Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | May 11, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2021 | ||
Entity File Number | 001-32312 | ||
Entity Registrant Name | Novelis Inc. | ||
Entity Incorporation, State or Country Code | Z4 | ||
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 Central Index Key | 0001304280 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Documents Incorporated by Reference | None | ||
Entity Public Float | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 12,276 | $ 11,217 | $ 12,326 |
Cost of goods sold (exclusive of depreciation and amortization) | 9,980 | 9,231 | 10,422 |
Selling, general and administrative expenses | 551 | 498 | 502 |
Depreciation and amortization | 543 | 361 | 350 |
Interest expense and amortization of debt issuance costs | 267 | 248 | 268 |
Research and development expenses | 83 | 84 | 72 |
Loss on extinguishment of debt | 14 | 71 | 0 |
Restructuring and impairment, net | 29 | 43 | 2 |
Equity in net (income) loss of non-consolidated affiliates | (1) | 2 | (3) |
Business acquisition and other related costs | 11 | 63 | 33 |
Other expenses, net | 103 | 18 | 44 |
Total expenses | 11,580 | 10,619 | 11,690 |
Income from continuing operations before income tax provision | 696 | 598 | 636 |
Income tax provision | 238 | 178 | 202 |
Net income from continuing operations | 458 | 420 | 434 |
Loss from discontinued operations, net of tax | (51) | 0 | 0 |
Loss on sale of discontinued operations, net of tax | (170) | 0 | 0 |
Net loss from discontinued operations | 221 | 0 | 0 |
Net income | 237 | 420 | 434 |
Net income attributable to noncontrolling interests | 1 | 0 | 0 |
Net Income (Loss) Attributable to Parent | $ 236 | $ 420 | $ 434 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 237 | $ 420 | $ 434 |
Other comprehensive income (loss): | |||
Currency translation adjustment | 214 | (73) | (171) |
Net change in fair value of effective portion of cash flow hedges | (144) | (10) | (70) |
Net change in pension and other benefits | 243 | (73) | (8) |
Other comprehensive income (loss) before income tax effect | 313 | (156) | (249) |
Income tax provision (benefit) related to items of other comprehensive income | 25 | (26) | (22) |
Other Comprehensive Income (Loss), Net of Tax, Total | 288 | (130) | (227) |
Comprehensive income | 525 | 290 | 207 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | 35 | (16) | 2 |
Comprehensive income attributable to our common shareholder | $ 490 | $ 306 | $ 205 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 998 | $ 2,392 |
Accounts receivable, net | ||
— third parties (net of allowance for credit losses of $5 and $8 as of March 31, 2021 and March 31, 2020, respectively) | 1,687 | 1,067 |
— related parties | 166 | 164 |
Inventories | 1,928 | 1,409 |
Prepaid expenses and other current assets | 198 | 145 |
Fair value of derivative instruments | 137 | 202 |
Assets held for sale | 5 | 5 |
Disposal Group, Including Discontinued Operation, Assets, Current | 15 | 0 |
Total current assets | 5,134 | 5,384 |
Property, plant and equipment, net | 4,687 | 3,580 |
Goodwill | 1,083 | 607 |
Intangible assets, net | 696 | 299 |
Investment in and advances to non–consolidated affiliates | 838 | 760 |
Deferred income tax assets | 130 | 140 |
Other long–term assets | 316 | 219 |
Due from Other Related Parties, Noncurrent | 1 | 0 |
Total assets | 12,885 | 10,989 |
Current liabilities: | ||
Current portion of long–term debt | 71 | 19 |
Short–term borrowings | 236 | 176 |
Accounts payable | ||
— third parties | 2,498 | 1,732 |
— related parties | 230 | 176 |
Fair value of derivative instruments | 280 | 214 |
Accrued expenses and other current liabilities | 670 | 613 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 16 | 0 |
Total current liabilities | 4,001 | 2,930 |
Long–term debt, net of current portion | 5,653 | 5,345 |
Deferred income tax liabilities | 162 | 194 |
Accrued postretirement benefits | 878 | 930 |
Other long–term liabilities | 305 | 229 |
Liabilities | 10,999 | 9,628 |
Commitments and contingencies | ||
Shareholder’s equity: | ||
Common stock, no par value; Unlimited number of shares authorized; 1,000 shares issued and outstanding as of March 31, 2021 and March 31, 2020 | 0 | 0 |
Additional paid–in capital | 1,404 | 1,404 |
Retained earnings | 864 | 628 |
Accumulated other comprehensive loss | (366) | (620) |
Total equity of our common shareholder | 1,902 | 1,412 |
Noncontrolling interests | (16) | (51) |
Total equity | 1,886 | 1,361 |
Total liabilities and equity | $ 12,885 | $ 10,989 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 5 | $ 8 |
Common Stock, Shares, Outstanding | 1,000 | 1,000 |
Common Stock, Shares, Issued | 1,000 | 1,000 |
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net income | $ 237 | $ 420 | $ 434 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation, Depletion and Amortization | 543 | 361 | 350 |
Loss (gain) on unrealized derivatives and other realized derivatives in investing activities, net | 1 | (4) | (6) |
Loss on sale of assets | 1 | 1 | 6 |
Impairment charges | 1 | 18 | 0 |
Loss on extinguishment of debt | 14 | 71 | 0 |
Deferred income taxes | 49 | 0 | 50 |
Equity in net (income) loss of non-consolidated affiliates | (1) | 2 | (3) |
Gain on foreign exchange remeasurement of debt | (3) | 0 | 0 |
Amortization of debt issuance costs and carrying value adjustments | 28 | 17 | 17 |
Other, net | 0 | 2 | (1) |
Increase (Decrease) in Operating Capital [Abstract] | |||
Increase (Decrease) in Accounts Receivable | (323) | 304 | (71) |
Increase (Decrease) in Inventories | (94) | 23 | 32 |
Increase (Decrease) in Accounts Payable | 569 | (171) | (72) |
Increase (Decrease) in Other Operating Assets | 91 | (62) | (10) |
Increase (Decrease) in Other Operating Liabilities | (125) | (9) | 4 |
Net cash provided by operating activities | 1,127 | 973 | 730 |
INVESTING ACTIVITIES | |||
Capital expenditures | (485) | (610) | (353) |
Acquisition of assets under a finance lease | 0 | 0 | (239) |
Proceeds from sales of assets, third party, net of transaction fees and hedging | 4 | 3 | 2 |
Proceeds from investment in and advances to non-consolidated affiliates, net | 9 | 3 | 12 |
(Outflows) proceeds from settlement of derivative instruments, net | (5) | 5 | 7 |
Other | 12 | 13 | 12 |
Net cash used in investing activities | (2,722) | (586) | (559) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term and short-term borrowings | 3,042 | 1,696 | 0 |
Principal payments of long-term and short-term borrowings | (2,301) | (1,225) | (112) |
Revolving credit facilities and other, net | (506) | 633 | (2) |
Debt issuance costs | (44) | (40) | (4) |
Net cash provided by (used in) financing activities | 180 | 1,064 | (118) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (1,415) | 1,451 | 53 |
Effect of exchange rate changes on cash | 40 | (9) | (25) |
Cash, cash equivalents and restricted cash — beginning of period | 2,402 | 960 | 932 |
Cash, cash equivalents and restricted cash — end of period | 1,027 | 2,402 | 960 |
Cash and cash equivalents | 998 | 2,392 | 950 |
Restricted cash (included in other long–term assets) | 15 | 10 | 10 |
Interest paid | 240 | 222 | 248 |
Income taxes paid | 169 | 172 | 159 |
Accrued capital expenditures as of March 31 | 77 | 56 | 103 |
Net income from continuing operations | 458 | 420 | 434 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (221) | 0 | 0 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 1,209 | 973 | 730 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (82) | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | (2,614) | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (3,079) | (586) | (559) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 357 | 0 | 0 |
Payment for Contingent Consideration Liability, Financing Activities | (9) | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 182 | 1,064 | (118) |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | (2) | 0 | 0 |
Restricted Cash, Current | 14 | 0 | 0 |
Cash and cash equivalents of discontinued operations | $ 0 | $ 0 | $ 0 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's (Deficit) Equity - USD ($) $ in Millions | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) (AOCI) | Non-controlling Interests |
Balance at Mar. 31, 2018 | $ 828 | $ 0 | $ 1,404 | $ (278) | $ (261) | $ (37) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Prior Period Reclassification Adjustment | $ 36 | ||||||
Balance at Apr. 01, 2018 | 864 | $ 0 | 1,404 | (226) | (277) | (37) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Common Stock, Shares, Issued | 1,000 | ||||||
Balance at Mar. 31, 2018 | 828 | $ 0 | 1,404 | (278) | (261) | (37) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Net income attributable to our common shareholder | 434 | 434 | |||||
Net income attributable to noncontrolling interests | 0 | ||||||
Currency translation adjustment, included in other comprehensive income (loss) | (171) | (171) | |||||
Change in fair value of effective portion of hedges, net of tax included in AOCI | (50) | (50) | |||||
Change in pension and other benefits, net of tax included in AOCI | (6) | (8) | 2 | ||||
Balance at Mar. 31, 2019 | 1,071 | $ 0 | 1,404 | 208 | (506) | (35) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Common Stock, Shares, Issued | 1,000 | ||||||
Balance at Apr. 01, 2018 | 864 | $ 0 | 1,404 | (226) | (277) | (37) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Net income attributable to our common shareholder | 420 | 420 | |||||
Currency translation adjustment, included in other comprehensive income (loss) | (73) | (73) | |||||
Change in fair value of effective portion of hedges, net of tax included in AOCI | (4) | (4) | |||||
Change in pension and other benefits, net of tax included in AOCI | (53) | (37) | (16) | ||||
Balance at Mar. 31, 2019 | 1,071 | $ 0 | 1,404 | 208 | (506) | (35) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Common Stock, Shares, Issued | 1,000 | ||||||
Net income attributable to our common shareholder | 420 | 420 | |||||
Net income attributable to noncontrolling interests | 0 | ||||||
Balance at Mar. 31, 2020 | $ 1,361 | $ 0 | 1,404 | 628 | (620) | (51) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Common Stock, Shares, Issued | 1,000 | 1,000 | |||||
Net income attributable to our common shareholder | $ 236 | 236 | |||||
Net income attributable to noncontrolling interests | 1 | 1 | |||||
Currency translation adjustment, included in other comprehensive income (loss) | 214 | 214 | |||||
Change in fair value of effective portion of hedges, net of tax included in AOCI | (107) | (107) | |||||
Change in pension and other benefits, net of tax included in AOCI | 181 | 147 | 34 | ||||
Balance at Mar. 31, 2021 | $ 1,886 | $ 0 | $ 1,404 | $ 864 | $ (366) | $ (16) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||||
Common Stock, Shares, Issued | 1,000 | 1,000 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholder's Equity (Parenthetical) - Accumulated Other Comprehensive Income (Loss) (AOCI) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Tax on change in fair value of cash flow hedges | $ (37) | $ (6) | $ (20) |
Tax on change in pension and other benefits | $ 62 | $ (20) | $ (2) |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In this Annual Report on Form 10-K ("Form 10-K"), references herein to "Novelis," the "Company," "we," "our," or "us" refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to "Hindalco" refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco Industries Limited. Unless otherwise specified, the period referenced is the current fiscal year. Reference to "fiscal 2021," "fiscal 2020," or "fiscal 2019" refers to the fiscal year ended March 31, 2021, 2020, or 2019, respectively. All tonnages are stated in metric tonnes. One metric tonne is equivalent to 2,204.6 pounds. One kilotonne ("kt") is 1,000 metric tonnes. 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 March 31, 2021, 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 15 of these plants. Consolidation Policy Our consolidated financial statements include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control, and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate intercompany accounts and transactions from our consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated net income attributable to our common shareholder includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the consolidated financial statements for consolidated entities, compared to a two-line presentation of investment in and advances to non–consolidated affiliates and equity in net (income) loss of non-consolidated affiliates. Use of Estimates and Assumptions The preparation of our consolidated financial statements in accordance with generally accepted accounting principles in the United States ("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 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 . Reclassifications and Revisions of Previously Issued Financial Statements During the preparation of the consolidated financial statements for fiscal 2020, we identified a misstatement related to the sale of land within previously issued Form 10-Ks for the years ended March 31, 2019 and March 31, 2018. The previously disclosed amounts for property, plant and equipment, net and retained earnings were understated by $5 million for 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 years ended March 31, 2019 and March 31, 2018 and that amendments of previously filed financial statements were therefore not required. However, we elected to revise the previously reported amounts in the consolidated statements of shareholder's (deficit) equity to correct the misstatement. The revision applies to the previously reported amounts for retained earnings in the consolidated statements of shareholder's (deficit) equity for the fiscal years ended March 31, 2019 and March 31, 2018. 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, 2020 and March 31, 2019 and the interim periods within these years. As a result, the previously reported amounts for capital expenditures were understated by $11 million and $2 million, changes in accounts payable were overstated by $11 million and $2 million, and accrued capital expenditures, presented in supplemental disclosures, were overstated by $44 million and $33 million for the years ended March 31, 2020 and March 31, 2019, respectively. 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, 2020 and March 31, 2019 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 consolidated statement of cash flows, accrued capital expenditures within the supplemental disclosures to the consolidated statement of cash flows, and capital expenditures within Note 24 – Segment, Geographical Area, Major Customer and Major Supplier Information . Risks and Uncertainties We are exposed to a number of risks in the normal course of our operations that could potentially affect our financial position, results of operations, and cash flows. 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, the COVID-19 pandemic, and its unprecedented negative economic implications, have affected production and sales across a range of industries around the world. Our global operations, similar to those of many other large, multi-national corporations, were also impacted. Early in fiscal year 2021, we were required to partially shut down or temporarily close certain facilities in the United States ("U.S.") 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 the COVID-19 pandemic 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 and remained robust through the remainder of fiscal 2021, 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 U.S. and global economies and the timing, scope, and effectiveness of federal, state, and local governmental responses, including the distribution and adoption of vaccines. Our application of U.S. GAAP requires the pervasive use of estimates and assumptions in preparing the audited 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. Laws and regulations We operate in an industry that is subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate. These laws and regulations impose increasingly stringent environmental, health and safety protection standards and permitting requirements regarding, among other things, air emissions, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste disposal practices, the remediation of environmental contamination, post-mining reclamation and working conditions for our employees. Some environmental laws, such as the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, and comparable state laws, impose joint and several liability for the cost of environmental remediation, natural resource damages, third party claims, and other expenses, without regard to the fault or the legality of the original conduct. The costs of complying with these laws and regulations, including participation in assessments and remediation of contaminated sites and installation of pollution control facilities, have been, and in the future could be, significant. In addition, these laws and regulations may also result in substantial environmental liabilities associated with divested assets, third party locations and past activities. In certain instances, these costs and liabilities, as well as related action to be taken by us, could be accelerated or increased if we were to close, divest of or change the principal use of certain facilities with respect to which we may have environmental liabilities or remediation obligations. Currently, we are involved in a number of compliance efforts, remediation activities and legal proceedings concerning environmental matters, including certain activities and proceedings arising under U.S. Superfund and comparable laws in other jurisdictions where we have operations. We have established liabilities for environmental remediation where appropriate. However, the cost of addressing environmental matters (including the timing of any charges related thereto) cannot be predicted with certainty, and these liabilities may not ultimately be adequate, especially in light of potential changes in environmental conditions, changing interpretations of laws and regulations by regulators and courts, the discovery of previously unknown environmental conditions, the risk of governmental orders to carry out additional compliance on certain sites not initially included in remediation in progress, our potential liability to remediate sites for which provisions have not been previously established and the adoption of more stringent environmental laws. Such future developments could result in increased environmental costs and liabilities and could require significant capital expenditures, any of which could have a material adverse effect on our financial position or results of operations, or cash flows. Furthermore, the failure to comply with our obligations under the environmental laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions or other orders, including orders to cease operations. In addition, the presence of environmental contamination at our properties could adversely affect our ability to sell a property, receive full value for a property or use a property as collateral for a loan. Some of our current and potential operations are located or could be located in or near communities that may regard such operations as having a detrimental effect on their social and economic circumstances. Environmental laws typically provide for participation in permitting decisions, site remediation decisions and other matters. Concern about environmental justice issues may affect our operations. Should such community objections be presented to government officials, the consequences of such a development may have a material adverse impact upon the profitability or, in extreme cases, the viability of an operation. In addition, such developments may adversely affect our ability to expand or enter into new operations in such location or elsewhere and may also have an effect on the cost of our environmental remediation projects. We use a variety of hazardous materials and chemicals in our rolling processes and in connection with maintenance work on our manufacturing facilities. Because of the nature of these substances or related residues, we may be liable for certain costs, including, among others, costs for health-related claims or removal or re-treatment of such substances. Certain of our current and former facilities incorporated asbestos-containing materials, a hazardous substance that has been the subject of health-related claims for occupation exposure. In addition, although we have developed environmental, health and safety programs for our employees, including measures to reduce employee exposure to hazardous substances, and conduct regular assessments at our facilities, we are currently, and in the future may be, involved in claims and litigation filed on behalf of persons alleging injury predominantly as a result of occupational exposure to substances at our current or former facilities. It is not possible to predict the ultimate outcome of these claims and lawsuits due to the unpredictable nature of personal injury litigation. If these claims and lawsuits, individually or in the aggregate, were finally resolved against us, our financial position, results of operations, and cash flows could be adversely affected. Materials and labor In the aluminum rolled products industry, our raw materials are subject to continuous price volatility. We may not be able to pass on the entire cost of the increases to our customers or offset fully the effects of higher raw material costs through productivity improvements, which may cause our profitability to decline. In addition, there is a potential time lag between changes in prices under our purchase contracts and the point when we can implement a corresponding change under our sales contracts with our customers. As a result, we could be exposed to fluctuations in raw materials prices which could have a material adverse effect on our financial position, results of operations, and cash flows. Significant price increases may result in our customers substituting other materials, such as plastic or glass, for aluminum or switching to another aluminum rolled products producer, which could have a material adverse effect on our financial position, results of operations, and cash flows. We consume substantial amounts of energy in our rolling operations and our cast house operations. The factors that affect our energy costs and supply reliability tend to be specific to each of our facilities. A number of factors could materially adversely affect our energy position including, but not limited to: (a) increases in the cost of natural gas; (b) increases in the cost of supplied electricity or fuel oil related to transportation; (c) interruptions in energy supply due to equipment failure or other causes and (d) the inability to extend energy supply contracts upon expiration on favorable terms. A significant increase in energy costs or disruption of energy supplies or supply arrangements could have a material adverse effect on our financial position, results of operations, and cash flows. A substantial portion of our employees are represented by labor unions under a large number of collective bargaining agreements with varying durations and expiration dates. Although we have not experienced a strike or work stoppage in recent years, we may not be successful in preventing such an event from occurring in the future at one or more of our manufacturing facilities. In addition, we may not be able to satisfactorily renegotiate our collective bargaining agreements when they expire. Any work stoppages or material changes in the terms of our labor agreements could have an adverse impact on our financial condition. Geographic markets We are, and will continue to be, subject to financial, political, economic and business risks in connection with our global operations. We have made investments and carry on production activities in various emerging markets, including China, Brazil and South Korea, and we market our products in these countries, as well as certain other countries in Asia, Africa, and the Middle East. While we anticipate higher growth or attractive production opportunities from these emerging markets, they also present a higher degree of risk than more developed markets. In addition to the business risks inherent in developing and servicing new markets, economic conditions may be more volatile, legal and regulatory systems may be less developed and predictable, and the possibility of various types of adverse governmental action may be more pronounced. In addition, inflation, fluctuations in currency and interest rates, competitive factors, civil unrest and labor problems could affect our revenues, expenses and results of operations. Our operations could also be adversely affected by acts of war, terrorism or the threat of any of these events as well as government actions such as controls on imports, exports and prices, tariffs, new forms of taxation, changes in fiscal regimes and increased government regulation in the countries in which we operate or service customers. Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial position, results of operations, and cash flows. Other risks and uncertainties In addition, refer to Note 18 – Financial Instruments and Commodity Contracts , Note 20 – Fair Value Measurements , and Note 23 – Commitments and Contingencies for a discussion of financial instruments and commitments and contingencies. Net Sales We recognize revenue in accordance with the FASB Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). See Note 4 – Revenue from Contracts with Customers for additional information on our revenue recognition policies. Cost of Goods Sold (Exclusive of Depreciation and Amortization) Cost of goods sold (exclusive of depreciation and amortization) includes all costs associated with inventories, including the procurement of materials, the conversion of such materials into finished products, and the costs of warehousing and distributing finished goods to customers. Material procurement costs include inbound freight charges as well as purchasing, receiving, inspection and storage costs. Conversion costs include the costs of direct production inputs such as labor and energy, as well as allocated overheads from indirect production centers and plant administrative support areas. Warehousing and distribution costs include inside and outside storage costs, outbound freight charges and the costs of internal transfers. Selling, General and Administrative Expenses Selling, general and administrative expenses include selling, marketing and advertising expenses; salaries, travel and office expenses of administrative employees and contractors; legal and professional fees; software license fees; bad debt expenses; and factoring expenses. Research and Development We incur costs in connection with research and development ("R&D") programs that are expected to contribute to future earnings, and charge such costs against income as incurred. R&D costs consist primarily of salaries and administrative costs. Restructuring Activities Restructuring charges, which are recorded within restructuring and impairment, net, include employee severance and benefit costs, impairments of assets, and other costs associated with exit activities. Restructuring costs are determined based on estimates prepared at the time the restructuring actions were approved by management and are periodically updated for changes. Restructuring costs include expenses that are recorded through the restructuring liability. We apply the provisions of ASC 420, Exit or Disposal Cost Obligations ("ASC 420") and ASC 712, Compensation — Nonretirement Postemployment Benefits ("ASC 712" ). Severance costs accounted for under ASC 420 and/or ASC 712 are recognized when management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. Impairment losses are based upon the estimated fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include environmental remediation costs and contract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we evaluate the accruals for restructuring costs to ensure the accruals are still appropriate. See Note 5 – Restructuring and Impairment for further discussion. Business Acquisition and Other Related Costs Business acquisition and other related costs includes costs associated with the acquisition of Aleris, including legal and professional fees associated with the transaction. See Note 2 – Business Combination for further details about the transaction. Carbon Emission Allowances Emission allowances are recognized when there is reasonable assurance that we will comply with the respective conditions required and that the allowances or grants will be received. The allowances are recognized as income over the respective periods in which the intended expenses are offset. We recognize emission allowances as non-amortizing intangible assets since the allowance benefit is an offset against a future expense demonstrating compliance with the respective regulation and never received in the form of cash. Although the intangible is not amortized, it is subject to impairment under the indefinite lived intangible asset impairment model. The intangible asset is recognized at nominal value once we have satisfied all requirements, are granted the allowance(s), and are able to exercise control. Any excess credits are accrued. Cash and Cash Equivalents Cash and cash equivalents includes investments that are highly liquid and have maturities of three months or less when purchased. The carrying values of cash and cash equivalents approximate their fair value due to the short-term nature of these instruments. We maintain amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions, and we have not experienced any losses on such deposits. Restricted Cash Restricted cash primarily relates to cash deposits for employee benefits and cash restricted for payments on our Zhenjiang Term Loans and is disclosed on the consolidated statement of cash flows. Restricted cash is included in prepaid expenses and other current assets and other long–term assets on the consolidated balance sheet. Accounts Receivable Our accounts receivable are geographically dispersed. We do not obtain collateral relating to our accounts receivable. We do not believe there are any significant concentrations of revenues from any particular customer or group of customers that would subject us to any significant credit risks in the collection of our accounts receivable. We report accounts receivable at the estimated net realizable amount we expect to collect from our customers. Additions to the allowance for credit losses are made by means of the provision for credit losses. We write-off uncollectible accounts receivable against the allowance for credit losses after exhausting collection efforts. For each of the periods presented, we performed an analysis of our historical cash collection patterns and considered the impact of any known material events in determining the allowance for credit losses. See Note 6 – Accounts Receivable for further discussion. Derivative Instruments We hold derivatives for risk management purposes and not for trading. We use derivatives to mitigate uncertainty and volatility caused by underlying exposures to metal prices, foreign exchange rates, interest rates, and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. We may be exposed to losses in the future if the counterparties to our derivative contracts fail to perform. We are satisfied that the risk of such non-performance is remote due to our monitoring of credit exposures. Additionally, we enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default, and we do not face credit contingent provisions that would result in the posting of collateral. In accordance with ASC 815, Derivatives and Hedging, for cash flow hedges we recognize and defer the entire periodic change in the fair value of the hedging instrument in other comprehensive income (loss). The amounts recorded in other comprehensive income (loss) are subsequently reclassified to earnings in the same line item impacted by the hedged item when the hedged item affects earnings. For derivatives designated as cash flow hedges or net investment hedges, we assess hedge effectiveness by formally evaluating the high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is included in other comprehensive income (loss) and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. Gains or losses representing reclassifications of other comprehensive income (loss) to earnings are recognized in the same line item that is impacted by the underlying exposure. We exclude the time value component of foreign currency and aluminum price risk hedges when measuring and assessing effectiveness to align our accounting policy with risk management objectives when it is necessary. If at any time during the life of a cash flow hedge relationship we determine that the relationship is no longer effective, the derivative will no longer be designated as a cash flow hedge and future gains or losses on the derivative will be recognized in other expenses, net. For derivatives designated as fair value hedges, we assess hedge effectiveness by formally evaluating the high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. The changes in the fair values of the underlying hedged items are reported in prepaid expenses and other current assets, other long–term assets, accrued expenses and other current liabilities, and other long–term liabilities in the consolidated balance sheets. Changes in the fair values of these derivatives and underlying hedged items generally offset, and the entire change in the fair value of derivatives is recorded in the statement of operations line item consistent with the underlying hedged item. If no hedging relationship is designated, gains or losses are recognized in other expenses, net in our current period earnings. Consistent with the cash flows from the underlying risk exposure, we classify cash settlement amounts associated with designated derivatives as part of either operating or investing activities in the consolidated statements of cash flows. If no hedging relationship is designated, we classify cash settlement amounts as part of investing activities in the consolidated statement of cash flows. The majority of our derivative contracts are valued using industry-standard models that use observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current ("spot") and forward market prices for commodity and foreign exchange rates. See Note 18 – Financial Instruments and Commodity Contracts and Note 20 – Fair Value Measurements for additional discussion related to derivative instruments. Inventories We carry our inventories at the lower of their cost or net realizable value, reduced for obsolete and excess inventory. We use the average cost method to determine cost. Included in inventories are stores inventories, which are carried at average cost. See Note 7 – Inventories for further discussion. Property, Plant and Equipment We record land, buildings, leasehold improvements, and machinery and equipment at cost. We record assets under finance lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments as of the beginning of the lease term. We generally depreciate our assets using the straight-line method over the shorter of the estimated useful life of the assets or the lease term, excluding any lease renewals, unless the lease renewals are reasonably certain. See Note 8 – Property, Plant and Equipment for further discussion. We assign useful lives to and depreciate major components of our property, plant and equipment. The ranges of estimated useful lives are as follows: Range in Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under finance lease obligations 5 to 15 Most of our large scale machinery, including hot mills, cold mills, continuous casting mills, furnaces, and finishing mills have useful lives of 15 to 25 years. Supporting machinery and equipment, including automation and work rolls, have useful lives of 2 to 15 years. Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset. We also capitalize construction costs and interest incurred while major construction and development projects are in progress. These amounts are capitalized as construction in progress within property, plant and equipment until the asset is placed into service. Once placed into service, the asset, including the associated capitalized interest, is reclassified from construction in progress to the appropriate property, plant and equipment component and depreciation commences. We retain fully depreciated assets in property and accumulated depreciation accounts until they are removed from service. In the ca |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2021 | |
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 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 (the "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 final calculation of merger consideration paid to Aleris follows. in millions Amount Cash for equity consideration (i) $ 711 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 Fair value of merger consideration $ 2,775 _________________________ (i) Under the terms of the Merger Agreement, this represents the 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. 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 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. During the third quarter of fiscal 2021, Novelis settled this payable with the selling shareholders. (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 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 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 consolidated balance sheet as of March 31, 2021 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 follows. in millions Assets Acquired as of June 30, 2020 (1) Measurement Period Adjustments Assets Acquired as of March 31, 2021 (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 (5) 949 (5) 944 Goodwill (6)(7)(8)(9) 328 141 469 Intangible assets, net (5)(6) 149 318 467 Deferred income tax assets (7) 114 (20) 94 Other long-term assets 39 — 39 Long–term assets of discontinued operations (8) 944 (390) 554 Total assets $ 3,791 $ 62 $ 3,853 Liabilities Assumed as of June 30, 2020 (1) Measurement Period Adjustments Liabilities Assumed as of March 31, 2021 (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 — 143 Current liabilities of discontinued operations 166 — 166 Long–term debt, net of current portion 125 — 125 Deferred income tax liabilities (7) 37 4 41 Accrued postretirement benefits 164 — 164 Other long–term liabilities (9) 41 41 82 Long–term liabilities of discontinued operations 150 — 150 Total liabilities $ 1,016 $ 62 $ 1,078 Net assets acquired $ 2,775 Total purchase price $ 2,775 _________________________ (1) In connection with the acquisition of Aleris, the Company acquired two businesses which were 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 allocation of purchase price (see Note 3 – Discontinued Operations ). As of March 31, 2021, both of these businesses have been sold and are no longer included in the consolidated balance sheets of Novelis, Inc. (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 of $5 million related to presentational alignment of certain capitalized software in accordance with Novelis' policy during the third quarter of fiscal 2021. (6) Measurement period adjustments related to revisions in the valuation of intangible assets based on refinements to key assumptions, such as discount rates and growth rates, of $261 million and $52 million during the second and third quarters of fiscal 2021, respectively. (7) Measurement period adjustment related to the deferred tax impacts of the measurement period adjustments and other tax adjustments, a decrease in deferred tax assets of $34 million during the second quarter, an increase of $22 million during the third quarter, and a decrease of $8 million during the fourth quarter of fiscal 2021, respectively. Deferred tax liabilities were adjusted by $4 million in the fourth quarter of fiscal 2021. (8) 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 and Duffel's property, plant and equipment, of $284 million and $75 million during the second and third quarters of fiscal 2021, respectively, and revisions to key assumptions related to Lewisport's intangible assets of $31 million during the second quarter of fiscal 2021. (9) Measurement period adjustment related to certain uncertain tax positions and customs related adjustments identified during the third quarter of fiscal 2021. The fair values of assets acquired and liabilities are final as of March 31, 2021. The fair values of the assets acquired and liabilities assumed of discontinued operations were determined using estimated sales prices. The fair values of the continuing operations 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 were 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. 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 has allocated the goodwill associated with the Aleris acquisition to the regions in the amounts below. in millions North America Europe Asia Total Goodwill $ 375 $ 53 $ 41 $ 469 The amounts allocated to intangible assets are as follows. in millions Gross Carrying Amount (1) Weighted-Average Useful Life Trade name $ 10 2.5 years Technology 52 15.1 years Customer relationships 403 22.5 years Other intangibles 2 N/A Total $ 467 21.2 years _________________________ (1) In connection with the acquisition of Aleris, Novelis acquired two businesses which we were 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 $1.6 billion of net sales and $144 million of net loss have been included within the accompanying consolidated statements of operations for the fiscal year ended March 31, 2021. The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations fiscal year ended March 31, 2021 and 2020 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. Fiscal Year Ended March 31, in millions 2021 2020 Net sales $ 12,330 $ 13,175 Net income 306 412 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 | 12 Months Ended |
