash flow sales (491) (395) Not designated (52) (19) Total, net (514) (351) |
Derivative instruments, gain (loss) recognition | The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in "Other expenses, net." Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended September 30 Six Months Ended September 30 in millions 2020 2019 2020 2019 Derivative instruments not designated as hedges Metal contracts $ (7) $ (2) $ (32) $ (4) Currency exchange contracts (8) (2) (11) (8) Energy contracts (1) 3 2 5 3 Loss recognized in "Other expenses, net" (12) (2) (38) (9) Derivative instruments designated as hedges Gain recognized in "Other expenses, net" (2) — 2 — 2 Total loss recognized in "Other expenses, net" $ (12) $ — $ (38) $ (7) Loss recognized on balance sheet remeasurement currency exchange contracts, net $ (9) $ (2) $ (11) $ (8) Realized losses, net (9) (1) — (8) Unrealized gains (losses) on other derivative instruments, net 6 3 (27) 9 Total loss recognized in "Other expenses, net" $ (12) $ — $ (38) $ (7) _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges, and electricity swap settlements. |
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 hedges. Within the next twelve months, we expect to reclassify $61 million of losses from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Amount of Gain (Loss) Amount of Gain (Loss) Three Months Ended September 30, Six Months Ended September 30, Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 2020 2019 2020 2019 Cash flow hedging derivatives Metal contracts $ (37) $ 28 $ (59) $ 76 $ — $ — $ — $ — Currency exchange contracts — (43) (8) (42) — 2 — 2 Energy contracts 3 (5) 5 (9) — — — — Total $ (34) $ (20) $ (62) $ 25 $ — $ 2 $ — $ 2 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended September 30, Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Six Months Ended September 30, Location of Gain (Loss) Reclassified in millions 2020 2019 2020 2019 Cash flow hedging derivatives Energy contracts (1) $ (4) $ (1) $ (7) $ (2) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (6) (1) (10) (1) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (15) 23 55 53 Net sales Currency exchange contracts (12) — (23) (1) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts (1) — (2) — Selling, general and administrative expenses Currency exchange contracts (1) (4) (3) (7) Net sales Currency exchange contracts (1) (1) (1) (1) Depreciation and amortization Total $ (40) $ 16 $ 9 $ 41 Income from continuing operations before income tax provision 11 (4) (2) (10) Income tax provision $ (29) $ 12 $ 7 $ 31 Net (loss) gain _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gains (losses) that were reclassified from " Accumulated other comprehensive income (loss) " into earnings and the amount excluded from the assessment of effectiveness for the periods presented. Three Months Ended September 30, 2020 Six Months Ended September 30, 2020 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ (15) $ (6) $ — $ — $ — $ 55 $ (10) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (4) $ — $ — $ — $ — $ (7) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (1) $ (12) $ (1) $ (1) $ — $ (3) $ (23) $ (2) $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated other comprehensive income, net of tax | The following tables summarize the change in the components o f Accumulated other comprehensive income (loss), net of tax and excluding "Noncontrolling interest," for the periods presented. in millions Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of June 30, 2020 $ (254) $ (82) $ (280) $ (616) Other comprehensive income (loss) before reclassifications 66 (25) 49 90 Amounts reclassified from AOCI, net (3) 30 29 9 68 Net current-period other comprehensive income 96 4 58 158 Balance as of September 30, 2020 $ (158) $ (78) $ (222) $ (458) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of June 30, 2019 $ (231) $ (8) $ (244) $ (483) Other comprehensive (loss) income before reclassifications (86) (13) 5 (94) Amounts reclassified from AOCI, net — (12) 6 (6) Net current-period other comprehensive (loss) income (86) (25) 11 (100) Balance as of September 30, 2019 $ (317) $ (33) $ (233) $ (583) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 121 (45) 45 121 Amounts reclassified from AOCI, net (3) 30 (7) 18 41 Net current-period other comprehensive income (loss) 151 (52) 63 162 Balance as of September 30, 2020 $ (158) $ (78) $ (222) $ (458) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2019 $ (236) $ (22) $ (248) $ (506) Other comprehensive (loss) income before reclassifications (81) 20 3 (58) Amounts reclassified from AOCI, net — (31) 12 (19) Net current-period other comprehensive income (loss) (81) (11) 15 (77) Balance as of September 30, 2019 $ (317) $ (33) $ (233) $ (583) _________________________ (1) For additional information on our cash flow hedges, see Note 13 – Financial Instruments and Commodity Contracts. (2) For additional information on our postretirement benefit plans, see Note 11 – Postretirement Benefit Plans. (3) Amounts reclassified from AOCI relate to currency translation are due to the sale of Duffel. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and March 31, 2020. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. September 30, 2020 March 31, 2020 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 53 $ (93) $ 187 $ (107) Currency exchange contracts 13 (60) 15 (106) Energy contracts 3 (3) — (10) Total level 2 instruments $ 69 $ (156) $ 202 $ (223) Level 3 instruments: Energy contracts — (3) — (6) Total level 3 instruments $ — $ (3) $ — $ (6) Total gross $ 69 $ (159) $ 202 $ (229) Netting adjustment (1) $ (41) $ 41 $ (72) $ 72 Total net $ 28 $ (118) $ 130 $ (157) _________________________ (1) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. |
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 (1) Balance as of March 31, 2020 $ (6) Unrealized/realized gain (loss) included in earnings (2) 3 Unrealized/realized gain (loss) included in AOCI (3) 1 Settlements (2) (1) Balance as of September 30, 2020 $ (3) _________________________ (1) Represents net derivative liabilities. (2) Included in "Other expenses, net." (3) 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. The table excludes finance leases and short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term receivables and long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. September 30, 2020 March 31, 2020 in millions Carrying Fair Carrying Fair Long-term receivables from related parties $ 2 $ 2 $ — $ — Total debt — third parties (excluding finance leases and short-term borrowings) 6,812 6,916 5,364 5,267 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | Other expenses, net" is comprised of the following. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Currency losses, net (1) $ 5 $ 1 $ 3 $ 2 Unrealized (gains) losses on change in fair value of derivative instruments, net (2) (6) (3) 27 (9) Realized losses on change in fair value of derivative instruments, net (2) 9 1 — 8 Gain on sale of assets, net — (1) (2) (2) Loss on Brazilian tax litigation, net (3) — 1 — 1 Interest income (1) (3) (4) (6) Non-operating net periodic benefit cost (4) 10 8 20 15 Charitable contribution (5) — — 50 — Other, net 1 (2) (1) (3) Other expenses, net $ 18 $ 2 $ 93 $ 6 _________________________ (1) Includes "Loss recognized on balance sheet remeasurement currency exchange contracts, net." See Note 12 – Currency Losses (Gains) for further details. (2) See Note 13 – Financial Instruments and Commodity Contracts for further details. (3) See Note 18 – Commitments and Contingencies for further details. (4) Represents net periodic benefit cost, exclusive of service cost for the Company's pension and other post-retirement plans. (5) Represents a charitable contribution for COVID-19 relief. |
