Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-32312 | |
Entity Registrant Name | Novelis Inc. | |
Entity Tax Identification Number | 98-0442987 | |
Entity Address, Address Line One | 3560 Lenox Road, Suite 2000 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 760-4000 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001304280 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Document Quarterly Report | true |
Document and Entity Informati_2
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Document and Entity Information [Abstract] | ||
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-32312 | |
Entity Registrant Name | Novelis Inc. | |
Entity Tax Identification Number | 98-0442987 | |
Entity Address, Address Line One | 3560 Lenox Road, Suite 2000 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 760-4000 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001304280 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 3,855 | $ 2,426 |
Cost of goods sold (exclusive of depreciation and amortization) | 3,137 | 2,101 |
Selling, general and administrative expenses | 159 | 122 |
Depreciation and amortization | 134 | 118 |
Interest expense and amortization of debt issuance costs | 59 | 70 |
Research and development expenses | 24 | 19 |
Gain on extinguishment of debt | (2) | 0 |
Restructuring and impairment (reversal) expenses, net | (2) | 1 |
Equity in net income of non-consolidated affiliates | (1) | (1) |
Business acquisition and other related costs | 0 | 11 |
Other (income) expenses, net | (64) | 75 |
Total expenses | 3,444 | 2,516 |
Income (loss) from continuing operations before income tax provision | 411 | (90) |
Income tax provision (benefit) | 108 | (29) |
Net income (loss) from continuing operations | 303 | (61) |
Loss from discontinued operations, net of tax | (63) | (18) |
Net income (loss) | 240 | (79) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to our common shareholder | $ 240 | $ (79) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 240 | $ (79) |
Other comprehensive income: | ||
Currency translation adjustment | 30 | 55 |
Net change in fair value of effective portion of cash flow hedges | (15) | (77) |
Net change in pension and other benefits | 3 | 8 |
Other comprehensive income (loss) before income tax effect | 18 | (14) |
Income tax benefit related to items of other comprehensive income | 0 | (19) |
Other comprehensive income, net of tax | 18 | 5 |
Comprehensive income (loss) | 258 | (74) |
Comprehensive income attributable to noncontrolling interests, net of tax | 0 | 1 |
Comprehensive income (loss) attributable to our common shareholder | $ 258 | $ (75) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 872,000,000 | $ 998,000,000 |
Accounts receivable, net | ||
— third parties (net of allowance for credit losses of $6 and $5 as of June 30, 2021 and March 31, 2021, respectively) | 1,990,000,000 | 1,687,000,000 |
— related parties | 210,000,000 | 166,000,000 |
Inventories | 2,380,000,000 | 1,928,000,000 |
Prepaid expenses and other current assets | 201,000,000 | 198,000,000 |
Fair value of derivative instruments | 174,000,000 | 137,000,000 |
Assets held for sale | 5,000,000 | 5,000,000 |
Current assets of discontinued operations | 14,000,000 | 15,000,000 |
Total current assets | 5,846,000,000 | 5,134,000,000 |
Property, plant and equipment, net | 4,677,000,000 | 4,687,000,000 |
Goodwill | 1,084,000,000 | 1,083,000,000 |
Intangible assets, net | 677,000,000 | 696,000,000 |
Investment in and advances to non–consolidated affiliates | 850,000,000 | 838,000,000 |
Deferred income tax assets | 142,000,000 | 130,000,000 |
Other long–term assets | 310,000,000 | 316,000,000 |
Due from Other Related Parties, Noncurrent | 1,000,000 | 1,000,000 |
Total assets | 13,587,000,000 | 12,885,000,000 |
Current liabilities: | ||
Current portion of long–term debt | 541,000,000 | 71,000,000 |
Short–term borrowings | 359,000,000 | 236,000,000 |
Accounts payable | ||
— third parties | 2,916,000,000 | 2,498,000,000 |
— related parties | 295,000,000 | 230,000,000 |
Fair value of derivative instruments | 346,000,000 | 280,000,000 |
Accrued expenses and other current liabilities | 610,000,000 | 670,000,000 |
Current liabilities of discontinued operations | 14,000,000 | 16,000,000 |
Total current liabilities | 5,081,000,000 | 4,001,000,000 |
Long–term debt, net of current portion | 4,960,000,000 | 5,653,000,000 |
Deferred income tax liabilities | 230,000,000 | 162,000,000 |
Accrued postretirement benefits | 871,000,000 | 878,000,000 |
Other long–term liabilities | 301,000,000 | 305,000,000 |
Total liabilities | 11,443,000,000 | 10,999,000,000 |
Commitments and contingencies | ||
Shareholder’s equity: | ||
Common stock, no par value; Unlimited number of shares authorized; 1,000 shares issued and outstanding as of June 30, 2021 and March 31, 2021 | 0 | 0 |
Additional paid–in capital | 1,404,000,000 | 1,404,000,000 |
Retained earnings | 1,104,000,000 | 864,000,000 |
Accumulated other comprehensive loss | (348,000,000) | (366,000,000) |
Total equity of our common shareholder | 2,160,000,000 | 1,902,000,000 |
Noncontrolling interests | (16,000,000) | (16,000,000) |
Total equity | 2,144,000,000 | 1,886,000,000 |
Total liabilities and equity | $ 13,587,000,000 | $ 12,885,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | |
Statement of Financial Position [Abstract] | |||
Accounts Receivable, Allowance for Credit Loss | $ 6 | $ 5 | |
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited | |
Common stock, shares issued | 1 | 1 | |
Common stock, shares outstanding | 1 | 1 | |
Other long–term assets | $ 310 | $ 316 | |
Due from Other Related Parties, Noncurrent | 1 | 1 | |
Deferred income tax assets | $ 142 | $ 130 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 240 | $ (79) |
Loss from discontinued operations, net of tax | (63) | (18) |
Net income (loss) from continuing operations | 303 | (61) |
Adjustments to determine net cash provided by operating activities: | ||
Depreciation and amortization | 134 | 118 |
Loss on unrealized derivatives and other realized derivatives in investing activities, net | 13 | 15 |
Gain on sale of assets | 0 | (2) |
Impairment charges | 0 | 1 |
Gain on extinguishment of debt | (2) | 0 |
Deferred income taxes, net | 56 | (62) |
Equity in net income of non-consolidated affiliates | (1) | (1) |
Loss on foreign exchange remeasurement of debt | 1 | 0 |
Amortization of debt issuance costs and carrying value adjustments | 5 | 6 |
Other, net | 1 | 3 |
Changes in assets and liabilities including assets and liabilities held for sale (net of effects from divestitures): | ||
Accounts receivable | (357) | 130 |
Inventories | (451) | 192 |
Accounts payable | 498 | (312) |
Other assets | (55) | 44 |
Other liabilities | (80) | (194) |
Net cash provided by (used in) operating activities - continuing operations | 65 | (123) |
Net cash used in operating activities - discontinued operations | (3) | (15) |
Net cash provided by (used in) operating activities | 62 | (138) |
INVESTING ACTIVITIES | ||
Capital expenditures | (101) | (112) |
Acquisition of business, net of cash and restricted cash acquired | 0 | (2,550) |
Proceeds from sales of assets, third party, net of transaction fees and hedging | 1 | 0 |
Proceeds from investment in and advances to non-consolidated affiliates, net | 7 | 7 |
(Outflows) proceeds from the settlement of derivative instruments, net | (4) | 9 |
Other | 3 | 3 |
Net cash used in investing activities - continuing operations | (94) | (2,643) |
Net cash provided by investing activities - discontinued operations | 0 | 10 |
Net cash used in investing activities | (94) | (2,633) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of long-term and short-term borrowings | 20 | 1,899 |
Principal payments of long-term and short-term borrowings | (262) | (7) |
Revolving credit facilities and other, net | 125 | 327 |
Debt issuance costs | (2) | (18) |
Net cash (used in) provided by financing activities - continuing operations | (119) | 2,201 |
Net cash used in financing activities - discontinued operations | 0 | (1) |
Net cash (used in) provided by financing activities | (119) | 2,200 |
Net decrease in cash, cash equivalents and restricted cash | (151) | (571) |
Effect of exchange rate changes on cash | 11 | 7 |
Cash, cash equivalents and restricted cash — beginning of period | 1,027 | 2,402 |
Cash, cash equivalents and restricted cash — end of period | 887 | 1,838 |
Cash and cash equivalents | 872 | 1,729 |
Restricted cash (Included in other long–term assets) | 15 | 12 |
Restricted cash (Included in prepaid expenses and other current assets) | 0 | 8 |
Cash and cash equivalents of discontinued operations | 0 | 89 |
Supplemental Disclosures: | ||
Accrued capital expenditures as of June 30 | 55 | 44 |
Accrued merger consideration as of June 30 | $ 0 | $ 70 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | (Accumulated Deficit)/Retained Earnings | Accumulated Other Comprehensive Loss (AOCI) | Non- controlling Interests |
Beginning balance, shares at Mar. 31, 2020 | 1,000 | |||||
Beginning balance at Mar. 31, 2020 | $ 1,361 | $ 0 | $ 1,404 | $ 628 | $ (620) | $ (51) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | (79) | (79) | ||||
Currency translation adjustment included in AOCI | 55 | 55 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (56) | (56) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (6) | (5) | (1) | |||
Ending balance, shares at Jun. 30, 2020 | 1,000 | |||||
Ending balance at Jun. 30, 2020 | 1,287 | $ 0 | 1,404 | 549 | (616) | (50) |
Beginning balance, shares at Mar. 31, 2021 | 1,000 | |||||