Mar. 31, 2021 | |
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 U.S., 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. Upon closing, 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 was deemed to be contingent consideration subject to the results of a binding arbitration proceeding under German law that is currently underway. The arbitration will determine the responsibility of ALVANCE to Novelis based on whether either or both parties breached any of their respective obligations under the purchase and sale agreements, and if so, their relative culpability for such breaches, potentially 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) receivable for net debt and working capital adjustments that is outstanding as of March 31, 2021. 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 this contingent consideration 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 loss from discontinued operations, net of tax. For the period ended March 31, 2021, the results of operations of Duffel have been presented within loss from discontinued operations, net of tax in the consolidated statements of operations and cash flows of Duffel have been presented as discontinued operations in the consolidated statements of cash flows. For the period ended March 31, 2021, cash flows from the sale of Duffel totaled $223 million, which represents $246 million in cash proceeds less $23 million in cash sold. As of March 31, 2021, certain assets and liabilities of Duffel remain within current assets of discontinued operations and current liabilities of discontinued operations on our consolidated balance sheet. We have extended our transition services agreement through October 31, 2021 with the approval of the European Commission, and it is anticipated within this timeframe the assets and liabilities will be transferred to ALVANCE. Lewisport On November 8, 2020, we entered into a definitive agreement with American Industrial Partners for the sale of Lewisport and closed the sale on November 30, 2020. Upon closing, we received $180 million in cash proceeds. In addition, we have recorded a $17 million receivable for net working capital adjustments. For the period ended March 31, 2021, the results of operations of Lewisport have been presented within loss from discontinued operations, net of tax in the consolidated statements of operations and cash flows of Lewisport have been presented as discontinued operations in the consolidated statements of cash flows. Loss on Sale of Discontinued Operations As a result of the transactions above, for the fiscal year ended March 31, 2021 we recorded a loss on sale of discontinued operations of $170 million, net of taxes, associated with the sales of Duffel and Lewisport. Cash flows from the sales of Duffel and Lewisport are included in the consolidated statements of cash flows as net cash provided by investing activities - discontinued operations. An offsetting $46 million in net cash provided by investing activities - discontinued operations relates primarily to capital expenditures and outflows from the sale of derivative instruments for Duffel and Lewisport during the period prior to their divestiture. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Mar. 31, 2021 | |
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 with standard terms and conditions. These contracts 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. 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 year. Additionally, certain of our contracts may contain incentive payments to our customers that are deferred and amortized as a reduction to the amount of revenue recorded on a straight-line basis over the term of these contracts. During fiscal 2021 and fiscal 2020, we recognized $38 million and $29 million in net sales, respectively, associated with these customer contractual obligations. We disaggregate revenue from contracts with customers on a geographic basis. This disaggregation also achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of net sales 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 24 – Segment, Geographical Area, Major Customer and Major Supplier Information |
Restructuring and Impairment
Restructuring and Impairment | 12 Months Ended |
Mar. 31, 2021 | |
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. As of March 31, 2021, $26 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying consolidated balance sheet. Our restructuring charges in fiscal 2021 primarily relate to the reorganization and right sizing of the acquired Aleris business. Total restructuring liabilities Other restructuring charges (1) Total restructuring charges Other impairments (2) Total restructuring Balance as of March 31, 2018 $ 36 Expenses 2 — 2 — 2 Cash payments (16) Foreign currency remeasurement and other (5) Balance as of March 31, 2019 $ 17 Expenses 25 12 37 6 43 Cash payments (5) Foreign currency remeasurement and other (3) Balance as of March 31, 2020 $ 34 Expenses 28 — 28 1 29 Cash payments (28) Foreign currency remeasurement and other — Balance as of March 31, 2021 $ 34 _________________________ (1) Other restructuring charges include expenses related to a restructuring activity that are not recorded through the restructuring liability, such as impairments and other non-cash expenses. (2) Other impairment charges are not related to a restructuring activity. North America North America recognized $5 million in restructuring expenses related to environmental costs and employee severance associated with the acquired Aleris business during fiscal 2021. Restructuring expenses were $1 million during both fiscal 2020 and 2019. As of March 31, 2021 and 2020, the restructuring liability for North America totaled $3 million and $1 million, respectively. North America recognized $1 million related to the impairment of certain tangible assets and $4 million in impairment charges on intangible software assets unrelated to restructuring during fiscal 2021 and 2020, respectively. North America recognized no impairment charges during fiscal 2019. Europe Europe recognized $14 million in restructuring expenses related to the reorganization and right sizing of the acquired Aleris business during fiscal 2021 and $33 million in restructuring expenses related to the closure of certain non-core operations during fiscal 2020. Europe recognized no restructuring expense during fiscal 2019. As of March 31, 2021 and 2020, the restructuring liability for Europe totaled $19 million and $21 million, respectively. Asia Asia recognized $2 million in impairment charges on certain long-lived assets unrelated to restructuring in fiscal 2020. No impairment was recognized for Asia during fiscal 2021 or 2019. South America In fiscal 2021, 2020, and 2019, South America recognized restructuring expenses of $1 million, $3 million, and $1 million, respectively, related to the closure of smelter facilities. As of March 31, 2021 and 2020, the restructuring liability for South America totaled $9 million and $12 million, respectively. Other costs |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
6. ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE Accounts receivable, net consists of the following. March 31, in millions 2021 2020 Trade accounts receivable $ 1,551 $ 944 Other accounts receivable 141 131 Accounts receivable — third parties 1,692 1,075 Allowance for credit losses — third parties (5) (8) Accounts receivable, net — third parties $ 1,687 $ 1,067 Accounts receivable, net — related parties $ 166 $ 164 Allowance for Credit Losses As of March 31, 2021 and 2020, our allowance for credit losses represented approximately 0.3% and 0.7% of gross accounts receivable — third parties, respectively. Activity in the allowance for credit losses is as follows. in millions Balance at Additions Accounts Foreign Balance at Fiscal Year Ended March 31, 2021 $ 8 $ — $ (3) $ — $ 5 Fiscal Year Ended March 31, 2020 7 3 (1) (1) 8 Fiscal Year Ended March 31, 2019 7 — — — 7 Factoring of Trade Receivables We factor trade receivables based on local cash needs and in an attempt to balance the timing of cash flows of trade payables and receivables. Factored invoices are not included in our consolidated balance sheets when we do not retain a financial or legal interest. If a financial or legal interest is retained, we classify these factorings as secured borrowings. The following tables summarize amounts relating to our factoring activities. Fiscal Year Ended March 31, in millions 2021 2020 2019 Factoring expense $ 27 $ 41 $ 46 March 31, in millions 2021 2020 Factored receivables outstanding $ 444 $ 430 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
7. INVENTORIES | 7. INVENTORIES Inventories consists of the following. March 31, in millions 2021 2020 Finished goods $ 455 $ 398 Work in process 874 643 Raw materials 407 192 Supplies 192 176 Inventories $ 1,928 $ 1,409 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
8. PROPERTY, PLANT AND EQUIPMENT | 8. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consists of the following. March 31, in millions 2021 2020 Land and property rights $ 202 $ 150 Buildings 1,607 1,300 Machinery and equipment (1) 5,390 4,430 7,199 5,880 Accumulated depreciation and amortization (3,385) (2,968) 3,814 2,912 Construction in progress 873 668 Property, plant and equipment, net (2) $ 4,687 $ 3,580 _________________________ (1) In addition to equipment under finance leases, machinery and equipment also includes furniture, fixtures and equipment. (2) Included in property, plant and equipment, net are $22 million and $3 million of finance leases as of March 31, 2021 and 2020, respectively. This balance of finance leases represents gross finance leases of $33 million and $9 million, net of accumulated amortization of $11 million and $6 million, as of March 31, 2021 and 2020, respectively. Of the $33 million and $9 million of gross finance leases as of March 31, 2021 and 2020, $32 million and $7 million were included in machinery and equipment, respectively. The remainder is included in buildings. For the fiscal years ended March 31, 2021, 2020, and 2019, we capitalized $26 million, $14 million, and $3 million of interest related to construction of property, plant and equipment and intangibles under development, respectively. Depreciation expense related to property, plant and equipment, net is shown in the table below. Fiscal Year Ended March 31, in millions 2021 2020 2019 Depreciation expense related to property, plant and equipment, net $ 451 $ 298 $ 286 Asset impairments Impairment charges are recorded in restructuring and impairment, net on our consolidated statements of operations. See Note 5 – Restructuring and Impairment for additional information. Asset Retirement Obligations An asset retirement obligation is recognized in the period in which sufficient information exists to determine the fair value of the liability along with a corresponding increase to the carrying amount of the related property, plant and equipment which is then depreciated over its useful life. As of March 31, 2021, our asset retirement obligations relate to sites, primarily in North America and Asia, that have government imposed or other legal remediation obligations. The following is a summary of our asset retirement obligation activity. The current portion of the period end balances is included in accrued expenses and other current liabilities in our consolidated balance sheet, while the long-term portion is included in other long–term liabilities. As of March 31, 2021, $20 million was included in other long–term liabilities. in millions Balance at Beginning of Period Obligations Incurred Acquisition Foreign Exchange & Other Adjustments Settlements Balance at End of Period Fiscal Year Ended March 31, 2021 $ 24 $ 2 $ 3 $ (3) $ (1) $ 25 Fiscal Year Ended March 31, 2020 29 — — (1) (4) 24 Fiscal Year Ended March 31, 2019 33 1 — (5) — 29 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
9. GOODWILL AND INTANGIBLE ASSETS | 9. GOODWILL AND INTANGIBLE ASSETS A summary of the changes in carrying value of goodwill for fiscal 2021 and fiscal 2020 follows. in millions North America Europe Asia South America Total Carrying value of goodwill at March 31, 2019 (1) $ 285 181 — 141 $ 607 Foreign currency translation adjustment — — — — — Carrying value of goodwill at March 31, 2020 (1) 285 181 — 141 607 Acquisition (2) 375 53 41 — 469 Foreign currency translation adjustment — 4 3 — 7 Carrying value of goodwill at March 31, 2021 (1) $ 660 $ 238 $ 44 $ 141 $ 1,083 _________________________ (1) Carrying value of goodwill at March 31, 2021, March 31, 2020, and March 31, 2019 is net of accumulated impairment of $860 million for North America, $330 million for Europe, and $150 million for South America. (2) Relates to the goodwill generated through the purchase of Aleris. The components of intangible assets, net are as follows. March 31, 2021 March 31, 2020 in millions Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradenames 18.9 years $ 152 $ (102) $ 50 $ 142 $ (91) $ 51 Technology and software 10.0 years 471 (356) 115 396 (308) 88 Customer-related intangible assets 22.3 years 858 (330) 528 446 (286) 160 Other intangibles N/A 4 (1) 3 — — — 18.0 years $ 1,485 $ (789) $ 696 $ 984 $ (685) $ 299 During the fiscal year ended March 31, 2020, we recorded impairment charges related to certain intangible software assets. In the fiscal years ended March 31, 2021 and March 31, 2019, we did not record impairment charges on any intangible assets. All intangible assets are amortized using the straight-line method. For additional information refer to Note 5 – Restructuring and Impairment . Amortization expense related to intangible assets, net is as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Amortization expense related to intangible assets included in depreciation and amortization $ 92 $ 63 $ 64 Estimated total amortization expense related to intangible assets, net for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions, or other events. Fiscal Year Ending March 31, Amount 2022 $ 90 2023 74 2024 63 2025 61 2026 60 |
Consolidation
Consolidation | 12 Months Ended |
Mar. 31, 2021 | |
Consolidation [Abstract] | |
10. CONSOLIDATION | 10. CONSOLIDATION Variable Interest Entities The entity that has a controlling financial interest in a variable interest entity ("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 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 consolidated balance sheets. March 31, in millions 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 5 $ 8 Accounts receivable, net 69 24 Inventories 81 92 Prepaid expenses and other current assets 4 3 Total current assets 159 127 Property, plant and equipment, net 19 19 Goodwill 12 12 Deferred income tax assets 57 76 Other long–term assets 8 35 Total assets $ 255 $ 269 LIABILITIES Current liabilities: Accounts payable $ 38 $ 38 Accrued expenses and other current liabilities 26 30 Total current liabilities 64 68 Accrued postretirement benefits 214 287 Other long–term liabilities 5 3 Total liabilities $ 283 $ 358 |
Investment in and Advances to N
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions | 12 Months Ended |
Mar. 31, 2021 | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | |
11. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | 11. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS Included in the accompanying consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates. Alunorf Aluminium Norf GmbH ("Alunorf") is a joint venture investment between Novelis Deutschland GmbH, a subsidiary of Novelis, and Hydro Aluminum Deutschland GmbH. 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 expenses. UAL Ulsan Aluminum, Ltd. ("UAL") is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe Steel, Ltd. ("Kobe"). UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from its investors, Novelis and Kobe. UAL is 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. UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of March 31, 2021, Novelis and Kobe both hold 50% interests in UAL. AluInfra In July 2018, Novelis Switzerland SA ("Novelis Switzerland"), a subsidiary of Novelis, entered into definitive agreements with Constellium Valais SA ("Constellium"), an unrelated party, under which Novelis Switzerland and Constellium jointly own and operate AluInfra Services SA ("AluInfra"), the joint venture investment, which provides utility services to each partner. 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 ownership structure and our ownership percentage of the non-consolidated affiliates in which we have investments in as of March 31, 2021 and 2020, and which we account for using the equity method. Affiliate Name Ownership Structure Ownership Percentage Alunorf Corporation 50% UAL Corporation 50% AluInfra Corporation 50% The following table summarizes the assets, liabilities, and equity of our equity method affiliates in the aggregate as of March 31, 2021 and 2020. March 31, in millions 2021 2020 Assets: Current assets $ 476 $ 389 Non-current assets 862 801 Total assets $ 1,338 $ 1,190 Liabilities: Current liabilities $ 283 $ 236 Non-current liabilities 389 358 Total liabilities $ 672 $ 594 Equity: Total equity $ 666 $ 596 Total liabilities and equity $ 1,338 $ 1,190 As of March 31, 2021, the investment in Alunorf exceeded our proportionate share of the net assets by $446 million. The difference is primarily related to the unamortized fair value adjustments that are included in our investment balance as a result of the acquisition of Novelis by Hindalco in 2007. As of March 31, 2021, the investment in UAL exceeded our proportionate share of the net assets by $50 million. The difference primarily relates to goodwill. The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2021, 2020, and 2019 as well as the nature and amounts of significant transactions that we had with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Fiscal Year Ended March 31, in millions 2021 2020 2019 Net sales $ 1,216 $ 1,178 $ 1,245 Costs and expenses related to net sales 1,191 1,160 1,222 Income tax provision 7 5 7 Net income $ 18 $ 13 $ 16 Purchase of tolling services from Alunorf $ 251 $ 243 $ 254 Related Party Transactions Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with our non-consolidated affiliates and our indirect parent company, Hindalco. The following table describes the period-end account balances, shown as related party balances in the accompanying consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. March 31, in millions 2021 2020 Accounts receivable, net — related parties $ 166 $ 164 Other long–term assets — related parties 1 — Accounts payable — related parties 230 176 Transactions with Hindalco |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
12. LEASES | 12. LEASES We lease certain land, buildings and equipment under non-cancelable operating lease arrangements and certain office space under finance lease arrangements. We used the following policies and/or assumptions in evaluating our lease population: • Lease determination: Novelis considers a contract to be or to contain a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. • Discount rate: When our lease contracts do not provide a readily determinable implicit rate, we use the estimated incremental borrowing rate based on information available at the inception of the lease. The discount rate is determined by region and asset class. • Variable payments: Novelis includes payments that are based on an index or rate within the calculation of right of use leased assets and lease liabilities, initially measured at the lease commencement date. Other variable lease payments include, but are not limited to, maintenance, service, and supply costs. These costs are disclosed as a component of total lease costs. • Purchase options: Certain leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. • Renewal options: Most leases include one or more options to renew, with renewal terms that can extend the lease term from one or more years. The exercise of lease renewal options is at our sole discretion. • Residual value guarantees, restrictions, or covenants: Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. • Short-term leases: Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term and expense the associated operating lease costs to selling, general and administrative expenses on the consolidated statements of operations. • Non-lease components: Leases that contain non-lease components (primarily equipment maintenance) are accounted for as a single component and recorded on the consolidated balance sheets for certain asset classes including real estate and certain equipment. Non-lease components include, but are not limited to, common area maintenance, service arrangements, and supply agreements. The table below presents the classification of leasing assets and liabilities (in millions). Leases Consolidated Balance Sheet Classification March 31, 2021 March 31, 2020 Assets Operating lease right-of-use assets Other long–term assets $ 106 95 Finance lease assets (1) Property, plant and equipment, net 22 3 Total lease assets $ 128 $ 98 Liabilities Current: Operating lease liabilities Accrued expenses and other current liabilities $ 25 25 Finance lease liabilities Current portion of long–term debt 6 — Long-term: Operating lease liabilities Other long–term liabilities 63 70 Finance lease liabilities Long–term debt, net of current portion 16 1 Total lease liabilities $ 110 $ 96 _________________________ (1) Finance lease assets are recorded net of accumulated depreciation of $11 million as of March 31, 2021, and $6 million as of March 31, 2020. The table below presents the classification of lease related expenses or income as reported on the consolidated statements of operations (in millions). Amortization of and interest on liabilities related to finance leases were $7 million during the fiscal years ended March 31, 2021. Expense Type Income Statement Classification Fiscal Year Ended March 31, 2021 Fiscal Year Ended March 31, 2020 Operating lease costs (1) Selling, general and administrative expenses $ 57 $ 51 _________________________ (1) Operating lease costs include short-term leases and variable lease costs. Rent expense included in our consolidated statements of operations was $27 million for the fiscal year ended March 31, 2019. Future minimum lease payments as of March 31, 2021, for our operating and finance leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Fiscal Year Ending March 31, Operating leases (1) Finance leases (2) 2022 $ 28 $ 6 2023 19 5 2024 17 4 2025 12 3 2026 7 2 Thereafter 17 3 Total minimum lease payments 100 23 Less: interest 12 1 Present value of lease liabilities $ 88 $ 22 _________________________ (1) Operating lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of March 31, 2021. (2) Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of March 31, 2021. The following table presents the weighted-average remaining lease term and discount rates. As of March 31, 2021 As of March 31, 2020 Weighted-average remaining lease term (in years) Operating leases 6.1 6.3 Finance leases 4.7 6.0 Weighted-average discount rate Operating leases 3.70 % 3.74 % Finance leases 2.37 % 3.17 % The following table presents supplemental information on our operating leases for the fiscal years ended March 31, 2021 and 2020 (in millions). Supplemental information Fiscal Year Ended March 31, 2021 Fiscal Year Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 66 64 Financing cash flows from finance leases 7 — Leased assets obtained in exchange for new finance lease liabilities (1) 17 1 Leased assets obtained in exchange for new operating lease liabilities (2) 21 13 _________________________ (1) For the fiscal year ended March 31, 2021, we have excluded $7 million of finance lease asset additions that were obtained through the acquisition of Aleris. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 31, 2021 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consists of the following. March 31, in millions 2021 2020 Accrued compensation and benefits $ 255 $ 191 Accrued interest payable 48 50 Accrued income taxes 70 67 Other current liabilities 297 305 Accrued expenses and other current liabilities $ 670 $ 613 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
14. DEBT | 14. DEBT Debt consists of the following. March 31, 2021 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 3.16 % $ 236 $ — $ 236 $ 176 $ — $ 176 ABL Revolver (3) — — — 555 — 555 Floating rate Term Loan Facility, due June 2022 2.05 % 648 (5) 643 1,742 (22) 1,720 Floating rate Term Loan Facility, due January 2025 1.95 % 767 (15) 752 — — — Floating rate Term Loan Facility, due March 2028 2.20 % 480 (9) 471 — — — Zhenjiang Term Loans, due May 2024 5.36 % 124 2 126 — — — 5.875% Senior Notes, due September 2026 5.875 % 1,500 (13) 1,487 1,500 (16) 1,484 3.375% Senior Notes, due April 2029 3.375 % 588 (13) 575 — — — 4.75% Senior Notes, due January 2030 4.75 % 1,600 (28) 1,572 1,600 (32) 1,568 China Bank Loans, due August 2027 4.90 % 76 — 76 36 — 36 Finance lease obligations and other debt, due through June 2028 2.45 % 22 — 22 1 — 1 Total debt $ 6,041 $ (81) $ 5,960 $ 5,610 $ (70) $ 5,540 Less: Short-term borrowings (236) — (236) (176) — (176) Current portion of long-term debt (71) — (71) (19) — (19) Long-term debt, net of current portion $ 5,734 $ (81) $ 5,653 $ 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 March 31, 2021, and therefore, exclude the effects of 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 March 31, 2021, there were $89 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 March 31, 2021 for our debt denominated in foreign currencies are as follows (in millions). As of March 31, 2021 Amount Short-term borrowings and current portion of long term debt due within one year $ 307 2 years 690 3 years 44 4 years 802 5 years 22 Thereafter 4,176 Total debt $ 6,041 Short-Term Borrowings As of March 31, 2021, our short-term borrowings totaled $236 million consisting of $89 million of borrowings on our ABL Revolver, $76 million in China loans (CNY 500 million), $53 million in Brazil loans (BRL 302 million), and $18 million in Korea loans (KRW 20 billion). Senior Secured Credit Facilities As of March 31, 2021, the senior secured credit facilities consisted of (i) a secured term loan credit facility ("Term Loan Facility") and (ii) a $1.5 billion asset based loan facility ("ABL Revolver"). The senior secured credit facilities contain various affirmative covenants, including covenants with respect to our financial statements, litigation and other reporting requirements, insurance, payment of taxes, employee benefits and (subject to certain limitations) causing new subsidiaries to pledge collateral and guaranty our obligations. The senior secured credit facilities also include various customary negative covenants and events of default, including limitations on our ability to (1) incur additional indebtedness, (2) sell certain assets, (3) enter into sale and leaseback transactions, (4) make investments, loans and advances, (5) pay dividends or returns of capital and distributions beyond certain amounts, (6) engage in mergers, amalgamations or consolidations, (7) engage in certain transactions with affiliates, and (8) prepay certain indebtedness. The Term Loan Facility also contains a financial maintenance covenant that prohibits Novelis' senior secured net leverage ratio as of the last day of each fiscal quarter period as measured on a rolling four quarter basis from exceeding 3.50 to 1.00, subject to customary equity cure rights. The senior secured credit facilities include a cross-default provision under which lenders could accelerate repayment of the loans if a payment or non-payment default arises under any other indebtedness with an aggregate principal amount of more than $100 million (or, in the case of the Term Loan Facility, under the ABL Revolver regardless of the amount outstanding). The senior secured credit facilities are guaranteed by the Company's direct parent, AV Metals Inc., and certain of the Company's direct and indirect subsidiaries and are secured by a pledge of substantially all of the assets of the Company and the guarantors. Term Loan Facility In January 2017, we borrowed $1.8 billion of term loans (the "2017 Term Loans") under our Term Loan Facility. The 2017 Term Loans mature on June 2, 2022 and are subject to 0.25% quarterly amortization payments. The existing loans under the Term Loan Facility accrue interest at LIBOR plus 1.85%. In April 2020, Novelis Acquisitions LLC borrowed $775 million of term loans (the "2020 Term Loans") under the Term Loan Facility prior to its merger into Aleris Corporation. The proceeds of the 2020 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 of the 2020 Term Loans. The 2020 Term Loans mature on January 21, 2025 and are 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%. In March 2021, we borrowed $480 million of term loans (the "2021 Term Loans") under our Term Loan Facility. The 2021 Term Loans mature on March 31, 2028 and are subject to 0.25% quarterly amortization payments. The existing loans under the Term Loan Facility accrue interest at LIBOR plus 2.00%. The proceeds of the 2021 Term Loans were applied to refinance a portion of the 2017 Term Loans. After giving effect to such refinancing in addition to a partial repayment of the 2017 Term Loans with the proceeds of the issuance of the 2029 Senior Notes (as defined below), principal amounts of $648 million of the 2017 Term Loans, $767 million of the 2020 Term Loans, and $480 million of the 2021 Term Loans were outstanding as of March 31, 2021. We incurred $9 million in debt issuance costs related to the issuance of the 2021 Term Loans, which will be amortized as an increase to interest expense and amortization of debt issuance costs over the term of the note. As a result of this partial repayment of our 2017 Term Loans, we recorded $8 million of loss on extinguishment of debt on our consolidated statement of operations for fiscal 2021. Subsequent to March 31, 2021, we borrowed an additional $20 million on the 2021 Term Loans, bringing the total principal borrowed under the 2021 Term Loans to $500 million. The proceeds of these additional borrowings were applied to refinance a portion of the 2017 Term Loans. The Term Loan Facility requires customary mandatory prepayments with excess cash flow, other asset sale proceeds, casualty event proceeds and proceeds of prohibited indebtedness, all subject to customary reinvestment rights and exceptions. The loans under the Term Loan Facility may be prepaid, in full or in part, at any time at Novelis' election without penalty or premium. The Term Loan Facility allows for additional term loans to be issued in an amount not to exceed $300 million (or its equivalent in other currencies) plus an unlimited amount if, after giving effect to such incurrences on a pro forma basis, the secured net leverage ratio does not exceed 3.00 to 1.00. The Term Loan Facility allows for additional term loans to be issued in an amount to refinance loans outstanding under the Term Loan Facility. The lenders under the Term Loan Facility have not committed to provide any such additional term loans. As of March 31, 2021, we were in compliance with the covenants for our Term Loan Facility. ABL Revolver In April 2019, we entered into an amendment (the "ABL Amendment") to our existing ABL Revolver. Pursuant to the terms of the amendment, the commitments under the pre-existing $1 billion facility increased by $500 million on October 15, 2019. Aleris and certain of its U.S. subsidiaries became borrowers under the ABL Revolver upon closing of the acquisition, and the ABL Amendment includes additional changes to facilitate the acquisition of Aleris (including permitting borrowings under the Short Term Credit Agreement) and the inclusion of certain Aleris assets in the borrowing base following the acquisition. The ABL Amendment also includes additional changes to increase our operating flexibility. The ABL Revolver is a senior secured revolver bearing an interest rate of LIBOR plus a spread of 1.25% to 1.75% or a prime rate plus a prime spread of 0.25% to 0.75% based on excess availability. The ABL Revolver has a provision that allows the ABL Revolver to be increased by an additional $750 million, subject to lenders providing commitments for the increase. The ABL Revolver has various customary covenants including maintaining a specified minimum fixed charge coverage ratio of 1.25 to 1 if excess availability is less than the greater of (1) $115 million and (2) 10% of the lesser of (a) the maximum size of the ABL Revolver and (b) the borrowing base. The ABL Revolver matures on April 15, 2024; provided that, (1) in the event that the Short Term Credit Agreement (as defined below) is outstanding (and not refinanced with a maturity date later than October 15, 2024) 60 days prior to its maturity then the ABL Revolver will mature 60 days prior to the maturity date of the Short Term Credit Agreement (provided further that if we have commenced a refinancing of the Short Term Credit Agreement that is continuing on and after the date that is 60 days prior to the maturity date of the Short Term Credit Agreement and that is scheduled to be and is capable of being completed prior to the date that is 45 days prior to the maturity date of the Short Term Credit Agreement, then the ABL Revolver will mature 45 days prior to the maturity date of the Short Term Credit Agreement); and (2) in the event that the Term Loan Facility or certain other indebtedness is outstanding 90 days prior to its maturity (and not refinanced with a maturity date later than October 15, 2024, then the ABL Revolver will mature 90 days prior to the maturity date for such other indebtedness, as applicable; unless excess availability under the ABL Revolver is at least (i) 20% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base and (ii) 15% of the lesser of (x) the total ABL Revolver commitment and (y) the then applicable borrowing base, and a minimum fixed charge ratio test of at least 1.25 to 1 is met. As of March 31, 2021, we were in compliance with the covenants for our ABL Revolver. As of March 31, 2021, we had $89 million in borrowings under our ABL Revolver. We utilized $34 million of our ABL Revolver for letters of credit. We had availability of $1.1 billion on the ABL Revolver, including $141 million of remaining availability which can be utilized for letters of credit. Short Term Credit Agreement In April 2020, Novelis Holdings Inc. borrowed a $1.1 billion short-term loan under our existing short-term credit agreement (the "Short Term Credit Agreement") for purposes of funding a portion of the consideration payable in the acquisition of Aleris. In August 2020, we entered into an amendment to the Short Term Credit Agreement to extend the maturity of the $1.1 billion facility from April 13, 2021 to April 13, 2022. As of March 31, 2021, the short-term loan has been repaid in full, and the restrictions under the Short Term Credit Agreement are no longer in effect. The short-term loan was not subject to any amortization payments and accrued interest at LIBOR (as defined in the Short Term Credit Agreement) plus 0.95%. The short-term loan was guaranteed by the same entities that have provided guarantees under the Term Loan Facility and ABL Revolver. The Short Term Credit Agreement contained 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 loan. As a result of the early repayment of the Short Term Credit Agreement, we recorded $5 million of loss on extinguishment of debt on our consolidated statement of operations for fiscal 2021. 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 March 31, 2021, 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 March 31, 2021, $124 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 March 31, 2021, we were in compliance with the covenants of our Zhenjiang Loans. Senior Notes In September 2016, Novelis Corporation, an indirect wholly owned subsidiary of Novelis Inc., issued $1.5 billion in aggregate principal amount of 5.875% Senior Notes Due 2026 (the “2026 Senior Notes”). The 2026 Senior Notes are subject to semi-annual interest payments and mature on September 30, 2026. In January 2020, Novelis Corporation issued $1.6 billion in aggregate principal amount of 4.75% Senior Notes due 2030 (the "2030 Senior Notes"). The proceeds were used to refinance all of Novelis Corporation's 6.25% Senior Notes due 2024 and the remainder was utilized to pay a portion of the consideration for the acquisition of Aleris. The 2030 Senior Notes are subject to semi-annual interest payments and mature on January 30, 2030. As a result of this refinancing as well as the expiration of our 2018 Term Loan Increase Joinder Amendment and Short Term Credit Agreement, we recorded $71 million of loss on extinguishment of debt on our consolidated statement of operations for fiscal 2020. In March 2021, Novelis Sheet Ingot GmbH, an indirect wholly owned subsidiary of Novelis Inc., organized under the laws of Ireland, issued €500 million in aggregate principal amount 3.375% Senior Notes due 2029 (the "2029 Senior Notes" and together with the 2026 Senior Notes and the 2030 Senior Notes, the "Senior Notes"). The 2029 Senior Notes are subject to semi-annual interest payments and mature on April 15, 2029. The proceeds were used to pay down a portion of the 2017 Term Loans, plus accrued and unpaid interest. In addition, we intend to allocate an amount equal to the net proceeds received from this issuance to finance and/or refinance new and/or existing eligible green projects, which are currently contemplated to consist of renewable energy or pollution prevention and control type projects. We incurred $13 million in debt issuance costs related to the issuance of the 2029 Senior Notes, which will be amortized as an increase to interest expense and amortization of debt issuance costs over the term of the note. The Senior Notes are guaranteed, jointly and severally, on a senior unsecured basis, by Novelis Inc. and certain of its subsidiaries. The Senior Notes contain customary covenants and events of default that will limit our ability and, in certain instances, the ability of certain of our subsidiaries to (1) incur additional debt and provide additional guarantees, (2) pay dividends or return capital beyond certain amounts and make other restricted payments, (3) create or permit certain liens, (4) make certain asset sales, (5) use the proceeds from the sales of assets and subsidiary stock, (6) create or permit restrictions on the ability of certain of Novelis' subsidiaries to pay dividends or make other distributions to Novelis, (7) engage in certain transactions with affiliates, (8) enter into sale and leaseback transactions, (9) designate subsidiaries as unrestricted subsidiaries and (10) consolidate, merge or transfer all or substantially all of our assets and the assets of certain of our subsidiaries. During any future period in which either Standard & Poor's Ratings Group, Inc. or Moody's Investors Service, Inc. have assigned an investment grade credit rating to the Senior Notes and no default or event of default under the indenture has occurred and is continuing, most of the covenants will be suspended. The Senior Notes include a cross-acceleration event of default triggered if any other indebtedness with an aggregate principal amount of more than $100 million is (1) accelerated prior to its maturity or (2) not repaid at its maturity. The Senior Notes also contain customary call protection provisions for our bondholders that extend through September 2024 for the 2026 Senior Notes, through April 2025 for the 2029 Notes, and through January 2028 for the 2030 Senior Notes. As of March 31, 2021, we were in compliance with the covenants for our Senior Notes. China Bank Loans |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