Segment, Major Customer and M_2
Segment, Major Customer and Major Supplier Information (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Selected segment financial information | The table below displays segment income from reportable segments by region. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 North America $ 205 $ 171 $ 283 $ 341 Europe 63 60 83 113 Asia 74 46 149 99 South America 112 97 188 193 Eliminations and other 1 — 5 — Segment income from reportable segments $ 455 $ 374 $ 708 $ 746 The following table displays our "Net sales" by value stream. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Can $ 1,455 $ 1,591 $ 2,835 $ 3,178 Automotive 654 672 967 1,381 Aerospace and industrial plate 93 — 195 — Specialty 776 588 1,407 1,217 Net sales $ 2,978 $ 2,851 $ 5,404 $ 5,776 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The table below displays the reconciliation from "Net (loss) income attributable to our common shareholder" to segment income from reportable segments. Three Months Ended September 30, Six Months Ended September 30, in millions 2020 2019 2020 2019 Net (loss) income attributable to our common shareholder $ (37) $ 123 $ (116) $ 250 Income tax provision 68 45 39 108 Depreciation and amortization 141 88 259 176 Interest expense and amortization of debt issuance costs 70 61 140 126 Adjustment to reconcile proportional consolidation 15 14 29 29 Unrealized (gains) losses on change in fair value of derivative instruments, net (6) (3) 27 (9) Realized losses on derivative instruments not included in segment income 1 1 4 3 Restructuring and impairment, net 7 32 8 33 Gain on sale of fixed assets — (1) (2) (2) Purchase price accounting adjustments 1 — 29 — Loss from discontinued operations, net of tax 11 — 29 — Loss on sale of discontinued operations, net of tax 170 — 170 — Metal price lag 12 5 32 7 Business acquisition and other integration related costs — 12 11 29 Other, net 2 (3) 49 (4) Segment income from reportable segments $ 455 $ 374 $ 708 $ 746 |
Net sales to largest customers, as a percentage of total Net sales | The following table displays net sales to customers representing 10% or more of our total "Net sales" for any of the periods presented. Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Ball 14 % 23 % 15 % 22 % Ford 9 10 7 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 September 30, Six Months Ended September 30, 2020 2019 2020 2019 Purchases from RT as a percentage of total combined metal purchases 9 % 11 % 8 % 11 % |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2020USD ($)continentplantcountry | Sep. 30, 2020USD ($)continentplantcountry | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of Countries in which Entity Operates | country | 9 | 9 |
Number of continents Company operates in | continent | 4 | 4 |
Number of Operating Plants | plant | 33 | 33 |
Number of plants with recycling operations | plant | 18 | 18 |
Number of operating segments | continent | 4 | 4 |
Capital expenditures [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | $ 5 | |
Changes in accounts payable [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | $ (5) | |
Property, Plant and Equipment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | $ 5 | |
Retained Earnings [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | $ (5) |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ in Thousands, € in Millions | Apr. 14, 2020USD ($) | Apr. 14, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||||
Net income attributable to our common shareholder | $ (37,000) | $ 123,000 | $ (116,000) | $ 250,000 | |||
Business Combination, Acquired Receivables, Gross Contractual Amount | 346,000 | 346,000 | |||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 1,000 | 1,000 | |||||
Aleris Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 2,775,000 | ||||||
Estimated repayment of Aleris' debt (including prepayment penalties and accrued interest) | 1,954,000 | ||||||
Earn-out consideration | $ 50,000 | ||||||
Accounts receivable(2) | 268,000 | 268,000 | $ 251,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumes, Current Assets, Receivables, Discontinued Operations | $ 78,000 | 78,000 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restricted Cash | $ 9,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Assets | 22,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finance Lease Assets | 7,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liabilities | 9,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finance Lease Liabilities | $ 7,000 | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable Fair Value Method | 775 million | 775 million | |||||
Business Acquisition, Transaction Costs | $ 64,000 | ||||||
Payment associated with Duffel capital expenditures | 60,000 | € 55 | |||||
Business Combination, Indemnification Assets [Abstract] | |||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 12,000 | ||||||
Debt Instrument, Increase, Accrued Interest | 16,000 | ||||||
FDIC Indemnification Asset, Acquisitions | 9,000 | € 8 | |||||
Aleris Corporation | Other Current Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liabilities | 4,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finance Lease Liabilities | $ 3,000 | ||||||
Aleris Corporation | Continuing Operations [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | 648,000 | ||||||
Net income attributable to our common shareholder | $ 50,000 |
Business Combination - Consider
Business Combination - Consideration Paid (Details) - Apr. 14, 2020 - Aleris Corporation € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Acquisition [Line Items] | ||
Estimated cash for equity consideration | $ 711 | |
Estimated repayment of Aleris' debt (including prepayment penalties and accrued interest) | 1,954 | |
Earn-out consideration | 50 | |
Payment associated with Duffel capital expenditures | 60 | € 55 |
Preliminary fair value of estimated merger consideration | 2,775 | |
FDIC Indemnification Asset, Acquisitions | $ 9 | € 8 |
Business Combinations - Prelimi
Business Combinations - Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Apr. 14, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Goodwill | $ 1,023,000 | $ 607,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Long–term debt, net of current portion | $ 141,000 | |||
Aleris Corporation | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Cash and cash equivalents | 105,000 | $ 105,000 | ||
Accounts receivable(2) | 268,000 | 251,000 | ||
Inventories | 379,000 | 379,000 | ||
Prepaid expenses and other current assets(3) | 24,000 | 24,000 | ||
Fair value of derivative instruments | 46,000 | 46,000 | ||
Current assets of discontinued operations(4) | 464,000 | 463,000 | ||
Property, plant and equipment | 949,000 | 949,000 | ||
Goodwill | 416,000 | 328,000 | ||
Intangible assets, net(5) | 410,000 | 149,000 | ||
Deferred income tax assets(6) | 80,000 | 114,000 | ||
Other long-term assets | 39,000 | 39,000 | ||
Long–term assets of discontinued operations(7) | 629,000 | 944,000 | ||