Beginning balance at Mar. 31, 2021 | 1,886 | $ 0 | 1,404 | 864 | (366) | (16) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 240 | 240 | ||||
Currency translation adjustment included in AOCI | 30 | 30 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (14) | (14) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | (2) | (2) | 0 | |||
Ending balance, shares at Jun. 30, 2021 | 1,000 | |||||
Ending balance at Jun. 30, 2021 | $ 2,144 | $ 0 | $ 1,404 | $ 1,104 | $ (348) | $ (16) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2,144 | $ 1,287 |
Net income attributable to our common shareholder | 240 | (79) |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 30 | 55 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (14) | (56) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 2 | 6 |
Accumulated Other Comprehensive Loss (AOCI) | ||
Statement of Stockholders' Equity [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (1) | (21) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 1 | 2 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (1) | (21) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 1 | 2 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (348) | (616) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 30 | 55 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (14) | (56) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 2 | $ 5 |
Common Stock [Member] | ||
Shares, Issued | 1,000 | 1,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 0 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,404 | 1,404 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,104 | 549 |
Net income attributable to our common shareholder | 240 | (79) |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (16) | (50) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 0 | $ 1 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 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 References herein to "Novelis," the "Company," "we," "our," or "us" refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to "Hindalco" refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco. Organization and Description of Business We produce aluminum plate, 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 June 30, 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 our operating facilities. The March 31, 2021 condensed consolidated balance sheet data was derived from the March 31, 2021 audited financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our 2021 Form 10-K. Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control, and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control but have the ability to exercise significant influence over operating and financial policies. Consolidated net income (loss) attributable to our common shareholder includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the condensed consolidated financial statements for consolidated entities, compared to a two-line presentation of investment in and advances to non–consolidated affiliates and equity in net income of non-consolidated affiliates. Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, 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) actuarial assumptions related to pension and other postretirement benefit plans; (3) tax uncertainties and valuation allowances; (4) assessment of loss contingencies, including environmental and litigation liabilities; (5) the fair value of derivative financial instruments; and (6) the fair value of the contingent consideration resulting from the sale of Duffel. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained, and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Risks & Uncertainty resulting from COVID-19 Beginning late in the fourth quarter of fiscal 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, primarily felt this impact in early fiscal 2021 as we adjusted schedules at some of our facilities based on customer demand, resulting in disruptions to our supply chain, interruptions to our production, and delays of shipments to our customers, mainly during the first quarter of fiscal 2021. While much of our customer demand and shipments recovered in the majority of our end markets, 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. 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. Reclassifications and Revisions of Previously Issued Financial Statements We identified a misstatement related to the calculation of accrued capital expenditures within the statement of cash flows in our previously issued Form 10-Qs for the quarterly period ended June 30, 2020. As a result, the previously reported amounts for capital expenditures were understated by $6 million, changes in accounts payable were overstated by $4 million, changes in other liabilities were overstated by $2 million, and accrued capital expenditures, presented in supplemental disclosures, were overstated by $43 million for the three months ended June 30, 2020. We assessed the materiality of the misstatement and concluded it was not material to the company's previously issued financial statements for the quarterly period ended June 30, 2020. However, we elected to revise the previously reported amounts for capital expenditures and changes in accounts payable and other liabilities within the condensed consolidated statement of cash flows, accrued capital expenditures within the supplemental disclosures to the condensed consolidated statement of cash flows, and capital expenditures within Note 18 – Segment, Geographical Area, Major Customer and Major Supplier Information . Recently Issued Accounting Standards (Not yet adopted) There are no recent accounting pronouncements pending adoption that we expect will have a material impact on our consolidated financial condition, results of operations, or cash flows. |
Business Combination
Business Combination | 3 Months Ended |
Jun. 30, 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. The Company's condensed consolidated statement of operations for the three months ended June 30, 2020 includes the results of operations for Aleris Corporation from the acquisition date of April 14, 2020 to June 30, 2020. The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three months ended June 30, 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. Three Months Ended June 30, in millions 2020 Net sales $ 2,480 Net loss (94) 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 | 3 Months Ended |
Jun. 30, 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. 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 the Duffel and Lewisport plants. 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. In addition, we recorded a €15 million ($18 million) receivable for net debt and working capital adjustments. As of June 30, 2021, Novelis marked all outstanding receivables related to the sale of Duffel to an estimated fair value of €45 million ($53 million), which resulted in a loss of €51 million ($61 million) recorded in loss from discontinued operations, net of tax. There is no assurance as to when we expect the post-closing arbitration process to conclude or whether we will receive any of the contingent consideration. 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, which remains outstanding as of June 30, 2021. In addition to the $61 million loss from discontinued operations, net of tax related to the fair value adjustment of Duffel receivables in the period, Novelis incurred $2 million of additional costs to sell primarily related to litigation expenses. These costs are recorded within loss from discontinued operations, net of tax. |
Restructuring and Impairment, N
Restructuring and Impairment, Net | 3 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
4. RESTRUCTURING AND IMPAIRMENT | 4. RESTRUCTURING AND IMPAIRMENT Restructuring and impairment (reversal) expenses, net includes restructuring costs, impairments, and other related expenses or reversal of expenses. Restructuring and impairment (reversal) expenses, net for the three months ended June 30, 2021 totaled a net reversal of $2 million primarily related to a partial release of certain restructuring liabilities as a result of changes in estimated costs. Restructuring and impairment (reversal) expenses, net for the three months ended June 30, 2020 totaled $1 million in expenses. The following table summarizes our restructuring liability activity. in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2020 $ 1 $ 21 $ — $ 12 $ — $ 34 Restructuring and impairment (reversal) expenses, net — — — — 1 1 Cash payments — (9) — — (1) (10) Foreign currency and other — — — (1) — (1) Restructuring liability balance as of June 30, 2020 $ 1 $ 12 $ — $ 11 $ — $ 24 in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2021 $ 3 $ 19 $ — $ 9 $ 3 $ 34 Restructuring and impairment (reversal) expenses, net — (2) — — — (2) Cash payments (1) (4) — — — (5) Foreign currency and other — — — (1) — (1) Restructuring liability balance as of June 30, 2021 (1) $ 2 $ 13 $ — $ 8 $ 3 $ 26 ____________________ (1) As of June 30, 2021, the restructuring liability totaled $26 million with $20 million included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities on our accompanying condensed consolidated balance sheet. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
5. INVENTORIES | 5. INVENTORIES Inventories consists of the following. in millions June 30, March 31, Finished goods $ 551 $ 455 Work in process 1,080 874 Raw materials 548 407 Supplies 201 192 Inventories $ 2,380 $ 1,928 |
Consolidation
Consolidation | 3 Months Ended |
Jun. 30, 2021 | |
Consolidation [Abstract] | |