15. SHARE-BASED COMPENSATION | 15. SHARE-BASED COMPENSATION The Company's board of directors has authorized long term incentive plans ("LTIPs"), under which Hindalco stock appreciation rights ("SARs"), Novelis SARs, phantom restricted stock units ("RSUs"), and Novelis performance units ("PUs") are granted to certain executive officers and key employees. The Hindalco SARs vest at the rate of 33% per year, subject to the achievement of an annual performance target. Fiscal year ended March 31, 2012 through fiscal year ended March 31, 2016 SARs expire in May of the seventh year from the original grant date, while the fiscal year ended March 31, 2017 and onwards SARs expire seven years from their original grant date. The performance criterion for vesting of the Hindalco SARs is based on the actual overall Novelis operating EBITDA compared to the target established and approved each fiscal year. The minimum threshold for vesting each year is 75% of each annual target operating EBITDA. Given that the performance criterion is based on an earnings target in a future period for each fiscal year, the grant date of the awards for accounting purposes is generally not established until the performance criterion has been defined. Each Hindalco SAR is to be settled in cash based on the difference between the market value of one Hindalco share on the date of grant and the market value on the date of exercise. Each Novelis SAR is to be settled in cash based on the difference between the fair value of one Novelis phantom share on the original date of grant and the fair value of a phantom share on the date of the exercise. The amount of cash paid to settle Hindalco SARs and Novelis SARs is limited to three times the target payout, depending on the plan year. The Hindalco SARs and Novelis SARs do not transfer any shareholder rights in Hindalco or Novelis to a participant. The Hindalco SARs and Novelis SARs are classified as liability awards and are remeasured at fair value each reporting period until the SARs are settled. In May 2016, the Company's board of directors approved the issuance of Novelis PUs which have a fixed $100 value per unit and will vest in full three years from the grant date, subject to specific performance criteria compared to the established target. We made a voluntary offer to the participants with outstanding Novelis SARs granted for fiscal years 2012 through 2016 to exchange their Novelis SARs for an equivalently valued number of Novelis PUs. The voluntary exchange resulted in 1,054,662 Novelis SARs being modified into PUs which are not based on Novelis' nor Hindalco's fair values and are accounted for outside the scope of ASC 718, Compensation - Stock Compensation . This exchange was accounted for as a modification. There were 10,165 of Novelis SARs that remain outstanding as of March 31, 2021. The RSUs are based on Hindalco's stock price. The RSUs vest either in full three years from the grant date or 33% per year over three years, subject to continued employment with the Company, but are not subject to performance criteria. Each RSU is to be settled in cash equal to the market value of one Hindalco share. The payout on the RSUs is limited to three times the market value of one Hindalco share measured on the original date of grant. The RSUs are classified as liability awards and expensed over the requisite service period (three years) based on the Hindalco stock price as of each balance sheet date. Total compensation expense related to Hindalco SARs, Novelis SARs, and RSUs under the plans for the respective periods is presented in the table below. These amounts are included in selling, general and administrative expenses in our consolidated statements of operations. As the performance criteria for fiscal years 2022, 2023, and 2024 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. Fiscal Year Ended March 31, in millions 2021 2020 2019 Total compensation expense $ 41 $ (1) $ 17 The table below shows the RSUs activity for the fiscal year ended March 31, 2021. Number of RSUs Grant Date Fair Value (in INR) Aggregate Intrinsic Value (USD in millions) RSUs outstanding as of March 31, 2020 4,747,316 206.54 $ 7 Granted 5,016,919 118.34 — Exercised (2,403,369) 205.10 4 Forfeited/Cancelled (124,447) 172.69 — RSUs outstanding as of March 31, 2021 7,236,419 146.46 31 During fiscal 2020, we granted 2,685,744 RSUs with a grant date fair value of INR 198.88, and the aggregate intrinsic value of RSUs exercised was $9 million. During fiscal 2019, we granted 2,273,078 RSUs with a grant date fair value of INR 230.77, and the aggregate intrinsic value of RSUs exercised was $15 million. Total cash payments made to settle Hindalco RSUs were $4 million, $9 million, and $15 million in the fiscal years ended March 31, 2021, 2020, and 2019, respectively. As of March 31, 2021, unrecognized compensation expense related to the RSUs was $11 million, which will be recognized over the remaining weighted average vesting period of 1.5 years. The table below shows Hindalco SARs activity for the fiscal year ended March 31, 2021. Number of Hindalco SARs Weighted Average Exercise Price (in INR) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2020 12,441,966 177.11 4.1 $ — Granted 6,934,923 118.11 5.3 5 Exercised (5,872,477) 150.62 — 9 Forfeited/Cancelled (465,886) 179.67 — — SARs outstanding as of March 31, 2021 13,038,526 157.56 — 28 SARs exercisable as of March 31, 2021 3,220,946 197.10 3.7 8 During fiscal 2020, we granted 3,475,995 Hindalco SARs with a grant date fair value of INR 198.88, and the aggregate intrinsic value of Hindalco SARs exercised was $3 million. During fiscal 2019, we granted 2,359,347 Hindalco SARs with a grant date fair value of INR 230.95, and the aggregate intrinsic value of Hindalco SARs exercised was $5 million. The cash payments made to settle Hindalco SAR liabilities were $9 million, $3 million, and $5 million, in the fiscal years ended March 31, 2021, 2020, and 2019, respectively. As of March 31, 2021, unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $9 million that are expected to be recognized over a weighted average period of 1.4 years. The table below shows the Novelis SARs activity for the fiscal year ended March 31, 2021. Number of Novelis SARs Weighted Average Exercise Price (in USD) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2020 33,393 $ 86.70 1.0 $ 1 Exercised (19,879) 91.35 — 1 Forfeited/Cancelled (3,349) 72.28 — — SARs outstanding as of March 31, 2021 10,165 82.37 — 1 SARs exercisable as of March 31, 2021 10,165 $ 82.37 1.0 — During fiscal 2020, the aggregate intrinsic value of Novelis SARs exercised was $1 million. The cash payments made to settle Novelis SAR liabilities were $1 million, $1 million, and less than $1 million in the fiscal years ended March 31, 2021, 2020, and 2019, respectively. The fair value of each unvested Hindalco SAR was estimated using the following assumptions: Fiscal Year Ended March 31, 2021 2020 2019 Risk-free interest rate 3.32% - 6.18% 4.73% - 6.89% 6.24% - 7.28% Dividend yield 0.32 % 1.27 % 0.58 % Volatility 40% - 57% 36% - 85% 27% - 39% The fair value of each unvested Novelis SAR was estimated using the following assumptions: Fiscal Year Ended March 31, 2021 2020 2019 Risk-free interest rate 0.03% - 0.08% —% - 0.35% 2.19% - 2.49% Dividend yield — % — % — % Volatility 28% - 45% 24% - 40% 17% - 25% The fair value of each unvested Hindalco SAR was based on the difference between the fair value of a long call and a short call option. The fair value of each of these call options was determined using the Monte Carlo Simulation model. We used historical stock price volatility data of Hindalco on the National Stock Exchange of India to determine expected volatility assumptions. The risk-free interest rate is based on Indian treasury yields interpolated for a time period corresponding to the remaining contractual life. The forfeiture rate is estimated based on actual historical forfeitures. The dividend yield is estimated to be the annual dividend of the Hindalco stock over the remaining contractual lives of the Hindalco SARs. The value of each vested Hindalco SAR is remeasured at fair value each reporting period based on the excess of the current stock price over the exercise price, not to exceed the maximum payout as defined by the plans. The fair value of the Hindalco SARs is being recognized over the requisite performance and service period of each tranche, subject to the achievement of any performance criteria. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
16. POSTRETIREMENT BENEFIT PLANS | 16. POSTRETIREMENT BENEFIT PLANS Our pension obligations relate to: (1) funded defined benefit pension plans in the U.S., Canada, Switzerland, and the U.K.; (2) funded and unfunded defined benefit pension plans in Germany; (3) unfunded lump sum indemnities payable upon retirement to employees in France and Italy; and (4) partially funded lump sum indemnities in South Korea. Our other postretirement obligations (other benefits, as shown in certain tables below) include unfunded health care and life insurance benefits provided to retired employees in the U.S., Canada, and Brazil. We have combined our domestic (i.e. Canadian Plans) and foreign (i.e. All other Plans other than Canadian Plans) postretirement benefit plan disclosures because our domestic benefit obligation is not significant as compared to our total benefit obligation, as our foreign benefit obligation is 95% of the total benefit obligation, and the assumptions used to value domestic and foreign plans were not significantly different. In connection with the acquisition of Aleris Corporation, the Company acquired postretirement benefit plans covering certain employees in Europe and the U.S. 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 (loss). 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. On May 6, 2021, Novelis announced the freeze of future benefit accruals under the Canada Pension Plan, effective for union participants as of December 31, 2021 and for non-union participants as of December 31, 2023. Novelis will remeasure the plan’s assets and obligations as of April 30, 2021, which is the nearest calendar month-end to the announcement of this freeze. We are still determining the financial impact of the remeasurement as of the date of this filing. 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. Fiscal Year Ended March 31, in millions 2021 2020 2019 Funded pension plans $ 72 $ 52 $ 35 Unfunded pension plans 17 12 12 Savings and defined contribution pension plans 40 33 31 Total contributions $ 129 $ 97 $ 78 Contributions to funded pension plans of $5 million and unfunded pension plans of $1 million are attributable to discontinued operations. During fiscal year 2022, we expect to contribute $43 million to our funded pension plans, $17 million to our unfunded pension plans and $44 million to our savings and defined contribution pension plans. Benefit Obligations, Fair Value of Plan Assets, Funded Status, and Amounts Recognized in Financial Statements The following tables present the change in benefit obligation, change in fair value of plan assets, and the funded status for pension and other benefits. The increase in the discount rates in fiscal 2021, as compared to fiscal 2020, was the primary driver of actuarial gains in fiscal 2021, offset by higher mortality rates experienced during the year. The Aleris acquisition also significantly impacted the benefit obligation during fiscal 2021 for both pension benefit and other benefit plans, $194 million and $14 million, respectively, with corresponding $32 million of plan assets acquired. The decrease in the discount rates in fiscal 2020, as compared to fiscal 2019, was the primary driver of actuarial losses in fiscal 2020. Pension Benefit Plans Other Benefit Plans Fiscal Year Ended March 31, Fiscal Year Ended March 31, in millions 2021 2020 2021 2020 Benefit obligation at beginning of period $ 2,054 $ 1,987 $ 176 $ 171 Service cost 42 39 10 10 Interest cost 55 59 7 7 Members’ contributions 5 5 — — Benefits paid (82) (74) (7) (7) Amendments 1 — — — Curtailments, settlements and special termination benefits (45) (11) — — Actuarial (gains) losses (8) 77 (13) (4) Other 189 (3) 14 — Currency (gains) losses 87 (25) 1 (1) Benefit obligation at end of period $ 2,298 $ 2,054 $ 188 $ 176 Benefit obligation of funded plans $ 1,819 $ 1,737 $ — $ — Benefit obligation of unfunded plans 479 317 188 176 Benefit obligation at end of period $ 2,298 $ 2,054 $ 188 $ 176 Pension Benefit Plans Fiscal Year Ended March 31, in millions 2021 2020 Change in fair value of plan assets Fair value of plan assets at beginning of period $ 1,298 $ 1,300 Actual return on plan assets 213 36 Members’ contributions 5 5 Benefits paid (82) (74) Company contributions 83 64 Settlements (3) (11) Other 28 (3) Currency gains (losses) 54 (19) Fair value of plan assets at end of period $ 1,596 $ 1,298 March 31, 2021 2020 in millions Pension Benefit Plans Other Benefit Plans Pension Benefit Plans Other Benefit Plans Funded status Assets less the benefit obligation of funded plans $ (223) $ — $ (439) $ — Benefit obligation of unfunded plans (479) (188) (317) (176) $ (702) $ (188) $ (756) $ (176) As included in our consolidated balance sheets within Total assets / (Total liabilities) Other long–term assets $ 11 $ — $ 18 $ — Accrued expenses and other current liabilities (17) (8) (12) (8) Accrued postretirement benefits (696) (180) (762) (168) $ (702) $ (188) $ (756) $ (176) The postretirement amounts recognized in accumulated other comprehensive loss, before tax effects, are presented in the table below and includes the impact related to our equity method investments. Amounts are amortized to net periodic benefit cost over the group’s average future service life of the employees or the group's average life expectancy. March 31, 2021 2020 in millions Pension Benefit Plans Other Benefit Plans Pension Benefit Plans Other Benefit Plans Net actuarial (losses) gains $ (223) $ 5 $ (455) $ (8) Prior service credit 9 5 9 4 Total postretirement amounts recognized in accumulated other comprehensive loss $ (214) $ 10 $ (446) $ (4) The postretirement changes recognized in accumulated other comprehensive loss, before tax effects, are presented in the table below, and include the impact related to our equity method investments. March 31, 2021 2020 in millions Pension Benefit Plans Other Benefit Plans Pension Benefit Plans Other Benefit Plans Beginning balance in accumulated other comprehensive loss $ (446) $ (4) $ (367) $ (8) Curtailments, settlements, and special termination benefits 1 — 3 — Net actuarial gain (loss) 200 13 (124) 4 Prior service cost (1) — — — Amortization of: Prior service credit (1) 1 (1) — Actuarial losses 49 — 40 — Effect of currency exchange (16) — 3 — Total postretirement amounts recognized in accumulated other comprehensive loss $ (214) $ 10 $ (446) $ (4) Pension Plan Obligations The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets are presented in the table below. March 31, in millions 2021 2020 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans: Projected benefit obligation $ 2,298 $ 2,054 Accumulated benefit obligation 2,191 1,901 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 2,142 $ 1,683 Fair value of plan assets 1,428 908 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 2,048 $ 1,500 Fair value of plan assets 1,427 862 Pension plans with projected benefit obligations less than plan assets: Projected benefit obligation $ 156 $ 371 Fair value of plan assets 167 389 Future Benefit Payments Expected benefit payments to be made during the next ten fiscal years are listed in the table below. in millions Pension Benefit Plans Other Benefit Plans 2022 $ 93 $ 8 2023 97 9 2024 100 9 2025 102 9 2026 103 10 2027 through 2031 576 58 Total $ 1,071 $ 103 Components of Net Periodic Benefit Cost The components of net periodic benefit cost for the respective periods are listed in the table below. Pension Benefit Plans Other Benefit Plans Fiscal Year Ended March 31, Fiscal Year Ended March 31, in millions 2021 2020 2019 2021 2020 2019 Service cost $ 42 $ 39 $ 39 $ 10 $ 10 $ 9 Interest cost 55 59 60 7 7 7 Expected return on assets (73) (71) (66) — — — Amortization — losses, net 44 36 32 — 1 2 Amortization — prior service credit (1) (1) (1) — — — Termination benefits/curtailments 1 3 2 — — — Net periodic benefit cost (1) 68 65 66 17 18 18 Proportionate share of non-consolidated affiliates’ pension costs 12 10 10 — — — Total net periodic benefit cost recognized $ 80 $ 75 $ 76 $ 17 $ 18 $ 18 _________________________ (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. Actuarial Assumptions and Sensitivity Analysis The weighted average assumptions used to determine benefit obligations and net periodic benefit cost for the respective periods are listed in the table below. Pension Benefit Plans Other Benefit Plans Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Weighted average assumptions used to determine benefit obligations Discount rate 2.5 % 2.6 % 3.0 % 3.4 % 3.4 % 4.0 % Average compensation growth 3.1 3.1 3.2 3.0 3.3 3.5 Weighted average assumptions used to determine net periodic benefit cost Discount rate 2.6 % 3.0 % 3.1 % 3.4 % 4.0 % 4.0 % Average compensation growth 3.1 3.2 3.1 3.3 3.3 3.5 Expected return on plan assets 5.1 5.5 5.2 — — — Cash balance interest crediting rate 0.5 0.6 0.9 — — — In selecting the appropriate discount rate for each plan, for pension and other postretirement plans in Canada, the U.S., U.K., and other eurozone countries, we used spot rate yield curves and individual bond matching models. For other countries, we used published long-term high quality corporate bond indices with adjustments made to the index rates based on the duration of the plans' obligation. In estimating the expected return on assets of a pension plan, consideration is given primarily to its target allocation, the current yield on long-term bonds in the country where the plan is established, and the historical risk premium of equity or real estate over long-term bond yields in each relevant country. The approach is consistent with the principle that assets with higher risk provide a greater return over the long-term. The expected long-term rate of return on plan assets is 4.9% in fiscal 2022. We provide unfunded health care and life insurance benefits to our retired employees in Canada, the U.S., the U.K., and Brazil, for which we paid $7 million, $7 million, and $7 million in fiscal 2021, 2020, and 2019. The assumed health care cost trend used for measurement purposes is 5.3% for fiscal 2022, decreasing gradually to 3.6% in 2038 and remaining at that level thereafter. In addition, we provide post-employment benefits, including disability, early retirement and continuation of benefits (medical, dental, and life insurance) to our former or inactive employees, which are accounted for on the accrual basis in accordance with ASC 712, Compensation — Retirement Benefits. Other long–term liabilities and accrued expenses and other current liabilities on our consolidated balance sheets include $16 million and $5 million, respectively, as of March 31, 2021, for these benefits. Comparatively, other long–term liabilities and accrued expenses and other current liabilities on our consolidated balance sheets include $14 million and $4 million, respectively, as of March 31, 2020. Investment Policy and Asset Allocation The Company’s overall investment strategy is to achieve a mix of approximately 50% of investments for long-term growth (equities, real estate) and 50% for near-term benefit payments (debt securities, other) with a wide diversification of asset categories, investment styles, fund strategies and fund managers. Since most of the defined benefit plans are closed to new entrants, we expect this strategy to gradually shift more investments toward near-term benefit payments. Each of our funded pension plans is governed by an Investment Fiduciary, who establishes an investment policy appropriate for the pension plan. The Investment Fiduciary is responsible for selecting the asset allocation for each plan, monitoring investment managers, monitoring returns versus benchmarks and monitoring compliance with the investment policy. The targeted allocation ranges by asset class, and the actual allocation percentages for each class are listed in the table below. Asset Category Target Allocation Allocation in Aggregate as of March 31, 2021 2020 Equity 22-61% 37 % 37 % Fixed income 0-74% 46 % 50 % Real estate 0-15% 1 % 2 % Other 0-40% 16 % 11 % Fair Value of Plan Assets The following pension plan assets are measured and recognized at fair value on a recurring basis. See Note 20 – Fair Value Measurements for a description of the fair value hierarchy. The U.S. and Canadian pension plan assets are invested exclusively in commingled funds and classified in Level 2, and the U.K., Switzerland, and South Korea pension plan assets are invested in both direct investments (Levels 1 and 2) and commingled funds (Level 2). Pension Plan Assets March 31, 2021 March 31, 2020 in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Fixed income 137 52 — 189 149 46 — 195 Cash and cash equivalents 10 — — 10 13 — — 13 Other — 4 — 4 — — — — Investments measured at net asset value (1) — — — 1,393 — — — 1,090 Total $ 147 $ 56 $ — $ 1,596 $ 162 $ 46 $ — $ 1,298 _________________________ |
Currency Losses (Gains)
Currency Losses (Gains) | 12 Months Ended |
Mar. 31, 2021 | |
Foreign Currency [Abstract] | |
17. CURRENCY LOSSES (GAINS) | 17. CURRENCY LOSSES (GAINS) The following currency losses are included in other expenses, net in the accompanying consolidated statements of operations. Fiscal Year Ended March 31, in millions 2021 2020 2019 Loss (gain) on remeasurement of monetary assets and liabilities, net $ 6 $ (23) $ (5) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net (3) 26 6 Currency losses, net $ 3 $ 3 $ 1 The following currency losses are included in accumulated other comprehensive loss and noncontrolling interests in the accompanying consolidated balance sheets. Fiscal Year Ended March 31, in millions 2021 2020 2019 Cumulative currency translation adjustment — beginning of period $ (309) $ (236) $ (65) Effect of changes in exchange rates 244 (73) (171) Amounts reclassified from accumulated other comprehensive loss, net (1) (30) — — Cumulative currency translation adjustment — end of period $ (95) $ (309) $ (236) _________________________ (1) Amounts reclassified from accumulated other comprehensive loss are due to the sale of Duffel. |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 12 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
18. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | 18. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of March 31, 2021 and 2020: March 31, 2021 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 $ 4 $ — $ (105) $ — $ (101) Currency exchange contracts 6 — (20) (4) (18) Energy contracts 1 1 (3) — (1) Total derivatives designated as hedging instruments $ 11 $ 1 $ (128) $ (4) $ (120) Derivatives not designated as hedging instruments Metal contracts $ 104 $ 3 $ (124) $ (1) $ (18) Currency exchange contracts 22 — (28) — (6) Energy contracts — — — — — Total derivatives not designated as hedging instruments $ 126 $ 3 $ (152) $ (1) $ (24) Total derivative fair value $ 137 $ 4 $ (280) $ (5) $ (144) 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 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 Metal 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 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 forward contracts, as well as local market premiums forward contracts. As of March 31, 2021 and March 31, 2020, the fair value of these contracts were an asset of $7 million and a liability of less than $1 million, respectively. These contracts are undesignated with an average duration of less than two years. The following table summarizes our notional amount. March 31, in kt 2021 2020 Hedge type Purchase (sale) Cash flow purchases 10 63 Cash flow sales (594) (395) Not designated (44) (19) Total, net (628) (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 $936 million and $680 million in outstanding foreign currency forwards designated as cash flow hedges as of March 31, 2021 and 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 March 31, 2021 and March 31, 2020. As of March 31, 2021 and 2020, we had outstanding foreign currency exchange contracts with a total notional amount of $1,256 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 first and second quarter of fiscal year 2022 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 March 31, 2021 and 2020, less than 1 million of notional megawatt hours were outstanding and the fair value of this swap was a liability of $2 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 13 million MMBTU designated as cash flow hedges as of March 31, 2021, and the fair value was an asset of less than $1 million. There was a notional of 15 million MMBTU of natural gas forward purchase contracts designated as cash flow hedges as of March 31, 2020 and the fair value was a liability of $5 million. As of March 31, 2021 and 2020, we had notionals of less than 1 million MMBTU of forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of March 31, 2021 and 2020 were both a liability of less than $1 million. The average duration of undesignated contracts is less than four years in length. One MMBTU is the equivalent of one decatherm, or one million British Thermal Units. We use diesel fuel forward purchase contracts to manage our exposure to fluctuating fuel prices in North America. We had a notional of 5 million gallons designated as cash flow hedges as of March 31, 2021, and the fair value was an asset 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 March 31, 2021, we had notional of less than 1 million gallons of forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of March 31, 2021 was an asset of less than $1 million, and the average duration of those undesignated contracts is less than one year in length. Interest Rate As of March 31, 2021 and March 31, 2020, we had no outstanding interest rate swaps, as all swaps expired concurrent with the maturity of the related loans. 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 consolidated statement of operations. As of March 31, 2021, 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 and certain foreign currency exchange contracts designated as hedges of expected future foreign currency transactions. 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 consolidated statement of operations are separately disclosed within this footnote. Fiscal Year Ended March 31, in millions 2021 2020 2019 Derivative instruments not designated as hedges Metal contracts $ (34) $ (12) $ (8) Currency exchange contracts 3 (25) (4) Energy contracts (1) 7 5 6 Loss recognized in other expenses, net (24) (32) (6) Derivative instruments designated as hedges Gain recognized in other expenses, net (2) — 3 2 Total loss recognized in other expenses, net (24) (29) (4) (Loss) gain recognized on balance sheet remeasurement currency exchange contracts, net 3 (26) (6) Realized losses, net (16) (7) 12 Unrealized gains (losses) on other derivative instruments, net (11) 4 (10) Total loss recognized in other expenses, net $ (24) $ (29) $ (4) _________________________ (1) Includes amounts related to diesel and natural gas swaps not designated as hedges, and electricity swap settlements. (2) Amount includes forward market premium/discount excluded from hedging relationship, and releases to income from accumulated other comprehensive loss on balance sheet remeasurement contracts. The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow and net investment hedges. Within the next twelve months, we expect to reclassify $135 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive income (loss) (Effective Portion) Amount of Gain (Loss) Recognized in Other expenses, net (Ineffective and Excluded Portion) Fiscal Year Ended March 31, Fiscal Year Ended March 31, in millions 2021 2020 2019 2021 2020 2019 Cash flow hedging derivatives Metal contracts $ (274) $ 163 $ 33 $ — $ — $ — Currency exchange contracts (4) (105) (44) — 3 2 Energy contracts 5 (18) 3 — — — Total $ (273) $ 40 $ (8) $ — $ 3 $ 2 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Fiscal Year Ended March 31, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2021 2020 2019 Cash flow hedging derivatives Energy contracts (1) $ (11) $ (5) $ (1) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (13) (4) — Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (57) 83 89 Net sales Currency exchange contracts (45) (8) (14) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts (4) (1) (1) Selling, general and administrative expenses Currency exchange contracts 3 (14) (9) Net sales Currency exchange contracts (2) (1) (1) Depreciation and amortization Total (129) 50 63 Income from continuing operations before income tax provision 36 (12) (17) Income tax provision $ (93) $ 38 $ 46 Net income from continuing operations _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gain (loss) that was reclassified from accumulated other comprehensive loss into earnings and the amount excluded from the assessment of effectiveness for the three and twelve months ended March 31, 2021 and March 31, 2020. Three Months Ended March 31, 2021 Fiscal Year Ended March 31, 2021 in millions Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Gain (loss) on cash flow hedging relationships: Metal commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ (58) $ 1 $ — $ — $ — $ (57) $ (13) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (2) $ — $ — $ — $ — $ (11) $ — $ — $ — Foreign exchange contracts: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income $ 3 $ (11) $ (1) $ (1) $ — $ 3 $ (45) $ (4) $ (2) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value — — — — — — — — — — Three Months Ended March 31, 2020 Fiscal Year Ended March 31, 2020 in millions Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Gain (loss) on cash flow hedging relationships: Metal commodity contracts: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income $ 15 $ (1) $ — $ — $ — $ 83 $ (4) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (2) $ — $ — $ — $ — $ (5) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ (4) $ (5) $ (1) $ — $ — $ (14) $ (8) $ (1) $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value — — — — 1 — — — — 3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
19. ACCUMULATED OTHER COMPREHENSIVE LOSS | 19. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the change in the components of accumulated other comprehensive loss, excluding noncontrolling interests, for the periods presented. in millions Currency Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2018 $ (65) $ 31 $ (227) $ (261) Amounts reclassified from accumulated other comprehensive loss, net - due to adoption of accounting standard updates — (3) (13) (16) Balance as of April 1, 2018 $ (65) $ 28 $ (240) $ (277) Other comprehensive loss before reclassifications (171) (4) (33) (208) Amounts reclassified from accumulated other comprehensive loss, net — (46) 25 (21) Net current-period other comprehensive loss (171) (50) (8) (229) Balance as of March 31, 2019 $ (236) $ (22) $ (248) $ (506) Other comprehensive (loss) income before reclassifications (73) 34 (66) (105) Amounts reclassified from accumulated other comprehensive loss, net — (38) 29 (9) Net current-period other comprehensive loss (73) (4) (37) (114) Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 244 (200) 114 158 Amounts reclassified from accumulated other comprehensive loss, net (3) (30) 93 33 96 Net current-period other comprehensive income (loss) 214 (107) 147 254 Balance as of March 31, 2021 $ (95) $ (133) $ (138) $ (366) _________________________ (1) For additional information on our cash flow hedges see Note 18 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans see Note 16 – Postretirement Benefit Plans . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
20. FAIR VALUE MEASUREMENTS | 20. FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our consolidated balance sheets at fair value. We also disclose the fair values of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions we used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, copper, zinc, 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 March 31, 2021, estimated using the method described above, was $38 per megawatt hour, which represented an approximately $4 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $28 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 March 31, 2021 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 classified under the appropriate level of the fair value hierarchy as of March 31, 2021 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. March 31, 2021 2020 in millions Assets Liabilities Assets Liabilities Level 2 instruments Metal contracts $ 111 $ (230) $ 187 $ (107) Currency exchange contracts 28 (52) 15 (106) Energy contracts 2 (1) — (10) Total level 2 instruments 141 (283) 202 (223) Level 3 instruments Energy contracts — (2) — (6) Total level 3 instruments — (2) — (6) Total gross 141 (285) 202 (229) Netting adjustment (1) (81) 81 (72) 72 Total net $ 60 $ (204) $ 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 fiscal year ended March 31, 2021 related to Level 3 financial instrument. 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, 2019 $ (3) Unrealized/realized gain included in earnings (2) 4 Unrealized/realized (loss) included in accumulated other comprehensive loss (3) (7) Settlements (2) — Balance as of March 31, 2020 (6) Unrealized/realized gain included in earnings (2) 6 Unrealized/realized (loss) included in accumulated other comprehensive loss (3) — Settlements (2) (2) Balance as of March 31, 2021 $ (2) _________________________ (1) Represents net derivative liabilities. (2) Included in other expenses, net in our consolidated statements of operations. (3) Included in net change in fair value of effective portion of cash flow hedges in our consolidated statements of comprehensive income (loss). 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. Upon closing on September 30, 2020, we recorded a receivable at a fair value of €93 million ($109 million) measured based on the anticipated outcome, timeline of arbitration of greater than one year, and a discount rate of 5%. As of March 31, 2021, the fair value has been adjusted for the accretion of imputed interest to €95 million ($112 million). This imputed interest is included net income from continuing operations within our consolidated statements of operations. 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. March 31, 2021 2020 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 1 $ 1 $ — $ — Total debt — third parties (excluding finance leases and short-term borrowings) 5,702 5,967 5,364 5,267 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
21. OTHER EXPENSES | 21. OTHER EXPENSES Other expenses, net consists of the following. Fiscal Year Ended March 31, in millions 2021 2020 2019 Currency losses, net (1) $ 3 $ 3 $ 1 Unrealized losses (gains) on change in fair value of derivative instruments, net (2) 11 (4) 10 Realized losses (gains) on change in fair value of derivative instruments, net (2) 16 7 (12) Loss on sale of assets, net 1 1 6 (Gain) loss on Brazilian tax litigation, net (3) (1) (7) 2 Interest income (9) (14) (10) Non-operating net periodic benefit cost (4) 33 34 35 Charitable contribution (5) 50 — — Other, net (1) (2) 12 Other expenses, net $ 103 $ 18 $ 44 _________________________ (1) Includes (gain) loss recognized on balance sheet remeasurement currency exchange contracts, net. See Note 17 – Currency Losses ( Gains) for further details. (2) See Note 18 – Financial Instruments and Commodity Contracts for further details. (3) See Note 23 – 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. For further details, refer to Note 16 – Postretirement Benefit Plans . (5) Represents a charitable contribution for COVID-19 relief. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
22. INCOME TAXES | 22. INCOME TAXES We are subject to Canadian and U.S. federal, state, and local income taxes as well as other foreign income taxes. The domestic (Canada) and foreign components of our income from continuing operations before income tax provision (and after removing our equity in net (income) loss of non-consolidated affiliates) are as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Domestic (Canada) $ (15) $ (58) $ (80) Foreign (all other countries) 709 658 713 Pre-tax income before equity in net (income) loss of non-consolidated affiliates $ 694 $ 600 $ 633 The components of our income tax provision are as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Current provision: Domestic (Canada) $ 6 $ 7 $ 5 Foreign (all other countries) 183 171 147 Total current $ 189 $ 178 $ 152 Deferred provision: Domestic (Canada) — — — Foreign (all other countries) 49 — 50 Total deferred $ 49 $ — $ 50 Income tax provision $ 238 $ 178 $ 202 The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below. Fiscal Year Ended March 31, in millions, except percentages 2021 2020 2019 Pre-tax income before equity in net (income) loss of non-consolidated affiliates $ 694 $ 600 $ 633 Canadian statutory tax rate 25 % 25 % 25 % Provision at the Canadian statutory rate $ 174 $ 150 $ 158 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 19 9 14 Exchange remeasurement of deferred income taxes (5) (17) (9) Change in valuation allowances 23 13 17 Tax credits (23) (17) (16) (Income) expense items not subject to tax (1) 4 1 State tax expense, net (5) 1 4 Enacted tax rate changes (2) (6) 2 Tax rate differences on foreign earnings 48 32 33 Uncertain tax positions 6 4 3 Prior year adjustments (1) (1) 2 Income tax settlements 4 — (4) Non-deductible expenses and other — net 1 6 (3) Income tax provision $ 238 $ 178 $ 202 Effective tax rate 34 % 30 % 32 % Our effective tax rate differs from the Canadian statutory rate primarily due to the following factors: (1) the results of operations taxed at foreign statutory tax rates that differ from the 25% Canadian tax rate, including withholding taxes; (2) changes to the Brazilian real foreign exchange rate; and (3) changes in valuation allowances, offset by tax credits. We continue to maintain valuation allowances in Canada and certain foreign jurisdictions primarily related to tax losses where we believe it is more likely than not that we will be unable to utilize those losses. The following table summarizes changes in the valuation allowances: in millions Balance at Beginning of Period Deductions Acquisition (1) Additions Balance at End of Period Fiscal 2021 $ 755 $ (12) $ 64 $ 14 $ 821 Fiscal 2020 742 (1) — 14 755 Fiscal 2019 727 (2) — 17 742 _________________________ (1) Related to the acquisition of Aleris. We earn tax credits in a number of the jurisdictions in which we operate. These are comprised of foreign tax credits in Canada of $14 million, empire zone credits in New York of $2 million, R&D credits in the U.S. of $5 million, and tax investment credits in Brazil of $2 million as of March 31, 2021. The impact on our income tax provision of credits during the fiscal year ended March 31, 2021 was a benefit of $23 million. However, legislation enacted in New York state on March 31, 2014 established a zero percent statutory income tax rate for manufacturers. As a result, the current year empire zone credits in New York are offset with a corresponding valuation allowance of $2 million. In addition, the foreign tax credits in Canada are fully offset with a corresponding valuation allowance. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted and signed into law in the U.S. Certain provisions of the CARES Act impact the 2020 income tax provision computations of the Company and are reflected in the fourth quarter of 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% of adjusted taxable income to 50% of adjusted taxable income. This modification significantly increased the allowable interest expense deduction of the Company and resulted in significantly less taxable income for the fiscal years ended March 31, 2020 and March 31,2021. President Biden and Senate Finance Committee Chairman Ron Wyden have set forth several tax proposals that would, if enacted into law, make significant changes to U.S. tax laws. We will continue to evaluate the overall impact of these tax proposals on our effective tax rate and balance sheet. Deferred Income Taxes Deferred income taxes recognize the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for income tax purposes, and the impact of available net operating loss and tax credit carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Our deferred income tax assets and deferred income tax liabilities are as follows. March 31, in millions 2021 2020 Deferred income tax assets: Provisions not currently deductible for tax purposes $ 458 $ 382 Tax losses/benefit carryforwards, net 934 708 Depreciation and amortization 79 66 Other assets 50 21 Total deferred income tax assets 1,521 1,177 Less: valuation allowance (821) (755) Net deferred income tax assets $ 700 $ 422 Deferred income tax liabilities: Depreciation and amortization $ 550 $ 324 Inventory valuation reserves 57 78 Monetary exchange gains, net 24 17 Other liabilities 101 57 Total deferred income tax liabilities $ 732 $ 476 Net deferred income tax liabilities $ 32 $ 54 ASC 740 requires that we reduce our deferred income tax assets by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that all or a portion of a deferred tax asset will not be realized. After consideration of all evidence, both positive and negative, management concluded that it is more likely than not that we will be unable to realize a portion of our deferred tax assets and that valuation allowances of $821 million and $755 million were necessary as of March 31, 2021 and 2020, respectively. It is reasonably possible that our estimates of future taxable income may change within the next 12 months, resulting in a change to the valuation allowance in one or more jurisdictions. As of March 31, 2021, we had net operating loss carryforwards of approximately $790 million (tax effected) and tax credit carryforwards of $144 million, which will be available to offset future taxable income and tax liabilities, respectively. The carryforwards will begin expiring in fiscal year 2021. As of March 31, 2021, valuation allowances of $584 million, $131 million and $107 million had been recorded against net operating loss carryforwards, tax credit carryforwards and other deferred tax assets, respectively, where it appeared more likely than not that such benefits will not be realized. The net operating loss carryforwards are predominantly in Canada, the U.S., Italy, Germany, Switzerland, and the U.K. 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. net operating loss 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 $192 million of Aleris U.S. federal net operating loss carryforwards are limited by Section 382 as of March 31, 2021. 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 $17 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. As of March 31, 2020, we had net operating loss carryforwards of approximately $574 million (tax effected) and tax credit carryforwards of $133 million, which will be available to offset future taxable income and tax liabilities, respectively. The carryforwards began expiring in fiscal 2020 with some amounts being carried forward indefinitely. As of March 31, 2020, valuation allowances of $542 million, $129 million, and $84 million had been recorded against net operating loss carryforwards, tax credit carryforwards and other deferred tax assets, respectively, where it appeared more likely than not that such benefits will not be realized. The net operating loss carryforwards are predominantly in Canada, the U.S., Italy, Germany, Switzerland, China, and the U.K. Although realization is not assured, management believes it is more likely than not that all the remaining net deferred tax assets will be realized. In the near term, the amount of deferred tax assets considered realizable could be reduced if we do not generate sufficient taxable income in certain jurisdictions. As of March 31, 2021, we had cumulative earnings of approximately $4 billion for which we had not provided Canadian income tax or withholding taxes because we consider them to be indefinitely reinvested. We acknowledge that we would need to accrue and pay taxes should we decide to repatriate cash and short-term investments generated from earnings of our foreign subsidiaries that are considered indefinitely reinvested. Except for those jurisdictions where we have already distributed and paid taxes on the earnings, we have reinvested and expect to continue to reinvest undistributed earnings of foreign subsidiaries indefinitely. Cash and cash equivalents held by foreign subsidiaries that are indefinitely reinvested are used to cover expansion and short-term cash flow needs of such subsidiaries. The amounts considered indefinitely reinvested would be subject to possible Canadian taxation only if remitted as dividends. However, due to our full valuation allowance position of $645 million in Canada, in excess of $494 million of net operating loss carryforwards, exempt surpluses for Canadian tax purposes, $56 million of tax credits and other deferred tax assets of $95 million, a portion of the cumulative earnings would not be taxed if distributed. Due to the complex structure of our international holdings, and the various methods available for repatriation, quantification of the deferred tax liability, if any, associated with these undistributed earnings is not practicable. Tax Uncertainties As of March 31, 2021 and 2020, the total amount of unrecognized benefits that, if recognized, would affect the effective income tax rate in future periods based on anticipated settlement dates is $69 million and $27 million, respectively. Tax authorities continue to examine certain other of our tax filings for fiscal year 2005 and fiscal years 2011 through 2019. As a result of further settlement of audits, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations, our reserves for unrecognized tax benefits, as well as reserves for interest and penalties, are not expected to decrease in the next 12 months. With few exceptions, tax returns for all jurisdictions for all tax years before 2005 are no longer subject to examination by taxing authorities. Our policy is to record interest and penalties related to unrecognized tax benefits in the income tax provision (benefit). As of March 31, 2021, 2020, and 2019, we had $11 million, $4 million and $4 million accrued, respectively, for interest and penalties. For the years ended March 31, 2021, 2020, and 2019, we recognized tax expense of $2 million, tax expense of $1 million, and tax benefit of $5 million related to changes in accrued interest and penalties, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Beginning balance $ 27 $ 24 $ 44 Additions based on tax positions related to the current period 4 3 3 Additions based on tax positions of prior years (1) 39 1 3 Reductions based on tax positions of prior years (1) (1) (1) Settlements (2) (1) — (22) Foreign exchange 1 — (3) Ending Balance $ 69 $ 27 $ 24 _________________________ (1) Additions based on tax positions of prior years in fiscal 2021 includes $37 million from the acquisition of Aleris. (2) The amount reported in fiscal 2019 is due to the effective settlement of a certain tax audit for fiscal years 2009 through 2012. Income Taxes Payable |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