Total assets | 3,809,000 | 3,791,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Current portion of long–term debt | 24,000 | 24,000 | ||
Accounts Payable(2) | 158,000 | 141,000 | ||
Fair value of derivative instruments | 25,000 | 25,000 | ||
Accrued expenses and other current liabilities | 144,000 | 143,000 | ||
Current liabilities of discontinued operations | 166,000 | 166,000 | ||
Long–term debt, net of current portion | 125,000 | 125,000 | ||
Deferred income tax liabilities | 37,000 | 37,000 | ||
Accrued postretirement benefits | 164,000 | 164,000 | ||
Other long–term liabilities | 41,000 | 41,000 | ||
Long–term liabilities of discontinued operations | 150,000 | 150,000 | ||
Total liabilities | 1,034,000 | $ 1,016,000 | ||
Net assets acquired | 2,775,000 | |||
Business Combination, Consideration Transferred | $ 2,775,000 | |||
Cash and cash equivalents, discontinued operations | 41,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests | 261,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 18,000 | |||
Aleris Corporation | Accounts Receivable [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 17,000 | |||
Aleris Corporation | Current Assets of Discontinued Operations [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 1,000 | |||
Aleris Corporation | Goodwill [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 88,000 | |||
Aleris Corporation | Deferred Income Tax Asset [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | (34,000) | |||
Aleris Corporation | Long-term Assets of Discontinued Operations [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | (315,000) | |||
Aleris Corporation | Accounts Payable [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 17,000 | |||
Aleris Corporation | Accrued Liabilities [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ 1,000 |
Business Combination - Amounts
Business Combination - Amounts Allocated to Intangible Assets (Details) - Aleris Corporation | Apr. 14, 2020USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 410,000,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 23 years |
Trade Names | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 10,000,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 6 months |
Technology-Based Intangible Assets | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 46,000,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years |
Customer Relationships | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 352,000,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 25 years |
Other Intangible Assets | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,000,000 |
Business Combination - Pro Form
Business Combination - Pro Forma Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||||
Business Acquisition, Pro Forma Revenue | $ 2,979 | $ 3,378 | $ 5,459 | $ 6,838 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 17 | $ 149 | $ (81) | $ 175 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Sep. 30, 2020 € in Millions, $ in Millions | USD ($) | EUR (€) |
Discontinued Operations and Disposal Groups [Abstract] | ||
Gain Contingency, Unrecorded Amount | $ 117 | € 100 |
Disposal Group, Including Discontinued Operation, Consideration | 364 | 310 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | 364 | 310 |
Cash and Cash Equivalents [Member] | ||
Discontinued Operations and Disposal Groups [Abstract] | ||
Disposal Group, Including Discontinued Operation, Consideration | 246 | 210 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | 246 | 210 |
Prepaid Expenses and Other Current Assets [Member] | ||
Discontinued Operations and Disposal Groups [Abstract] | ||
Disposal Group, Including Discontinued Operation, Consideration | 18 | 15 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 18 | € 15 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020USD ($)continent | Sep. 30, 2020USD ($)continent | Apr. 14, 2020USD ($) | Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Number of operating segments | continent | 4 | 4 | ||
Deferred Revenue, Additions | $ 29 | |||
Deferred Revenue, Revenue Recognized | (22) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | $ 1 | |||
Deferred Revenue | $ 9 | $ 9 | $ 1 |
Restructuring and Impairment,_3
Restructuring and Impairment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment, net | $ 7 | $ 32 | $ 8 | $ 33 | |
Restructuring liability | 26 | 26 | $ 34 | ||
Severance Costs | 5 | ||||
Corporate, Non-Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 4 | 4 | |||
Europe [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 10 | 10 | |||
South America [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 9 | 9 | |||
North America [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 3 | 3 | |||
Other Current Liabilities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 26 | 26 | |||
Other Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | $ 18 | $ 18 |
Restructuring and Impairment,_4
Restructuring and Impairment, Net - Restructuring Liability Activity (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2020USD ($) | |
Total restructuring liabilities | |
Balance, beginning of period | $ 34 |
Expenses | 8 |
Cash payments | (16) |
Balance, end of period | $ 26 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Schedule of inventories | ||
Finished goods | $ 381 | $ 398 |
Work in process | 738 | 643 |
Raw materials | 328 | 192 |
Supplies | 192 | 176 |
Inventories | $ 1,639 | $ 1,409 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 1,627 | $ 2,392 | $ 935 |
Inventories | 1,639 | 1,409 | |
Prepaid expenses and other current assets | 164 | 145 | |
Total current assets | 5,236 | 5,384 | |
Property, plant and equipment, net | 4,625 | 3,580 | |
Goodwill | 1,023 | 607 | |
Other long–term assets | 343 | $ 219 | |
Total assets | 13,112 | 10,989 | |
Current liabilities: | |||
Accounts payable | 1,832 | 1,732 | |
Accrued expenses and other current liabilities | 616 | 613 | |
Total current liabilities | 3,413 | 2,930 | |
Accrued postretirement benefits | 1,023 | 930 | |
Other long–term liabilities | 244 | 229 | |
Total liabilities | 11,702 | 9,628 | |
Primary Beneficiary | |||
Current assets: | |||
Cash and cash equivalents | 11 | 8 | |
Accounts receivable, net | 51 | 24 | |
Inventories | 90 | 92 | |
Prepaid expenses and other current assets | 3 | 3 | |
Total current assets | 155 | 127 | |
Property, plant and equipment, net | 12 | 19 | |
Goodwill | 12 | 12 | |
Deferred income tax assets | 75 | 76 | |
Other long–term assets | 7 | 35 | |
Total assets | 261 | 269 | |
Current liabilities: | |||
Accounts payable | 41 | 38 | |
Accrued expenses and other current liabilities | 24 | 30 | |
Total current liabilities | 65 | 68 | |
Accrued postretirement benefits | 276 | 287 | |
Other long–term liabilities | 4 | 3 | |
Total liabilities | $ 345 | $ 358 | |
Logan Aluminum Inc. [Member] | |||
Current liabilities: | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% |
Investment In and Advances to_3
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable, net-related parties net of Accounts payable-related parties (less than) | $ 163 | $ 164 | |
Parent Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties (less than) | 1 | ||
Accounts receivable, net-related parties net of Accounts payable-related parties (less than) | $ 1 | ||
Purchases of raw materials (less than) | $ 1 | ||
Aluminum Norf GmbH | |||