6. CONSOLIDATION | 6. CONSOLIDATION Variable Interest Entities The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. An entity is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Logan is a consolidated joint venture in which we hold 40% ownership. Our joint venture partner is 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 condensed consolidated balance sheets. in millions June 30, March 31, ASSETS Current assets: Cash and cash equivalents $ 3 $ 5 Accounts receivable, net 63 69 Inventories 85 81 Prepaid expenses and other current assets 3 4 Total current assets 154 159 Property, plant and equipment, net 21 19 Goodwill 12 12 Deferred income tax assets 57 57 Other long–term assets 7 8 Total assets $ 251 $ 255 LIABILITIES Current liabilities: Accounts payable $ 45 $ 38 Accrued expenses and other current liabilities 21 26 Total current liabilities 66 64 Accrued postretirement benefits 208 214 Other long–term liabilities 5 5 Total liabilities $ 279 $ 283 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 3 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
7. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | 7. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS Included in the accompanying condensed consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates. Alunorf 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 UAL is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and 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, Novelis is not considered the primary beneficiary, and UAL is accounted for as an equity method investment. UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of June 30, 2021, each of the parties to the joint venture holds a 50% interests in the equity of UAL. AluInfra AluInfra is a joint venture investment between Novelis Switzerland SA, a subsidiary of Novelis, and Constellium N.V. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the facility. The following table summarizes the results of operations of our equity method affiliates in the aggregate and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended June 30, in millions 2021 2020 Net sales $ 385 $ 280 Costs and expenses related to net sales 372 274 Income tax provision 3 2 Net income $ 10 $ 4 Purchases of tolling services from Alunorf $ 69 $ 61 The following table describes related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. in millions June 30, March 31, Accounts receivable, net — related parties $ 210 $ 166 Other long–term assets — related parties 1 1 Accounts payable — related parties 295 230 Transactions with Hindalco We occasionally have related party transactions with Hindalco. During the three months ended June 30, 2021 and 2020, we recorded net sales of less than $1 million between Novelis and Hindalco related primarily to sales of equipment and other services. As of June 30, 2021 and March 31, 2021, there was $2 million of outstanding accounts receivable, net — related parties net of accounts payable — related parties related to transactions with Hindalco. During the three months ended June 30, 2021, Novelis purchased $2 million in raw materials from Hindalco. |
Debt
Debt | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
8. DEBT | 8. DEBT Debt consists of the following. June 30, 2021 March 31, 2021 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short–term borrowings 1.94 % $ 359 $ — $ 359 $ 236 $ — $ 236 Floating rate Term Loan Facility, due June 2022 2.00 % 524 (4) 520 648 (5) 643 Floating rate Term Loan Facility, due January 2025 1.90 % 765 (14) 751 767 (15) 752 Floating rate Term Loan Facility, due March 2028 2.15 % 499 (9) 490 480 (9) 471 Zhenjiang Term Loans, due May 2024 — — — 124 2 126 5.875% Senior Notes, due September 2026 5.875 % 1,500 (13) 1,487 1,500 (13) 1,487 3.375% Senior Notes, due April 2029 3.375 % 593 (12) 581 588 (13) 575 4.75% Senior Notes, due January 2030 4.75 % 1,600 (27) 1,573 1,600 (28) 1,572 China Bank loans, due August 2027 4.90 % 77 — 77 76 — 76 Finance lease obligations and other debt, due through June 2028 2.45 % 22 — 22 22 — 22 Total debt $ 5,939 $ (79) $ 5,860 $ 6,041 $ (81) $ 5,960 Less: Short–term borrowings (359) — (359) (236) — (236) Less: Current portion of long–term debt (545) 4 (541) (71) — (71) Long–term debt, net of current portion $ 5,035 $ (75) $ 4,960 $ 5,734 $ (81) $ 5,653 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of June 30, 2021 and therefore exclude the effects of accretion and 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. Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of June 30, 2021 for our debt denominated in foreign currencies are as follows (in millions). As of June 30, 2021 Amount Short-term borrowings and current portion of long-term debt due within one year $ 904 2 years 24 3 years 26 4 years 763 5 years 23 Thereafter 4,199 Total $ 5,939 Short-Term Borrowings As of June 30, 2021, our short-term borrowings totaled $359 million, which consisted of $225 million of borrowings on our ABL Revolver, $83 million in China loans (CNY 537 million), $50 million in Brazil loans (BRL 250 millions), and $1 million in other short-term borrowings. Term Loan Facility As of June 30, 2021, we were in compliance with the covenants of our Term Loan Facility. ABL Revolver As of June 30, 2021, we had $225 million in borrowings under our ABL Revolver and were in compliance with debt covenants. We utilized $32 million of our ABL Revolver for letters of credit. We had availability of $1.2 billion on the ABL Revolver, including $143 million of remaining availability which can be utilized for letters of credit. Zhenjiang Term Loans In May 2021, the Zhenjiang Term Loans were repaid in full, and the covenants under the agreement are no longer in effect. As a result of this transaction, we recorded a gain on extinguishment of debt of $2 million. Senior Notes As of June 30, 2021, we were in compliance with the covenants of our Senior Notes. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
9. SHARE-BASED COMPENSATION | 9. SHARE-BASED COMPENSATION During the three months ended June 30, 2021, we granted 1,759,942 Hindalco phantom RSUs and 2,285,816 Hindalco SARs. Total compensation expense was $12 million for the three months ended June 30, 2021 and $7 million for the three months ended June 30, 2020. As of June 30, 2021, the outstanding liability related to share-based compensation was $23 million. The cash payments made to settle all Hindalco SAR liabilities were $9 million and $1 million in the three months ended June 30, 2021 and 2020, respectively. Total cash payments made to settle RSUs were $16 million and $4 million in the three months ended June 30, 2021 and 2020, respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $12 million, which is expected to be recognized over a weighted average period of 1.4 years. Unrecognized compensation expense related to the RSUs was $18 million, which will be recognized over the remaining weighted average vesting period of 1.6 years. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
10. POSTRETIREMENT BENEFIT PLANS | 10. POSTRETIREMENT BENEFIT PLANS The Company recognizes actuarial gains and losses and prior service costs in the condensed 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 quarter, 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 remeasured the plan’s assets and obligations as of April 30, 2021, which is the nearest calendar month-end to the announcement of this freeze. A curtailment gain of $3 million was recorded related to the Canada Pension Plan. Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below. Pension Benefit Plans Other Benefit Plans Three Months Ended June 30, Three Months Ended June 30, in millions 2021 2020 2021 2020 Service cost $ 8 $ 12 $ 3 $ 3 Interest cost 14 15 2 2 Expected return on assets (20) (19) — — Amortization — losses, net 5 12 — — Termination/curtailment (benefit) cost (3) — — — Net periodic benefit cost (1) $ 4 $ 20 $ 5 $ 5 ____________________ (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 (income) expenses, net. Service costs of $1 million, interest cost of $1 million, and expected return on assets of $2 million included in the table above, for the three months ended June 30, 2020, relate to discontinued operations. The average expected long-term rate of return on all plan assets is 4.9% in fiscal 2022. Employer Contributions to Plans For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to date and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., U.K., Canada, Germany, Italy, Switzerland, and Brazil. We contributed the following amounts to all plans. Three Months Ended June 30, in millions 2021 2020 Funded pension plans $ 7 $ 10 Unfunded pension plans 4 3 Savings and defined contribution pension plans 15 11 Total contributions $ 26 $ 24 For the three months ended June 30, 2020, contributions to funded pension plans of $2 million were attributable to discontinued operations. During the remainder of fiscal 2022, we expect to contribute an additional $36 million to our funded pension plans, $13 million to our unfunded pension plans, and $30 million to our savings and defined contribution pension plans. |
Currency Losses (Gains)
Currency Losses (Gains) | 3 Months Ended |
Jun. 30, 2021 | |
Foreign Currency [Abstract] | |