23. COMMITMENTS AND CONTINGENCIES | 23. 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 $60 million. This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified, including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. Environmental Matters We own and operate numerous manufacturing and other facilities in various countries around the world. Our operations are subject to environmental laws and regulations from various jurisdictions, which govern, among other things, air emissions, wastewater discharges, the handling, storage and disposal of hazardous substances and wastes, the remediation of contaminated sites, post-mining reclamation and restoration of natural resources, and employee health and safety. Future environmental regulations may impose stricter compliance requirements on the industries in which we operate. Additional equipment or process changes at some of our facilities may be needed to meet future requirements. The cost of meeting these requirements may be significant. Failure to comply with such laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions and other orders, including orders to cease operations. We are involved in proceedings under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, or analogous state provisions regarding liability arising from the usage, storage, treatment or disposal of hazardous substances and wastes at a number of sites in the U.S., as well as similar proceedings under the laws and regulations of the other jurisdictions in which we have operations, including Brazil and certain countries in the European Union. Many of these jurisdictions have laws that impose joint and several liability, without regard to fault or the legality of the original conduct, for the costs of environmental remediation, natural resource damages, third party claims, and other expenses. In addition, we are, from time to time, subject to environmental reviews and investigations by relevant governmental authorities. We are also involved in claims and litigation filed on behalf of persons alleging exposure to substances and other hazards at our current and former facilities. We have established liabilities based on our estimates for currently anticipated costs associated with environmental matters. We estimate that the costs related to our environmental liabilities as of March 31, 2021 were approximately $23 million, of which $4 million was associated with restructuring actions and the remaining undiscounted clean-up costs were $19 million. As of March 31, 2021, $6 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying consolidated balance sheets. As of March 31, 2020, we reported $8 million of total environmental liabilities in our consolidated balance sheet. Brazil 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. In most cases, we are paying the settlement amounts over a period of 180 months, although in some cases we are paying the settlement amounts over a shorter period. Total settlement liabilities were $20 million and $27 million for the periods ended March 31, 2021 and March 31, 2020, respectively. As of March 31, 2021, $6 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying 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 $24 million and $18 million for the periods ended March 31, 2021 and March 31, 2020, respectively. As of March 31, 2021, $1 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying 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 consolidated statements of operations. During fiscal 2020 and fiscal 2019, we received multiple favorable rulings from the Brazilian court that recognized the right to exclude certain taxes related to contributions to the social integration program and social security contributions on gross revenues, also known as PIS and COFINS. The ruling from the fiscal year ended March 31, 2019 allows for the exclusion of taxes on value-added tax sales and services (defined as ICMS within Brazil, similar to VAT within the U.S.) from the calculation basis of COFINS from calendar years 2007 to 2014. The ruling from the fiscal year ended March 31, 2020 excludes taxes on ICMS from the calculation basis of PIS and COFINS from calendar years 2015 to 2017. As a result of these cases, we have the right to apply for tax credits for the amounts overpaid during that period. These credits and corresponding interest can be used to offset various Brazilian federal taxes in future years. The Brazilian Office of the Attorney General of the National Treasury has sought clarification from the Brazilian Supreme Court of certain matters, including the amount (i.e. gross or net credit amount) and timing of these credits. If the Brazilian tax authorities challenge the amount or timing of these credits, we may become subject to new litigation related to the indirect tax credits already monetized or it could affect our ability to monetize future indirect tax credits Alternatively, if the Brazilian Supreme Court rules in favor of allowing companies to seek recovery of the gross credit amounts, the amounts of the benefits that we could recover will be greater than those currently recognized. We have estimated that it is probable to receive a benefit, net of fees and applicable Brazilian taxes, related to these periods and recorded this benefit in the corresponding periods, recognized using the net credit amount, as follows. in millions Amounts Recorded in Statement of Operations Period Period Covered Related Contribution Net sales Other expenses, net Income tax provision Net income from continuing operations Fiscal Year Ended March 31, 2021 2007 to 2014 PIS $ — $ (1) $ — $ 1 Fiscal Year Ended March 31, 2020 2015 to 2017 PIS and COFINS — (8) 3 5 Fiscal Year Ended March 31, 2019 2007 to 2014 COFINS 3 (2) 2 3 |
Segment, Geographical Area, Maj
Segment, Geographical Area, Major Customer and Major Supplier Information | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
24. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | 24. 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 17 plants, including seven facilities with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including five facilities with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including two facilities with recycling operations, in two countries. South America. Headquartered in Sao Paulo, Brazil, this segment operates two plants in Brazil, including one facility 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 . We measure the profitability and financial performance of our operating segments based on segment income. Segment income provides a measure of our underlying segment results that is in line with our approach to risk management. We define segment income as earnings before (a) depreciation and amortization; (b) interest expense and amortization of debt issuance costs; (c) interest income; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) gain or loss on extinguishment of debt; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of segment income from non-consolidated affiliates to income as determined on the equity method of accounting; (i) restructuring and impairment, net; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) provision or benefit for taxes on income (loss); (o) cumulative effect of accounting change, net of tax; (p) metal price lag; and (q) business acquisition and other related costs. The tables below show selected segment financial information. 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 10 – Consolidation and Note 11 – 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 in millions Selected Operating Results Fiscal Year Ended March 31, 2021 North America Europe Asia South America Eliminations and Other (1) Total Net sales – third party $ 4,551 $ 3,420 $ 2,167 $ 1,783 $ 355 $ 12,276 Net sales – intersegment 7 132 15 15 (169) — Net sales $ 4,558 $ 3,552 $ 2,182 $ 1,798 $ 186 $ 12,276 Depreciation and amortization $ 235 $ 173 $ 88 $ 71 $ (24) $ 543 Income tax (benefit) provision (27) 22 62 123 58 238 Capital expenditures 184 99 113 94 (5) 485 March 31, 2021 Investment in and advances to non–consolidated affiliates $ — $ 510 $ 328 $ — $ — $ 838 Total assets 4,084 3,974 2,423 1,797 607 12,885 in millions Selected Operating Results Fiscal Year Ended March 31, 2020 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 4,118 $ 2,977 $ 1,952 $ 1,861 $ 309 $ 11,217 Net sales – intersegment — 118 17 43 (178) — Net sales $ 4,118 $ 3,095 $ 1,969 $ 1,904 $ 131 $ 11,217 Depreciation and amortization $ 153 $ 117 $ 62 $ 67 $ (38) $ 361 Income tax provision 19 11 29 108 11 178 Capital expenditures 303 85 132 94 (4) 610 March 31, 2020 Investment in and advances to non–consolidated affiliates $ — $ 465 $ 295 $ — $ — $ 760 Total assets 4,274 3,075 1,737 1,626 277 10,989 in millions Selected Operating Results Fiscal Year Ended March 31, 2019 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 4,580 $ 3,266 $ 2,154 $ 2,059 $ 267 $ 12,326 Net sales – intersegment 1 110 36 32 (179) — Net sales $ 4,581 $ 3,376 $ 2,190 $ 2,091 $ 88 $ 12,326 Depreciation and amortization $ 150 $ 116 $ 63 $ 66 $ (45) $ 350 Income tax provision 45 15 19 106 17 202 Capital expenditures 149 80 70 65 (11) 353 _________________________ (1) Includes assets of discontinued operations. The following table displays the reconciliation from net income attributable to our common shareholder to segment income. Fiscal Year Ended March 31, in millions 2021 2020 2019 Net income attributable to our common shareholder $ 236 $ 420 $ 434 Net income attributable to noncontrolling interests 1 — — Income tax provision 238 178 202 Loss from discontinued operations, net of tax 51 — — Loss on sale of discontinued operations, net of tax 170 — — Income from continuing operations before income tax provision 696 598 636 Depreciation and amortization 543 361 350 Interest expense and amortization of debt issuance costs 267 248 268 Adjustment to reconcile proportional consolidation (1) 56 57 58 Unrealized losses (gains) on change in fair value of derivative instruments, net 11 (4) 10 Realized losses (gains) on derivative instruments not included in segment income (2) 1 — (2) Loss on extinguishment of debt 14 71 — Restructuring and impairment, net 29 43 2 Loss on sale of fixed assets 1 1 6 Purchase price accounting adjustments (3) 29 — — Metal price lag 6 38 4 Business acquisition and other related costs (4) 11 63 33 Other, net (5) 50 (4) 3 Segment income $ 1,714 $ 1,472 $ 1,368 _________________________ (1) 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. (2) Realized losses (gains) on derivative instruments not included in segment income represents foreign currency derivatives not related to operations. (3) Purchase price accounting adjustments primarily relates to the relief of the inventory step-up related to the acquired Aleris business. (4) Business acquisition and other related costs are primarily legal and professional fees associated with our acquisition of Aleris. (5) Other, net primarily relates to a charitable contribution in fiscal 2021 as well as interest income. The following table displays segment income by reportable segment. Fiscal Year Ended March 31, in millions 2021 2020 2019 North America $ 663 $ 590 $ 552 Europe 285 246 226 Asia 305 210 196 South America 449 421 394 Eliminations and other 12 5 — Segment income $ 1,714 $ 1,472 $ 1,368 Geographical Area Information As of March 31, 2021, we had 33 operating facilities in nine countries. Net sales are attributed to geographical areas based on the origin of the sale. Long-lived assets and other intangible assets are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill. Net sales by geographical area follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 United States $ 4,782 $ 4,273 $ 4,725 Asia and Other Pacific 2,167 1,952 2,154 Brazil 1,783 1,861 2,059 Canada 124 154 121 Germany 3,015 2,506 2,749 Other Europe 405 471 518 Net sales $ 12,276 $ 11,217 $ 12,326 Long-lived assets and other intangible assets by geographical area follows. March 31, in millions 2021 2020 United States $ 2,267 $ 1,526 Asia and Other Pacific 912 534 Brazil 842 816 Canada 55 58 Germany 605 248 Other Europe 702 696 Long-lived assets and other intangible assets $ 5,383 $ 3,878 Information about Product Sales, Major Customers, and Primary Supplier Product Sales The following table displays our net sales by product end market. Fiscal Year Ended March 31, in millions 2021 2020 2019 Can $ 6,191 $ 6,240 $ 6,643 Automotive 2,512 2,801 2,967 Aerospace and industrial plate 366 — — Specialty 3,207 2,176 2,716 Net sales $ 12,276 $ 11,217 $ 12,326 Major Customers The following table displays customers representing 10% or more of our total net sales for any of the periods presented and their respective percentage of total net sales. Fiscal Year Ended March 31, 2021 2020 2019 Ball 15 % 21 % 22 % Ford 7 10 10 Primary Supplier Rio Tinto ("RT") is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from RT as a percentage of our total combined metal purchases. Fiscal Year Ended March 31, 2021 2020 2019 Purchases from RT as a percentage of total combined metal purchases 8 % 11 % 10 % |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | Consolidation Policy Our consolidated financial statements include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control, and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate intercompany accounts and transactions from our consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated net income attributable to our common shareholder includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the consolidated financial statements for consolidated entities, compared to a two-line presentation of investment in and advances to non–consolidated affiliates and equity in net (income) loss of non-consolidated affiliates. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our consolidated financial statements in accordance with generally accepted accounting principles in the United States ("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 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 . |
Reclassification, Comparability Adjustment | Reclassifications and Revisions of Previously Issued Financial Statements During the preparation of the consolidated financial statements for fiscal 2020, we identified a misstatement related to the sale of land within previously issued Form 10-Ks for the years ended March 31, 2019 and March 31, 2018. The previously disclosed amounts for property, plant and equipment, net and retained earnings were understated by $5 million for 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 years ended March 31, 2019 and March 31, 2018 and that amendments of previously filed financial statements were therefore not required. However, we elected to revise the previously reported amounts in the consolidated statements of shareholder's (deficit) equity to correct the misstatement. The revision applies to the previously reported amounts for retained earnings in the consolidated statements of shareholder's (deficit) equity for the fiscal years ended March 31, 2019 and March 31, 2018. 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, 2020 and March 31, 2019 and the interim periods within these years. As a result, the previously reported amounts for capital expenditures were understated by $11 million and $2 million, changes in accounts payable were overstated by $11 million and $2 million, and accrued capital expenditures, presented in supplemental disclosures, were overstated by $44 million and $33 million for the years ended March 31, 2020 and March 31, 2019, respectively. 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, 2020 and March 31, 2019 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 consolidated statement of cash flows, accrued capital expenditures within the supplemental disclosures to the consolidated statement of cash flows, and capital expenditures within Note 24 – Segment, Geographical Area, Major Customer and Major Supplier Information . |
Risks and Uncertainties | Risks and Uncertainties We are exposed to a number of risks in the normal course of our operations that could potentially affect our financial position, results of operations, and cash flows. 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, the COVID-19 pandemic, and its unprecedented negative economic implications, have affected production and sales across a range of industries around the world. Our global operations, similar to those of many other large, multi-national corporations, were also impacted. Early in fiscal year 2021, we were required to partially shut down or temporarily close certain facilities in the United States ("U.S.") 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 the COVID-19 pandemic 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 and remained robust through the remainder of fiscal 2021, 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 U.S. and global economies and the timing, scope, and effectiveness of federal, state, and local governmental responses, including the distribution and adoption of vaccines. Our application of U.S. GAAP requires the pervasive use of estimates and assumptions in preparing the audited 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. Laws and regulations We operate in an industry that is subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate. These laws and regulations impose increasingly stringent environmental, health and safety protection standards and permitting requirements regarding, among other things, air emissions, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste disposal practices, the remediation of environmental contamination, post-mining reclamation and working conditions for our employees. Some environmental laws, such as the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA or Superfund, and comparable state laws, impose joint and several liability for the cost of environmental remediation, natural resource damages, third party claims, and other expenses, without regard to the fault or the legality of the original conduct. The costs of complying with these laws and regulations, including participation in assessments and remediation of contaminated sites and installation of pollution control facilities, have been, and in the future could be, significant. In addition, these laws and regulations may also result in substantial environmental liabilities associated with divested assets, third party locations and past activities. In certain instances, these costs and liabilities, as well as related action to be taken by us, could be accelerated or increased if we were to close, divest of or change the principal use of certain facilities with respect to which we may have environmental liabilities or remediation obligations. Currently, we are involved in a number of compliance efforts, remediation activities and legal proceedings concerning environmental matters, including certain activities and proceedings arising under U.S. Superfund and comparable laws in other jurisdictions where we have operations. We have established liabilities for environmental remediation where appropriate. However, the cost of addressing environmental matters (including the timing of any charges related thereto) cannot be predicted with certainty, and these liabilities may not ultimately be adequate, especially in light of potential changes in environmental conditions, changing interpretations of laws and regulations by regulators and courts, the discovery of previously unknown environmental conditions, the risk of governmental orders to carry out additional compliance on certain sites not initially included in remediation in progress, our potential liability to remediate sites for which provisions have not been previously established and the adoption of more stringent environmental laws. Such future developments could result in increased environmental costs and liabilities and could require significant capital expenditures, any of which could have a material adverse effect on our financial position or results of operations, or cash flows. Furthermore, the failure to comply with our obligations under the environmental laws and regulations could subject us to administrative, civil or criminal penalties, obligations to pay damages or other costs, and injunctions or other orders, including orders to cease operations. In addition, the presence of environmental contamination at our properties could adversely affect our ability to sell a property, receive full value for a property or use a property as collateral for a loan. Some of our current and potential operations are located or could be located in or near communities that may regard such operations as having a detrimental effect on their social and economic circumstances. Environmental laws typically provide for participation in permitting decisions, site remediation decisions and other matters. Concern about environmental justice issues may affect our operations. Should such community objections be presented to government officials, the consequences of such a development may have a material adverse impact upon the profitability or, in extreme cases, the viability of an operation. In addition, such developments may adversely affect our ability to expand or enter into new operations in such location or elsewhere and may also have an effect on the cost of our environmental remediation projects. We use a variety of hazardous materials and chemicals in our rolling processes and in connection with maintenance work on our manufacturing facilities. Because of the nature of these substances or related residues, we may be liable for certain costs, including, among others, costs for health-related claims or removal or re-treatment of such substances. Certain of our current and former facilities incorporated asbestos-containing materials, a hazardous substance that has been the subject of health-related claims for occupation exposure. In addition, although we have developed environmental, health and safety programs for our employees, including measures to reduce employee exposure to hazardous substances, and conduct regular assessments at our facilities, we are currently, and in the future may be, involved in claims and litigation filed on behalf of persons alleging injury predominantly as a result of occupational exposure to substances at our current or former facilities. It is not possible to predict the ultimate outcome of these claims and lawsuits due to the unpredictable nature of personal injury litigation. If these claims and lawsuits, individually or in the aggregate, were finally resolved against us, our financial position, results of operations, and cash flows could be adversely affected. Materials and labor In the aluminum rolled products industry, our raw materials are subject to continuous price volatility. We may not be able to pass on the entire cost of the increases to our customers or offset fully the effects of higher raw material costs through productivity improvements, which may cause our profitability to decline. In addition, there is a potential time lag between changes in prices under our purchase contracts and the point when we can implement a corresponding change under our sales contracts with our customers. As a result, we could be exposed to fluctuations in raw materials prices which could have a material adverse effect on our financial position, results of operations, and cash flows. Significant price increases may result in our customers substituting other materials, such as plastic or glass, for aluminum or switching to another aluminum rolled products producer, which could have a material adverse effect on our financial position, results of operations, and cash flows. We consume substantial amounts of energy in our rolling operations and our cast house operations. The factors that affect our energy costs and supply reliability tend to be specific to each of our facilities. A number of factors could materially adversely affect our energy position including, but not limited to: (a) increases in the cost of natural gas; (b) increases in the cost of supplied electricity or fuel oil related to transportation; (c) interruptions in energy supply due to equipment failure or other causes and (d) the inability to extend energy supply contracts upon expiration on favorable terms. A significant increase in energy costs or disruption of energy supplies or supply arrangements could have a material adverse effect on our financial position, results of operations, and cash flows. A substantial portion of our employees are represented by labor unions under a large number of collective bargaining agreements with varying durations and expiration dates. Although we have not experienced a strike or work stoppage in recent years, we may not be successful in preventing such an event from occurring in the future at one or more of our manufacturing facilities. In addition, we may not be able to satisfactorily renegotiate our collective bargaining agreements when they expire. Any work stoppages or material changes in the terms of our labor agreements could have an adverse impact on our financial condition. Geographic markets We are, and will continue to be, subject to financial, political, economic and business risks in connection with our global operations. We have made investments and carry on production activities in various emerging markets, including China, Brazil and South Korea, and we market our products in these countries, as well as certain other countries in Asia, Africa, and the Middle East. While we anticipate higher growth or attractive production opportunities from these emerging markets, they also present a higher degree of risk than more developed markets. In addition to the business risks inherent in developing and servicing new markets, economic conditions may be more volatile, legal and regulatory systems may be less developed and predictable, and the possibility of various types of adverse governmental action may be more pronounced. In addition, inflation, fluctuations in currency and interest rates, competitive factors, civil unrest and labor problems could affect our revenues, expenses and results of operations. Our operations could also be adversely affected by acts of war, terrorism or the threat of any of these events as well as government actions such as controls on imports, exports and prices, tariffs, new forms of taxation, changes in fiscal regimes and increased government regulation in the countries in which we operate or service customers. Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial position, results of operations, and cash flows. Other risks and uncertainties In addition, refer to Note 18 – Financial Instruments and Commodity Contracts , Note 20 – Fair Value Measurements , and Note 23 – Commitments and Contingencies for a discussion of financial instruments and commitments and contingencies. |
Revenue Recognition | Net Sales We recognize revenue in accordance with the FASB Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). See Note 4 – Revenue from Contracts with Customers |
Cost of Goods Sold (Exclusive of Depreciation and Amortization) | Cost of Goods Sold (Exclusive of Depreciation and Amortization) Cost of goods sold (exclusive of depreciation and amortization) includes all costs associated with inventories, including the procurement of materials, the conversion of such materials into finished products, and the costs of warehousing and distributing finished goods to customers. Material procurement costs include inbound freight charges as well as purchasing, receiving, inspection and storage costs. Conversion costs include the costs of direct production inputs such as labor and energy, as well as allocated overheads from indirect production centers and plant administrative support areas. Warehousing and distribution costs include inside and outside storage costs, outbound freight charges and the costs of internal transfers. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include selling, marketing and advertising expenses; salaries, travel and office expenses of administrative employees and contractors; legal and professional fees; software license fees; bad debt expenses; and factoring expenses. |
Research and Development | Research and Development We incur costs in connection with research and development ("R&D") programs that are expected to contribute to future earnings, and charge such costs against income as incurred. R&D costs consist primarily of salaries and administrative costs. |
Restructuring Activities | Restructuring Activities Restructuring charges, which are recorded within restructuring and impairment, net, include employee severance and benefit costs, impairments of assets, and other costs associated with exit activities. Restructuring costs are determined based on estimates prepared at the time the restructuring actions were approved by management and are periodically updated for changes. Restructuring costs include expenses that are recorded through the restructuring liability. We apply the provisions of ASC 420, Exit or Disposal Cost Obligations ("ASC 420") and ASC 712, Compensation — Nonretirement Postemployment Benefits ("ASC 712" ). Severance costs accounted for under ASC 420 and/or ASC 712 are recognized when management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. Impairment losses are based upon the estimated fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include environmental remediation costs and contract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we evaluate the accruals for restructuring costs to ensure the accruals are still appropriate. See Note 5 – Restructuring and Impairment for further discussion. |
Business Acquisition and Other Integration Related Costs | Business Acquisition and Other Related Costs Business acquisition and other related costs includes costs associated with the acquisition of Aleris, including legal and professional fees associated with the transaction. See Note 2 – Business Combination for further details about the transaction. |
Carbon Emission Allowances | Carbon Emission Allowances Emission allowances are recognized when there is reasonable assurance that we will comply with the respective conditions required and that the allowances or grants will be received. The allowances are recognized as income over the respective periods in which the intended expenses are offset. We recognize emission allowances as non-amortizing intangible assets since the allowance benefit is an offset against a future expense demonstrating compliance with the respective regulation and never received in the form of cash. Although the intangible is not amortized, it is subject to impairment under the indefinite lived intangible asset impairment model. The intangible asset is recognized at nominal value once we have satisfied all requirements, are granted the allowance(s), and are able to exercise control. Any excess credits are accrued. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes investments that are highly liquid and have maturities of three months or less when purchased. The carrying values of cash and cash equivalents approximate their fair value due to the short-term nature of these instruments. We maintain amounts on deposit with various financial institutions, which may, at times, exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions, and we have not experienced any losses on such deposits. Restricted Cash Restricted cash primarily relates to cash deposits for employee benefits and cash restricted for payments on our Zhenjiang Term Loans and is disclosed on the consolidated statement of cash flows. Restricted cash is included in prepaid expenses and other current assets and other long–term assets on the consolidated balance sheet. |
Accounts Receivable | Accounts Receivable Our accounts receivable are geographically dispersed. We do not obtain collateral relating to our accounts receivable. We do not believe there are any significant concentrations of revenues from any particular customer or group of customers that would subject us to any significant credit risks in the collection of our accounts receivable. We report accounts receivable at the estimated net realizable amount we expect to collect from our customers. Additions to the allowance for credit losses are made by means of the provision for credit losses. We write-off uncollectible accounts receivable against the allowance for credit losses after exhausting collection efforts. For each of the periods presented, we performed an analysis of our historical cash collection patterns and considered the impact of any known material events in determining the allowance for credit losses. See Note 6 – Accounts Receivable for further discussion. |
Derivative Instruments | Derivative Instruments We hold derivatives for risk management purposes and not for trading. We use derivatives to mitigate uncertainty and volatility caused by underlying exposures to metal prices, foreign exchange rates, interest rates, and energy prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date and are reported gross. We may be exposed to losses in the future if the counterparties to our derivative contracts fail to perform. We are satisfied that the risk of such non-performance is remote due to our monitoring of credit exposures. Additionally, we enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default, and we do not face credit contingent provisions that would result in the posting of collateral. In accordance with ASC 815, Derivatives and Hedging, for cash flow hedges we recognize and defer the entire periodic change in the fair value of the hedging instrument in other comprehensive income (loss). The amounts recorded in other comprehensive income (loss) are subsequently reclassified to earnings in the same line item impacted by the hedged item when the hedged item affects earnings. For derivatives designated as cash flow hedges or net investment hedges, we assess hedge effectiveness by formally evaluating the high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is included in other comprehensive income (loss) and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. Gains or losses representing reclassifications of other comprehensive income (loss) to earnings are recognized in the same line item that is impacted by the underlying exposure. We exclude the time value component of foreign currency and aluminum price risk hedges when measuring and assessing effectiveness to align our accounting policy with risk management objectives when it is necessary. If at any time during the life of a cash flow hedge relationship we determine that the relationship is no longer effective, the derivative will no longer be designated as a cash flow hedge and future gains or losses on the derivative will be recognized in other expenses, net. For derivatives designated as fair value hedges, we assess hedge effectiveness by formally evaluating the high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. The changes in the fair values of the underlying hedged items are reported in prepaid expenses and other current assets, other long–term assets, accrued expenses and other current liabilities, and other long–term liabilities in the consolidated balance sheets. Changes in the fair values of these derivatives and underlying hedged items generally offset, and the entire change in the fair value of derivatives is recorded in the statement of operations line item consistent with the underlying hedged item. If no hedging relationship is designated, gains or losses are recognized in other expenses, net in our current period earnings. Consistent with the cash flows from the underlying risk exposure, we classify cash settlement amounts associated with designated derivatives as part of either operating or investing activities in the consolidated statements of cash flows. If no hedging relationship is designated, we classify cash settlement amounts as part of investing activities in the consolidated statement of cash flows. The majority of our derivative contracts are valued using industry-standard models that use observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current ("spot") and forward market prices for commodity and foreign exchange rates. See Note 18 – Financial Instruments and Commodity Contracts and Note 20 – Fair Value Measurements for additional discussion related to derivative instruments. |
Inventories | Inventories We carry our inventories at the lower of their cost or net realizable value, reduced for obsolete and excess inventory. We use the average cost method to determine cost. Included in inventories are stores inventories, which are carried at average cost. See Note 7 – Inventories for further discussion. |