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 | |||
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income tax provision | $ 68 | $ 45 | $ 39 | $ 108 |
Net (loss) income | (37) | 123 | (116) | 250 |
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | 285 | 308 | 565 | 608 |
Costs and expenses related to net sales | 277 | 302 | 551 | 595 |
Income tax provision | 3 | 2 | 5 | 3 |
Net (loss) income | 5 | 4 | 9 | 10 |
Purchases of tolling services from Alunorf | $ 64 | $ 63 | $ 125 | $ 127 |
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 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties, Current | $ 163 | $ 164 | |
Accounts Payable, Related Parties, Current | 220 | 176 | |
Due from Other Related Parties, Noncurrent | 2 | $ 0 | |
Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties, Current | 163 | 164 | |
Accounts Payable, Related Parties, Current | $ 220 | $ 176 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt, Principal | $ 6,853,000,000 | $ 5,415,000,000 |
Long-term debt, Carrying Value | 6,812,000,000 | 5,364,000,000 |
Total debt | 7,301,000,000 | 5,610,000,000 |
Total debt, Unamortized Carrying Value Adjustment | (86,000,000) | (70,000,000) |
Total debt, carrying value | 7,215,000,000 | 5,540,000,000 |
Short-term borrowings | 393,000,000 | 176,000,000 |
Current portion of long-term debt | (55,000,000) | (19,000,000) |
Long-term debt, net of current portion, Carrying Value | 6,767,000,000 | 5,345,000,000 |
ABL Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Principal | 0 | 555,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 0 | 555,000,000 |
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 2.07% | |
Long-term debt, Principal | $ 1,733,000,000 | 1,742,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (19,000,000) | (22,000,000) |
Long-term debt, Carrying Value | $ 1,714,000,000 | 1,720,000,000 |
Floating rate incremental term loan facility, due January 2025 | ||
Debt Instrument [Line Items] | ||
Stated rate | 1.97% | |
Long-term debt, Principal | $ 771,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | (17,000,000) | 0 |
Long-term debt, Carrying Value | $ 754,000,000 | 0 |
Zhenjiang Term Loans | ||
Debt Instrument [Line Items] | ||
Stated rate | 5.37% | |
Long-term debt, Principal | $ 134,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | 2,000,000 | 0 |
Long-term debt, Carrying Value | $ 136,000,000 | 0 |
Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.75% | |
Long-term debt, Principal | $ 1,600,000,000 | 1,600,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (30,000,000) | (32,000,000) |
Long-term debt, Carrying Value | $ 1,570,000,000 | 1,568,000,000 |
Senior Notes due September 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 5.875% | |
Long-term debt, Principal | $ 1,500,000,000 | 1,500,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (15,000,000) | (16,000,000) |
Long-term debt, Carrying Value | $ 1,485,000,000 | 1,484,000,000 |
Bank Loans, Due Through June 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.90% | |
Long-term debt, Principal | $ 60,000,000 | 36,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 60,000,000 | 36,000,000 |
Other Debt, due through December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 2.51% | |
Long-term debt, Principal | $ 10,000,000 | 1,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 10,000,000 | 1,000,000 |
Short Term Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 1.21% | |
Long-term debt, Principal | $ 1,100,000,000 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | (7,000,000) | 0 |
Long-term debt, Carrying Value | $ 1,093,000,000 | 0 |
Short term borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 2.56% | |
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | 0 |
Short-term borrowings | 393,000,000 | 176,000,000 |
current portion of long term debt [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 0 | $ 0 |
Debt - Principal Repayments (De
Debt - Principal Repayments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 448 | |
2 years | 2,865 | |
3 years | 50 | |
4 years | 56 | |
5 years | 750 | |
Thereafter | 3,132 | |
Total debt | $ 7,301 | $ 5,610 |
Debt - Additional Information (
Debt - Additional Information (Details) ₩ in Millions, ¥ in Millions, R$ in Millions | 6 Months Ended | |||||
Sep. 30, 2020USD ($) | Sep. 30, 2020KRW (₩) | Sep. 30, 2020BRL (R$) | Sep. 30, 2020CNY (¥) | Apr. 14, 2020USD ($) | Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||
Long-term debt, Principal | $ 6,853,000,000 | $ 5,415,000,000 | ||||
Short–term borrowings | 393,000,000 | 176,000,000 | ||||
Long-term debt, Carrying Value | 6,812,000,000 | 5,364,000,000 | ||||
Long–term debt, net of current portion | $ 141,000,000 | |||||
ABL Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short–term borrowings | $ 148,000,000 | |||||
Short Term Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.95% | |||||
Short–term borrowings | $ 1,100,000,000 | |||||
Novelis Korea Revolving Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short–term borrowings | 129,000,000 | ₩ 152,000 | ||||
Brazil Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short–term borrowings | 68,000,000 | R$ 384 | ||||
China Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short–term borrowings | 48,000,000 | ¥ 324 | ||||
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, Principal | 1,733,000,000 | 1,742,000,000 | ||||
Long-term debt, Carrying Value | 1,714,000,000 | 1,720,000,000 | ||||
ABL Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, Principal | 0 | 555,000,000 | ||||
Long-term debt, Carrying Value | 0 | 555,000,000 | ||||
Floating rate incremental term loan facility, due January 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 775,000,000 | |||||
Basis spread on variable rate | 1.75% | |||||
Long-term debt, Principal | $ 771,000,000 | 0 | ||||
Long-term debt, Carrying Value | $ 754,000,000 | 0 | ||||
Debt Instrument, Quarterly Amortization Payment, Percentage | 0.25% | 0.25% | 0.25% | 0.25% | ||
Zhenjiang Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 5.00% | |||||
Long-term debt, Principal | $ 134,000,000 | 0 | ||||
Long-term debt, Carrying Value | 136,000,000 | $ 0 | ||||
Zhenjiang USD Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | 29,000,000 | |||||
Zhenjiang CNY Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 112,000,000 | ¥ 791 | ||||
Zhenjiang Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 110.00% | |||||
Letter of Credit [Member] | ABL Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | $ 124,000,000 | |||||
ABL Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | 930,000,000 | |||||
ABL Revolver [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount outstanding | $ 51,000,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation by Award [Line Items] | ||||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ 14 | $ 14 | ||
Additional Contributions To Funded Pension Plan | 24 | |||
Discontinued Operations, Disposed of by Sale [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Additional Contributions To Funded Pension Plan | 3 | |||
2010 LTIP [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Total compensation expense | 5 | $ 2 | $ 12 | $ 6 |
SARs [Member] | Hindalco SARs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of SARs granted (in shares) | 6,815,414 | |||
Unrecognized compensation expense | $ 6 | $ 6 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 7 months 6 days | |||