11. CURRENCY LOSSES (GAINS) | 11. CURRENCY LOSSES (GAINS) The following currency losses (gains) are included in other (income) expenses, net in the accompanying condensed consolidated statements of operations. Three Months Ended June 30, in millions 2021 2020 Loss (gain) on remeasurement of monetary assets and liabilities, net $ 13 $ (4) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net (8) 2 Currency losses (gains), net $ 5 $ (2) The following currency gains (losses) are included in accumulated other comprehensive loss, net of tax and noncontrolling interests in the accompanying condensed consolidated balance sheets. Three Months Ended June 30, 2021 Fiscal Year Ended March 31, 2021 in millions Cumulative currency translation adjustment — beginning of period $ (95) $ (309) Effect of changes in exchange rates 30 244 Amounts reclassified from accumulated other comprehensive loss, net (1) — (30) Cumulative currency translation adjustment — end of period $ (65) $ (95) ____________________ (1) Amounts reclassified from accumulated other comprehensive loss are due to the sale of Duffel. |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 3 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
12. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | 12. FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of the periods presented. June 30, 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 $ 1 $ — $ (178) $ (3) $ (180) Currency exchange contracts 18 4 (9) (3) 10 Energy contracts 7 3 (1) — 9 Total derivatives designated as hedging instruments $ 26 $ 7 $ (188) $ (6) $ (161) Derivatives not designated as hedging instruments: Metal contracts $ 136 $ 4 $ (137) $ (2) $ 1 Currency exchange contracts 12 — (21) (1) (10) Energy contracts — — — — — Total derivatives not designated as hedging instruments $ 148 $ 4 $ (158) $ (3) $ (9) Total derivative fair value $ 174 $ 11 $ (346) $ (9) $ (170) March 31, 2021 Assets Liabilities Net Fair Value 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) Total derivatives not designated as hedging instruments $ 126 $ 3 $ (152) $ (1) $ (24) Total derivative fair value $ 137 $ 4 $ (280) $ (5) $ (144) ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in other long–term assets and in other long–term liabilities, respectively, in the accompanying condensed consolidated balance sheets . Metal We use derivative instruments to preserve our conversion margins and manage the timing differences associated with metal price lag. We use over-the-counter derivatives indexed to 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 June 30, 2021 and March 31, 2021, the fair value of these contracts represented an asset of $5 million and an asset of $7 million, respectively. These contracts are undesignated with an average duration of less than two years. The following table summarizes our metal notional amount. in kt June 30, March 31, Hedge type Purchase (sale) Cash flow purchases 1 10 Cash flow sales (880) (594) Not designated (45) (44) Total, net (924) (628) 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 $1.1 billion and $936 million in outstanding foreign currency forwards designated as cash flow hedges as of June 30, 2021 and March 31, 2021, respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We did not have any outstanding foreign currency forwards designated as net investment hedges as of June 30, 2021 and March 31, 2021. As of June 30, 2021 and March 31, 2021, we had outstanding foreign currency exchange contracts with a total notional amount of $1.4 billion and $1.3 billion, respectively, to primarily hedge balance sheet remeasurement risk, which were not designated as hedges. Contracts representing the majority of this notional amount will mature during the second quarter of fiscal 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 June 30, 2021 and March 31, 2021, less than 1 million of notional megawatt hours were outstanding. The fair value of this swap was a liability of $1 million and $2 million, respectively. The electricity swap is designated as a cash flow hedge. We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 16 million MMBtus designated as cash flow hedges as of June 30, 2021, and the fair value was a an asset of $8 million. There was a notional of 13 million MMBtu of natural gas forward contracts designated as cash flow hedges as of March 31, 2021 and the fair value was an asset of less than $1 million. As of June 30, 2021 and March 31, 2021, we had notionals of less than 1 million MMBtu forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of June 30, 2021 and March 31, 2021 were an asset of less than $1 million and a liability of less than $1 million, respectively. The average duration of undesignated contracts is less than three years in length. We use diesel fuel forward purchase contracts to manage our exposure to fluctuating fuel prices in North America. We had a notional of 4 million gallons designated as cash flow hedges as of June 30, 2021, and the fair value was a an asset of $2 million. There was 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. As of June 30, 2021 all of our diesel forward contracts were designated as hedges. As of March 31, 2021, we had notional of less than 1 million gallons of forward contracts that were not designated as hedges, and the fair value of the same was an asset of less than $1 million and the average duration of those undesignated contracts was less than one year in length. Gain (Loss) Recognition The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in other (income) expenses, net. Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended June 30 in millions 2021 2020 Derivative instruments not designated as hedges Metal contracts $ 3 $ (25) Currency exchange contracts 11 (3) Energy contracts (1) 2 2 Total gain (loss) recognized in other (income) expenses, net $ 16 $ (26) Gain (loss) recognized on balance sheet remeasurement currency exchange contracts, net $ 8 $ (2) Realized gains, net 12 9 Unrealized losses on other derivative instruments, net (4) (33) Total gain (loss) recognized in other (income) expenses, net $ 16 $ (26) _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges and electricity swap settlements. The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow hedges. Within the next twelve months, we expect to reclassify $159 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) Three Months Ended June 30, in millions 2021 2020 Cash flow hedging derivatives Metal contracts $ (193) $ (22) Currency exchange contracts 30 (8) Energy contracts 10 2 Total $ (153) $ (28) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Three Months Ended June 30, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2021 2020 Cash flow hedging derivatives Energy contracts (1) $ (1) $ (3) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 2 (4) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (139) 70 Net sales Currency exchange contracts — (11) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts — (1) Selling, general and administrative expenses Currency exchange contracts 1 (2) Net sales Currency exchange contracts (1) — Depreciation and amortization Total $ (138) $ 49 Income (loss) from continuing operations before income tax provision 37 (13) Income tax provision (benefit) $ (101) $ 36 Net (loss) gain _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gains (losses) that were reclassified from accumulated other comprehensive loss into earnings and the amount excluded from the assessment of effectiveness for the periods presented. Three Months Ended June 30, 2021 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into income $ (139) $ 2 $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (1) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ 1 $ — $ — $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — Three Months Ended June 30, 2020 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into income $ 70 $ (4) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (3) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ (2) $ (11) $ (1) $ — $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
13. ACCUMULATED OTHER COMPREHENSIVE LOSS | 13. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the change in the components o f accumulated other comprehensive loss, excluding noncontrolling interests, for the periods presented. Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2021 $ (95) $ (133) $ (138) $ (366) Other comprehensive income (loss) before reclassifications 30 (115) 1 (84) Amounts reclassified from accumulated other comprehensive loss, net — 101 1 102 Net current-period other comprehensive income (loss) 30 (14) 2 18 Balance as of June 30, 2021 $ (65) $ (147) $ (136) $ (348) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 55 (20) (4) 31 Amounts reclassified from accumulated other comprehensive loss, net — (36) 9 (27) Net current-period other comprehensive income (loss) 55 (56) 5 4 Balance as of June 30, 2020 $ (254) $ (82) $ (280) $ (616) _________________________ (1) For additional information on our cash flow hedges, see Note 12 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans, see Note 10 – Postretirement Benefit Plans . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