Property, Plant and Equipment | Property, Plant and Equipment We record land, buildings, leasehold improvements, and machinery and equipment at cost. We record assets under finance lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments as of the beginning of the lease term. We generally depreciate our assets using the straight-line method over the shorter of the estimated useful life of the assets or the lease term, excluding any lease renewals, unless the lease renewals are reasonably certain. See Note 8 – Property, Plant and Equipment for further discussion. We assign useful lives to and depreciate major components of our property, plant and equipment. The ranges of estimated useful lives are as follows: Range in Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under finance lease obligations 5 to 15 Most of our large scale machinery, including hot mills, cold mills, continuous casting mills, furnaces, and finishing mills have useful lives of 15 to 25 years. Supporting machinery and equipment, including automation and work rolls, have useful lives of 2 to 15 years. Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset. We also capitalize construction costs and interest incurred while major construction and development projects are in progress. These amounts are capitalized as construction in progress within property, plant and equipment until the asset is placed into service. Once placed into service, the asset, including the associated capitalized interest, is reclassified from construction in progress to the appropriate property, plant and equipment component and depreciation commences. We retain fully depreciated assets in property and accumulated depreciation accounts until they are removed from service. In the case of sale, retirement, or disposal, the asset cost and related accumulated depreciation balances are removed from the respective accounts, and the resulting net amount, after consideration of any proceeds, is included as a gain or loss in other expenses, net or gain on assets held for sale in our consolidated statements of operations. We account for operating leases under the provisions of ASC 842, Leases . This pronouncement requires us to recognize escalating rents, including any rent holidays, on a straight-line basis over the term of the lease for those lease agreements where we receive the right to control the use of the entire leased property at the beginning of the lease term. |
Goodwill | Goodwill We test for impairment at least annually as of the last day of each fiscal year, unless a triggering event occurs that would require an interim impairment assessment. We do not aggregate components of operating segments to arrive at our reporting units and, as such, our reporting units are the same as our operating segments. In performing our goodwill impairment test, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If we perform a qualitative assessment and determine that an impairment is more likely than not, then we perform the one-step quantitative impairment test, otherwise no further analysis is required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the one-step quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether we choose to perform the qualitative assessment or proceed directly to the one-step quantitative impairment test. No goodwill impairment was identified for fiscal 2021, fiscal 2020, or fiscal 2019. See Note 9 – Goodwill and Intangible Assets for further discussion. We use the present value of estimated future cash flows to establish the estimated fair value of our reporting units as of the testing date. This approach includes many assumptions related to future growth rates, discount factors, and tax rates, among other considerations. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairment in future periods. Additionally, we use the market approach to corroborate the estimated fair value. Both approaches are weighted equally when calculating our estimated fair value. If the carrying amount of a reporting unit's goodwill exceeds its estimated fair value, we would recognize an impairment charge in an amount equal to that excess in our consolidated statements of operations. During our analysis for the years ended March 31, 2021, 2020, and 2019, the estimated fair value of each of our reporting units exceeded the carrying amount of the reporting unit's goodwill, and thus, no reporting unit failed step one of testing. When a business within a reporting unit is disposed of, goodwill is allocated to the gain or loss on disposition using the relative fair value methodology. |
Long-Lived Assets and Other Intangible Assets | Long-Lived Assets and Other Intangible Assets We amortize the cost of intangible assets over their respective estimated useful lives to their estimated residual value. See Note 9 – Goodwill and Intangible Assets for further discussion. We assess the recoverability of long-lived assets (excluding goodwill) and finite-lived intangible assets, whenever events or changes in circumstances indicate that we may not be able to recover the asset’s carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset (groups) to the expected, undiscounted future net cash flows to be generated by that asset (groups), or, for identifiable intangible assets, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets is based on the present value of estimated future cash flows. We measure the amount of impairment of other long-lived assets and intangible assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined as the present value of estimated future cash flows or as the appraised value. Impairments of long-lived assets and intangible assets are included in restructuring and impairment, net in the consolidated statement of operations. See Note 5 – Restructuring and Impairment for further discussions. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale We classify long-lived assets (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset (disposal group) that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. We assess the fair value of a long-lived asset (disposal group) less any costs to sell each reporting period it remains classified as held for sale and report any reduction in fair value as an adjustment to the carrying value of the asset (disposal group). Upon being classified as held for sale we cease depreciation. We continue to depreciate long-lived assets to be disposed of other than by sale. |
Investments in and Advances to Non-Consolidated Affiliates | Investment in and Advances to Non-Consolidated Affiliates We assess the potential for other-than-temporary impairment of our equity method investments when impairment indicators are identified. We consider all available information, including the recoverability of the investment, the earnings and near-term prospects of the affiliate, factors related to the industry, conditions of the affiliate, and our ability, if any, to influence the management of the affiliate. We assess fair value based on valuation methodologies, as appropriate, including the present value of estimated future cash flows, estimates of sales proceeds, and external appraisals. If an investment is considered to be impaired and the decline in value is other than temporary, we record an appropriate write-down. See Note 11 – Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further discussion. |
Financing Costs | Financing Costs We amortize financing costs and premiums, and accrete discounts, over the remaining life of the related debt using the effective interest amortization method, unless the impact of utilizing the straight-line method results in an immaterial difference. The expense is included in interest expense and amortization of debt issuance costs in our consolidated statements of operations. We record discounts and unamortized financing costs as a direct deduction from, or premiums as a direct addition to, the face amount of the financing. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 also applies to measurements under other accounting pronouncements, such as ASC 825, Financial Instruments ("ASC 825") that require or permit fair value measurements. ASC 825 requires disclosures of the fair value of financial instruments. Our financial instruments include: cash and cash equivalents; certificates of deposit; accounts receivable; accounts payable; foreign currency, energy and interest rate derivative instruments; cross-currency swaps; metal option and forward contracts; share-based compensation; related party notes receivable and payable; letters of credit; short-term borrowings and long-term debt. The carrying amounts of cash and cash equivalents, certificates of deposit, accounts receivable, accounts payable and current related party notes receivable and payable approximate their fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our letters of credit is deemed to be the amount of payment guaranteed on our behalf by third party financial institutions. We determine the fair value of our short-term borrowings and long-term debt based on various factors including maturity schedules, call features and current market rates. We also use quoted market prices, when available, or the present value of estimated future cash flows to determine fair value of our share-based compensation liabilities, short-term borrowings and long-term debt. When quoted market prices are not available for various types of financial instruments (such as currency, energy and interest rate derivative instruments, swaps, options, and forward contracts), we use standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. See Note 20 – Fair Value Measurements for further discussion. |
Pension and Postretirement Benefits | Pensions and Postretirement Benefits Our pension obligations relate to funded defined benefit pension plans in the U.S., Canada, Switzerland, and the United Kingdom ("U.K."), unfunded pension plans in the U.S., Canada, and Germany, and unfunded lump sum indemnities in France and Italy; and partially funded lump sum indemnities in South Korea. Our other postretirement obligations include unfunded health care and life insurance benefits provided to retired employees in Canada, the U.S., and Brazil. We account for our pensions and other postretirement benefits in accordance with ASC 715, Compensation — Retirement Benefits ("ASC 715"). We recognize the funded status of our benefit plans as a net asset or liability, with an offsetting adjustment to accumulated other comprehensive loss in shareholder’s equity. The funded status is calculated as the difference between the fair value of plan assets and the benefit obligation. For the fiscal years ended March 31, 2021 and 2020, we used March 31 as the measurement date. We use standard actuarial methods and assumptions to account for our pension and other postretirement benefit plans. Pension and postretirement benefit obligations are actuarially calculated using management’s best estimates of the rate used to discount the future estimated liability, the long-term rate of return on plan assets, and several assumptions related to the employee workforce (compensation increases, health care cost trend rates, expected service period, retirement age, and mortality). Pension and postretirement benefit expense includes the actuarially computed cost of benefits earned during the current service period, the interest cost on accrued obligations, the expected return on plan assets based on fair market value and the straight-line amortization of net actuarial gains and losses and adjustments due to plan amendments, curtailments, and settlements. Net actuarial gains and losses are amortized over periods of 15 years or less, which represent the group's average future service life of the employees or the group's average life expectancy. See Note 16 – Postretirement Benefit Plans for further discussion. |
Noncontrolling Interests in Consolidated Affiliates | Noncontrolling Interests in Consolidated Affiliates These financial statements reflect the application of ASC 810, Consolidations, which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s (deficit) equity, but separate from the parent’s (deficit) equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. |
Environmental Liabilities | Environmental Liabilities We record accruals for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. We adjust these accruals periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are stated at undiscounted amounts. Environmental liabilities are included in our consolidated balance sheets in accrued expenses and other current liabilities and other long–term liabilities, depending on their short- or long-term nature. Any receivables for related insurance or other third party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in prepaid expenses and other current assets on our consolidated balance sheets. Costs related to environmental matters are charged to expense. Estimated future incremental operations, maintenance, and management costs directly related to remediation are accrued in the period in which such costs are determined to be probable and estimable. See Note 23 – Commitments and Contingencies |
Litigation Contingencies | Litigation Contingencies We accrue for loss contingencies associated with outstanding litigation, claims, and assessments for which management has determined it is probable that a loss contingency exists and the amount of loss can be reasonably estimated. We expense professional fees associated with litigation claims and assessments as incurred. See Note 23 – Commitments and Contingencies for further discussion. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. This approach recognizes the amount of income taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates. Under ASC 740, Income Taxes ("ASC 740"), a valuation allowance is required when it is more likely than not that some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient taxable income through various sources. We record tax benefits related to uncertain tax positions taken or expected to be taken on a tax return when such benefits meet a more than likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, the statute of limitation has expired or the appropriate taxing authority has completed their examination. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. See Note 22 – Income Taxes for further discussion. |
Share-Based Compensation | Share-Based Compensation In accordance with ASC 718, Compensation — Stock Compensation ("ASC 718"), we recognize compensation expense for a share-based award over an employee’s requisite service period based on the award’s grant date fair value, subject to adjustment. Our share-based awards are settled in cash and are accounted for as liability based awards. As such, liabilities for awards under these plans are required to be measured at fair value at each reporting date until the date of settlement. See Note 15 – Share-Based Compensation for further discussion. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of foreign operations, whose functional currency is other than the U.S. dollar (located in Europe and Asia), are translated to U.S. dollars at the period end exchange rates, and revenues and expenses are translated at average exchange rates for the period. Differences arising from this translation are included in the currency translation adjustment ("CTA") component of accumulated other comprehensive loss and noncontrolling interests, both of which are on our consolidated balance sheets. If there is a planned or completed sale or liquidation of our ownership in a foreign operation, the relevant CTA is recognized in our consolidated statement of operations. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting along with additional technical improvements and clarifications since issued (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 in the first quarter than previously allowable. ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments April 1, 2020 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2018-17, C onsolidation (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. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 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. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 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 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 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 consolidated financial statements. ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the interaction between Topic 808 and Topic 606 (Issued November 2018) October 1, 2020 The standard clarifies the interaction between Topic 808, collaborative agreements, and Topic 806, Revenue from Contracts with Customers. Targeted improvements served to clarify when transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606. The Company has evaluated the impact of this standard, noting that the adoption has no impact on our consolidated financial statements. We will apply this guidance to any collaborative arrangements entered into in the future. ASU 2019-07, Codification Updates to SEC Sections (Issued July 2019) July 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Issued October 2018) April 1, 2019 The standard permits the use of the OIS based on the SOFR as a U.S. benchmark interest rate for purposes of hedge accounting under Topic 815 as requested by the Federal Reserve Board during deliberations leading to the issuance of ASU 2017-12. The FASB recognized that although the OIS rate based on SOFR is not yet widely recognized and quoted within the U.S. financial market, the attributes of the repo rates underlying the calculation of SOFR are recognized. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2018-09, Codification Improvements (Issued July 2018) April 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2016-02, Leases (Topic 842) along with additional technical improvements, practical expedients, and clarifications since issued. (Issued February 2016) April 1, 2019 The standard requires organizations that lease assets to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. The standard requires qualitative and quantitative disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We recognized right-of-use assets and lease liabilities on our consolidated balance sheets with no impact to the opening balance of retained earnings. The adoption of this standard did not have a material effect on the consolidated statement of operations or the consolidated statement of cash flows. ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Issued February 2018) April 1, 2018 The standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the U.S. Tax Cuts and Jobs Act of 2017 (the "Tax Act"). We reclassified $16 million into retained earnings of our common shareholder from accumulated other comprehensive loss. This reclassification consisted of deferred taxes originally recorded in accumulated other comprehensive loss at rates that exceeded the newly enacted U.S. federal corporate tax rate. There was no impact to net income. Certain prior period amounts have been adjusted as a result of the adoption of this standard. ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework - Change to the Disclosure Requirements for Fair Value Measurement (Issued August 2018) April 1, 2018 The standard modifies the disclosure requirements on fair value measurements in Topic 820 including the consideration of costs and benefits. The amendments relate to changes in disclosures on unrealized gains and losses, the disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty were applied prospectively, where applicable. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and all the related amendments, which supersedes the former standard, ASC 605, Revenue Recognition (Issued May 2014) April 1, 2018 The standard requires entities to recognize revenue based on the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. We adopted this standard using the modified retrospective transition approach. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Issued March 2017) April 1, 2018 The standard requires entities to (1) disaggregate the current service cost component from the other components of net benefit cost (the other components) and present the other components within non-operating income and (2) present the other components elsewhere in the results of operations and outside of income from operations if that subtotal is presented. In addition, the new standard requires entities to disclose the results of operations line items that contain the other components if they are not presented on appropriately described separate lines. We adopted this standard on a retrospective basis and utilized the practical expedient. As a result, we reclassified the net periodic benefit cost, exclusive of service cost, to other expenses, net for the comparative prior periods. ASU 2016-18, Statement of Cash Flows (Topic 230) -Restricted Cash. (Issued November 2016) April 1, 2018 The standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. We adopted this standard on a retrospective basis and disclose the nature of the restrictions for material balances of restricted cash. ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (Issued October 2016) April 1, 2018 The standard eliminates the exception for all intra-entity sales of assets other than inventory. It requires the tax effect of intra-entity sales of assets other than inventory to be recognized currently which will impact Novelis’ effective tax rate. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. We adopted this standard on a modified retrospective basis and the cumulative effect of the change on retained earnings is $36 million with a corresponding impact to deferred tax balances. Certain prior period amounts have been adjusted as a result of the adoption of this standard. ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments (Issued August 2016) April 1, 2018 The standard addresses eight specific cash flow items to provide clarification and reduce the diversity in presentation of these items. We adopted this standard on a retrospective basis, and we reclassified the cash received related to beneficial interest in certain factored accounts receivables from operating activities to investing activities. ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (Issued May 2017) April 1, 2018 The standard provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the standard in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. An entity may change the terms or conditions of a share-based payment award for many different reasons, and the nature and effect of the change can vary significantly. This standard requires modification accounting only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets (Issued February 2017) April 1, 2018 The standard includes (i) clarification that non-financial assets within the scope of ASC 610-20 may include non-financial assets transferred within a legal entity to a counterparty; (ii) clarification that an entity should allocate consideration to each distinct asset by applying the standard in ASC 606 on allocating the transaction price to performance obligations; and (iii) a requirement for entities to derecognize a distinct non-financial asset or distinct in substance non-financial asset in a partial sale transaction when it does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with ASC 610, and transfers control of the asset in accordance with ASC 606. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. ASU 2017-01, Clarifying the Definition of a Business (Topic 805) (Issued January 2017) April 1, 2018 The standard provides guidance on evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. It amends ASC 805 to provide a more robust framework to use in determining when a set of assets and activities is a business. The adoption of this standard did not have a material impact on the consolidated financial statements or disclosures. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Range of Estimated Useful Lives | The ranges of estimated useful lives are as follows: Range in Years Buildings 30 to 40 Leasehold improvements 7 to 20 Machinery and equipment 2 to 25 Furniture, fixtures and equipment 3 to 10 Equipment under finance lease obligations 5 to 15 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The final calculation of merger consideration paid to Aleris follows. in millions Amount Cash for equity consideration (i) $ 711 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 Fair value of merger consideration $ 2,775 _________________________ (i) Under the terms of the Merger Agreement, this represents the 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. 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 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. During the third quarter of fiscal 2021, Novelis settled this payable with the selling shareholders. (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 consolidated statements of cash flows. The consolidated balance sheet as of March 31, 2021 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 follows. in millions Assets Acquired as of June 30, 2020 (1) Measurement Period Adjustments Assets Acquired as of March 31, 2021 (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 (5) 949 (5) 944 Goodwill (6)(7)(8)(9) 328 141 469 Intangible assets, net (5)(6) 149 318 467 Deferred income tax assets (7) 114 (20) 94 Other long-term assets 39 — 39 Long–term assets of discontinued operations (8) 944 (390) 554 Total assets $ 3,791 $ 62 $ 3,853 Liabilities Assumed as of June 30, 2020 (1) Measurement Period Adjustments Liabilities Assumed as of March 31, 2021 (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 — 143 Current liabilities of discontinued operations 166 — 166 Long–term debt, net of current portion 125 — 125 Deferred income tax liabilities (7) 37 4 41 Accrued postretirement benefits 164 — 164 Other long–term liabilities (9) 41 41 82 Long–term liabilities of discontinued operations 150 — 150 Total liabilities $ 1,016 $ 62 $ 1,078 Net assets acquired $ 2,775 Total purchase price $ 2,775 _________________________ (1) In connection with the acquisition of Aleris, the Company acquired two businesses which were 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 allocation of purchase price (see Note 3 – Discontinued Operations ). As of March 31, 2021, both of these businesses have been sold and are no longer included in the consolidated balance sheets of Novelis, Inc. (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 of $5 million related to presentational alignment of certain capitalized software in accordance with Novelis' policy during the third quarter of fiscal 2021. (6) Measurement period adjustments related to revisions in the valuation of intangible assets based on refinements to key assumptions, such as discount rates and growth rates, of $261 million and $52 million during the second and third quarters of fiscal 2021, respectively. (7) Measurement period adjustment related to the deferred tax impacts of the measurement period adjustments and other tax adjustments, a decrease in deferred tax assets of $34 million during the second quarter, an increase of $22 million during the third quarter, and a decrease of $8 million during the fourth quarter of fiscal 2021, respectively. Deferred tax liabilities were adjusted by $4 million in the fourth quarter of fiscal 2021. (8) 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 and Duffel's property, plant and equipment, of $284 million and $75 million during the second and third quarters of fiscal 2021, respectively, and revisions to key assumptions related to Lewisport's intangible assets of $31 million during the second quarter of fiscal 2021. (9) Measurement period adjustment related to certain uncertain tax positions and customs related adjustments identified during the third quarter of fiscal 2021. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The amounts allocated to intangible assets are as follows. in millions Gross Carrying Amount (1) Weighted-Average Useful Life Trade name $ 10 2.5 years Technology 52 15.1 years Customer relationships 403 22.5 years Other intangibles 2 N/A Total $ 467 21.2 years _________________________ (1) In connection with the acquisition of Aleris, Novelis acquired two businesses which we were 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 fiscal year ended March 31, 2021 and 2020 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. Fiscal Year Ended March 31, in millions 2021 2020 Net sales $ 12,330 $ 13,175 Net income 306 412 |
Restructuring and Impairment (T
Restructuring and Impairment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring reserve activity | Total restructuring liabilities Other restructuring charges (1) Total restructuring charges Other impairments (2) Total restructuring Balance as of March 31, 2018 $ 36 Expenses 2 — 2 — 2 Cash payments (16) Foreign currency remeasurement and other (5) Balance as of March 31, 2019 $ 17 Expenses 25 12 37 6 43 Cash payments (5) Foreign currency remeasurement and other (3) Balance as of March 31, 2020 $ 34 Expenses 28 — 28 1 29 Cash payments (28) Foreign currency remeasurement and other — Balance as of March 31, 2021 $ 34 _________________________ (1) Other restructuring charges include expenses related to a restructuring activity that are not recorded through the restructuring liability, such as impairments and other non-cash expenses. (2) Other impairment charges are not related to a restructuring activity. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable, net consists of the following. March 31, in millions 2021 2020 Trade accounts receivable $ 1,551 $ 944 Other accounts receivable 141 131 Accounts receivable — third parties 1,692 1,075 Allowance for credit losses — third parties (5) (8) Accounts receivable, net — third parties $ 1,687 $ 1,067 Accounts receivable, net — related parties $ 166 $ 164 |
Activity in the allowance for doubtful accounts | Activity in the allowance for credit losses is as follows. in millions Balance at Additions Accounts Foreign Balance at Fiscal Year Ended March 31, 2021 $ 8 $ — $ (3) $ — $ 5 Fiscal Year Ended March 31, 2020 7 3 (1) (1) 8 Fiscal Year Ended March 31, 2019 7 — — — 7 |
Summary disclosures of financial amounts | The following tables summarize amounts relating to our factoring activities. Fiscal Year Ended March 31, in millions 2021 2020 2019 Factoring expense $ 27 $ 41 $ 46 March 31, in millions 2021 2020 Factored receivables outstanding $ 444 $ 430 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consists of the following. March 31, in millions 2021 2020 Finished goods $ 455 $ 398 Work in process 874 643 Raw materials 407 192 Supplies 192 176 Inventories $ 1,928 $ 1,409 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment, net consists of the following. March 31, in millions 2021 2020 Land and property rights $ 202 $ 150 Buildings 1,607 1,300 Machinery and equipment (1) 5,390 4,430 7,199 5,880 Accumulated depreciation and amortization (3,385) (2,968) 3,814 2,912 Construction in progress 873 668 Property, plant and equipment, net (2) $ 4,687 $ 3,580 _________________________ |
Schedule of depreciation expense | Depreciation expense related to property, plant and equipment, net is shown in the table below. Fiscal Year Ended March 31, in millions 2021 2020 2019 Depreciation expense related to property, plant and equipment, net $ 451 $ 298 $ 286 |
Schedule of asset retirement obligations | in millions Balance at Beginning of Period Obligations Incurred Acquisition Foreign Exchange & Other Adjustments Settlements Balance at End of Period Fiscal Year Ended March 31, 2021 $ 24 $ 2 $ 3 $ (3) $ (1) $ 25 Fiscal Year Ended March 31, 2020 29 — — (1) (4) 24 Fiscal Year Ended March 31, 2019 33 1 — (5) — 29 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | A summary of the changes in carrying value of goodwill for fiscal 2021 and fiscal 2020 follows. in millions North America Europe Asia South America Total Carrying value of goodwill at March 31, 2019 (1) $ 285 181 — 141 $ 607 Foreign currency translation adjustment — — — — — Carrying value of goodwill at March 31, 2020 (1) 285 181 — 141 607 Acquisition (2) 375 53 41 — 469 Foreign currency translation adjustment — 4 3 — 7 Carrying value of goodwill at March 31, 2021 (1) $ 660 $ 238 $ 44 $ 141 $ 1,083 |
Schedule of intangible assets, net | The components of intangible assets, net are as follows. March 31, 2021 March 31, 2020 in millions Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradenames 18.9 years $ 152 $ (102) $ 50 $ 142 $ (91) $ 51 Technology and software 10.0 years 471 (356) 115 396 (308) 88 Customer-related intangible assets 22.3 years 858 (330) 528 446 (286) 160 Other intangibles N/A 4 (1) 3 — — — 18.0 years $ 1,485 $ (789) $ 696 $ 984 $ (685) $ 299 |
Schedule of amortization expense | Amortization expense related to intangible assets, net is as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Amortization expense related to intangible assets included in depreciation and amortization $ 92 $ 63 $ 64 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated total amortization expense related to intangible assets, net for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions, or other events. Fiscal Year Ending March 31, Amount 2022 $ 90 2023 74 2024 63 2025 61 2026 60 |
Consolidation (Tables)
Consolidation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Consolidation [Abstract] | |
Schedule of variable interest entity | The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our consolidated balance sheets. March 31, in millions 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 5 $ 8 Accounts receivable, net 69 24 Inventories 81 92 Prepaid expenses and other current assets 4 3 Total current assets 159 127 Property, plant and equipment, net 19 19 Goodwill 12 12 Deferred income tax assets 57 76 Other long–term assets 8 35 Total assets $ 255 $ 269 LIABILITIES Current liabilities: Accounts payable $ 38 $ 38 Accrued expenses and other current liabilities 26 30 Total current liabilities 64 68 Accrued postretirement benefits 214 287 Other long–term liabilities 5 3 Total liabilities $ 283 $ 358 |
Investment in and Advances to_2
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract] | |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table summarizes the assets, liabilities, and equity of our equity method affiliates in the aggregate as of March 31, 2021 and 2020. March 31, in millions 2021 2020 Assets: Current assets $ 476 $ 389 Non-current assets 862 801 Total assets $ 1,338 $ 1,190 Liabilities: Current liabilities $ 283 $ 236 Non-current liabilities 389 358 Total liabilities $ 672 $ 594 Equity: Total equity $ 666 $ 596 Total liabilities and equity $ 1,338 $ 1,190 Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with our non-consolidated affiliates and our indirect parent company, Hindalco. The following table describes the period-end account balances, shown as related party balances in the accompanying consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. March 31, in millions 2021 2020 Accounts receivable, net — related parties $ 166 $ 164 Other long–term assets — related parties 1 — Accounts payable — related parties 230 176 |
Schedule of equity method investments, ownership percentage | The following table summarizes the ownership structure and our ownership percentage of the non-consolidated affiliates in which we have investments in as of March 31, 2021 and 2020, and which we account for using the equity method. Affiliate Name Ownership Structure Ownership Percentage Alunorf Corporation 50% UAL Corporation 50% AluInfra Corporation 50% |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2021, 2020, and 2019 as well as the nature and amounts of significant transactions that we had with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Fiscal Year Ended March 31, in millions 2021 2020 2019 Net sales $ 1,216 $ 1,178 $ 1,245 Costs and expenses related to net sales 1,191 1,160 1,222 Income tax provision 7 5 7 Net income $ 18 $ 13 $ 16 Purchase of tolling services from Alunorf $ 251 $ 243 $ 254 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of assets and liabilities related to operating and financing leases | The table below presents the classification of leasing assets and liabilities (in millions). Leases Consolidated Balance Sheet Classification March 31, 2021 March 31, 2020 Assets Operating lease right-of-use assets Other long–term assets $ 106 95 Finance lease assets (1) Property, plant and equipment, net 22 3 Total lease assets $ 128 $ 98 Liabilities Current: Operating lease liabilities Accrued expenses and other current liabilities $ 25 25 Finance lease liabilities Current portion of long–term debt 6 — Long-term: Operating lease liabilities Other long–term liabilities 63 70 Finance lease liabilities Long–term debt, net of current portion 16 1 Total lease liabilities $ 110 $ 96 _________________________ |
Lease, Cost | Expense Type Income Statement Classification Fiscal Year Ended March 31, 2021 Fiscal Year Ended March 31, 2020 Operating lease costs (1) Selling, general and administrative expenses $ 57 $ 51 _________________________ |
Schedule of Future Minimum Lease Payments for Operating Leases and Finance Leases | Future minimum lease payments as of March 31, 2021, for our operating and finance leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Fiscal Year Ending March 31, Operating leases (1) Finance leases (2) 2022 $ 28 $ 6 2023 19 5 2024 17 4 2025 12 3 2026 7 2 Thereafter 17 3 Total minimum lease payments 100 23 Less: interest 12 1 Present value of lease liabilities $ 88 $ 22 _________________________ |
Schedule of lease information | The following table presents the weighted-average remaining lease term and discount rates. As of March 31, 2021 As of March 31, 2020 Weighted-average remaining lease term (in years) Operating leases 6.1 6.3 Finance leases 4.7 6.0 Weighted-average discount rate Operating leases 3.70 % 3.74 % Finance leases 2.37 % 3.17 % |
Schedule of Cash Flow, Supplemental Disclosures, Leases | Supplemental information Fiscal Year Ended March 31, 2021 Fiscal Year Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 66 64 Financing cash flows from finance leases 7 — Leased assets obtained in exchange for new finance lease liabilities (1) 17 1 Leased assets obtained in exchange for new operating lease liabilities (2) 21 13 _________________________ (1) For the fiscal year ended March 31, 2021, we have excluded $7 million of finance lease asset additions that were obtained through the acquisition of Aleris. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued liabilities | Accrued expenses and other current liabilities consists of the following. March 31, in millions 2021 2020 Accrued compensation and benefits $ 255 $ 191 Accrued interest payable 48 50 Accrued income taxes 70 67 Other current liabilities 297 305 Accrued expenses and other current liabilities $ 670 $ 613 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consists of the following. March 31, 2021 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 3.16 % $ 236 $ — $ 236 $ 176 $ — $ 176 ABL Revolver (3) — — — 555 — 555 Floating rate Term Loan Facility, due June 2022 2.05 % 648 (5) 643 1,742 (22) 1,720 Floating rate Term Loan Facility, due January 2025 1.95 % 767 (15) 752 — — — Floating rate Term Loan Facility, due March 2028 2.20 % 480 (9) 471 — — — Zhenjiang Term Loans, due May 2024 5.36 % 124 2 126 — — — 5.875% Senior Notes, due September 2026 5.875 % 1,500 (13) 1,487 1,500 (16) 1,484 3.375% Senior Notes, due April 2029 3.375 % 588 (13) 575 — — — 4.75% Senior Notes, due January 2030 4.75 % 1,600 (28) 1,572 1,600 (32) 1,568 China Bank Loans, due August 2027 4.90 % 76 — 76 36 — 36 Finance lease obligations and other debt, due through June 2028 2.45 % 22 — 22 1 — 1 Total debt $ 6,041 $ (81) $ 5,960 $ 5,610 $ (70) $ 5,540 Less: Short-term borrowings (236) — (236) (176) — (176) Current portion of long-term debt (71) — (71) (19) — (19) Long-term debt, net of current portion $ 5,734 $ (81) $ 5,653 $ 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 March 31, 2021, and therefore, exclude the effects of 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 March 31, 2021, there were $89 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 March 31, 2021 for our debt denominated in foreign currencies are as follows (in millions). As of March 31, 2021 Amount Short-term borrowings and current portion of long term debt due within one year $ 307 2 years 690 3 years 44 4 years 802 5 years 22 Thereafter 4,176 Total debt $ 6,041 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Total compensation expense related to SARs and RSUs under the long term incentive plans | Total compensation expense related to Hindalco SARs, Novelis SARs, and RSUs under the plans for the respective periods is presented in the table below. These amounts are included in selling, general and administrative expenses in our consolidated statements of operations. As the performance criteria for fiscal years 2022, 2023, and 2024 have not yet been established, measurement periods for Hindalco SARs and Novelis SARs relating to those periods have not yet commenced. As a result, only compensation expense for vested and current year Hindalco SARs and Novelis SARs has been recorded. Fiscal Year Ended March 31, in millions 2021 2020 2019 Total compensation expense $ 41 $ (1) $ 17 |
RSUs activity and SARs activity under LTIP | The table below shows the RSUs activity for the fiscal year ended March 31, 2021. Number of RSUs Grant Date Fair Value (in INR) Aggregate Intrinsic Value (USD in millions) RSUs outstanding as of March 31, 2020 4,747,316 206.54 $ 7 Granted 5,016,919 118.34 — Exercised (2,403,369) 205.10 4 Forfeited/Cancelled (124,447) 172.69 — RSUs outstanding as of March 31, 2021 7,236,419 146.46 31 During fiscal 2020, we granted 2,685,744 RSUs with a grant date fair value of INR 198.88, and the aggregate intrinsic value of RSUs exercised was $9 million. During fiscal 2019, we granted 2,273,078 RSUs with a grant date fair value of INR 230.77, and the aggregate intrinsic value of RSUs exercised was $15 million. Total cash payments made to settle Hindalco RSUs were $4 million, $9 million, and $15 million in the fiscal years ended March 31, 2021, 2020, and 2019, respectively. As of March 31, 2021, unrecognized compensation expense related to the RSUs was $11 million, which will be recognized over the remaining weighted average vesting period of 1.5 years. The table below shows Hindalco SARs activity for the fiscal year ended March 31, 2021. Number of Hindalco SARs Weighted Average Exercise Price (in INR) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2020 12,441,966 177.11 4.1 $ — Granted 6,934,923 118.11 5.3 5 Exercised (5,872,477) 150.62 — 9 Forfeited/Cancelled (465,886) 179.67 — — SARs outstanding as of March 31, 2021 13,038,526 157.56 — 28 SARs exercisable as of March 31, 2021 3,220,946 197.10 3.7 8 During fiscal 2020, we granted 3,475,995 Hindalco SARs with a grant date fair value of INR 198.88, and the aggregate intrinsic value of Hindalco SARs exercised was $3 million. During fiscal 2019, we granted 2,359,347 Hindalco SARs with a grant date fair value of INR 230.95, and the aggregate intrinsic value of Hindalco SARs exercised was $5 million. The cash payments made to settle Hindalco SAR liabilities were $9 million, $3 million, and $5 million, in the fiscal years ended March 31, 2021, 2020, and 2019, respectively. As of March 31, 2021, unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $9 million that are expected to be recognized over a weighted average period of 1.4 years. The table below shows the Novelis SARs activity for the fiscal year ended March 31, 2021. Number of Novelis SARs Weighted Average Exercise Price (in USD) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (USD in millions) SARs outstanding as of March 31, 2020 33,393 $ 86.70 1.0 $ 1 Exercised (19,879) 91.35 — 1 Forfeited/Cancelled (3,349) 72.28 — — SARs outstanding as of March 31, 2021 10,165 82.37 — 1 SARs exercisable as of March 31, 2021 10,165 $ 82.37 1.0 — |