RSUs [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Number of RSUs granted (in shares) | 4,942,391 | |||
Cash payments to settle liabilities | $ 4 | $ 9 | ||
Unrecognized compensation expense | $ 11 | $ 11 | ||
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 7 months 6 days | |||
Cash [Member] | ||||
Share-based Compensation by Award [Line Items] | ||||
Cash payments to settle liabilities | $ 1 | $ 3 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Components of net periodic benefit cost for postretirement benefit plans | ||||
Net periodic benefit cost(1) | $ (10) | $ (8) | $ (20) | $ (15) |
Discontinued Operations, Disposed of by Sale [Member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 1 | |||
Interest cost | 2 | |||
Expected return on assets | 2 | |||
Pension Benefit Plans [Member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 12 | 10 | 24 | 20 |
Interest cost | 15 | 15 | 30 | 30 |
Expected return on assets | (19) | (18) | (38) | (36) |
Amortization — losses, net | 11 | 9 | 23 | 17 |
Termination benefits / curtailments | 1 | 0 | 1 | 0 |
Net periodic benefit cost(1) | 20 | 16 | 40 | 31 |
Other Benefit Plans [member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 2 | 3 | 5 | 6 |
Interest cost | 2 | 2 | 4 | 4 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization — losses, net | 0 | 0 | 0 | 0 |
Termination benefits / curtailments | 0 | 0 | 0 | 0 |
Net periodic benefit cost(1) | $ 4 | $ 5 | $ 9 | $ 10 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Employer Contributions to Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Contributions to employee benefit plans | ||||
Funded pension plans | $ 39 | $ 33 | $ 49 | $ 38 |
Unfunded pension plans | 4 | 3 | 7 | 5 |
Savings and defined contribution pension plans | 7 | 7 | 18 | 17 |
Total contributions | $ 50 | $ 43 | $ 74 | $ 60 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Expected long-term rate of return on plan assets | 5.30% | |||
Maximum amortization period of unfunded actuarial liability | 15 years | |||
Expected additional contribution to funded pension plan | $ 24 | |||
Expected additional contribution to unfunded pension plan | 9 | |||
Expected additional contribution to savings and defined contribution plans | 16 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Additional Contributions To Funded Pension Plan | 24 | |||
Payment for Pension and Other Postretirement Benefits | $ 50 | $ 43 | 74 | $ 60 |
Pension Plan [Member] | ||||
Retirement Benefits [Abstract] | ||||
Defined Benefit Plan, Service Cost | 12 | 10 | 24 | 20 |
Defined Benefit Plan, Interest Cost | 15 | 15 | 30 | 30 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (19) | (18) | (38) | (36) |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Interest Cost | 15 | 15 | 30 | 30 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 19 | 18 | 38 | 36 |
Termination benefits / curtailments | 1 | $ 0 | $ 1 | $ 0 |
Discontinued Operations, Disposed of by Sale [Member] | ||||
Retirement Benefits [Abstract] | ||||
Expected additional contribution to funded pension plan | 3 | |||
Defined Benefit Plan, Service Cost | 1 | |||
Defined Benefit Plan, Interest Cost | 2 | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 2 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Interest Cost | 2 | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (2) | |||
Additional Contributions To Funded Pension Plan | 3 | |||
Payment for Pension and Other Postretirement Benefits | $ 5 |
Currency Losses (Gains) - Inclu
Currency Losses (Gains) - Included in Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Currency (gains) losses included in other income expense | ||||
Gain (Loss) on Remeasurement of Monetary Assets and Liabilities, Net | $ (4) | $ (1) | $ (8) | $ (6) |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 9 | 2 | 11 | 8 |
Foreign Currency Transaction Gain (Loss), before Tax | $ 5 | $ 1 | $ 3 | $ 2 |
Currency Losses (Gains) - Inc_2
Currency Losses (Gains) - Included in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Currency gains included in AOCI, net of tax and Non controlling interests | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | $ (483) | $ (620) | $ (506) | $ (506) | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance | (620) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (483) | (620) | (506) | (506) | |
Translation Adjustment Functional to Reporting Currency, Gain (Loss), Reclassified to Earnings, Net of Tax | 30 | 0 | |||
Currency translation adjustment | $ 96 | $ (86) | 151 | (81) | |
Currency Translation [Member] | |||||
Currency gains included in AOCI, net of tax and Non controlling interests | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | (309) | (236) | (236) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance | (158) | (158) | (309) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (158) | (309) | $ (236) | (309) | |
Currency translation adjustment | $ 121 | $ (73) |
Financial Instruments and Com_3
Financial Instruments and Commodity Contracts - Summary of Gross Fair Values of Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Assets | ||
Derivative Assets, Current | $ 65 | $ 202 |
Derivative Asset, Noncurrent | 4 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (153) | (214) |
Derivative Liabilities, Noncurrent | (6) | (15) |
Net Fair Value Assets/Liabilities | (90) | (27) |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 12 | 86 |
Derivative Asset, Noncurrent | 2 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (74) | (90) |
Derivative Liabilities, Noncurrent | (6) | (14) |
Net Fair Value Assets/Liabilities | (66) | (18) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 8 | 84 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (31) | (11) |
Derivative Liabilities, Noncurrent | 0 | (3) |
Net Fair Value Assets/Liabilities | (23) | 70 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 3 | 2 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (39) | (68) |
Derivative Liabilities, Noncurrent | (5) | (7) |
Net Fair Value Assets/Liabilities | (40) | (73) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 1 | 0 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (4) | (11) |
Derivative Liabilities, Noncurrent | (1) | (4) |
Net Fair Value Assets/Liabilities | (3) | (15) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 53 | 116 |
Derivative Asset, Noncurrent | 2 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (79) | (124) |
Derivative Liabilities, Noncurrent | 0 | (1) |
Net Fair Value Assets/Liabilities | (24) | (9) |
Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 44 | 103 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (62) | (92) |
Derivative Liabilities, Noncurrent | 0 | (1) |
Net Fair Value Assets/Liabilities | (17) | 10 |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 9 | 13 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (16) | (31) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | (7) | (18) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 0 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (1) | (1) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | $ 0 | $ (1) |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts - Additional Information (Details) MWh in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020USD ($)MMBTUgallonMWh | Sep. 30, 2020USD ($)MMBTUgallonMWh | Mar. 31, 2020USD ($)MMBTUgallon | Sep. 30, 2019USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expected reclassification from AOCI to earnings | $ 61,000,000 | |||