14. FAIR VALUE MEASUREMENTS | 14. FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our condensed consolidated balance sheets at fair value. We also disclose the fair values of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads, and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, zinc, copper, foreign exchange, natural gas, and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum, copper and zinc forward contracts, and natural gas and diesel fuel forward contracts. We classify derivative contracts that are valued based on models with significant unobservable market inputs as Level 3 of the valuation hierarchy. Our electricity swap, which is our only Level 3 derivative contract, represents an agreement to buy electricity at a fixed price at our Oswego, New York facility. Forward prices are not observable for this market, so we must make certain assumptions based on available information we believe to be relevant to market participants. We use observable forward prices for a geographically nearby market and adjust for 1) historical spreads between the cash prices of the two markets and 2) historical spreads between retail and wholesale prices. For the electricity swap, the average forward price at June 30, 2021, estimated using the method described above, was $43 per megawatt hour, which represented an approximately $5 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $44 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by 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 June 30, 2021 and March 31, 2021, we did not have any Level 1 derivative contracts. No amounts were transferred between levels in the fair value hierarchy. All of the Company's derivative instruments are carried at fair value in the statements of financial position prior to considering master netting agreements. The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as of June 30, 2021 and March 31, 2021. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. June 30, 2021 March 31, 2021 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 141 $ (320) $ 111 $ (230) Currency exchange contracts 34 (34) 28 (52) Energy contracts 10 — 2 (1) Total level 2 instruments $ 185 $ (354) $ 141 $ (283) Level 3 instruments: Energy contracts — (1) — (2) Total level 3 instruments $ — $ (1) $ — $ (2) Total gross $ 185 $ (355) $ 141 $ (285) Netting adjustment (1) $ (102) $ 102 $ (81) $ 81 Total net $ 83 $ (253) $ 60 $ (204) _________________________ (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 (income) expenses, net for the three months ended June 30, 2021 related to Level 3 financial instruments. The following table presents a reconciliation of fair value activity for Level 3 derivative contracts. in millions Level 3 – Derivative Instruments (1) Balance as of March 31, 2021 $ (2) Unrealized/realized gain included in earnings (2) 2 Settlements (2) (1) Balance as of June 30, 2021 $ (1) _________________________ (1) Represents net derivative liabilities. (2) Included in other (income) expenses, net. 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 had been adjusted for the accretion of imputed interest to €95 million ($112 million). As of June 30, 2021, Novelis marked all outstanding receivables related to the sale of Duffel to an estimated fair value of €45 million ($53 million), which resulted in a loss of €51 million ($61 million) recorded in loss from discontinued operations, net of tax. 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. June 30, 2021 March 31, 2021 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 1 $ 1 $ 1 $ 1 Total debt — third parties (excluding finance leases and short-term borrowings) 5,479 5,754 5,702 5,967 |
Other Expense (Income), Net
Other Expense (Income), Net | 3 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
15. OTHER (INCOME) EXPENSES, NET | 15. OTHER (INCOME) EXPENSES, NET Other (income) expenses, net consists of the following. Three Months Ended June 30, in millions 2021 2020 Currency losses (gains), net (1) $ 5 $ (2) Unrealized losses on change in fair value of derivative instruments, net (2) 4 33 Realized gains on change in fair value of derivative instruments, net (2) (12) (9) Gain on sale of assets, net — (2) Gain on Brazilian tax litigation, net (3) (76) — Interest income (3) (3) Non-operating net periodic benefit cost (4) (2) 10 Charitable contribution (5) — 50 Other, net (6) 20 (2) Other (income) expenses, net $ (64) $ 75 _________________________ (1) Includes (gain) loss recognized on balance sheet remeasurement currency exchange contracts, net. See Note 11 – Currency Losses (Gains) for further details. (2) See Note 12 – Financial Instruments and Commodity Contracts for further details. (3) See Note 17 – 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 1 0 – Postretirement Benefit Plans . (5) Represents a charitable contribution for COVID-19 relief. (6) Primarily relates to $18 million from the release of certain outstanding receivables. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
16. INCOME TAXES | 16. INCOME TAXES For the three months ended June 30, 2021 and June 30, 2020, we had an effective tax rate of 26% and 32%, respectively. These tax rates are primarily due to the results of operations taxed at foreign statutory tax rates that differ from the 25% Canadian tax rate, including withholding taxes and changes to the Brazilian real foreign exchange rate, offset by certain other non-taxable income, tax credits, and a tax rate change in the United Kingdom enacted in fiscal 2021. The corporate tax rate in the United Kingdom is scheduled to increase from 19% to 25%, effective for the fiscal year beginning April 1, 2023. The impact of this change resulted in a tax benefit of approximately $8 million. As of June 30, 2021, we had a net deferred tax liability of $88 million . This amount included gross deferred tax assets of approximately $1.5 billion and a valuation allowance of $822 million. It is reasonably possible that our estimates of future taxable income may change within the next twelve months resulting in a change to the valuation allowance in one or more jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
17. COMMITMENTS AND CONTINGENCIES | 17. 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 $65 million. This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified, including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. Environmental Matters We have established liabilities based on our estimates for currently anticipated costs associated with environmental matters. We estimate that the costs related to our environmental liabilities as of June 30, 2021 and March 31, 2021 were approximately $24 million and $23 million, respectively. Of the total $24 million at June 30, 2021, $5 million was associated with restructuring actions and the remaining $19 million is associated with undiscounted environmental clean-up costs. As of June 30, 2021, $6 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying condensed consolidated balance sheets. Brazilian Tax Litigation Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. Total settlement liabilities as of June 30, 2021 and March 31, 2021 were $21 million and $20 million, respectively. As of June 30, 2021, $6 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying condensed consolidated balance sheets. In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. Total liabilities for other disputes and claims were $31 million as of June 30, 2021 and $24 million as of March 31, 2021. As of June 30, 2021, $2 million is included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities in our accompanying condensed consolidated balance sheets. Additionally, we have included in the range of reasonably possible losses disclosed above, any unresolved tax disputes or other contingencies for which a loss is reasonably possible and estimable. The interest cost recorded on these settlement liabilities offset by interest earned on the cash deposits is reported in other (income) expenses, net on the condensed consolidated statement of operations. During fiscal 2021, 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. As a result of these cases, we have the right to apply for tax credits for the amounts overpaid during specified tax years. 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 sought clarification from the Brazilian Supreme Court of certain matters, including the calculation methodology (i.e. gross or net credit amount) and timing of these credits. Since the Brazilian Supreme Court had not yet confirmed the appropriate methodology when these favorable rulings were received, Novelis recorded this benefit in the corresponding periods based on the net credit amount. However, during the first quarter of fiscal 2022, the Brazilian Supreme Court ruled that the credit should be calculated using the gross methodology for lawsuits filed prior to March 2017. As such, Novelis has recorded additional income of $76 million in other (income) expenses, net, $48 million of which is principal and $29 million of interest, related to PIS and COFINS for the years 2009 to 2017, net of $1 million in litigation expense. This income is subject to income taxes and therefore, resulted in the recognition of income of $51 million within net income (loss). The credit amounts, interest calculation, and supporting documentation are subject to further validation and scrutiny by tax authorities for five years after the credits are utilized. Thus, credits recognized may differ from these amounts. |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
18. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | 18. 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. We also manufacture aluminum plate products in Europe and Asia. The following is a description of our operating segments. North America. Headquartered in Atlanta, Georgia, this segment operates 17 plants, including seven with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including five with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including two with recycling operations, in two countries. South America. Headquartered in Sao Paulo, Brazil, this segment operates two plants in Brazil, including one with recycling operations. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 – Business and Summary of Significant Accounting Policies shown in our 2021 Form 10-K. We measure the profitability and financial performance of our operating segments based on segment income. Segment income provides a measure of our underlying segment results that is in line with our approach to risk management. We define segment income as earnings before (a) depreciation and amortization; (b) interest expense and amortization of debt issuance costs; (c) interest income; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) (gain) loss on extinguishment of debt; (g) noncontrolling 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 (reversal) expenses, net; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) income tax provision (benefit); (o) cumulative effect of accounting change, net of tax; (p) metal price lag; (q) business acquisition and other related costs"; (r) purchase price accounting adjustments; (s) income (loss) from discontinued operations, net of tax; and (t) loss on sale of discontinued operations, net of tax. The tables that follow show selected segment financial information. "Eliminations and Other" 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 6 – Consolidation and Note 7 – Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis. Selected Segment Financial Information June 30, 2021 North America Europe Asia South America Eliminations and Other (1) Total Investment in and advances to non–consolidated affiliates $ — $ 517 $ 333 $ — $ — $ 850 Total assets 4,501 4,153 2,370 1,943 620 13,587 March 31, 2021 North America Europe Asia South America Eliminations and Other (1) Total Investment in and advances to non–consolidated affiliates $ — $ 510 $ 328 $ — $ — $ 838 Total assets 4,084 3,974 2,423 1,797 607 12,885 Selected Operating Results Three Months Ended June 30, 2021 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 1,456 $ 1,068 $ 666 $ 574 $ 91 $ 3,855 Net sales - intersegment — 52 6 2 (60) — Net sales $ 1,456 $ 1,120 $ 672 $ 576 $ 31 $ 3,855 Depreciation and amortization $ 56 $ 44 $ 22 $ 18 $ (6) $ 134 Income tax provision (benefit) 17 11 18 63 (1) 108 Capital expenditures 45 15 14 29 (2) 101 Selected Operating Results Three Months Ended June 30, 2020 North America Europe Asia South America Eliminations and Other Total Net sales - third party $ 828 $ 669 $ 499 $ 345 $ 85 $ 2,426 Net sales - intersegment — 18 6 7 (31) — Net sales $ 828 $ 687 $ 505 $ 352 $ 54 $ 2,426 Depreciation and amortization $ 49 $ 38 $ 20 $ 18 $ (7) $ 118 Income tax (benefit) provision (33) (10) 10 25 (21) (29) Capital expenditures 49 16 24 24 (1) 112 _________________________ (1) Includes assets of discontinued operations. The table below displays the reconciliation from net income (loss) attributable to our common shareholder to segment income. Three Months Ended June 30, in millions 2021 2020 Net income (loss) attributable to our common shareholder $ 240 $ (79) Net income attributable to noncontrolling interests — — Income tax provision (benefit) 108 (29) Loss from discontinued operations, net of tax 63 18 Income (loss) from continuing operations before income tax provision 411 (90) Depreciation and amortization 134 118 Interest expense and amortization of debt issuance costs 59 70 Adjustment to reconcile proportional consolidation (1) 14 14 Unrealized losses on change in fair value of derivative instruments, net 4 33 Realized (gains) losses on derivative instruments not included in segment income (2) (1) 3 Gain on extinguishment of debt (2) — Restructuring and impairment (reversal) expenses, net (2) 1 Gain on sale of assets, net — (2) Purchase price accounting adjustments (3) — 28 Metal price lag (54) 20 Business acquisition and other related costs (4) — 11 Other, net (5) (8) 47 Segment income $ 555 $ 253 _________________________ (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 (benefit). (2) Realized (gains) losses on derivative instruments not included in segment income represents foreign currency derivatives unrelated 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) For the three months ended June 30, 2021, other, net primarily relates to $29 million of interest income recognized as a result of Brazilian tax litigation settlements, partially offset by $18 million from the release of certain outstanding receivables. For the three months ended June 30, 2020, other, net primarily relates to a charitable contribution for COVID-19 relief as well as interest income. The following table displays segment income by reportable segment. Three Months Ended June 30, in millions 2021 2020 North America $ 172 $ 78 Europe 102 20 Asia 88 75 South America 193 76 Eliminations and other — 4 Segment income $ 555 $ 253 Information about Product Sales, Major Customers, and Primary Supplier Product Sales The following table displays our net sales by product end market. Three Months Ended June 30, in millions 2021 2020 Can $ 1,940 $ 1,380 Automotive 746 313 Aerospace and industrial plate 114 102 Specialty 1,055 631 Net sales $ 3,855 $ 2,426 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. Three Months Ended June 30, 2021 2020 Ball 16 % 17 % Primary Supplier Rio Tinto is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from Rio Tinto as a percentage of our total combined metal purchases. Three Months Ended June 30, 2021 2020 Purchases from Rio Tinto as a percentage of total combined metal purchases 8 % 7 % |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
19. SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS Debt Activity On July 26, 2021, we priced an offering of $750 million aggregate principal amount of 3.25% senior notes due 2026 and $750 million aggregate principal amount of 3.875% senior notes due 2031. The offering is expected to close on August 11, 2021. We intend to use the net proceeds from the offering, together with cash on hand, to (i) fund the redemption of all of our outstanding 5.875% Senior Notes due 2026 (the "Existing 2026 Notes"), plus the redemption premium and accrued and unpaid interest and, (ii) pay certain fees and expenses in connection with the foregoing and offering of the Notes. In connection with the offering, on July 26, 2021, we delivered a notice for the conditional redemption of all of the Existing 2026 Notes pursuant to the indenture, dated as of September 14, 2016. The redemption of the Existing 2026 Notes is subject to, and conditioned upon, the completion of the offering on terms and conditions satisfactory to us yielding net proceeds, together with up to $150 million of cash on hand. The redemption date for the Existing 2026 Notes is August 25, 2021, provided that the redemption date may be extended by the Issuer pending satisfaction of the redemption condition. The Company is still evaluating the financial and accounting impacts of this transaction. Novelis Head Office Lease Subsequent to quarter-end, Novelis executed an agreement to relocate our corporate and North America headquarters in Atlanta, GA from Two Alliance Center to One Phipps Plaza. While One Phipps Plaza is still undergoing construction, Novelis currently anticipates the relocation to occur in July 2022. The existing headquarters lease at Two Alliance Center expires in August 2024. We intend to sublease the space at Two Alliance Center while we remain the primary obligor under the original contract. While the lease at One Phipps Plaza has not yet commenced, we anticipate this lease will create significant rights and obligations to Novelis. The Company is still evaluating the financial impacts of this relocation. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | Organization and Description of Business We produce aluminum plate, 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 June 30, 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 our operating facilities. The March 31, 2021 condensed consolidated balance sheet data was derived from the March 31, 2021 audited financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our 2021 Form 10-K. Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control, and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control but have the ability to exercise significant influence over operating and financial policies. Consolidated net income (loss) attributable to our common shareholder includes our share of net income (loss) of these entities. The difference between consolidation and the equity method impacts certain of our financial ratios because of the presentation of the detailed line items reported in the condensed consolidated financial statements for consolidated entities, compared to a two-line presentation of investment in and advances to non–consolidated affiliates and equity in net income of non-consolidated affiliates. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, 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) actuarial assumptions related to pension and other postretirement benefit plans; (3) tax uncertainties and valuation allowances; (4) assessment of loss contingencies, including environmental and litigation liabilities; (5) the fair value of derivative financial instruments; and (6) the fair value of the contingent consideration resulting from the sale of Duffel. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained, and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Risks & Uncertainty resulting from COVID-19 Beginning late in the fourth quarter of fiscal 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, primarily felt this impact in early fiscal 2021 as we adjusted schedules at some of our facilities based on customer demand, resulting in disruptions to our supply chain, interruptions to our production, and delays of shipments to our customers, mainly during the first quarter of fiscal 2021. While much of our customer demand and shipments recovered in the majority of our end markets, 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. 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. |