Assumptions used in estimating fair value of each SAR under LTIP | The fair value of each unvested Hindalco SAR was estimated using the following assumptions: Fiscal Year Ended March 31, 2021 2020 2019 Risk-free interest rate 3.32% - 6.18% 4.73% - 6.89% 6.24% - 7.28% Dividend yield 0.32 % 1.27 % 0.58 % Volatility 40% - 57% 36% - 85% 27% - 39% The fair value of each unvested Novelis SAR was estimated using the following assumptions: Fiscal Year Ended March 31, 2021 2020 2019 Risk-free interest rate 0.03% - 0.08% —% - 0.35% 2.19% - 2.49% Dividend yield — % — % — % Volatility 28% - 45% 24% - 40% 17% - 25% |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Contributions to employee benefit plans | We contributed the following amounts to all plans. Fiscal Year Ended March 31, in millions 2021 2020 2019 Funded pension plans $ 72 $ 52 $ 35 Unfunded pension plans 17 12 12 Savings and defined contribution pension plans 40 33 31 Total contributions $ 129 $ 97 $ 78 |
Schedule of changes in projected benefit obligations | The following tables present the change in benefit obligation, change in fair value of plan assets, and the funded status for pension and other benefits. The increase in the discount rates in fiscal 2021, as compared to fiscal 2020, was the primary driver of actuarial gains in fiscal 2021, offset by higher mortality rates experienced during the year. The Aleris acquisition also significantly impacted the benefit obligation during fiscal 2021 for both pension benefit and other benefit plans, $194 million and $14 million, respectively, with corresponding $32 million of plan assets acquired. The decrease in the discount rates in fiscal 2020, as compared to fiscal 2019, was the primary driver of actuarial losses in fiscal 2020. Pension Benefit Plans Other Benefit Plans Fiscal Year Ended March 31, Fiscal Year Ended March 31, in millions 2021 2020 2021 2020 Benefit obligation at beginning of period $ 2,054 $ 1,987 $ 176 $ 171 Service cost 42 39 10 10 Interest cost 55 59 7 7 Members’ contributions 5 5 — — Benefits paid (82) (74) (7) (7) Amendments 1 — — — Curtailments, settlements and special termination benefits (45) (11) — — Actuarial (gains) losses (8) 77 (13) (4) Other 189 (3) 14 — Currency (gains) losses 87 (25) 1 (1) Benefit obligation at end of period $ 2,298 $ 2,054 $ 188 $ 176 Benefit obligation of funded plans $ 1,819 $ 1,737 $ — $ — Benefit obligation of unfunded plans 479 317 188 176 Benefit obligation at end of period $ 2,298 $ 2,054 $ 188 $ 176 |
Schedule of changes in fair value of plan assets | Pension Benefit Plans Fiscal Year Ended March 31, in millions 2021 2020 Change in fair value of plan assets Fair value of plan assets at beginning of period $ 1,298 $ 1,300 Actual return on plan assets 213 36 Members’ contributions 5 5 Benefits paid (82) (74) Company contributions 83 64 Settlements (3) (11) Other 28 (3) Currency gains (losses) 54 (19) Fair value of plan assets at end of period $ 1,596 $ 1,298 |
Schedule of net funded status | March 31, 2021 2020 in millions Pension Benefit Plans Other Benefit Plans Pension Benefit Plans Other Benefit Plans Funded status Assets less the benefit obligation of funded plans $ (223) $ — $ (439) $ — Benefit obligation of unfunded plans (479) (188) (317) (176) $ (702) $ (188) $ (756) $ (176) As included in our consolidated balance sheets within Total assets / (Total liabilities) Other long–term assets $ 11 $ — $ 18 $ — Accrued expenses and other current liabilities (17) (8) (12) (8) Accrued postretirement benefits (696) (180) (762) (168) $ (702) $ (188) $ (756) $ (176) |
Schedule of amounts recognized in other comprehensive income (loss) | The postretirement amounts recognized in accumulated other comprehensive loss, before tax effects, are presented in the table below and includes the impact related to our equity method investments. Amounts are amortized to net periodic benefit cost over the group’s average future service life of the employees or the group's average life expectancy. March 31, 2021 2020 in millions Pension Benefit Plans Other Benefit Plans Pension Benefit Plans Other Benefit Plans Net actuarial (losses) gains $ (223) $ 5 $ (455) $ (8) Prior service credit 9 5 9 4 Total postretirement amounts recognized in accumulated other comprehensive loss $ (214) $ 10 $ (446) $ (4) |
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss) | The postretirement changes recognized in accumulated other comprehensive loss, before tax effects, are presented in the table below, and include the impact related to our equity method investments. March 31, 2021 2020 in millions Pension Benefit Plans Other Benefit Plans Pension Benefit Plans Other Benefit Plans Beginning balance in accumulated other comprehensive loss $ (446) $ (4) $ (367) $ (8) Curtailments, settlements, and special termination benefits 1 — 3 — Net actuarial gain (loss) 200 13 (124) 4 Prior service cost (1) — — — Amortization of: Prior service credit (1) 1 (1) — Actuarial losses 49 — 40 — Effect of currency exchange (16) — 3 — Total postretirement amounts recognized in accumulated other comprehensive loss $ (214) $ 10 $ (446) $ (4) |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets are presented in the table below. March 31, in millions 2021 2020 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans: Projected benefit obligation $ 2,298 $ 2,054 Accumulated benefit obligation 2,191 1,901 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 2,142 $ 1,683 Fair value of plan assets 1,428 908 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 2,048 $ 1,500 Fair value of plan assets 1,427 862 Pension plans with projected benefit obligations less than plan assets: Projected benefit obligation $ 156 $ 371 Fair value of plan assets 167 389 |
Schedule of expected benefit payments | Expected benefit payments to be made during the next ten fiscal years are listed in the table below. in millions Pension Benefit Plans Other Benefit Plans 2022 $ 93 $ 8 2023 97 9 2024 100 9 2025 102 9 2026 103 10 2027 through 2031 576 58 Total $ 1,071 $ 103 |
Components of net periodic benefit cost for all significant postretirement benefit plans | The components of net periodic benefit cost for the respective periods are listed in the table below. Pension Benefit Plans Other Benefit Plans Fiscal Year Ended March 31, Fiscal Year Ended March 31, in millions 2021 2020 2019 2021 2020 2019 Service cost $ 42 $ 39 $ 39 $ 10 $ 10 $ 9 Interest cost 55 59 60 7 7 7 Expected return on assets (73) (71) (66) — — — Amortization — losses, net 44 36 32 — 1 2 Amortization — prior service credit (1) (1) (1) — — — Termination benefits/curtailments 1 3 2 — — — Net periodic benefit cost (1) 68 65 66 17 18 18 Proportionate share of non-consolidated affiliates’ pension costs 12 10 10 — — — Total net periodic benefit cost recognized $ 80 $ 75 $ 76 $ 17 $ 18 $ 18 _________________________ (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. |
Schedule of assumptions used | The weighted average assumptions used to determine benefit obligations and net periodic benefit cost for the respective periods are listed in the table below. Pension Benefit Plans Other Benefit Plans Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Weighted average assumptions used to determine benefit obligations Discount rate 2.5 % 2.6 % 3.0 % 3.4 % 3.4 % 4.0 % Average compensation growth 3.1 3.1 3.2 3.0 3.3 3.5 Weighted average assumptions used to determine net periodic benefit cost Discount rate 2.6 % 3.0 % 3.1 % 3.4 % 4.0 % 4.0 % Average compensation growth 3.1 3.2 3.1 3.3 3.3 3.5 Expected return on plan assets 5.1 5.5 5.2 — — — Cash balance interest crediting rate 0.5 0.6 0.9 — — — |
Target and actual allocation of plan assets | The targeted allocation ranges by asset class, and the actual allocation percentages for each class are listed in the table below. Asset Category Target Allocation Allocation in Aggregate as of March 31, 2021 2020 Equity 22-61% 37 % 37 % Fixed income 0-74% 46 % 50 % Real estate 0-15% 1 % 2 % Other 0-40% 16 % 11 % |
Schedule of fair value of pension and postretirement plan assets table | The following pension plan assets are measured and recognized at fair value on a recurring basis. See Note 20 – Fair Value Measurements for a description of the fair value hierarchy. The U.S. and Canadian pension plan assets are invested exclusively in commingled funds and classified in Level 2, and the U.K., Switzerland, and South Korea pension plan assets are invested in both direct investments (Levels 1 and 2) and commingled funds (Level 2). Pension Plan Assets March 31, 2021 March 31, 2020 in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Fixed income 137 52 — 189 149 46 — 195 Cash and cash equivalents 10 — — 10 13 — — 13 Other — 4 — 4 — — — — Investments measured at net asset value (1) — — — 1,393 — — — 1,090 Total $ 147 $ 56 $ — $ 1,596 $ 162 $ 46 $ — $ 1,298 _________________________ |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in "Other (income) expense, net" | The following currency losses are included in other expenses, net in the accompanying consolidated statements of operations. Fiscal Year Ended March 31, in millions 2021 2020 2019 Loss (gain) on remeasurement of monetary assets and liabilities, net $ 6 $ (23) $ (5) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net (3) 26 6 Currency losses, net $ 3 $ 3 $ 1 |
Currency gains (losses) included in "AOCI," net of tax and "Noncontrolling interests" | The following currency losses are included in accumulated other comprehensive loss and noncontrolling interests in the accompanying consolidated balance sheets. Fiscal Year Ended March 31, in millions 2021 2020 2019 Cumulative currency translation adjustment — beginning of period $ (309) $ (236) $ (65) Effect of changes in exchange rates 244 (73) (171) Amounts reclassified from accumulated other comprehensive loss, net (1) (30) — — Cumulative currency translation adjustment — end of period $ (95) $ (309) $ (236) _________________________ |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of financial instruments and commodity contracts | The following tables summarize the gross fair values of our financial instruments and commodity contracts as of March 31, 2021 and 2020: March 31, 2021 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 $ 4 $ — $ (105) $ — $ (101) Currency exchange contracts 6 — (20) (4) (18) Energy contracts 1 1 (3) — (1) Total derivatives designated as hedging instruments $ 11 $ 1 $ (128) $ (4) $ (120) Derivatives not designated as hedging instruments Metal contracts $ 104 $ 3 $ (124) $ (1) $ (18) Currency exchange contracts 22 — (28) — (6) Energy contracts — — — — — Total derivatives not designated as hedging instruments $ 126 $ 3 $ (152) $ (1) $ (24) Total derivative fair value $ 137 $ 4 $ (280) $ (5) $ (144) 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 consolidated balance sheets. |
Summary of notional amount | The following table summarizes our notional amount. March 31, in kt 2021 2020 Hedge type Purchase (sale) Cash flow purchases 10 63 Cash flow sales (594) (395) Not designated (44) (19) Total, net (628) (351) |
Summary of gains (losses) associated with the change in the fair value derivative instruments recognized in "Other (income) expense, net" | The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in other expenses, net. Gains (losses) recognized in other line items in the consolidated statement of operations are separately disclosed within this footnote. Fiscal Year Ended March 31, in millions 2021 2020 2019 Derivative instruments not designated as hedges Metal contracts $ (34) $ (12) $ (8) Currency exchange contracts 3 (25) (4) Energy contracts (1) 7 5 6 Loss recognized in other expenses, net (24) (32) (6) Derivative instruments designated as hedges Gain recognized in other expenses, net (2) — 3 2 Total loss recognized in other expenses, net (24) (29) (4) (Loss) gain recognized on balance sheet remeasurement currency exchange contracts, net 3 (26) (6) Realized losses, net (16) (7) 12 Unrealized gains (losses) on other derivative instruments, net (11) 4 (10) Total loss recognized in other expenses, net $ (24) $ (29) $ (4) _________________________ (1) Includes amounts related to diesel and natural gas swaps not designated as hedges, and electricity swap settlements. (2) Amount includes forward market premium/discount excluded from hedging relationship, and releases to income from accumulated other comprehensive loss on balance sheet remeasurement contracts. |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow and net investment hedges. Within the next twelve months, we expect to reclassify $135 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive income (loss) (Effective Portion) Amount of Gain (Loss) Recognized in Other expenses, net (Ineffective and Excluded Portion) Fiscal Year Ended March 31, Fiscal Year Ended March 31, in millions 2021 2020 2019 2021 2020 2019 Cash flow hedging derivatives Metal contracts $ (274) $ 163 $ 33 $ — $ — $ — Currency exchange contracts (4) (105) (44) — 3 2 Energy contracts 5 (18) 3 — — — Total $ (273) $ 40 $ (8) $ — $ 3 $ 2 Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Fiscal Year Ended March 31, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2021 2020 2019 Cash flow hedging derivatives Energy contracts (1) $ (11) $ (5) $ (1) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (13) (4) — Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (57) 83 89 Net sales Currency exchange contracts (45) (8) (14) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts (4) (1) (1) Selling, general and administrative expenses Currency exchange contracts 3 (14) (9) Net sales Currency exchange contracts (2) (1) (1) Depreciation and amortization Total (129) 50 63 Income from continuing operations before income tax provision 36 (12) (17) Income tax provision $ (93) $ 38 $ 46 Net income from continuing operations _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gain (loss) that was reclassified from accumulated other comprehensive loss into earnings and the amount excluded from the assessment of effectiveness for the three and twelve months ended March 31, 2021 and March 31, 2020. Three Months Ended March 31, 2021 Fiscal Year Ended March 31, 2021 in millions Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Gain (loss) on cash flow hedging relationships: Metal commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ (58) $ 1 $ — $ — $ — $ (57) $ (13) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (2) $ — $ — $ — $ — $ (11) $ — $ — $ — Foreign exchange contracts: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income $ 3 $ (11) $ (1) $ (1) $ — $ 3 $ (45) $ (4) $ (2) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value — — — — — — — — — — Three Months Ended March 31, 2020 Fiscal Year Ended March 31, 2020 in millions Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Net sales Cost of goods sold (exclusive of depreciation and amortization) Selling, general and administrative expenses Depreciation and amortization Other expenses, net Gain (loss) on cash flow hedging relationships: Metal commodity contracts: Amount of gain (loss) reclassified from accumulated other comprehensive loss into income $ 15 $ (1) $ — $ — $ — $ 83 $ (4) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (2) $ — $ — $ — $ — $ (5) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ (4) $ (5) $ (1) $ — $ — $ (14) $ (8) $ (1) $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value — — — — 1 — — — — 3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the change in the components of accumulated other comprehensive loss, excluding noncontrolling interests, for the periods presented. in millions Currency Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2018 $ (65) $ 31 $ (227) $ (261) Amounts reclassified from accumulated other comprehensive loss, net - due to adoption of accounting standard updates — (3) (13) (16) Balance as of April 1, 2018 $ (65) $ 28 $ (240) $ (277) Other comprehensive loss before reclassifications (171) (4) (33) (208) Amounts reclassified from accumulated other comprehensive loss, net — (46) 25 (21) Net current-period other comprehensive loss (171) (50) (8) (229) Balance as of March 31, 2019 $ (236) $ (22) $ (248) $ (506) Other comprehensive (loss) income before reclassifications (73) 34 (66) (105) Amounts reclassified from accumulated other comprehensive loss, net — (38) 29 (9) Net current-period other comprehensive loss (73) (4) (37) (114) Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 244 (200) 114 158 Amounts reclassified from accumulated other comprehensive loss, net (3) (30) 93 33 96 Net current-period other comprehensive income (loss) 214 (107) 147 254 Balance as of March 31, 2021 $ (95) $ (133) $ (138) $ (366) _________________________ (1) For additional information on our cash flow hedges see Note 18 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans see Note 16 – Postretirement Benefit Plans . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Derivative assets and liabilities measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy | The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of March 31, 2021 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. March 31, 2021 2020 in millions Assets Liabilities Assets Liabilities Level 2 instruments Metal contracts $ 111 $ (230) $ 187 $ (107) Currency exchange contracts 28 (52) 15 (106) Energy contracts 2 (1) — (10) Total level 2 instruments 141 (283) 202 (223) Level 3 instruments Energy contracts — (2) — (6) Total level 3 instruments — (2) — (6) Total gross 141 (285) 202 (229) Netting adjustment (1) (81) 81 (72) 72 Total net $ 60 $ (204) $ 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, 2019 $ (3) Unrealized/realized gain included in earnings (2) 4 Unrealized/realized (loss) included in accumulated other comprehensive loss (3) (7) Settlements (2) — Balance as of March 31, 2020 (6) Unrealized/realized gain included in earnings (2) 6 Unrealized/realized (loss) included in accumulated other comprehensive loss (3) — Settlements (2) (2) Balance as of March 31, 2021 $ (2) _________________________ (1) Represents net derivative liabilities. (2) Included in other expenses, net in our consolidated statements of operations. (3) Included in net change in fair value of effective portion of cash flow hedges in our consolidated statements of comprehensive income (loss). 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. Upon closing on September 30, 2020, we recorded a receivable at a fair value of €93 million ($109 million) measured based on the anticipated outcome, timeline of arbitration of greater than one year, and a discount rate of 5%. As of March 31, 2021, the fair value has been adjusted for the accretion of imputed interest to €95 million ($112 million). This imputed interest is included net income from continuing operations within our consolidated statements of operations. See Note 3 – Discontinued Operations for more information. |
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. March 31, 2021 2020 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 1 $ 1 $ — $ — Total debt — third parties (excluding finance leases and short-term borrowings) 5,702 5,967 5,364 5,267 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | Other expenses, net consists of the following. Fiscal Year Ended March 31, in millions 2021 2020 2019 Currency losses, net (1) $ 3 $ 3 $ 1 Unrealized losses (gains) on change in fair value of derivative instruments, net (2) 11 (4) 10 Realized losses (gains) on change in fair value of derivative instruments, net (2) 16 7 (12) Loss on sale of assets, net 1 1 6 (Gain) loss on Brazilian tax litigation, net (3) (1) (7) 2 Interest income (9) (14) (10) Non-operating net periodic benefit cost (4) 33 34 35 Charitable contribution (5) 50 — — Other, net (1) (2) 12 Other expenses, net $ 103 $ 18 $ 44 _________________________ (1) Includes (gain) loss recognized on balance sheet remeasurement currency exchange contracts, net. See Note 17 – Currency Losses ( Gains) for further details. (2) See Note 18 – Financial Instruments and Commodity Contracts for further details. (3) See Note 23 – 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. For further details, refer to Note 16 – Postretirement Benefit Plans . (5) Represents a charitable contribution for COVID-19 relief. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before income taxes, domestic and foreign | The domestic (Canada) and foreign components of our income from continuing operations before income tax provision (and after removing our equity in net (income) loss of non-consolidated affiliates) are as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Domestic (Canada) $ (15) $ (58) $ (80) Foreign (all other countries) 709 658 713 Pre-tax income before equity in net (income) loss of non-consolidated affiliates $ 694 $ 600 $ 633 |
Schedule of components of income tax provision | The components of our income tax provision are as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Current provision: Domestic (Canada) $ 6 $ 7 $ 5 Foreign (all other countries) 183 171 147 Total current $ 189 $ 178 $ 152 Deferred provision: Domestic (Canada) — — — Foreign (all other countries) 49 — 50 Total deferred $ 49 $ — $ 50 Income tax provision $ 238 $ 178 $ 202 |
Reconciliation of Canadian statutory tax rates to effective tax rates | The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below. Fiscal Year Ended March 31, in millions, except percentages 2021 2020 2019 Pre-tax income before equity in net (income) loss of non-consolidated affiliates $ 694 $ 600 $ 633 Canadian statutory tax rate 25 % 25 % 25 % Provision at the Canadian statutory rate $ 174 $ 150 $ 158 Increase (decrease) for taxes on income (loss) resulting from: Exchange translation items 19 9 14 Exchange remeasurement of deferred income taxes (5) (17) (9) Change in valuation allowances 23 13 17 Tax credits (23) (17) (16) (Income) expense items not subject to tax (1) 4 1 State tax expense, net (5) 1 4 Enacted tax rate changes (2) (6) 2 Tax rate differences on foreign earnings 48 32 33 Uncertain tax positions 6 4 3 Prior year adjustments (1) (1) 2 Income tax settlements 4 — (4) Non-deductible expenses and other — net 1 6 (3) Income tax provision $ 238 $ 178 $ 202 Effective tax rate 34 % 30 % 32 % |
Summary of Valuation Allowance | The following table summarizes changes in the valuation allowances: in millions Balance at Beginning of Period Deductions Acquisition (1) Additions Balance at End of Period Fiscal 2021 $ 755 $ (12) $ 64 $ 14 $ 821 Fiscal 2020 742 (1) — 14 755 Fiscal 2019 727 (2) — 17 742 _________________________ (1) Related to the acquisition of Aleris. |
Schedule of deferred tax assets and liabilities | Our deferred income tax assets and deferred income tax liabilities are as follows. March 31, in millions 2021 2020 Deferred income tax assets: Provisions not currently deductible for tax purposes $ 458 $ 382 Tax losses/benefit carryforwards, net 934 708 Depreciation and amortization 79 66 Other assets 50 21 Total deferred income tax assets 1,521 1,177 Less: valuation allowance (821) (755) Net deferred income tax assets $ 700 $ 422 Deferred income tax liabilities: Depreciation and amortization $ 550 $ 324 Inventory valuation reserves 57 78 Monetary exchange gains, net 24 17 Other liabilities 101 57 Total deferred income tax liabilities $ 732 $ 476 Net deferred income tax liabilities $ 32 $ 54 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 Beginning balance $ 27 $ 24 $ 44 Additions based on tax positions related to the current period 4 3 3 Additions based on tax positions of prior years (1) 39 1 3 Reductions based on tax positions of prior years (1) (1) (1) Settlements (2) (1) — (22) Foreign exchange 1 — (3) Ending Balance $ 69 $ 27 $ 24 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Benefits Recognized on Brazilian Tax Ruling | We have estimated that it is probable to receive a benefit, net of fees and applicable Brazilian taxes, related to these periods and recorded this benefit in the corresponding periods, recognized using the net credit amount, as follows. in millions Amounts Recorded in Statement of Operations Period Period Covered Related Contribution Net sales Other expenses, net Income tax provision Net income from continuing operations Fiscal Year Ended March 31, 2021 2007 to 2014 PIS $ — $ (1) $ — $ 1 Fiscal Year Ended March 31, 2020 2015 to 2017 PIS and COFINS — (8) 3 5 Fiscal Year Ended March 31, 2019 2007 to 2014 COFINS 3 (2) 2 3 |
Segment, Geographical Area, M_2
Segment, Geographical Area, Major Customer and Major Supplier Information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected segment financial information | Selected Segment Financial Information in millions Selected Operating Results Fiscal Year Ended March 31, 2021 North America Europe Asia South America Eliminations and Other (1) Total Net sales – third party $ 4,551 $ 3,420 $ 2,167 $ 1,783 $ 355 $ 12,276 Net sales – intersegment 7 132 15 15 (169) — Net sales $ 4,558 $ 3,552 $ 2,182 $ 1,798 $ 186 $ 12,276 Depreciation and amortization $ 235 $ 173 $ 88 $ 71 $ (24) $ 543 Income tax (benefit) provision (27) 22 62 123 58 238 Capital expenditures 184 99 113 94 (5) 485 March 31, 2021 Investment in and advances to non–consolidated affiliates $ — $ 510 $ 328 $ — $ — $ 838 Total assets 4,084 3,974 2,423 1,797 607 12,885 in millions Selected Operating Results Fiscal Year Ended March 31, 2020 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 4,118 $ 2,977 $ 1,952 $ 1,861 $ 309 $ 11,217 Net sales – intersegment — 118 17 43 (178) — Net sales $ 4,118 $ 3,095 $ 1,969 $ 1,904 $ 131 $ 11,217 Depreciation and amortization $ 153 $ 117 $ 62 $ 67 $ (38) $ 361 Income tax provision 19 11 29 108 11 178 Capital expenditures 303 85 132 94 (4) 610 March 31, 2020 Investment in and advances to non–consolidated affiliates $ — $ 465 $ 295 $ — $ — $ 760 Total assets 4,274 3,075 1,737 1,626 277 10,989 in millions Selected Operating Results Fiscal Year Ended March 31, 2019 North America Europe Asia South America Eliminations and Other Total Net sales – third party $ 4,580 $ 3,266 $ 2,154 $ 2,059 $ 267 $ 12,326 Net sales – intersegment 1 110 36 32 (179) — Net sales $ 4,581 $ 3,376 $ 2,190 $ 2,091 $ 88 $ 12,326 Depreciation and amortization $ 150 $ 116 $ 63 $ 66 $ (45) $ 350 Income tax provision 45 15 19 106 17 202 Capital expenditures 149 80 70 65 (11) 353 The following table displays segment income by reportable segment. Fiscal Year Ended March 31, in millions 2021 2020 2019 North America $ 663 $ 590 $ 552 Europe 285 246 226 Asia 305 210 196 South America 449 421 394 Eliminations and other 12 5 — Segment income $ 1,714 $ 1,472 $ 1,368 |
Reconciliation from income from reportable segments to net income attributable to out common shareholder | The following table displays the reconciliation from net income attributable to our common shareholder to segment income. Fiscal Year Ended March 31, in millions 2021 2020 2019 Net income attributable to our common shareholder $ 236 $ 420 $ 434 Net income attributable to noncontrolling interests 1 — — Income tax provision 238 178 202 Loss from discontinued operations, net of tax 51 — — Loss on sale of discontinued operations, net of tax 170 — — Income from continuing operations before income tax provision 696 598 636 Depreciation and amortization 543 361 350 Interest expense and amortization of debt issuance costs 267 248 268 Adjustment to reconcile proportional consolidation (1) 56 57 58 Unrealized losses (gains) on change in fair value of derivative instruments, net 11 (4) 10 Realized losses (gains) on derivative instruments not included in segment income (2) 1 — (2) Loss on extinguishment of debt 14 71 — Restructuring and impairment, net 29 43 2 Loss on sale of fixed assets 1 1 6 Purchase price accounting adjustments (3) 29 — — Metal price lag 6 38 4 Business acquisition and other related costs (4) 11 63 33 Other, net (5) 50 (4) 3 Segment income $ 1,714 $ 1,472 $ 1,368 _________________________ (1) 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. (2) Realized losses (gains) on derivative instruments not included in segment income represents foreign currency derivatives not related to operations. (3) Purchase price accounting adjustments primarily relates to the relief of the inventory step-up related to the acquired Aleris business. (4) Business acquisition and other related costs are primarily legal and professional fees associated with our acquisition of Aleris. (5) Other, net primarily relates to a charitable contribution in fiscal 2021 as well as interest income. |
Schedule of revenue from external customers attributed to foreign countries by geographic area | Net sales are attributed to geographical areas based on the origin of the sale. Long-lived assets and other intangible assets are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill. Net sales by geographical area follows. Fiscal Year Ended March 31, in millions 2021 2020 2019 United States $ 4,782 $ 4,273 $ 4,725 Asia and Other Pacific 2,167 1,952 2,154 Brazil 1,783 1,861 2,059 Canada 124 154 121 Germany 3,015 2,506 2,749 Other Europe 405 471 518 Net sales $ 12,276 $ 11,217 $ 12,326 |
Schedule of disclosure on geographic areas, long-lived assets in individual foreign countries by country | March 31, in millions 2021 2020 United States $ 2,267 $ 1,526 Asia and Other Pacific 912 534 Brazil 842 816 Canada 55 58 Germany 605 248 Other Europe 702 696 Long-lived assets and other intangible assets $ 5,383 $ 3,878 |
Net sales by value stream | The following table displays our net sales by product end market. Fiscal Year Ended March 31, in millions 2021 2020 2019 Can $ 6,191 $ 6,240 $ 6,643 Automotive 2,512 2,801 2,967 Aerospace and industrial plate 366 — — Specialty 3,207 2,176 2,716 Net sales $ 12,276 $ 11,217 $ 12,326 |
Net sales to largest customers, as a percentage of total net sales | The following table displays customers representing 10% or more of our total net sales for any of the periods presented and their respective percentage of total net sales. Fiscal Year Ended March 31, 2021 2020 2019 Ball 15 % 21 % 22 % Ford 7 10 10 |
Percentage of total combined metal purchases | The table below shows our purchases from RT as a percentage of our total combined metal purchases. Fiscal Year Ended March 31, 2021 2020 2019 Purchases from RT as a percentage of total combined metal purchases 8 % 11 % 10 % |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details Textual) $ in Millions | Apr. 01, 2018USD ($) | Mar. 31, 2021USD ($)plantcountry | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of countries Company operates in | country | 9 | ||||
Number of operating plants | plant | 33 | ||||
Number of plants with recycling operations | plant | 15 | ||||
Maximum amortization period of unfunded actuarial liability | 15 years | ||||
Accrued capital expenditures as of March 31 | $ 77 | $ 56 | $ 103 | ||
Revision of Prior Period, Error Correction, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accrued capital expenditures as of March 31 | 44 | 33 | |||
Capital Expenditures | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | (11) | ||||
Change in Accounts Payable | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | $ 11 | $ 2 | |||
Minimum [Member] | Large scale machinery [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment, useful life | 15 years | ||||
Minimum [Member] | Other Machinery and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment, useful life | 2 years | ||||
Maximum [Member] | Large scale machinery [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment, useful life | 25 years | ||||
Maximum [Member] | Other Machinery and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment, useful life | 15 years | ||||
Property, Plant and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | $ (5) | ||||
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | $ (5) | ||||
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | $ 16 | ||||
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | (16) | ||||
Accounting Standards Update 2016-08 | Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | 36 | ||||
Accounting Standards Update 2016-08 | Deferred Taxes | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prior Period Reclassification Adjustment | $ (36) |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Leaseholds and Leasehold Improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Leaseholds and Leasehold Improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Equipment under Capital Lease Obligations [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Equipment under Capital Lease Obligations [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Large scale machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Large scale machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Other Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Other Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Business Combination - Narrativ
Business Combination - Narrative (Details) € in Millions, $ in Millions | Apr. 14, 2020USD ($) | Apr. 14, 2020EUR (€) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||||||||
Net income attributable to our common shareholder | $ 236 | $ 420 | $ 420 | $ 434 | |||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 346 | $ 346 | 346 | ||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 1 | 1 | 1 | ||||||||
Aleris Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 2,775 | ||||||||||
Estimated repayment of Aleris' debt (including prepayment penalties and accrued interest) | 1,954 | ||||||||||
Earn-out consideration | $ 50 | ||||||||||
Accounts receivable(2) | 268 | 268 | 268 | $ 251 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumes, Current Assets, Receivables, Discontinued Operations | 78 | 78 | 78 | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restricted Cash | $ 9 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Assets | 22 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finance Lease Assets | 7 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liabilities | 9 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finance Lease Liabilities | $ 7 | ||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable Fair Value Method | 775 million | 775 million | |||||||||
Business Acquisition, Transaction Costs | $ 64 | ||||||||||
Payment associated with Duffel capital expenditures | 60 | € 55 | |||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 12 | ||||||||||
Debt Instrument, Increase, Accrued Interest | 16 | ||||||||||
FDIC Indemnification Asset, Acquisitions | 9 | € 8 | |||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests | 318 | ||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 62 | ||||||||||
Aleris Corporation | Revision in the valuation of intangible assets [Member] | |||||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests | $ 52 | $ 261 | |||||||||
Aleris Corporation | Other Current Liabilities [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liabilities | 4 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finance Lease Liabilities | $ 3 | ||||||||||
Aleris Corporation | Deferred Income Tax Asset [Member] | |||||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 8 | 22 | (34) | (20) | |||||||
Aleris Corporation | Deferred Income Tax Liability [Member] | |||||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ 4 | ||||||||||
Aleris Corporation | Long-term Assets of Discontinued Operations [Member] | |||||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ (390) | ||||||||||
Aleris Corporation | Long-term Assets of Discontinued Operations [Member] | Key assumptions of PPE and cost to sell [Member] | |||||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ 75 | 284 | |||||||||
Aleris Corporation | Long-term Assets of Discontinued Operations [Member] | Key assumptions of Intangible Assets [Member] | |||||||||||
Business Combination, Indemnification Assets [Abstract] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ 31 | ||||||||||
Aleris Corporation | Continuing Operations [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 1,600 | ||||||||||
Net income attributable to our common shareholder | $ 144 |
Business Combination - Consider
Business Combination - Consideration Paid (Details) - Aleris Corporation € in Millions, $ in Millions | Apr. 14, 2020USD ($) | Apr. 14, 2020EUR (€) | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) |
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 Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ 62 | |||
Property, Plant and Equipment [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ (5) | $ (5) |
Business Combinations - Prelimi
Business Combinations - Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Millions | Apr. 14, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||||
Goodwill | $ 1,083 | $ 1,083 | $ 607 | $ 607 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Long–term debt, net of current portion | $ 141 | |||||||
Aleris Corporation | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||||
Cash and cash equivalents | 105 | 105 | $ 105 | |||||
Accounts receivable(2) | 268 | 268 | 251 | |||||
Inventories | 379 | 379 | 379 | |||||
Prepaid expenses and other current assets(3) | 24 | 24 | 24 | |||||
Fair value of derivative instruments | 46 | 46 | 46 | |||||
Current assets of discontinued operations(4) | 464 | 464 | 463 | |||||
Property, plant and equipment(5) | 944 | 944 | 949 | |||||
Goodwill | 469 | 469 | 328 | |||||
Intangible assets, net(5)(6) | 467 | 467 | 149 | |||||
Deferred income tax assets(7) | 94 | 94 | 114 | |||||
Other long-term assets | 39 | 39 | 39 | |||||
Long–term assets of discontinued operations(8) | 554 | 554 | 944 | |||||
Total assets | 3,853 | 3,853 | 3,791 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Current portion of long–term debt | 24 | 24 | 24 | |||||
Accounts Payable(2) | 158 | 158 | 141 | |||||
Fair value of derivative instruments | 25 | 25 | 25 | |||||
Accrued expenses and other current liabilities | 143 | 143 | 143 | |||||
Current liabilities of discontinued operations | 166 | 166 | 166 | |||||
Long–term debt, net of current portion | 125 | 125 | 125 | |||||
Deferred income tax liabilities | 41 | 41 | 37 | |||||
Accrued postretirement benefits | 164 | 164 | 164 | |||||
Other long–term liabilities(9) | 82 | 82 | 41 | |||||
Long–term liabilities of discontinued operations | 150 | 150 | 150 | |||||
Total liabilities | 1,078 | 1,078 | $ 1,016 | |||||
Net assets acquired | 2,775 | |||||||
Business Combination, Consideration Transferred | $ 2,775 | |||||||
Cash and cash equivalents, discontinued operations | 41 | 41 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests | 318 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 62 | |||||||
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 | |||||||
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 | |||||||
Aleris Corporation | Goodwill [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 141 | |||||||
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 | $ 8 | $ 22 | $ (34) | (20) | ||||
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 | (390) | |||||||
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 | |||||||
Aleris Corporation | Accrued Liabilities [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 0 | |||||||
Aleris Corporation | Property, Plant and Equipment [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ (5) | (5) | ||||||
Aleris Corporation | Other Long-term Liabilities [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | 41 | |||||||
Aleris Corporation | Deferred income tax liabilities | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ 4 |
Business Combination - Amounts
Business Combination - Amounts Allocated to Intangible Assets (Details) - USD ($) $ in Millions | Apr. 14, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,083 | $ 607 | $ 607 | ||
Aleris Corporation | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 467 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 21 years 2 months 12 days | ||||
Goodwill | $ 469 | $ 328 | |||
Aleris Corporation | Tradenames | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 10 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 6 months | ||||
Aleris Corporation | Technology-Based Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 52 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 1 month 6 days | ||||
Aleris Corporation | Customer-related Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 403 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 22 years 6 months | ||||
Aleris Corporation | Other Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2 |
Business Combination - Pro Form
Business Combination - Pro Forma Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 12,330 | $ 13,175 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 306 | $ 412 |
Discontinued Operations (Detail