Aluminum Forward Sales Contracts [Member] | Maximum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 1 year | |||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 3 years | |||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 803,000,000 | $ 803,000,000 | $ 620,000,000 | |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | 585,000,000 | 585,000,000 | 680,000,000 | |
Electricity Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 3,000,000 | $ 3,000,000 | 6,000,000 | |
Derivative, Nonmonetary Notional Amount | MWh | (1) | (1) | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 1,000,000 | |||
Derivative, Nonmonetary Notional Amount | MMBTU | (2,000,000) | (2,000,000) | (1,000,000) | |
Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | $ 5,000,000 | |
Derivative, Nonmonetary Notional Amount | MMBTU | (16,000,000) | (16,000,000) | (15,000,000) | |
Diesel Fuel Forward Contracts [Member] | Maximum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 1 year | |||
Diesel Fuel Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | ||
Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 4,000,000 | $ 1,000,000 | ||
Derivative, Nonmonetary Notional Amount | gallon | (4,000,000) | (4,000,000) | (7,000,000) | |
Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount | gallon | (1,000,000) | (1,000,000) |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts - Summary of Notional Amount (Details) kt in Thousands, $ in Millions | 3 Months Ended | ||
Sep. 30, 2020USD ($)MMBTUktgallon | Mar. 31, 2020USD ($)ktMMBTUgallon | Sep. 30, 2019USD ($) | |
Diesel Fuel Forward Contracts [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Derivative remaining maturity | 1 year | ||
Aluminum Forward Sales Contracts [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Derivative remaining maturity | 2 years | ||
Designated as Hedging Instrument [Member] | Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | gallon | 4,000,000 | 7,000,000 | |
Fair value of derivative, liability (less than) | $ | $ 4 | $ 1 | |
Designated as Hedging Instrument [Member] | Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 16,000,000 | 15,000,000 | |
Fair value of derivative, liability (less than) | $ | $ 1 | $ 5 | |
Designated as Hedging Instrument [Member] | Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Derivative remaining maturity | 2 years | ||
Not Designated as Hedging Instrument [Member] | Diesel Fuel Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Fair value of derivative, liability (less than) | $ | $ 1 | ||
Not Designated as Hedging Instrument [Member] | Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | gallon | 1,000,000 | ||
Not Designated as Hedging Instrument [Member] | Natural Gas Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 2,000,000 | 1,000,000 | |
Fair value of derivative, liability (less than) | $ | $ 1 | ||
Not Designated as Hedging Instrument [Member] | Aluminum Forward Sales Contracts [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Derivative remaining maturity | 1 year | ||
Long [Member] | Designated as Hedging Instrument [Member] | Metal Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 29,000 | 63,000 | |
Short [Member] | Metal Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 514,000 | 351,000 | |
Short [Member] | Designated as Hedging Instrument [Member] | Metal Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 491,000 | 395,000 | |
Short [Member] | Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 52,000 | 19,000 |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts - Gain (Loss) Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | $ (11) | $ 21 | ||
Other Operating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gains Losses On Balance Sheet Remeasurement Currency Exchange Contracts Net | $ (9) | $ (2) | (11) | (8) |
Realized Gains Losses On Derivative Net | (9) | (1) | 0 | (8) |
Unrealized Gains Losses On Other Derivative Instruments Net | 6 | 3 | (27) | 9 |
Total gain (loss) recognized | (12) | 0 | (38) | (7) |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (12) | (2) | (38) | (9) |
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | 0 | 2 | 0 | 2 |
Other Operating Income (Expense) [Member] | Metal Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (7) | (2) | (32) | (4) |
Other Operating Income (Expense) [Member] | Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (8) | (2) | (11) | (8) |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | $ 3 | $ 2 | $ 5 | $ 3 |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts - Summary of the Impact on AOCI and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (34) | $ (20) | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (62) | $ 25 | ||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 2 | ||
Amount of Gain (Loss) Recognized in “Other (Income) Expenses, net” (Ineffective and Excluded Portion) | 0 | 2 | ||
Cash Flow Hedges [Member] | Metal Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 28 | (37) | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (59) | 76 | ||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | ||
Amount of Gain (Loss) Recognized in “Other (Income) Expenses, net” (Ineffective and Excluded Portion) | 0 | 0 | ||
Cash Flow Hedges [Member] | Metal Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (15) | 23 | 55 | 53 |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (6) | (1) | (10) | (1) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 0 | (43) | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (8) | (42) | ||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 2 | ||
Amount of Gain (Loss) Recognized in “Other (Income) Expenses, net” (Ineffective and Excluded Portion) | 0 | 2 | ||
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (1) | (4) | (3) | (7) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (12) | 0 | (23) | (1) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (1) | 0 | (2) | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (1) | (1) | (1) | (1) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 2 | 0 | 2 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 3 | (5) | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 5 | (9) | ||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | ||
Amount of Gain (Loss) Recognized in “Other (Income) Expenses, net” (Ineffective and Excluded Portion) | 0 | 0 | ||
Cash Flow Hedges [Member] | Energy Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (4) | (1) | (7) | (2) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (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 | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income Tax Expense (Benefit) | $ (68) | $ (45) | $ (39) | $ (108) |
Net (loss) income | $ (37) | $ 123 | $ (116) | $ 250 |
Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (40) | 16 | 9 | 41 |
Income Tax Expense (Benefit) | $ (11) | $ 4 | $ (2) | $ (10) |
Net (loss) income | $ (29) | $ 12 | $ 7 | $ 31 |
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) | (4) | (1) | (7) | (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) | (6) | (1) | (10) | (1) |
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) | (15) | 23 | 55 | 53 |
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) | (12) | — | (23) | (1) |