Reclassification, Comparability Adjustment | Reclassifications and Revisions of Previously Issued Financial Statements We identified a misstatement related to the calculation of accrued capital expenditures within the statement of cash flows in our previously issued Form 10-Qs for the quarterly period ended June 30, 2020. As a result, the previously reported amounts for capital expenditures were understated by $6 million, changes in accounts payable were overstated by $4 million, changes in other liabilities were overstated by $2 million, and accrued capital expenditures, presented in supplemental disclosures, were overstated by $43 million for the three months ended June 30, 2020. We assessed the materiality of the misstatement and concluded it was not material to the company's previously issued financial statements for the quarterly period ended June 30, 2020. However, we elected to revise the previously reported amounts for capital expenditures and changes in accounts payable and other liabilities within the condensed consolidated statement of cash flows, accrued capital expenditures within the supplemental disclosures to the condensed consolidated statement of cash flows, and capital expenditures within Note 18 – Segment, Geographical Area, Major Customer and Major Supplier Information . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards (Not yet adopted) There are no recent accounting pronouncements pending adoption that we expect will have a material impact on our consolidated financial condition, results of operations, or cash flows. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three months ended June 30, 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. Three Months Ended June 30, in millions 2020 Net sales $ 2,480 Net loss (94) |
Restructuring and Impairment,_2
Restructuring and Impairment, Net (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Liability Activity | The following table summarizes our restructuring liability activity. in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2020 $ 1 $ 21 $ — $ 12 $ — $ 34 Restructuring and impairment (reversal) expenses, net — — — — 1 1 Cash payments — (9) — — (1) (10) Foreign currency and other — — — (1) — (1) Restructuring liability balance as of June 30, 2020 $ 1 $ 12 $ — $ 11 $ — $ 24 in millions North America Europe Asia South America Other Operations Total Restructuring liability balance as of March 31, 2021 $ 3 $ 19 $ — $ 9 $ 3 $ 34 Restructuring and impairment (reversal) expenses, net — (2) — — — (2) Cash payments (1) (4) — — — (5) Foreign currency and other — — — (1) — (1) Restructuring liability balance as of June 30, 2021 (1) $ 2 $ 13 $ — $ 8 $ 3 $ 26 ____________________ (1) As of June 30, 2021, the restructuring liability totaled $26 million with $20 million included in accrued expenses and other current liabilities and the remaining is within other long–term liabilities on our accompanying condensed consolidated balance sheet. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consists of the following. in millions June 30, March 31, Finished goods $ 551 $ 455 Work in process 1,080 874 Raw materials 548 407 Supplies 201 192 Inventories $ 2,380 $ 1,928 |
Consolidation (Tables)
Consolidation (Tables) | 3 Months Ended |
Jun. 30, 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 condensed consolidated balance sheets. in millions June 30, March 31, ASSETS Current assets: Cash and cash equivalents $ 3 $ 5 Accounts receivable, net 63 69 Inventories 85 81 Prepaid expenses and other current assets 3 4 Total current assets 154 159 Property, plant and equipment, net 21 19 Goodwill 12 12 Deferred income tax assets 57 57 Other long–term assets 7 8 Total assets $ 251 $ 255 LIABILITIES Current liabilities: Accounts payable $ 45 $ 38 Accrued expenses and other current liabilities 21 26 Total current liabilities 66 64 Accrued postretirement benefits 208 214 Other long–term liabilities 5 5 Total liabilities $ 279 $ 283 |
Investment In and Advances to_2
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliates in the aggregate and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended June 30, in millions 2021 2020 Net sales $ 385 $ 280 Costs and expenses related to net sales 372 274 Income tax provision 3 2 Net income $ 10 $ 4 Purchases of tolling services from Alunorf $ 69 $ 61 |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table describes related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates. in millions June 30, March 31, Accounts receivable, net — related parties $ 210 $ 166 Other long–term assets — related parties 1 1 Accounts payable — related parties 295 230 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consists of the following. June 30, 2021 March 31, 2021 in millions Interest Rates (1) Principal Unamortized Carrying Value Adjustments (2) Carrying Value Principal Unamortized Carrying Value Adjustments (2) Carrying Value Short–term borrowings 1.94 % $ 359 $ — $ 359 $ 236 $ — $ 236 Floating rate Term Loan Facility, due June 2022 2.00 % 524 (4) 520 648 (5) 643 Floating rate Term Loan Facility, due January 2025 1.90 % 765 (14) 751 767 (15) 752 Floating rate Term Loan Facility, due March 2028 2.15 % 499 (9) 490 480 (9) 471 Zhenjiang Term Loans, due May 2024 — — — 124 2 126 5.875% Senior Notes, due September 2026 5.875 % 1,500 (13) 1,487 1,500 (13) 1,487 3.375% Senior Notes, due April 2029 3.375 % 593 (12) 581 588 (13) 575 4.75% Senior Notes, due January 2030 4.75 % 1,600 (27) 1,573 1,600 (28) 1,572 China Bank loans, due August 2027 4.90 % 77 — 77 76 — 76 Finance lease obligations and other debt, due through June 2028 2.45 % 22 — 22 22 — 22 Total debt $ 5,939 $ (79) $ 5,860 $ 6,041 $ (81) $ 5,960 Less: Short–term borrowings (359) — (359) (236) — (236) Less: Current portion of long–term debt (545) 4 (541) (71) — (71) Long–term debt, net of current portion $ 5,035 $ (75) $ 4,960 $ 5,734 $ (81) $ 5,653 ____________________ (1) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of June 30, 2021 and therefore exclude the effects of accretion and 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. |
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 June 30, 2021 for our debt denominated in foreign currencies are as follows (in millions). As of June 30, 2021 Amount Short-term borrowings and current portion of long-term debt due within one year $ 904 2 years 24 3 years 26 4 years 763 5 years 23 Thereafter 4,199 Total $ 5,939 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below. Pension Benefit Plans Other Benefit Plans Three Months Ended June 30, Three Months Ended June 30, in millions 2021 2020 2021 2020 Service cost $ 8 $ 12 $ 3 $ 3 Interest cost 14 15 2 2 Expected return on assets (20) (19) — — Amortization — losses, net 5 12 — — Termination/curtailment (benefit) cost (3) — — — Net periodic benefit cost (1) $ 4 $ 20 $ 5 $ 5 ____________________ (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 (income) expenses, net. |
Contributions to employee benefit plans | We contributed the following amounts to all plans. Three Months Ended June 30, in millions 2021 2020 Funded pension plans $ 7 $ 10 Unfunded pension plans 4 3 Savings and defined contribution pension plans 15 11 Total contributions $ 26 $ 24 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Foreign Currency [Abstract] | |
Currency losses included in AOCI, net of tax and noncontrolling interests | The following currency gains (losses) are included in accumulated other comprehensive loss, net of tax and noncontrolling interests in the accompanying condensed consolidated balance sheets. Three Months Ended June 30, 2021 Fiscal Year Ended March 31, 2021 in millions Cumulative currency translation adjustment — beginning of period $ (95) $ (309) Effect of changes in exchange rates 30 244 Amounts reclassified from accumulated other comprehensive loss, net (1) — (30) Cumulative currency translation adjustment — end of period $ (65) $ (95) |
Currency (gains) losses included in Other (income) expense, net | The following currency losses (gains) are included in other (income) expenses, net in the accompanying condensed consolidated statements of operations. Three Months Ended June 30, in millions 2021 2020 Loss (gain) on remeasurement of monetary assets and liabilities, net $ 13 $ (4) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net (8) 2 Currency losses (gains), net $ 5 $ (2) |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 3 Months Ended |
Jun. 30, 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 the periods presented. June 30, 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 $ 1 $ — $ (178) $ (3) $ (180) Currency exchange contracts 18 4 (9) (3) 10 Energy contracts 7 3 (1) — 9 Total derivatives designated as hedging instruments $ 26 $ 7 $ (188) $ (6) $ (161) Derivatives not designated as hedging instruments: Metal contracts $ 136 $ 4 $ (137) $ (2) $ 1 Currency exchange contracts 12 — (21) (1) (10) Energy contracts — — — — — Total derivatives not designated as hedging instruments $ 148 $ 4 $ (158) $ (3) $ (9) Total derivative fair value $ 174 $ 11 $ (346) $ (9) $ (170) March 31, 2021 Assets Liabilities Net Fair Value 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) Total derivatives not designated as hedging instruments $ 126 $ 3 $ (152) $ (1) $ (24) Total derivative fair value $ 137 $ 4 $ (280) $ (5) $ (144) ____________________ (1) The noncurrent portions of derivative assets and liabilities are included in other long–term assets and in other long–term liabilities, respectively, in the accompanying condensed consolidated balance sheets . |