Discontinued Operations (Details) € in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Nov. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash and cash equivalents of discontinued operations | $ 0 | $ 0 | $ 0 | ||||
Capital Expenditure, Discontinued Operations | 46 | ||||||
Duffel [Member] | |||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Gain Contingency, Unrecorded Amount | $ 117 | € 100 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Contingent Consideration Receivable | 95 | € 112 | 93 | 109 | |||
Gain Contingency, Unrecorded Amount | 117 | 100 | |||||
Cash and cash equivalents of discontinued operations | 23 | ||||||
Duffel [Member] | Net cash provided by investing activities - discontinued operations [Axis] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Divestiture of Businesses | 223 | ||||||
Cash and Cash Equivalents [Member] | Duffel [Member] | |||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | 246 | 246 | 210 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | 246 | $ 246 | € 210 | ||||
Cash and Cash Equivalents [Member] | Lewisport [Member] | |||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 180 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 180 | ||||||
Prepaid Expenses and Other Current Assets [Member] | Duffel [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 | |||||
Prepaid Expenses and Other Current Assets [Member] | Lewisport [Member] | |||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | 17 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 17 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Details) $ in Millions | 12 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | segment | 4 | |
Take-or-pay | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ | $ 38 | $ 29 |
Restructuring and Impairment (D
Restructuring and Impairment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 28 | $ 37 | $ 2 | |
Restructuring liability | 34 | 34 | 17 | $ 36 |
Other Asset Impairment Charges | 1 | 6 | 0 | |
Asia Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Asset Impairment Charges | 0 | 2 | 0 | |
Europe Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 14 | 33 | 0 | |
Restructuring liability | 19 | 21 | ||
North America Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5 | 1 | 1 | |
Restructuring liability | 3 | 1 | ||
Other Asset Impairment Charges | 1 | 4 | 0 | |
South America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | 3 | $ 1 | |
Restructuring liability | 9 | $ 12 | ||
Corporate and Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 8 | |||
Restructuring liability | 3 | |||
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, short-term | $ 26 |
Restructuring and Impairment (R
Restructuring and Impairment (Restructuring Liability) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | $ 34 | $ 17 | $ 36 |
Restructuring Costs | 28 | 25 | 2 |
Other restructuring charges | 0 | 12 | 0 |
Restructuring Charges | 28 | 37 | 2 |
Other impairments | 1 | 6 | 0 |
Restructuring and impairment, net | 29 | 43 | 2 |
Payments for Restructuring | (28) | (5) | (16) |
Foreign currency translation and other | 0 | (3) | (5) |
Balance as of end of period | $ 34 | $ 34 | $ 17 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of accounts receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Receivables [Abstract] | ||||
Trade accounts receivable | $ 1,551 | $ 944 | ||
Other accounts receivable | 141 | 131 | ||
Accounts Receivable, before Allowance for Credit Loss, Current | 1,692 | 1,075 | ||
Allowance for credit losses — third parties | (5) | (8) | $ (7) | $ (7) |
Accounts receivable, net — third parties | 1,687 | 1,067 | ||
Accounts receivable, net — related parties | $ 166 | $ 164 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance for Doubtful Accounts Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Period | $ 8 | $ 7 | $ 7 |
Additions Charged to Expense | 0 | 3 | 0 |
Accounts Recovered/ (Written-Off) | (3) | (1) | 0 |
Foreign Exchange and Other | 0 | (1) | 0 |
Balance at End of Period | $ 5 | $ 8 | $ 7 |
Accounts Receivable (Factoring
Accounts Receivable (Factoring Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Receivables [Abstract] | |||
Factoring expense | $ 27 | $ 41 | $ 46 |
Factored receivables outstanding | $ 444 | $ 430 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) | Mar. 31, 2021 | Mar. 31, 2020 |
Receivables [Abstract] | ||
Allowance as a percentage of gross accounts receivable | 0.30% | 0.70% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of inventories | ||
Finished goods | $ 455 | $ 398 |
Work in process | 874 | 643 |
Raw materials | 407 | 192 |
Supplies | 192 | 176 |
Inventories | $ 1,928 | $ 1,409 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land and property rights | $ 202 | $ 150 |
Buildings | 1,607 | 1,300 |
Machinery and equipment | 5,390 | 4,430 |
Property, plant and equipment, gross | 7,199 | 5,880 |
Accumulated depreciation and amortization | (3,385) | (2,968) |
Property, plant and equipment, net excluding construction in progress | 3,814 | 2,912 |
Construction in progress | 873 | 668 |
Property, plant and equipment, net | 4,687 | 3,580 |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 33 | 9 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Accumulated Depreciation and Amortization | (11) | (6) |
Property, Plant and Equipment [Line Items] | ||
Finance Lease, Right-of-Use Asset | 22 | 3 |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 33 | 9 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Accumulated Depreciation and Amortization | 11 | 6 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 32 | 7 |
Property, Plant and Equipment [Line Items] | ||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | $ 32 | $ 7 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Finance Lease, Right-of-Use Asset | $ 22 | $ 3 | ||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Accumulated Depreciation and Amortization | 11 | 6 | ||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 33 | 9 | ||
Capitalized interest costs | 26 | 14 | $ 3 | |
Asset Retirement Obligation | $ 25 | $ 24 | $ 29 | $ 33 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment, net | $ 451 | $ 298 | $ 286 |
Property, Plant and Equipment_5
Property, Plant and Equipment (Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset Retirement Obligation, Beginning Balance | $ 24 | $ 29 | $ 33 |
Asset Retirement Obligation, Liabilities Incurred | 2 | 0 | 1 |
Asset Retirement Obligation, Foreign Currency Translation Gain (Loss) | (3) | (1) | (5) |
Asset Retirement Obligation, Liabilities Settled | (1) | (4) | 0 |
Asset Retirement Obligation, Ending Balance | 25 | 24 | 29 |
Aleris Corporation | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Increase (Decrease) in Asset Retirement Obligations | 3 | 0 | 0 |
Property, Plant and Equipment [Line Items] | |||
Increase (Decrease) in Asset Retirement Obligations | $ 3 | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Line Items] | |||
Acquisition | $ 469 | ||
Foreign currency translation adjustment | 7 | $ 0 | |
Goodwill | 1,083 | 607 | $ 607 |
North America Segment | |||
Goodwill [Line Items] | |||
Accumulated Impairment | (860) | ||
Acquisition | 375 | ||
Foreign currency translation adjustment | 0 | 0 | |
Goodwill | 660 | 285 | 285 |
Europe Segment | |||
Goodwill [Line Items] | |||
Accumulated Impairment | (330) | ||
Acquisition | 53 | ||
Foreign currency translation adjustment | 4 | 0 | |
Goodwill | 238 | 181 | 181 |
South America | |||
Goodwill [Line Items] | |||
Accumulated Impairment | (150) | ||
Acquisition | 0 | ||
Foreign currency translation adjustment | 0 | 0 | |
Goodwill | 141 | 141 | 141 |
Asia Segment | |||
Goodwill [Line Items] | |||
Acquisition | 41 | ||
Foreign currency translation adjustment | 3 | 0 | |
Goodwill | $ 44 | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 18 years | |
Gross Carrying Amount | $ 1,485 | $ 984 |
Accumulated Amortization | (789) | (685) |
Net Carrying Amount | $ 696 | 299 |
Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 18 years 10 months 24 days | |
Gross Carrying Amount | $ 152 | 142 |
Accumulated Amortization | (102) | (91) |
Net Carrying Amount | $ 50 | 51 |
Technology and software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 10 years | |
Gross Carrying Amount | $ 471 | 396 |
Accumulated Amortization | (356) | (308) |
Net Carrying Amount | $ 115 | 88 |
Customer-related Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 22 years 3 months 18 days | |
Gross Carrying Amount | $ 858 | 446 |
Accumulated Amortization | (330) | (286) |
Net Carrying Amount | 528 | 160 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4 | 0 |
Accumulated Amortization | (1) | 0 |
Net Carrying Amount | $ 3 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Amortization of Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets included in depreciation and amortization | $ 92 | $ 63 | $ 64 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 90 |
2023 | 74 |
2024 | 63 |
2025 | 61 |
2026 | $ 60 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Ownership in VIE | 40.00% | ||
Current assets: | |||
Cash and cash equivalents | $ 998 | $ 2,392 | $ 950 |
— third parties (net of allowance for credit losses of $5 and $8 as of March 31, 2021 and March 31, 2020, respectively) | 1,687 | 1,067 | |
Inventories | 1,928 | 1,409 | |
Prepaid expenses and other current assets | 198 | 145 | |
Total current assets | 5,134 | 5,384 | |
Property, plant and equipment, net | 4,687 | 3,580 | |
Goodwill | 1,083 | 607 | $ 607 |
Deferred income tax assets | 130 | 140 | |
Other long–term assets | 316 | 219 | |
Total assets | 12,885 | 10,989 | |
Current liabilities: | |||
Accounts payable | 2,498 | 1,732 | |
Accrued expenses and other current liabilities | 670 | 613 | |
Total current liabilities | 4,001 | 2,930 | |
Accrued postretirement benefits | 878 | 930 | |
Other long–term liabilities | 305 | 229 | |
Liabilities | 10,999 | 9,628 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets: | |||
Cash and cash equivalents | 5 | 8 | |
— third parties (net of allowance for credit losses of $5 and $8 as of March 31, 2021 and March 31, 2020, respectively) | 69 | 24 | |
Inventories | 81 | 92 | |
Prepaid expenses and other current assets | 4 | 3 | |
Total current assets | 159 | 127 | |
Property, plant and equipment, net | 19 | 19 | |
Goodwill | 12 | 12 | |
Deferred income tax assets | 57 | 76 | |
Other long–term assets | 8 | 35 | |
Total assets | 255 | 269 | |
Current liabilities: | |||
Accounts payable | 38 | 38 | |
Accrued expenses and other current liabilities | 26 | 30 | |
Total current liabilities | 64 | 68 | |
Accrued postretirement benefits | 214 | 287 | |
Other long–term liabilities | 5 | 3 | |
Liabilities | $ 283 | $ 358 |
Investment in and Advances to_3
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable - related parties | $ 166 | $ 164 | |
Hindalco [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related party | 1 | 1 | $ 1 |
Parent [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable - related parties | 2 | 1 | |
Parent [Member] | Maximum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchases from related party | $ 2 | $ 1 | |
Alunorf [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage | 50.00% | ||
Difference between carrying amount and underlying equity | $ 446 | ||
Ulsan Aluminum, Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage | 50.00% | ||
Difference between carrying amount and underlying equity | $ 50 | ||
AluInfra Services SA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage | 50.00% |
Investment in and Advances to_4
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Ownership Structure and Percentage of Non-consolidated Affiliates) (Details) | Mar. 31, 2021 |
Aluminium Norf GmbH (Alunorf) [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership Percentage | 50.00% |
Ulsan Aluminum, Ltd. [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership Percentage | 50.00% |
AluInfra Services SA [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership Percentage | 50.00% |
Investment in and Advances to_5
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Assets, Liabilities and Equity of Equity Method Affiliates) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | |||||
Assets, Current | $ 5,134 | $ 5,384 | |||
Total assets | 12,885 | 10,989 | |||
Liabilities, Current | 4,001 | 2,930 | |||
Liabilities | 10,999 | 9,628 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,886 | 1,361 | $ 1,071 | $ 864 | $ 828 |
Liabilities and Equity | 12,885 | 10,989 | |||
Equity Method Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets, Current | 476 | 389 | |||
Assets, Noncurrent | 862 | 801 | |||
Total assets | 1,338 | 1,190 | |||
Liabilities, Current | 283 | 236 | |||
Liabilities, Noncurrent | 389 | 358 | |||
Liabilities | 672 | 594 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 666 | 596 | |||
Liabilities and Equity | $ 1,338 | $ 1,190 |
Investment in and Advances to_6
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Results of Operations of Equity Method Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Net sales | $ 12,276 | $ 11,217 | $ 12,326 |
Income tax provision | 238 | 178 | 202 |
Net income | 237 | 420 | 434 |
Purchase of tolling services from Alunorf | 251 | 243 | 254 |
Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net sales | 1,216 | 1,178 | 1,245 |
Cost of Revenue | 1,191 | 1,160 | 1,222 |
Income tax provision | 7 | 5 | 7 |
Net income | $ 18 | $ 13 | $ 16 |
Investment in and Advances to_7
Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions (Period-end Account Balances with Non-consolidated Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Accounts receivable - related parties | $ 166 | $ 164 | |
Accounts payable-related parties | 230 | 176 | |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable - related parties | 166 | 164 | |
— related parties | 230 | 176 | |
Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Due from Related Parties, Noncurrent | 1 | 0 | |
Hindalco [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related party | 1 | 1 | $ 1 |
Parent Company [Member] | |||
Related Party Transactions [Abstract] | |||
Accounts receivable - related parties | 2 | 1 | |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable - related parties | 2 | 1 | |
Parent Company [Member] | Maximum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchases from related party | $ 2 | $ 1 |
Leases (Schedule of Assets and
Leases (Schedule of Assets and Liabilities related to Leases) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Right of use assets | $ 106 | $ 95 |
Finance Lease, Right-of-Use Asset | 22 | 3 |
Operating and Finance Lease Right of Use Assets | $ 128 | $ 98 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Operating Lease, Liability, Current | $ 25 | $ 25 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:DebtCurrent | us-gaap:DebtCurrent |
Finance Lease, Liability, Current | $ 6 | $ 0 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability, Noncurrent | $ 63 | $ 70 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance Lease, Liability, Noncurrent | $ 16 | $ 1 |
Operating and Finance Lease Liabilities | 110 | 96 |
Capital Leases, Net Investment in Direct Financing Leases, Accumulated Amortization | $ 11 | $ 6 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | |||
Capital Leases, Net Investment in Direct Financing Leases, Accumulated Amortization | $ 11 | $ 6 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 17 | $ 1 | |
Operating Leases, Rent Expense | $ 27 | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 7 |
Leases (Lease cost) (Details)
Leases (Lease cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 57 | $ 51 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 28 |
2023 | 19 |
2024 | 17 |
2025 | 12 |
2026 | 7 |
Thereafter | 17 |
Lessee, Operating Lease, Liability, to be Paid | 100 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 12 |
Operating Lease, Liability | 88 |
2022 | 6 |
2023 | 5 |
2024 | 4 |
2025 | 3 |
2026 | 2 |
Thereafter | 3 |
Finance Lease, Liability, Payment, Due | 23 |
Finance Lease, Liability, Undiscounted Excess Amount | 1 |
Finance Lease, Liability | $ 22 |
Leases (Schedule of Lease Infor
Leases (Schedule of Lease Information) (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 1 month 6 days | 6 years 3 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 4 years 8 months 12 days | 6 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3.70% | 3.74% |
Finance Lease, Weighted Average Discount Rate, Percent | 2.37% | 3.17% |
Leases (Supplemental Cashflow I
Leases (Supplemental Cashflow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 66 | $ 64 |
Finance Lease, Principal Payments | 7 | 0 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 17 | 1 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 21 | $ 13 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued compensation and benefits | $ 255 | $ 191 |
Accrued interest payable | 48 | 50 |
Accrued income taxes | 70 | 67 |
Other current liabilities | 297 | 305 |
Other Accounts Payable and Accrued Liabilities | $ 670 | $ 613 |
(Schedule of Debt) (Details)
(Schedule of Debt) (Details) € in Millions, $ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 236 | $ 176 | |
Unamortized Carrying Value Adjustments(2) | 0 | ||
Long-term debt | 5,702 | 5,364 | |
Total debt | 6,041 | 5,610 | |
Debt instrument, unamortized carrying value adjustment | (81) | (70) | |
Total debt, carrying value | 5,960 | 5,540 | |
Current portion of long-term debt | (71) | (19) | |
Long-term debt, net of current portion, principal | 5,734 | 5,415 | |
Long–term debt, net of current portion | 5,653 | 5,345 | |
ABL Revolver(3) | |||
Debt Instrument [Line Items] | |||
Unamortized Carrying Value Adjustments(2) | 0 | 0 | |
Long-term debt, principal | 0 | 555 | |
Long-term debt | $ 0 | 555 | |
China Bank Loans | |||
Debt Instrument [Line Items] | |||
Interest rates | 4.90% | 4.90% | |
Unamortized Carrying Value Adjustments(2) | $ 0 | 0 | |
Long-term debt, principal | 76 | 36 | |
Long-term debt | $ 76 | 36 | |
Finance lease obligations and other debt | |||
Debt Instrument [Line Items] | |||
Interest rates | 2.45% | 2.45% | |
Unamortized Carrying Value Adjustments(2) | $ 0 | 0 | |
Long-term debt, principal | 22 | 1 | |
Long-term debt | $ 22 | 1 | |
Floating rate Term Loan Facility, due June 2022 | |||
Debt Instrument [Line Items] | |||
Interest rates | 2.05% | 2.05% | |
Unamortized Carrying Value Adjustments(2) | $ (5) | (22) | |
Long-term debt, principal | 648 | 1,742 | |
Long-term debt | $ 643 | 1,720 | |
Floating Rate Term Loan Facility, due through January 2025 | |||
Debt Instrument [Line Items] | |||
Interest rates | 1.95% | 1.95% | |
Unamortized Carrying Value Adjustments(2) | $ (15) | 0 | |
Long-term debt, principal | 767 | 0 | |
Long-term debt | $ 752 | 0 | |
Floating Rate Term Loan Facility, due through March 2028 | |||
Debt Instrument [Line Items] | |||
Interest rates | 2.20% | 2.20% | |
Unamortized Carrying Value Adjustments(2) | $ (9) | 0 | |
Long-term debt, principal | 480 | 0 | |
Long-term debt | $ 471 | 0 | |
Zhenjiang Term Loans | |||
Debt Instrument [Line Items] | |||
Interest rates | 5.36% | 5.36% | |
Unamortized Carrying Value Adjustments(2) | $ 2 | 0 | |
Long-term debt, principal | 124 | 0 | |
Long-term debt | $ 126 | 0 | |
Senior Notes due April 2029 | |||
Debt Instrument [Line Items] | |||
Interest rates | 3.375% | 3.375% | |
Unamortized Carrying Value Adjustments(2) | $ (13) | 0 | |
Long-term debt, principal | 588 | 0 | |
Long-term debt | $ 575 | 0 | |
5.875% Senior Notes, due September 2026 | |||
Debt Instrument [Line Items] | |||
Interest rates | 5.875% | 5.875% | |
Unamortized Carrying Value Adjustments(2) | $ (13) | (16) | |
Long-term debt, principal | 1,500 | 1,500 | |
Long-term debt | $ 1,487 | 1,484 | |
4.75% Senior Notes, due January 2030 | |||
Debt Instrument [Line Items] | |||
Interest rates | 4.75% | 4.75% | |
Unamortized Carrying Value Adjustments(2) | $ (28) | (32) | |
Long-term debt, principal | 1,600 | € 500 | 1,600 |
Long-term debt | $ 1,572 | 1,568 | |
Short-term borrowings | |||
Debt Instrument [Line Items] | |||
Interest rates | 3.16% | 3.16% | |
Short-term borrowings | $ 236 | 176 | |
Unamortized Carrying Value Adjustments(2) | $ 0 | $ 0 |
Debt (Principal Payment Require
Debt (Principal Payment Requirements) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long term debt due within one year | $ 307 | |
2 years | 690 | |
3 years | 44 | |
4 years | 802 | |
5 years | 22 | |
Thereafter | 4,176 | |
Total debt | $ 6,041 | $ 5,610 |
Debt (Short-term Borrowings (De
Debt (Short-term Borrowings (Details) ₩ in Millions, ¥ in Millions, R$ in Millions, $ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2021BRL (R$) | Mar. 31, 2021KRW (₩) | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 236 | $ 176 | |||
Bank Loan Obligations [Member] | Brazil [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 53 | R$ 302 | |||
Bank Loan Obligations [Member] | China [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 76 | ¥ 500 | |||
Bank Loan Obligations [Member] | Korea [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 18 | ₩ 20,000 | |||
ABL Revolver(3) | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 89 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) | 12 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Oct. 15, 2019USD ($) | Apr. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 29,000,000 | ||||
Loss on extinguishment of debt | (14,000,000) | $ (71,000,000) | $ 0 | ||
Floating rate Term Loan Facility, due June 2022 | |||||
Line of Credit Facility [Line Items] | |||||
Loss on extinguishment of debt | 8,000,000 | ||||
Short Term Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 1,100,000,000 | ||||
Loss on extinguishment of debt | $ 5,000,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 500,000,000 | ||||
ABL Facility [Member] | Seven-year Secured Term Loan Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate principal amount (more than) | $ 100,000,000 | ||||
Term Loan Credit Agreement, Due June 2, 2022 [Member] | Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Covenant, Maximum Senior Net Leverage Ratio | 3.50 | ||||
Debt covenant, minimum senior net leverage ratio | 1 | ||||
ABL Revolver(3) | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 1,500,000,000 | $ 1,000,000,000 |
Debt (Term Loan Facility) (Deta
Debt (Term Loan Facility) (Details) - USD ($) $ in Millions | Apr. 01, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Oct. 15, 2019 | Apr. 30, 2019 |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 29 | |||||
Loss on extinguishment of debt | $ (14) | $ (71) | $ 0 | |||
Floating Rate Term Loan Facility, due through January 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Quarterly Amortization Payment, Percentage | 0.25% | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Line of credit facility, potential additional borrowing capacity | 775 | |||||
Floating Rate Term Loan Facility, due through March 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Quarterly Amortization Payment, Percentage | 25.00% | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||
Debt Instrument, Face Amount | $ 480 | |||||
Debt Issuance Costs, Gross | $ 9 | |||||
Floating Rate Term Loan Facility, due through March 2028 | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500 | |||||
Proceeds from (Repayments of) Debt | $ 20 | |||||
Floating rate Term Loan Facility, due June 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | 8 | |||||
ABL Revolver(3) | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, potential additional borrowing capacity | $ 750 | |||||
Floating rate Term Loan Facility, due June 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Quarterly Amortization Payment, Percentage | 0.25% | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | |||||
Debt Instrument, Face Amount | $ 1,800 | |||||
Secured Debt [Member] | Term Loan Credit Agreement, Due June 2, 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Covenant, Maximum Senior Net Leverage Ratio | 3.50 | |||||
Debt covenant, minimum senior net leverage ratio | 1 | |||||
Secured Debt [Member] | Term Loan Credit Agreement, Due June 2, 2022 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, potential additional borrowing capacity | $ 300 | |||||
Secured Debt [Member] | Additional Term Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Covenant, Maximum Senior Net Leverage Ratio | 3 | |||||
Debt covenant, minimum senior net leverage ratio | 1 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500 | |||||
Revolving Credit Facility [Member] | ABL Revolver(3) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 1,500 | $ 1,000 |
Debt (ABL Revolver) (Details)
Debt (ABL Revolver) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Oct. 15, 2019 | Apr. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 29 | |||
Long-term debt | $ 5,702 | $ 5,364 | ||
Short Term Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,100 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500 | |||
ABL Revolver(3) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 555 | ||
ABL Revolver(3) | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, potential additional borrowing capacity | $ 750 | |||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio | 1.25 | |||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio | 1 | |||
Debt Instrument, Covenant, Minimum Amount for Excess Availability under ABL Revolver | $ 115 | |||
Debt Instrument, Percentage of the Lesser of Total Revolver Commitment to Applicable Borrowing Base | 15.00% | |||
Debt Instrument, Covenant, Percentage Applied on Lesser of ABL Revolver Commitment and Applicable Borrowing Base | 20.00% | |||
Line of Credit Facility, Current Borrowing Capacity | $ 1,100 | |||
ABL Revolver(3) | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | 34 | |||
Line of Credit Facility, Current Borrowing Capacity | 141 | |||
ABL Revolver(3) | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,500 | $ 1,000 | ||
ABL Revolver(3) | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Percentage of the Lesser of Total Revolver Commitment to Applicable Borrowing Base | 10.00% | |||
ABL Revolver(3) | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
ABL Revolver(3) | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
ABL Revolver(3) | Prime Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||
ABL Revolver(3) | Prime Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) € in Millions | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2021EUR (€) | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 14,000,000 | $ 71,000,000 | $ 0 | |
Debt Instrument, Periodic Payment, Principal | 100,000,000 | |||
5.875% Senior Notes, due September 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal | $ 1,500,000,000 | 1,500,000,000 | ||
Interest rates | 5.875% | 5.875% | ||
4.75% Senior Notes, due January 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal | $ 1,600,000,000 | |||
Interest rates | 4.75% | 4.75% | ||
ABL Revolver(3) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal | $ 0 | 555,000,000 | ||
4.75% Senior Notes, due January 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal | 1,600,000,000 | 1,600,000,000 | € 500 | |
Debt Issuance Costs, Gross | $ 13,000,000 | |||
Interest rates | 4.75% | 4.75% | ||
Senior Notes due August 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rates | 6.25% | 6.25% | ||
Senior Notes due April 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal | $ 588,000,000 | $ 0 | ||
Interest rates | 3.375% | 3.375% |
Debt (Bank Loans) (Details)
Debt (Bank Loans) (Details) $ in Millions | Mar. 31, 2021USD ($) |
China [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Unsecured Debt | $ 500 |
Debt (Zhenjiang Loans) (Details
Debt (Zhenjiang Loans) (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Apr. 14, 2020USD ($) | Mar. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | ||||
Long–term debt, net of current portion | $ 141 | |||
Debt Instrument, Face Amount | $ 29 | |||
Long-term debt | 5,702 | $ 5,364 | ||
Debt Instrument [Line Items] | ||||
Long–term debt, net of current portion | $ 141 | |||
Debt Instrument, Face Amount | 29 | |||
Zhenjiang CNY Term Loan | ||||
Debt Disclosure [Abstract] | ||||
Debt Instrument, Face Amount | 112 | ¥ 791 | ||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 112 | ¥ 791 | ||
Zhenjiang Term Loans | ||||
Debt Disclosure [Abstract] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | |||
Long-term debt | $ 126 | 0 | ||
Long-term debt, principal | $ 124 | 0 | ||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | |||
Long-term debt, principal | $ 124 | $ 0 | ||
Zhenjiang Revolver | ||||
Debt Disclosure [Abstract] | ||||
Debt Instrument, Basis Spread on Variable Rate | 110.00% | |||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 110.00% |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Total compensation expense | $ 41 | $ (1) | $ 17 |
Share-Based Compensation (RSUs
Share-Based Compensation (RSUs Activity) (Details) - RSUs [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2021₨ / shares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020₨ / shares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019₨ / shares | Mar. 31, 2019USD ($)shares | |
Number of RSUs | ||||||
Outstanding, beginning of period (shares) | shares | 4,747,316 | |||||
Granted (shares) | shares | 5,016,919 | 2,685,744 | 2,273,078 | |||
Exercised (shares) | shares | (2,403,369) | |||||
Forteited/Cancelled (shares) | shares | (124,447) | |||||
Outstanding, end of period (shares) | shares | 7,236,419 | 4,747,316 | ||||
Grant Date Fair Value | ||||||
Outstanding, beginning of period (Indian Rupees per share) | ₨ / shares | ₨ 206.54 | |||||
Granted (Indian Rupees per share) | ₨ / shares | 118.34 | ₨ 198.88 | ₨ 230.77 | |||
Exercised (Indian Rupees per share) | ₨ / shares | 205.10 | |||||
Forfeited/Cancelled (Indian Rupees per share) | ₨ / shares | 172.69 | |||||
Outstanding, end of period (Indian Rupees per share) | ₨ / shares | ₨ 146.46 | ₨ 206.54 | ||||
Aggregate Intrinsic Value | ||||||
Outstanding, end of period | $ | $ 7 | |||||
Granted | $ | 0 | |||||
Exercised | $ | $ 4 | $ 9 | $ 15 | |||
Forfeited/Cancelled | $ / shares | $ 0 | |||||
Outstanding, beginning of period | $ | $ 31 | $ 7 |
Share-Based Compensation (SARs
Share-Based Compensation (SARs Activity) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)₨ / shares$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2020₨ / shares | Mar. 31, 2019USD ($)shares | Mar. 31, 2019₨ / shares | Mar. 31, 2021₨ / shares | |
Hindalco SARs [Member] | |||||||
Aggregate Intrinsic Value (USD in millions) | |||||||
Total share-based liabilities paid | $ | $ 9 | $ 3 | $ 5 | ||||
Novelis SARs [Member] | |||||||
Aggregate Intrinsic Value (USD in millions) | |||||||
Total share-based liabilities paid | $ | $ 1 | $ 1 | $ 1 | ||||
SARs [Member] | Hindalco SARs [Member] | |||||||
Number of SARs | |||||||
Outstanding, beginning of period (shares) | 12,441,966 | ||||||
Granted (shares) | 6,934,923 | 3,475,995 | 2,359,347 | ||||
Exercised (shares) | (5,872,477) | ||||||
Forfeited/Cancelled (shares) | (465,886) | ||||||
Outstanding, end of period (shares) | 13,038,526 | 12,441,966 | |||||
Number of Shares, Exercisable | 3,220,946 | 3,220,946 | |||||
Weighted Average Exercise Price | |||||||
Outstanding, beginning of period (Indian Rupees/USD per share) | ₨ / shares | ₨ 177.11 | ||||||
Granted (Indian Rupees/USD per share) | ₨ / shares | 118.11 | ₨ 198.88 | ₨ 230.95 | ||||
Exercised (Indian Rupees/USD per share) | ₨ / shares | 150.62 | ||||||
Forfeited/Cancelled (Indian Rupees/USD per share) | ₨ / shares | 179.67 | ||||||
Outstanding, end of period (Indian Rupees/USD per share) | ₨ / shares | ₨ 157.56 | ₨ 177.11 | |||||
Weighted Average Exercise Price (Indian Rupees/USD per share), Exercisable | ₨ / shares | ₨ 197.10 | ||||||
Weighted Average Remaining Contractual Term | |||||||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 1 month 6 days | ||||||
Weighted Average Remaining Contractual Term, Granted | 5.3 | ||||||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 1 month 6 days | ||||||
Weighted Average Remaining Contractual Term, Exercisable | 3 years 8 months 12 days | ||||||
Aggregate Intrinsic Value (USD in millions) | |||||||
Aggregate Intrinsic Value, Outstanding | $ | $ 0 | ||||||
Aggregate Intrinsic Value, Granted | $ / shares | $ 5,000,000 | ||||||
Aggregate Intrinsic Value, Exercised | $ | $ 9 | $ 3 | $ 5 | ||||
Aggregate Intrinsic Value, Forfeited/Cancelled | $ / shares | $ 0 | ||||||
Aggregate Intrinsic Value, Outstanding | $ | $ 28 | $ 0 | |||||
Aggregate Intrinsic Value, Exercisable | $ | $ 8 | ₨ 8 | |||||
SARs [Member] | Hindalco SARs [Member] | Minimum [Member] | |||||||
Aggregate Intrinsic Value (USD in millions) | |||||||
Risk-free interest rate | 3.32% | 4.73% | 6.24% | ||||
Volatility | 40.00% | 36.00% | 27.00% | ||||
SARs [Member] | Novelis SARs [Member] | |||||||
Number of SARs | |||||||
Outstanding, beginning of period (shares) | 33,393 | ||||||
Granted (shares) | 1,054,662 | ||||||
Exercised (shares) | (19,879) | ||||||
Forfeited/Cancelled (shares) | (3,349) | ||||||
Outstanding, end of period (shares) | 10,165 | 33,393 | |||||
Number of Shares, Exercisable | 10,165 | 10,165 | |||||
Weighted Average Exercise Price | |||||||
Outstanding, beginning of period (Indian Rupees/USD per share) | $ / shares | $ 86.70 | ||||||
Exercised (Indian Rupees/USD per share) | $ / shares | 91.35 | ||||||
Forfeited/Cancelled (Indian Rupees/USD per share) | $ / shares | 72.28 | ||||||
Outstanding, end of period (Indian Rupees/USD per share) | $ / shares | 82.37 | $ 86.70 | |||||
Weighted Average Exercise Price (Indian Rupees/USD per share), Exercisable | $ / shares | $ 82.37 | ₨ 82.37 | |||||
Weighted Average Remaining Contractual Term | |||||||
Weighted Average Remaining Contractual Term, Outstanding | 1 year | ||||||
Weighted Average Remaining Contractual Term, Outstanding | 1 year | ||||||
Weighted Average Remaining Contractual Term, Exercisable | 1 year | ||||||
Aggregate Intrinsic Value (USD in millions) | |||||||
Aggregate Intrinsic Value, Outstanding | $ | $ 1 | ||||||
Aggregate Intrinsic Value, Exercised | $ | $ 1 | $ 1 | |||||
Aggregate Intrinsic Value, Forfeited/Cancelled | $ / shares | $ 0 | ||||||
Aggregate Intrinsic Value, Outstanding | $ | $ 1 | $ 1 | |||||
Aggregate Intrinsic Value, Exercisable | $ | $ 0 | ₨ 0 | |||||
SARs [Member] | Novelis SARs [Member] | Minimum [Member] | |||||||
Aggregate Intrinsic Value (USD in millions) | |||||||
Risk-free interest rate | 0.03% | 0.00% | 2.19% | ||||
Volatility | 28.00% | 24.00% | 17.00% |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value Assumptions) (Details) - SARs [Member] | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Hindalco SARs [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Dividend yield | 0.32% | 1.27% | 0.58% |
Hindalco SARs [Member] | Minimum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 3.32% | 4.73% | 6.24% |
Volatility | 40.00% | 36.00% | 27.00% |
Hindalco SARs [Member] | Maximum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 6.18% | 6.89% | 7.28% |
Volatility | 57.00% | 85.00% | 39.00% |
Novelis SARs [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Novelis SARs [Member] | Minimum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 0.03% | 0.00% | 2.19% |
Volatility | 28.00% | 24.00% | 17.00% |
Novelis SARs [Member] | Maximum [Member] | |||
Assumptions used in estimating fair value of SARs | |||
Risk-free interest rate | 0.08% | 0.35% | 2.49% |
Volatility | 45.00% | 40.00% | 25.00% |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation by Award [Line Items] | |||
Award vesting percentage | 75.00% | ||
Performance based units value | $ 100 | ||
Novelis SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Total share-based liabilities paid | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Hindalco SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Total share-based liabilities paid | $ 9,000,000 | $ 3,000,000 | $ 5,000,000 |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||
Award expiration period | 7 years | ||
Stock Appreciation Rights (SARs) [Member] | Novelis SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Granted (shares) | 1,054,662 | ||
SARs outstanding (in shares) | 10,165 | 33,393 | |
Stock Appreciation Rights (SARs) [Member] | Hindalco SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Granted (shares) | 6,934,923 | 3,475,995 | 2,359,347 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 9,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | ||
SARs outstanding (in shares) | 13,038,526 | 12,441,966 | |
Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 11,000,000 | ||
Requisite service period (years) | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Hindalco RSUs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Total share-based liabilities paid | $ 4,000,000 | $ 9,000,000 | $ 15,000,000 |
Maximum [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 3 | ||
Maximum [Member] | Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Award vesting percentage | 33.00% |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of foreign benefit obligation to total benefit obligation | 95.00% | ||
Maximum amortization period of unfunded actuarial liability | 15 years | ||
Expected additional contribution to funded pension plan | $ 43 | ||
Expected additional contribution to unfunded pension plan | 17 | ||
Employer discretionary contribution amount | $ 44 | ||
Expected long-term rate of return on plan assets | 4.90% | ||
Health care cost trend rate assumed | 5.30% | ||
Ultimate health care cost trend rate | 3.60% | ||
Long-term Growth Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 50.00% | ||
Near-term Benefit Payments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 50.00% | ||
Other Long-term Liabilities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postemployment benefits liability, noncurrent | $ 16 | $ 14 | |
Other Current Liabilities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postemployment benefits lability, current | $ 5 | $ 4 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets | 5.10% | 5.50% | 5.20% |
Benefits paid | $ 82 | $ 74 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 1 | $ 3 | $ 2 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Benefits paid | $ 7 | $ 7 | $ 7 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 0 | $ 0 | $ 0 |
Postretirement Benefit Plans (E
Postretirement Benefit Plans (Employer Contributions to Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Contributions to employee benefit plans | |||
Funded pension plans | $ 72 | $ 52 | $ 35 |
Unfunded pension plans | 17 | 12 | 12 |
Savings and defined contribution pension plans | 40 | 33 | 31 |
Total contributions | 129 | 97 | 78 |
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 129 | $ 97 | $ 78 |
Additional Contributions To Funded Pension Plan | 43 | ||
Additional Contributions To Unfunded Pension Plan | 17 | ||
Employer discretionary contribution amount | 44 | ||
Discontinued Operations, Disposed of by Sale | Funded Plan [Member] | |||
Contributions to employee benefit plans | |||
Total contributions | 5 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 5 | ||
Discontinued Operations, Disposed of by Sale | Unfunded Plan [Member] | |||
Contributions to employee benefit plans | |||
Total contributions | 1 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | $ 1 |
(Change in Benefit Obligation)
(Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | $ 2,054 | $ 1,987 | |
Service cost | 42 | 39 | $ 39 |
Interest cost | 55 | 59 | 60 |
Members’ contributions | 5 | 5 | |
Benefits paid | (82) | (74) | |
Amendments | 1 | 0 | |
Curtailments, settlements and special termination benefits | (45) | (11) | |
Actuarial (gains) losses | (8) | 77 | |
Other | 189 | (3) | |
Currency (gains) losses | 87 | (25) | |
Benefit obligation at end of period | 2,298 | 2,054 | 1,987 |
Defined Benefit Plan, Benefit Obligation, Business Combination | 194 | ||
Other Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 176 | 171 | |
Service cost | 10 | 10 | 9 |
Interest cost | 7 | 7 | 7 |
Members’ contributions | 0 | 0 | |
Benefits paid | (7) | (7) | (7) |
Amendments | 0 | 0 | |
Curtailments, settlements and special termination benefits | 0 | 0 | |
Actuarial (gains) losses | (13) | (4) | |
Other | 14 | 0 | |
Currency (gains) losses | 1 | (1) | |
Benefit obligation at end of period | 188 | 176 | $ 171 |
Defined Benefit Plan, Benefit Obligation, Business Combination | 14 | ||
Funded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 1,737 | ||
Benefit obligation at end of period | 1,819 | 1,737 | |
Funded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 0 | ||
Benefit obligation at end of period | 0 | 0 | |
Unfunded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 317 | ||
Benefit obligation at end of period | 479 | 317 | |
Unfunded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 176 | ||
Benefit obligation at end of period | $ 188 | $ 176 |
Postretirement Benefit Plans (C
Postretirement Benefit Plans (Change in Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 1,298 | |
Fair value of plan assets at end of period | 1,596 | $ 1,298 |
Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 1,298 | 1,300 |
Actual return on plan assets | 213 | 36 |
Members’ contributions | 5 | 5 |
Benefits paid | (82) | (74) |
Company contributions | 83 | 64 |
Settlements | (3) | (11) |
Other | 28 | (3) |
Currency gains (losses) | 54 | (19) |
Fair value of plan assets at end of period | $ 1,596 | $ 1,298 |
Postretirement Benefit Plans (F
Postretirement Benefit Plans (Funded Status and Amounts Recognized) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,596 | $ 1,298 | |