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) | (1) | — | (2) | — |
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) | (1) | (4) | (3) | (7) |
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) | (1) | (1) | (1) | (1) |
Financial Instruments and Com_9
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification Summarization (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | $ 0 | $ 2 | ||
Metal Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | ||
Metal Contracts [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (15) | 23 | $ 55 | $ 53 |
Metal Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (6) | (1) | (10) | (1) |
Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Metal Contracts [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | ||
Energy Related Derivative [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (4) | (1) | (7) | (2) |
Energy Related Derivative [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 2 | ||
Currency Exchange Contracts [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (1) | (4) | (3) | (7) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (12) | 0 | (23) | (1) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (1) | 0 | (2) | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | (1) | (1) | (1) | (1) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in "Other (Income) Expenses, net" (Excluded Portion) | 0 | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $ 0 | $ 2 | $ 0 | $ 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Balance as of beginning of period | $ (616) | $ (620) | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 90 | $ (94) | 121 | $ (58) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 68 | (6) | 41 | (19) | |||
Other comprehensive income, net of tax | 158 | (100) | 162 | (77) | |||
Balance as of end of period | (458) | (583) | (458) | (583) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (620) | $ (483) | $ (506) | ||||
Currency Translation [Member] | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Balance as of beginning of period | (254) | (231) | (309) | (236) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 66 | (86) | 121 | (81) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 30 | 0 | 30 | 0 | |||
Other comprehensive income, net of tax | 96 | (86) | 151 | (81) | |||
Balance as of end of period | (158) | (317) | (158) | (317) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (158) | (158) | $ (309) | $ (236) | |||
Cash Flow Hedges [Member] | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Balance as of beginning of period | (82) | (8) | (26) | (22) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (25) | (13) | (45) | 20 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 29 | (12) | (7) | (31) | |||
Other comprehensive income, net of tax | 4 | (25) | (52) | (11) | |||
Balance as of end of period | (78) | (33) | (78) | (33) | |||
Postretirement Benefit Plans [Member] | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Balance as of beginning of period | (280) | (244) | (285) | (248) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 49 | 5 | 45 | 3 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 9 | 6 | 18 | 12 | |||
Other comprehensive income, net of tax | 58 | 11 | 63 | 15 | |||
Balance as of end of period | $ (222) | $ (233) | $ (222) | $ (233) |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | $ 69 | $ 202 |
Derivative Asset, Master Netting Adjustment | (41) | (72) |
Derivative Asset | 28 | 130 |
Liabilities | (159) | (229) |
Derivative Liability, Master Netting Adjustment | 41 | 72 |
Derivative Liability | (118) | (157) |
Level 2 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 69 | 202 |
Liabilities | (156) | (223) |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 53 | 187 |
Liabilities | (93) | (107) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 13 | 15 |
Liabilities | (60) | (106) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 3 | 0 |
Liabilities | (3) | (10) |
Level 3 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | (3) | (6) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | $ (3) | $ (6) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Fair Value Activity for Level 3 Contracts (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2020USD ($) | |
Level 3 Derivative Instruments [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Balance as of beginning of period | $ (6) |
Realized/unrealized gain included in earnings | 3 |
Settlements | (1) |
Balance as of end of period | (3) |
Accumulated Other Comprehensive Loss (AOCI) [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Realized/unrealized gain included in earnings | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | $ 6,812 | $ 5,364 |
Total debt - third parties (excluding short term borrowings), fair value | 6,916 | 5,267 |
Due from Other Related Parties | 2 | 0 |
Other Assets, Fair Value Disclosure | $ 2 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2020USD ($)$ / MWh | Sep. 30, 2020EUR (€)$ / MWh | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Contingent Consideration Receivable | $ 93 | € 109 |
Electricity Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Premium over forward prices in nearby observable market (per megawatt hour) | 40,000,000 | 40,000,000 |
Actual swap settlement price (per megawatt hour) | 30,000,000 | 30,000,000 |
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1 | |
Extended Electricity Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Premium over forward prices in nearby observable market (per megawatt hour) | 3,000,000 | 3,000,000 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Currency losses, net(1) | $ 5 | $ 1 | $ 3 | $ 2 |
Unrealized (gains) losses on change in fair value of derivative instruments, net(2) | 6 | 3 | (27) | 9 |
Realized losses on change in fair value of derivative instruments, net(2) | 9 | 1 | 0 | 8 |
Gain on sale of assets, net | 0 | (1) | (2) | (2) |
Interest income | (1) | (3) | (4) | (6) |
Non-operating net periodic benefit cost(4) | 10 | 8 | 20 | 15 |
Charitable contribution(5) | 0 | 0 | 50 | 0 |
Other, net | 1 | (2) | (1) | (3) |
Other expenses, net | (18) | (2) | (93) | (6) |
Gain (Loss) Related to Litigation Settlement | $ 0 | $ 1 | $ 0 | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Net deferred tax liability | $ (55) | $ (55) | ||
Gross deferred tax assets | 1,616 | 1,616 | ||
Deferred Tax Assets, Valuation Allowance | 814 | 814 | ||
Decrease in unrecognized tax benefits | $ 1 | $ 1 | ||
Effective tax rate | 32.00% | 27.00% | 33.00% | 30.00% |
Income Taxes (Details)_2
Income Taxes (Details) $ in Millions | Sep. 30, 2020USD ($) |
Income Tax Contingency [Line Items] | |
Decrease in unrecognized tax benefits | $ 1 |
Deferred Tax Assets, Valuation Allowance | 814 |
Deferred Tax Asset, Interest Carryforward | 4 |
Section 382 [Member] | |
Income Tax Contingency [Line Items] | |
Deferred Tax Assets, Valuation Allowance | $ 16 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | $ 22 | $ 8 |
Accrued expenses and other current liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | 7 | |
BRAZIL | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, current | 23 | 27 |
BRAZIL | Accrued expenses and other current liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | 1 | |
Accrual for environmental loss contingencies, current | 6 | |
BRAZIL | Other long-term liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | 17 | $ 18 |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Range of possible loss | 0 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Range of possible loss | 64 | |
Restructuring Action | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | 5 | |
Undiscounted Environmental Clean-Up Costs | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 17 |
Segment, Major Customer and M_3
Segment, Major Customer and Major Supplier Information - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2020plantcountrycontinent | Sep. 30, 2020plantcountrycontinent | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | continent | 4 | 4 |
Number of operating plants | 33 | 33 |
Number of plants with recycling operations | 18 | 18 |
Number of countries Company operates in | country | 9 | 9 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 16 | 16 |
Number of plants with recycling operations | 7 | 7 |
Number of countries Company operates in | country | 2 | 2 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 11 | 11 |
Number of plants with recycling operations | 7 | 7 |
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 | 2 | 2 |
South America [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 2 | 2 |
Number of plants with recycling operations | 1 | 1 |
Segment, Major Customer and M_4
Segment, Major Customer and Major Supplier Information - Selected Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | $ 812 | $ 812 | $ 760 | ||
Total assets | 13,112 | 13,112 | 10,989 | ||
Net sales | 2,978 | $ 2,851 | 5,404 | $ 5,776 | |
Depreciation and amortization | 141 | 88 | 259 | 176 | |
Income tax provision | 68 | 45 | 39 | 108 | |
Capital expenditures | 113 | 141 | 222 | 305 | |
Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 4,809 | 4,809 | 4,274 | ||
Net sales | 1,192 | 1,070 | 2,020 | 2,186 | |
Depreciation and amortization | 65 | 38 | 114 | 76 | |
Income tax provision | 17 | 11 | (16) | 28 | |
Capital expenditures | 41 | 75 | 89 | 169 | |
Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 502 | 502 | 465 | ||
Total assets | 4,334 | 4,334 | 3,075 | ||
Net sales | 817 | 808 | 1,504 | 1,606 | |
Depreciation and amortization | 43 | 28 | 81 | 57 | |
Income tax provision | 2 | (3) | (8) | 0 | |
Capital expenditures | 17 | 13 | 32 | 23 | |
Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 310 | 310 | 295 | ||
Total assets | 2,308 | 2,308 | 1,737 | ||
Net sales | 484 | 481 | 989 | 995 | |
Depreciation and amortization | 22 | 15 | 42 | 31 | |
Income tax provision | 14 | 5 | 24 | 13 | |
Capital expenditures | 28 | 34 | 51 | 72 | |
Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 1,629 | 1,629 | 1,626 | ||
Net sales | 425 | 470 | 777 | 949 | |
Depreciation and amortization | 17 | 17 | 35 | 33 | |
Income tax provision | 29 | 28 | 54 | 55 | |
Capital expenditures | 29 | 19 | 53 | 38 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 32 | 32 | $ 277 | ||
Net sales | 60 | 22 | 114 | 40 | |
Depreciation and amortization | (6) | (10) | (13) | (21) | |
Income tax provision | 6 | 4 | (15) | 12 | |
Capital expenditures | (2) | 0 | (3) | 3 | |
Net sales - third party | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,978 | 2,851 | 5,404 | 5,776 | |
Net sales - third party | Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,192 | 1,070 | 2,020 | 2,186 | |
Net sales - third party | Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 792 | 770 | 1,461 | 1,522 | |
Net sales - third party | Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 480 | 478 | 979 | 990 | |
Net sales - third party | Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 425 | 457 | 770 | 924 | |
Net sales - third party | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 89 | 76 | 174 | 154 | |
Net sales - intersegment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Net sales - intersegment | Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Net sales - intersegment | Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 25 | 38 | 43 | 84 | |
Net sales - intersegment | Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 4 | 3 | 10 | 5 | |
Net sales - intersegment | Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 13 | 7 | 25 | |
Net sales - intersegment | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (29) | $ (54) | $ (60) | $ (114) |
Segment, Major Customer and M_5
Segment, Major Customer and Major Supplier Information - Reconciliation from Segment Income to Consolidated Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Net income attributable to our common shareholder | $ (37) | $ 123 | $ (116) | $ 250 |
Income Tax Expense (Benefit) | 68 | 45 | 39 | 108 |
Depreciation, Depletion and Amortization | (141) | (88) | (259) | (176) |
Interest Expense | (70) | (61) | (140) | (126) |
Adjustment To Eliminate Proportional Consolidation | 15 | 14 | 29 | 29 |
Unrealized (gains) losses on change in fair value of derivative instruments, net(2) | 6 | 3 | (27) | 9 |
Realized Gain (Loss) on Derivative Instruments, Not Included in Segment Income | 1 | 1 | 4 | 3 |
Restructuring Costs and Asset Impairment Charges | (7) | (32) | (8) | (33) |
Gain on sale of assets | 0 | (1) | (2) | (2) |
Recognized cost of inventory step-up | 1 | 0 | 29 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 11 | 0 | 29 | 0 |
Metal Price Lag | 12 | 5 | 32 | 7 |
Business acquisition and other integration related costs | 0 | (12) | (11) | (29) |
Other costs, net | 2 | (3) | 49 | (4) |
Operating Income (Loss) | 455 | 374 | 708 | 746 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 170 | $ 0 | $ 170 | $ 0 |
Segment, Major Customer and M_6
Segment, Major Customer and Major Supplier Information - Income from Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 455 | $ 374 | $ 708 | $ 746 |
Operating Segments [Member] | North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 205 | 171 | 283 | 341 |
Operating Segments [Member] | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 63 | 60 | 83 | 113 |
Operating Segments [Member] | Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 74 | 46 | 149 | 99 |
Operating Segments [Member] | South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 112 | 97 | 188 | 193 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 1 | $ 0 | $ 5 | $ 0 |
Segment, Major Customer and M_7
Segment, Major Customer and Major Supplier Information - Net Sales by Value Stream (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,978 | $ 2,851 | $ 5,404 | $ 5,776 |
Can Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,455 | 1,591 | 2,835 | 3,178 |
Automotive Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 654 | 672 | 967 | 1,381 |
Aerospace Products [Domain] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 93 | 0 | 195 | 0 |
Specialty And Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 776 | $ 588 | $ 1,407 | $ 1,217 |
Segment, Major Customer and M_8
Segment, Major Customer and Major Supplier Information - Information About Major Customers and Primary Supplier (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cost of Goods Sold [Member] | Rio Tinto Alcan [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9.00% | 11.00% | 8.00% | 11.00% |
Ball [Member] | Net Sales [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 14.00% | 23.00% | 15.00% | 22.00% |
Ford [Member] | Net Sales [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9.00% | 10.00% | 7.00% | 10.00% |