Accrued postretirement benefits | (878) | (930) | |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,596 | 1,298 | $ 1,300 |
Benefit obligation of unfunded plans | (2,298) | (2,054) | (1,987) |
Other long–term assets | 11 | 18 | |
Accrued expenses and other current liabilities | (17) | (12) | |
Accrued postretirement benefits | (696) | (762) | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan, Total | (702) | (756) | |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | (188) | (176) | $ (171) |
Other long–term assets | 0 | 0 | |
Accrued expenses and other current liabilities | (8) | (8) | |
Accrued postretirement benefits | (180) | (168) | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan, Total | (188) | (176) | |
Funded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | (223) | (439) | |
Benefit obligation of unfunded plans | (1,819) | (1,737) | |
Funded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Benefit obligation of unfunded plans | 0 | 0 | |
Unfunded Plan [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | (479) | (317) | |
Unfunded Plan [Member] | Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation of unfunded plans | $ (188) | $ (176) |
Postretirement Benefit Plans (P
Postretirement Benefit Plans (Postretirement Amounts Recognized in AOCI) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial (losses) gains | $ (223) | $ (455) | |
Prior service credit | 9 | 9 | |
Total postretirement amounts recognized in accumulated other comprehensive loss | (214) | (446) | $ (367) |
Other Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial (losses) gains | 5 | (8) | |
Prior service credit | 5 | 4 | |
Total postretirement amounts recognized in accumulated other comprehensive loss | $ 10 | $ (4) | $ (8) |
Postretirement Benefit Plans _2
Postretirement Benefit Plans (Postretirement Changes Recognized in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance in accumulated other comprehensive loss | $ (446) | $ (367) |
Curtailments, settlements, and special termination benefits | (1) | (3) |
Net actuarial gain (loss) | 200 | (124) |
Prior service cost | (1) | 0 |
Amortization of prior service credits | (1) | (1) |
Amortization of actuarial loss | 49 | 40 |
Effect of currency exchange | (16) | 3 |
Total postretirement amounts recognized in accumulated other comprehensive loss | (214) | (446) |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance in accumulated other comprehensive loss | (4) | (8) |
Curtailments, settlements, and special termination benefits | 0 | 0 |
Net actuarial gain (loss) | 13 | 4 |
Prior service cost | 0 | 0 |
Amortization of prior service credits | 1 | 0 |
Amortization of actuarial loss | 0 | 0 |
Effect of currency exchange | 0 | 0 |
Total postretirement amounts recognized in accumulated other comprehensive loss | $ 10 | $ (4) |
Postretirement Benefit Plans _3
Postretirement Benefit Plans (Pension Plan Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Business Combination | $ 32 | ||
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 2,298 | $ 2,054 | $ 1,987 |
Defined Benefit Plan, Accumulated Benefit Obligation | 2,191 | 1,901 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 1,428 | 908 | |
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 2,048 | 1,500 | |
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 2,142 | 1,683 | |
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets | 1,427 | 862 | |
Pension plans with accumulated benefit obligations in excess of plan assets, projected benefit obligation | 156 | 371 | |
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets | $ 167 | $ 389 |
Postretirement Benefit Plans _4
Postretirement Benefit Plans (Future Benefit Payments) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 93 |
2023 | 97 |
2024 | 100 |
2025 | 102 |
2026 | 103 |
2027 through 2031 | 576 |
Total | 1,071 |
Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 8 |
2023 | 9 |
2024 | 9 |
2025 | 9 |
2026 | 10 |
2027 through 2031 | 58 |
Total | $ 103 |
Postretirement Benefit Plans _5
Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost(1) | $ (33) | $ (34) | $ (35) |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 42 | 39 | 39 |
Interest cost | 55 | 59 | 60 |
Expected return on assets | (73) | (71) | (66) |
Amortization — losses, net | 44 | 36 | 32 |
Amortization — prior service credit | (1) | (1) | (1) |
Termination benefits/curtailments | 1 | 3 | 2 |
Net periodic benefit cost(1) | 68 | 65 | 66 |
Proportionate share of non-consolidated affiliates’ pension costs | 12 | 10 | 10 |
Total net periodic benefit cost recognized | 80 | 75 | 76 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 10 | 10 | 9 |
Interest cost | 7 | 7 | 7 |
Expected return on assets | 0 | 0 | 0 |
Amortization — losses, net | 0 | 1 | 2 |
Amortization — prior service credit | 0 | 0 | 0 |
Termination benefits/curtailments | 0 | 0 | 0 |
Net periodic benefit cost(1) | 17 | 18 | 18 |
Proportionate share of non-consolidated affiliates’ pension costs | 0 | 0 | 0 |
Total net periodic benefit cost recognized | $ 17 | $ 18 | $ 18 |
Postretirement Benefit Plans (A
Postretirement Benefit Plans (Actuarial Assumptions and Sensitivity Analysis) (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 4.90% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 2.50% | 2.60% | 3.00% |
Weighted average assumptions used to determine benefit obligations, Average compensation growth | 3.10% | 3.10% | 3.20% |
Weighted average assumptions used to determine net periodic benefit cost, Discount rate | 2.60% | 3.00% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Average compensation growth | 3.10% | 3.20% | 3.10% |
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 5.10% | 5.50% | 5.20% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 0.50% | 0.60% | 0.90% |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 3.40% | 3.40% | 4.00% |
Weighted average assumptions used to determine benefit obligations, Average compensation growth | 3.00% | 3.30% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost, Discount rate | 3.40% | 4.00% | 4.00% |
Weighted average assumptions used to determine net periodic benefit cost, Average compensation growth | 3.30% | 3.30% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost, Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 0.00% | 0.00% | 0.00% |
Postretirement Benefit Plans _6
Postretirement Benefit Plans (Target and Actual Allocation Percentages) (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation in aggregate | 37.00% | 37.00% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation in aggregate | 46.00% | 50.00% |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation in aggregate | 1.00% | 2.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation in aggregate | 16.00% | 11.00% |
Minimum [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 22.00% | |
Minimum [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0.00% | |
Minimum [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0.00% | |
Minimum [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0.00% | |
Maximum [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 61.00% | |
Maximum [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 74.00% | |
Maximum [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 15.00% | |
Maximum [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 40.00% |
Postretirement Benefit Plans _7
Postretirement Benefit Plans (Pension Plan Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 1,596 | $ 1,298 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 147 | 162 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 56 | 46 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 189 | 195 |
Fixed Income [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 137 | 149 |
Fixed Income [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 52 | 46 |
Fixed Income [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 10 | 13 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 10 | 13 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Investments measured at net asset value(1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 1,393 | 1,090 |
Investments measured at net asset value(1) | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Investments measured at net asset value(1) | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Investments measured at net asset value(1) | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 4 | 0 |
Other [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0 | 0 |
Other [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 4 | 0 |
Other [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 0 | $ 0 |
Currency Losses (Gains) (Includ
Currency Losses (Gains) (Included in Other Expense (Income), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Currency (gains) losses included in other income expense | |||
Gain (Loss) on Remeasurement of Monetary Assets and Liabilities, Net | $ 6 | $ (23) | $ (5) |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (3) | 26 | 6 |
Currency Gains (Losses) Included in Other Income Expense, Net | $ 3 | $ 3 | $ 1 |
Currency Losses (Gains) (Incl_2
Currency Losses (Gains) (Included in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Currency gains included in AOCI, net of tax and Non controlling interests | |||
Cumulative currency translation adjustment — beginning of period | $ (309) | $ (236) | $ (65) |
Effect of changes in exchange rates | 244 | (73) | (171) |
Cumulative currency translation adjustment — end of period | (95) | (309) | (236) |
Translation Adjustment Functional to Reporting Currency, Gain (Loss), Reclassified to Earnings, Net of Tax | $ (30) | $ 0 | $ 0 |
Financial Instruments and Com_3
Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Assets | ||
Derivative Assets, Current | $ 137 | $ 202 |
Derivative Asset, Noncurrent | 4 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (280) | (214) |
Derivative Liabilities, Noncurrent | (5) | (15) |
Derivative Assets (Liabilities), at Fair Value, Net | (144) | (27) |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 11 | 86 |
Derivative Asset, Noncurrent | 1 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (128) | (90) |
Derivative Liabilities, Noncurrent | (4) | (14) |
Derivative Assets (Liabilities), at Fair Value, Net | (120) | (18) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 4 | 84 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (105) | (11) |
Derivative Liabilities, Noncurrent | 0 | (3) |
Derivative Assets (Liabilities), at Fair Value, Net | (101) | 70 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 6 | 2 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (20) | (68) |
Derivative Liabilities, Noncurrent | (4) | (7) |
Derivative Assets (Liabilities), at Fair Value, Net | (18) | (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 | (3) | (11) |
Derivative Liabilities, Noncurrent | 0 | (4) |
Derivative Assets (Liabilities), at Fair Value, Net | (1) | (15) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 126 | 116 |
Derivative Asset, Noncurrent | 3 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (152) | (124) |
Derivative Liabilities, Noncurrent | (1) | (1) |
Derivative Assets (Liabilities), at Fair Value, Net | (24) | (9) |
Not Designated as Hedging Instrument [Member] | Aluminium Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 104 | 103 |
Derivative Asset, Noncurrent | 3 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (124) | (92) |
Derivative Liabilities, Noncurrent | (1) | (1) |
Derivative Assets (Liabilities), at Fair Value, Net | (18) | 10 |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 22 | 13 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (28) | (31) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (6) | (18) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | |
Derivative Asset, Noncurrent | 0 | |
Liabilities | ||
Derivative Liabilities, Current | (1) | |
Derivative Liabilities, Noncurrent | 0 | |
Derivative Assets (Liabilities), at Fair Value, Net | $ (1) | |
Not Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | |
Derivative Asset, Noncurrent | 0 | |
Liabilities | ||
Derivative Liabilities, Current | 0 | |
Derivative Liabilities, Noncurrent | 0 | |
Derivative Assets (Liabilities), at Fair Value, Net | $ 0 |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts (Details Textual) MMBTU in Millions, $ in Millions | 12 Months Ended | |
Mar. 31, 2021USD ($)MMBTU | Mar. 31, 2020USD ($)MMBTU | |
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | $ (144) | $ (27) |
Expected reclassification of gains (losses) from AOCI to earnings | 135 | |
Not Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | (24) | (9) |
Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | (120) | (18) |
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | (6) | (18) |
Derivative, Notional Amount | 1,256 | 620 |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative, Notional Amount | 936 | 680 |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | (18) | (73) |
Extended Electricity Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | 2 | 6 |
Derivative, Notional Amount | 1 | |
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | $ (1) | |
Derivative, Nonmonetary Notional Amount | MMBTU | 1 | |
Natural Gas Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | $ (1) | $ (5) |
Derivative, Nonmonetary Notional Amount | MMBTU | 13 | 15 |
Fuel [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative asset (liability) | $ (1) | $ (4) |
Fuel [Member] | Designated as Hedging Instrument [Member] | ||
Financial Instruments And Commodity Contracts [Abstract] | ||
Derivative, Nonmonetary Notional Amount | MMBTU | 5 | 7 |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts (Notional Amount (in kt)) (Details) - Mg | Mar. 31, 2021 | Mar. 31, 2020 |
Aluminum Forward Sales Contracts [Member] | Designated as Hedging Instrument [Member] | Cash flow sales | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | (594,000,000) | (395,000,000) |
Aluminum Forward Sales Contracts [Member] | Designated as Hedging Instrument [Member] | Cash flow purchases | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | (10,000,000) | (63,000,000) |
Aluminium Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | (628,000,000) | (351,000,000) |
Aluminium Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | (44,000,000) | (19,000,000) |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts (Gain (Loss) Recognition) (Details) - Other Expense (Income), Net [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gains Losses On Balance Sheet Remeasurement Currency Exchange Contracts Net | $ 3 | $ (26) | $ (6) |
Realized gains (losses), net | (16) | (7) | 12 |
Unrealized Gains Losses On Other Derivative Instruments Net | (11) | 4 | (10) |
Total gain (loss) recognized | (24) | (29) | (4) |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (24) | (32) | (6) |
Not Designated as Hedging Instrument [Member] | Aluminium Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | (34) | (12) | (8) |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 3 | (25) | (4) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | 7 | 5 | 6 |
Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized | $ 0 | $ 3 | $ 2 |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts (Impact on AOCI and Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | $ (273) | $ 40 | $ (8) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | 3 | 2 |
Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | (274) | 163 | 33 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 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) | (4) | (105) | (44) |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | 0 | 3 | 2 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI (effective portion) | 5 | (18) | 3 |
Amount of gain (loss) recognized in other (income) expense, net (ineffective and excluded portion) | $ 0 | $ 0 | $ 0 |
Financial Instruments and Com_8
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Income from continuing operations before income tax provision | $ 696 | $ 598 | $ 636 | ||
Income tax provision (benefit) | (238) | (178) | (202) | ||
Net income | 237 | 420 | 434 | ||
Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Income from continuing operations before income tax provision | (129) | 50 | 63 | ||
Income tax provision (benefit) | 36 | (12) | (17) | ||
Net income | (93) | 38 | 46 | ||
Other expense (income), net [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | $ 0 | $ 0 | 0 | 0 | |
Other expense (income), net [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Other expense (income), net [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Cost of goods sold [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (2) | (2) | (11) | (5) | (1) |
Cost of goods sold [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 1 | (1) | (13) | (4) | 0 |
Cost of goods sold [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (11) | (5) | (45) | (8) | (14) |
Net sales [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Net sales [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (58) | 15 | (57) | 83 | 89 |
Net sales [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 3 | (4) | 3 | (14) | (9) |
Selling, General and Administrative Expenses [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Selling, General and Administrative Expenses [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Selling, General and Administrative Expenses [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (1) | (1) | (4) | (1) | (1) |
Depreciation and amortization [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Depreciation and amortization [Member] | Cash Flow Hedges [Member] | Aluminium Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Depreciation and amortization [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | $ (1) | $ 0 | $ (2) | $ (1) | $ (1) |
Financial Instruments and Com_9
Financial Instruments and Commodity Contracts (Gain (Loss) Reclassification Summarization) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 3 | $ 2 | ||
Aluminium Contracts [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | ||
Aluminium Contracts [Member] | Net sales [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | $ (58) | $ 15 | (57) | 83 | 89 |
Aluminium Contracts [Member] | Cost of goods sold [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 1 | (1) | (13) | (4) | 0 |
Aluminium Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Aluminium Contracts [Member] | Depreciation and amortization [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Aluminium Contracts [Member] | Other expense (income), net [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Energy Related Derivative [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | ||
Energy Related Derivative [Member] | Net sales [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Energy Related Derivative [Member] | Cost of goods sold [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (2) | (2) | (11) | (5) | (1) |
Energy Related Derivative [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Energy Related Derivative [Member] | Depreciation and amortization [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Energy Related Derivative [Member] | Other expense (income), net [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 3 | 2 | ||
Foreign Exchange Contract [Member] | Net sales [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 3 | (4) | 3 | (14) | (9) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Foreign Exchange Contract [Member] | Cost of goods sold [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (11) | (5) | (45) | (8) | (14) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Foreign Exchange Contract [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (1) | (1) | (4) | (1) | (1) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Foreign Exchange Contract [Member] | Depreciation and amortization [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | (1) | 0 | (2) | (1) | $ (1) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Foreign Exchange Contract [Member] | Other expense (income), net [Member] | Cash Flow Hedges [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income (expense) | 0 | 0 | 0 | 0 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 1 | $ 0 | $ 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Components of AOCI) (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2019 |
Increase (Decrease) in AOCI [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | $ (261) | $ (620) | $ (506) | $ (277) | $ (261) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 158 | (105) | (208) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (16) | 96 | (9) | (21) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 254 | (114) | (229) | ||
Accumulated other comprehensive income (loss), end of period | (277) | (366) | (620) | (506) | (506) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 244 | (73) | (171) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | (30) | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 214 | (73) | (171) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (200) | 34 | (4) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 93 | (38) | (46) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (107) | (4) | (50) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 114 | (66) | (33) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 33 | 29 | 25 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 147 | (37) | (8) | ||
Currency Translation [Member] | |||||
Increase (Decrease) in AOCI [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | (65) | (309) | (236) | (65) | (65) |
Accumulated other comprehensive income (loss), end of period | (65) | (95) | (309) | (236) | (236) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ||||
Cash Flow Hedges [Member] | |||||
Increase (Decrease) in AOCI [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | 31 | (26) | (22) | 28 | 31 |
Accumulated other comprehensive income (loss), end of period | 28 | (133) | (26) | (22) | (22) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (3) | ||||
Postretirement Benefit Plans [Member] | |||||
Increase (Decrease) in AOCI [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | (227) | (285) | (248) | (240) | (227) |
Accumulated other comprehensive income (loss), end of period | (240) | $ (138) | $ (285) | $ (248) | $ (248) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | $ (13) |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) € in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2021USD ($)$ / MWh | Mar. 31, 2021EUR (€)$ / MWh | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | |
Duffel [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Contingent Consideration Receivable | $ 95 | € 112 | $ 93 | € 109 |
Extended Electricity Swaps [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Average forward price (per megawatt hour) | 38,000,000 | 38,000,000 | ||
Premium over forward prices in nearby observable market (per megawatt hour) | 4,000,000 | 4,000,000 | ||
Actual swap settlement price (per megawatt hour) | 28,000,000 | 28,000,000 | ||
Change in valuation per a dollar per megawatt hour decline in price (less than) | $ | $ 1 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 141 | $ 202 |
Assets, Netting Adjustment | (81) | (72) |
Derivative Asset | 60 | 130 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (285) | (229) |
Liabilities, Netting Adjustment | 81 | 72 |
Derivative Liability | (204) | (157) |
Level 2 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 141 | 202 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (283) | (223) |
Level 2 Instruments [Member] | Aluminium Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 111 | 187 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (230) | (107) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 28 | 15 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (52) | (106) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (1) | (10) |
Level 3 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (2) | (6) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | $ (2) | $ (6) |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Fair Value Activity for Level 3) (Details) - Level 3 Instruments [Member] - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of fair value activity for Level 3 derivative contracts | ||
Balance as of beginning of period | $ (6) | $ (3) |
Realized/unrealized gain included in earnings | 6 | 4 |
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Asset (Liability), Gain (Loss), OCI | 0 | (7) |
Settlements | (2) | 0 |
Balance as of end of period | $ (2) | $ (6) |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | $ 5,702 | $ 5,364 |
Total debt - third parties (excluding short term borrowings), fair value | 5,967 | 5,267 |
Due from Other Related Parties | 1 | 0 |
Other Assets, Fair Value Disclosure | $ 1 | $ 0 |
Other Expense (Income) (Details
Other Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Loss on sale of assets | $ 1 | $ 1 | $ 6 |
(Gain) loss on Brazilian tax litigation, net(3) | (1) | (7) | 2 |
Interest income | (9) | (14) | (10) |
Other expenses, net | 103 | 18 | 44 |
Foreign Currency Transaction Gain (Loss), before Tax | 3 | 3 | 1 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 11 | (4) | 10 |
Gain Loss On Change In Fair Value Of Other Realized Derivative Instruments Net | 16 | 7 | (12) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 33 | 34 | 35 |
Charitable donation | 50 | 0 | 0 |
Other Nonoperating Income (Expense), Other | $ (1) | $ (2) | $ 12 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic (Canada) | $ (15) | $ (58) | $ (80) |
Foreign (all other countries) | 709 | 658 | 713 |
Pre-tax income before equity in net (income) loss of non-consolidated affiliates | $ 694 | $ 600 | $ 633 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current provision: | |||
Domestic (Canada) | $ 6 | $ 7 | $ 5 |
Foreign (all other countries) | 183 | 171 | 147 |
Total current | 189 | 178 | 152 |
Deferred provision: | |||
Domestic (Canada) | 0 | 0 | 0 |
Foreign (all other countries) | 49 | 0 | 50 |
Total deferred | 49 | 0 | 50 |
Income tax provision (benefit) | $ 238 | $ 178 | $ 202 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Tax Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of Canadian statutory tax rates | |||
Pre-tax income before equity in net (income) loss of non-consolidated affiliates | $ 694 | $ 600 | $ 633 |
Canadian statutory tax rate | 25.00% | 25.00% | 25.00% |
Provision at the Canadian statutory rate | $ 174 | $ 150 | $ 158 |
Increase (decrease) for taxes on income (loss) resulting from: | |||
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Exchange Translation Adjustments | 19 | 9 | 14 |
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Exchange Remeasurement of Deferred Income Taxes | (5) | (17) | (9) |
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Change in Deferred Tax Assets Valuation Allowance | 23 | 13 | 17 |
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Tax Credits and other allowances | (23) | (17) | (16) |
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Nondeductible Expense | (1) | 4 | 1 |
Current State and Local Tax Expense (Benefit) | (5) | 1 | 4 |
Income tax reconciliation, Canadian Statutory Rate, Change in Enacted Tax Rate | (2) | (6) | 2 |
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Tax Rate Differences on Foreign Earnings | 48 | 32 | 33 |
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Tax Contingencies | 6 | 4 | 3 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (1) | (1) | 2 |
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | 4 | 0 | (4) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 1 | 6 | (3) |
Income tax provision (benefit) | $ 238 | $ 178 | $ 202 |
Effective tax rate | 34.00% | 30.00% | 32.00% |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at Beginning of Period | $ 755 | $ 742 | $ 727 |
Valuation Allowance Deductions | (12) | (1) | (2) |
Valuation Allowance Additions | 14 | 14 | 17 |
Balance at End of Period | 821 | 755 | 742 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | $ 64 | $ 0 | $ 0 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred income tax assets: | ||||
Provisions not currently deductible for tax purposes | $ 458 | $ 382 | ||
Tax losses/benefit carryforwards, net | 934 | 708 | ||
Depreciation and amortization | 79 | 66 | ||
Other assets | 50 | 21 | ||
Total deferred income tax assets | 1,521 | 1,177 | ||
Less: valuation allowance | (821) | (755) | $ (742) | $ (727) |
Net deferred income tax assets | 700 | 422 | ||
Deferred income tax liabilities: | ||||
Depreciation and amortization | 550 | 324 | ||
Inventory valuation reserves | 57 | 78 | ||
Monetary exchange gains, net | 24 | 17 | ||
Other liabilities | 101 | 57 | ||
Total deferred income tax liabilities | 732 | 476 | ||
Net deferred income tax liabilities | $ 32 | $ 54 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 27 | $ 24 | $ 44 |
Additions based on tax positions related to the current period | 4 | 3 | 3 |
Additions based on tax positions of prior years(1) | 39 | 1 | 3 |
Reductions based on tax positions of prior years | (1) | (1) | (1) |
Settlements(2) | (1) | 0 | (22) |
Foreign exchange | 1 | 0 | (3) |
Ending Balance | $ 69 | $ 27 | $ 24 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Details [Line Items] | ||||
Deferred tax assets, valuation allowance | $ (821) | $ (755) | $ (742) | $ (727) |
Net operating loss carryforwards | 790 | |||
Tax credit carryforward | 144 | 133 | ||
Operating loss carryforwards, valuation allowance | 584 | 542 | ||
Tax credit carryforward, valuation allowance | 131 | 129 | ||
Other deferred taxes, valuation allowance | 107 | 84 | ||
Operating loss carryforwards | 574 | |||
Undistributed earnings of foreign subsidiaries (outside Canada) | 4,000 | |||
Other deferred tax assets | 50 | 21 | ||
Unrecognized tax benefits | 69 | 27 | 24 | $ 44 |
Accrued income tax penalties and interest | 11 | 4 | 4 | |
Income tax penalties and interest expense | (2) | (5) | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 1 | |||
Taxes payable | 102 | 45 | ||
Taxes payable, current | 70 | 67 | ||
Income Tax Reconciliation, Canadian Statutory Income Tax Rate, Tax Credits and other allowances | (23) | $ (17) | $ (16) | |
Estimate of limit on acquired net operating loss carryforwards | 192 | |||
Deferred Tax Asset, Interest Carryforward | 4 | |||
Section 382 | ||||
Income Tax Details [Line Items] | ||||
Deferred tax assets, valuation allowance | (17) | |||
New York [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 2 | |||
Canada [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 14 | |||
Deferred tax assets, valuation allowance | (645) | |||
Tax credit carryforward | 56 | |||
Operating loss carryforwards | 494 | |||
Other deferred tax assets | 95 | |||
Brazil [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | 2 | |||
United States [Member] | ||||
Income Tax Details [Line Items] | ||||
Income tax credits and adjustments | $ 5 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Accrual for Environmental Loss Contingencies [Abstract] | ||
Accrual for environmental loss contingencies, current | $ 23 | |
Other Current Liabilities [Member] | ||
Accrual for Environmental Loss Contingencies [Abstract] | ||
Accrual for environmental loss contingencies, current | 6 | $ 8 |
Brazilian Tax Authorities and Other Third Parties [Member] | ||
Loss Contingency Accrual [Abstract] | ||
Settlement liabilities | 24 | 18 |
Brazilian Tax Authorities and Other Third Parties [Member] | Other Current Liabilities [Member] | ||
Loss Contingency Accrual [Abstract] | ||
Settlement liabilities | 1 | |
Brazil [Member] | ||
Loss Contingency Accrual [Abstract] | ||
Settlement liabilities | 20 | $ 27 |
Brazil [Member] | Settlement with Taxing Authority [Member] | Other Current Liabilities [Member] | ||
Loss Contingency Accrual [Abstract] | ||
Settlement liabilities | 6 | |
Other Restructuring [Member] | ||
Accrual for Environmental Loss Contingencies [Abstract] | ||
Accrual for environmental loss contingencies, current | 4 | |
Environmental Restoration Costs [Member] | ||
Accrual for Environmental Loss Contingencies [Abstract] | ||
Accrual for environmental loss contingencies, current | 19 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | 0 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 60 |
Commitments and Contingencies_3
Commitments and Contingencies (Brazilian Tax Ruling) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Sales [Member] | |||
Loss Contingencies [Line Items] | |||
Recognized Benefit (Expense) Related to Brazilian Tax Ruling | $ 0 | $ 0 | $ (3) |
Other Expense [Member] | |||
Loss Contingencies [Line Items] | |||
Recognized Benefit (Expense) Related to Brazilian Tax Ruling | (1) | (8) | (2) |
Income tax provision (benefit) [Member] | |||
Loss Contingencies [Line Items] | |||
Recognized Benefit (Expense) Related to Brazilian Tax Ruling | 0 | (3) | (2) |
Net Income | |||
Loss Contingencies [Line Items] | |||
Recognized Benefit (Expense) Related to Brazilian Tax Ruling | $ (1) | $ (5) | $ (3) |
Segment, Geographical Area, M_3
Segment, Geographical Area, Major Customer and Major Supplier Information (Details Textual) $ in Millions | 12 Months Ended | |
Mar. 31, 2021USD ($)countryplantsegment | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 4 | |
Number of operating plants | 33 | |
Number of plants with recycling operations | 15 | |
Number of countries Company operates in | country | 9 | |
Taxes payable, current | $ | $ 70 | $ 67 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 17 | |
Number of plants with recycling operations | 7 | |
Number of countries Company operates in | country | 2 | |
Europe Segment | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 10 | |
Number of plants with recycling operations | 5 | |
Number of countries Company operates in | country | 4 | |
Asia Segment | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 4 | |
Number of plants with recycling operations | 2 | |
Number of countries Company operates in | country | 2 | |
South America | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 2 | |
Number of plants with recycling operations | 1 |
Segment, Geographical Area, M_4
Segment, Geographical Area, Major Customer and Major Supplier Information (Selected Operating Results) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales – third party | $ 12,276 | $ 11,217 | $ 12,326 |
Net sales – intersegment | 0 | 0 | 0 |
Net sales | 12,276 | 11,217 | 12,326 |
Depreciation, Depletion and Amortization | 543 | 361 | 350 |
Income tax provision (benefit) | 238 | 178 | 202 |
Capital expenditures | 485 | 610 | 353 |
Investment in and advances to non–consolidated affiliates | 838 | 760 | |
Total assets | 12,885 | 10,989 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales – third party | 355 | 309 | 267 |
Net sales – intersegment | (169) | (178) | (179) |
Net sales | 186 | 131 | 88 |
Depreciation, Depletion and Amortization | (24) | (38) | (45) |
Income tax provision (benefit) | 58 | 11 | 17 |
Payments for (Proceeds from) Productive Assets | (5) | (4) | (11) |
Investment in and advances to non–consolidated affiliates | 0 | 0 | |
Total assets | 607 | 277 | |
North America Segment | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales – third party | 4,551 | 4,118 | 4,580 |
Net sales – intersegment | 7 | 0 | 1 |
Net sales | 4,558 | 4,118 | 4,581 |
Depreciation, Depletion and Amortization | 235 | 153 | 150 |
Income tax provision (benefit) | (27) | 19 | 45 |
Capital expenditures | 184 | 303 | 149 |
Investment in and advances to non–consolidated affiliates | 0 | 0 | |
Total assets | 4,084 | 4,274 | |
Europe Segment | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales – third party | 3,420 | 2,977 | 3,266 |
Net sales – intersegment | 132 | 118 | 110 |
Net sales | 3,552 | 3,095 | 3,376 |
Depreciation, Depletion and Amortization | 173 | 117 | 116 |
Income tax provision (benefit) | 22 | 11 | 15 |
Capital expenditures | 99 | 85 | 80 |
Investment in and advances to non–consolidated affiliates | 510 | 465 | |
Total assets | 3,974 | 3,075 | |
Asia Segment | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales – third party | 2,167 | 1,952 | 2,154 |
Net sales – intersegment | 15 | 17 | 36 |
Net sales | 2,182 | 1,969 | 2,190 |
Depreciation, Depletion and Amortization | 88 | 62 | 63 |
Income tax provision (benefit) | 62 | 29 | 19 |
Capital expenditures | 113 | 132 | 70 |
Investment in and advances to non–consolidated affiliates | 328 | 295 | |
Total assets | 2,423 | 1,737 | |
South America | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales – third party | 1,783 | 1,861 | 2,059 |
Net sales – intersegment | 15 | 43 | 32 |
Net sales | 1,798 | 1,904 | 2,091 |
Depreciation, Depletion and Amortization | 71 | 67 | 66 |
Income tax provision (benefit) | 123 | 108 | 106 |
Capital expenditures | 94 | 94 | $ 65 |
Investment in and advances to non–consolidated affiliates | 0 | 0 | |
Total assets | $ 1,797 | $ 1,626 |
Segment, Geographical Area, M_5
Segment, Geographical Area, Major Customer and Major Supplier Information (Income Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2019 | |
Reconciliation of income from reportable segments to net income attributable to common shareholder | ||||
Net Income (Loss) Attributable to Parent | $ 236 | $ 420 | $ 420 | $ 434 |
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 0 | 0 | |
Income tax provision | 238 | 178 | 202 | |
Depreciation, Depletion and Amortization | 543 | 361 | 350 | |
Interest expense and amortization of debt issuance costs | 267 | 248 | 268 | |
Adjustment To Eliminate Proportional Consolidation | 56 | 57 | 58 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 11 | (4) | 10 | |
Realized Gain (Loss) on Derivative Instruments, Not Included in Segment Income | 1 | 0 | (2) | |
Gain (Loss) on Extinguishment of Debt | 14 | 71 | 0 | |
Restructuring and impairment, net | 29 | 43 | 2 | |
Loss on sale of assets | 1 | 1 | 6 | |
Metal price lag | 6 | 38 | 4 | |
Business acquisition and other integration related costs | 11 | 63 | 33 | |
Other Nonoperating Income (Expense), Nonsegment | 50 | (4) | 3 | |
Income from continuing operations before income tax provision | 696 | 598 | 636 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 51 | 0 | 0 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 170 | 0 | 0 | |
Recognized cost of inventory step-up | 29 | 0 | 0 | |
Operating Segments [Member] | ||||
Reconciliation of income from reportable segments to net income attributable to common shareholder | ||||
Net Income (Loss) Attributable to Parent | $ 1,714 | $ 1,472 | $ 1,368 |
Segment, Geographical Area, M_6
Segment, Geographical Area, Major Customer and Major Supplier Information (Income From Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | $ 236 | $ 420 | $ 420 | $ 434 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | 1,714 | 1,472 | 1,368 | |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | 12 | 5 | 0 | |
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | 663 | 590 | 552 | |
Europe Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | 285 | 246 | 226 | |
Asia Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | 305 | 210 | 196 | |
South America | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to our common shareholder | $ 449 | $ 421 | $ 394 |
Segment, Geographical Area, M_7
Segment, Geographical Area, Major Customer and Major Supplier Information (Geographical Information - Net Sales) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 12,276 | $ 11,217 | $ 12,326 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 4,782 | 4,273 | 4,725 |
Asia and Other Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2,167 | 1,952 | 2,154 |
Brazil [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,783 | 1,861 | 2,059 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 124 | 154 | 121 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,015 | 2,506 | 2,749 |
Other Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 405 | $ 471 | $ 518 |
Segment, Geographical Area, M_8
Segment, Geographical Area, Major Customer and Major Supplier Information (Geographical Information - Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 5,383 | $ 3,878 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,267 | 1,526 |
Asia and Other Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 912 | 534 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 842 | 816 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 55 | 58 |
Germany [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 605 | 248 |
Other Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 702 | $ 696 |
Segment, Geographical Area, M_9
Segment, Geographical Area, Major Customer and Major Supplier Information (Product Sales) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 12,276 | $ 11,217 | $ 12,326 |
Can | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,191 | 6,240 | 6,643 |
Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,512 | 2,801 | 2,967 |
Specialty | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,207 | 2,176 | 2,716 |
Aerospace Products [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 366 | $ 0 | $ 0 |
Segment, Geographical Area, _10
Segment, Geographical Area, Major Customer and Major Supplier Information (3 Largest Customers) (Details) - Net sales [Member] | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Ball [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 15.00% | 21.00% | 22.00% |
Ford [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of total net sales | 7.00% | 10.00% | 10.00% |
Segment, Geographical Area, _11
Segment, Geographical Area, Major Customer and Major Supplier Information (Purchases - RTA) (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cost of Goods Sold [Member] | RTA [Member] | |||
Purchases from primary supplier | |||
Concentration Risk, Percentage | 8.00% | 11.00% | 10.00% |