Summary of notional amount | The following table summarizes our metal notional amount. in kt June 30, March 31, Hedge type Purchase (sale) Cash flow purchases 1 10 Cash flow sales (880) (594) Not designated (45) (44) Total, net (924) (628) |
Derivative instruments, gain (loss) recognition | The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in other (income) expenses, net. Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended June 30 in millions 2021 2020 Derivative instruments not designated as hedges Metal contracts $ 3 $ (25) Currency exchange contracts 11 (3) Energy contracts (1) 2 2 Total gain (loss) recognized in other (income) expenses, net $ 16 $ (26) Gain (loss) recognized on balance sheet remeasurement currency exchange contracts, net $ 8 $ (2) Realized gains, net 12 9 Unrealized losses on other derivative instruments, net (4) (33) Total gain (loss) recognized in other (income) expenses, net $ 16 $ (26) _________________________ (1) Includes amounts related to natural gas and diesel swaps not designated as hedges and electricity swap settlements. |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow hedges. Within the next twelve months, we expect to reclassify $159 million of losses from accumulated other comprehensive loss to earnings, before taxes. Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) Three Months Ended June 30, in millions 2021 2020 Cash flow hedging derivatives Metal contracts $ (193) $ (22) Currency exchange contracts 30 (8) Energy contracts 10 2 Total $ (153) $ (28) Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion) Three Months Ended June 30, Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings in millions 2021 2020 Cash flow hedging derivatives Energy contracts (1) $ (1) $ (3) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts 2 (4) Cost of goods sold (exclusive of depreciation and amortization) Metal contracts (139) 70 Net sales Currency exchange contracts — (11) Cost of goods sold (exclusive of depreciation and amortization) Currency exchange contracts — (1) Selling, general and administrative expenses Currency exchange contracts 1 (2) Net sales Currency exchange contracts (1) — Depreciation and amortization Total $ (138) $ 49 Income (loss) from continuing operations before income tax provision 37 (13) Income tax provision (benefit) $ (101) $ 36 Net (loss) gain _________________________ (1) Includes amounts related to electricity, natural gas, and diesel swaps. The following tables summarize the location and amount of gains (losses) that were reclassified from accumulated other comprehensive loss into earnings and the amount excluded from the assessment of effectiveness for the periods presented. Three Months Ended June 30, 2021 in millions Net Sales Cost of Goods Sold Selling, General & Administrative Depreciation and Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from accumulated other comprehensive loss into income $ (139) $ 2 $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ — $ (1) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive loss into income $ 1 $ — $ — $ (1) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income, net of tax | The following tables summarize the change in the components o f accumulated other comprehensive loss, excluding noncontrolling interests, for the periods presented. Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2021 $ (95) $ (133) $ (138) $ (366) Other comprehensive income (loss) before reclassifications 30 (115) 1 (84) Amounts reclassified from accumulated other comprehensive loss, net — 101 1 102 Net current-period other comprehensive income (loss) 30 (14) 2 18 Balance as of June 30, 2021 $ (65) $ (147) $ (136) $ (348) Currency Translation Cash Flow Hedges (1) Postretirement Benefit Plans (2) Total Balance as of March 31, 2020 $ (309) $ (26) $ (285) $ (620) Other comprehensive income (loss) before reclassifications 55 (20) (4) 31 Amounts reclassified from accumulated other comprehensive loss, net — (36) 9 (27) Net current-period other comprehensive income (loss) 55 (56) 5 4 Balance as of June 30, 2020 $ (254) $ (82) $ (280) $ (616) _________________________ (1) For additional information on our cash flow hedges, see Note 12 – Financial Instruments and Commodity Contracts . (2) For additional information on our postretirement benefit plans, see Note 10 – Postretirement Benefit Plans . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 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 and classified under the appropriate level of the fair value hierarchy as of June 30, 2021 and March 31, 2021. The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. June 30, 2021 March 31, 2021 in millions Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 141 $ (320) $ 111 $ (230) Currency exchange contracts 34 (34) 28 (52) Energy contracts 10 — 2 (1) Total level 2 instruments $ 185 $ (354) $ 141 $ (283) Level 3 instruments: Energy contracts — (1) — (2) Total level 3 instruments $ — $ (1) $ — $ (2) Total gross $ 185 $ (355) $ 141 $ (285) Netting adjustment (1) $ (102) $ 102 $ (81) $ 81 Total net $ 83 $ (253) $ 60 $ (204) _________________________ (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, 2021 $ (2) Unrealized/realized gain included in earnings (2) 2 Settlements (2) (1) Balance as of June 30, 2021 $ (1) _________________________ (1) Represents net derivative liabilities. |
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. June 30, 2021 March 31, 2021 in millions Carrying Value Fair Value Carrying Value Fair Value Long-term receivables from related parties $ 1 $ 1 $ 1 $ 1 Total debt — third parties (excluding finance leases and short-term borrowings) 5,479 5,754 5,702 5,967 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | Other (income) expenses, net consists of the following. Three Months Ended June 30, in millions 2021 2020 Currency losses (gains), net (1) $ 5 $ (2) Unrealized losses on change in fair value of derivative instruments, net (2) 4 33 Realized gains on change in fair value of derivative instruments, net (2) (12) (9) Gain on sale of assets, net — (2) Gain on Brazilian tax litigation, net (3) (76) — Interest income (3) (3) Non-operating net periodic benefit cost (4) (2) 10 Charitable contribution (5) — 50 Other, net (6) 20 (2) Other (income) expenses, net $ (64) $ 75 _________________________ (1) Includes (gain) loss recognized on balance sheet remeasurement currency exchange contracts, net. See Note 11 – Currency Losses (Gains) for further details. (2) See Note 12 – Financial Instruments and Commodity Contracts for further details. (3) See Note 17 – 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 1 0 – Postretirement Benefit Plans . (5) Represents a charitable contribution for COVID-19 relief. (6) Primarily relates to $18 million from the release of certain outstanding receivables. |
Segment, Major Customer and M_2
Segment, Major Customer and Major Supplier Information (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Selected segment financial information | The following table displays segment income by reportable segment. Three Months Ended June 30, in millions 2021 2020 North America $ 172 $ 78 Europe 102 20 Asia 88 75 South America 193 76 Eliminations and other — 4 Segment income $ 555 $ 253 The following table displays our net sales by product end market. Three Months Ended June 30, in millions 2021 2020 Can $ 1,940 $ 1,380 Automotive 746 313 Aerospace and industrial plate 114 102 Specialty 1,055 631 Net sales $ 3,855 $ 2,426 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The table below displays the reconciliation from net income (loss) attributable to our common shareholder to segment income. Three Months Ended June 30, in millions 2021 2020 Net income (loss) attributable to our common shareholder $ 240 $ (79) Net income attributable to noncontrolling interests — — Income tax provision (benefit) 108 (29) Loss from discontinued operations, net of tax 63 18 Income (loss) from continuing operations before income tax provision 411 (90) Depreciation and amortization 134 118 Interest expense and amortization of debt issuance costs 59 70 Adjustment to reconcile proportional consolidation (1) 14 14 Unrealized losses on change in fair value of derivative instruments, net 4 33 Realized (gains) losses on derivative instruments not included in segment income (2) (1) 3 Gain on extinguishment of debt (2) — Restructuring and impairment (reversal) expenses, net (2) 1 Gain on sale of assets, net — (2) Purchase price accounting adjustments (3) — 28 Metal price lag (54) 20 Business acquisition and other related costs (4) — 11 Other, net (5) (8) 47 Segment income $ 555 $ 253 _________________________ (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 (benefit). (2) Realized (gains) losses on derivative instruments not included in segment income represents foreign currency derivatives unrelated 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) For the three months ended June 30, 2021, other, net primarily relates to $29 million of interest income recognized as a result of Brazilian tax litigation settlements, partially offset by $18 million from the release of certain outstanding receivables. For the three months ended June 30, 2020, other, net primarily relates to a charitable contribution for COVID-19 relief as well as interest income. |
Net sales to largest customers, as a percentage of total Net sales | Three Months Ended June 30, 2021 2020 Ball 16 % 17 % |
Percentage of total combined metal purchases | The table below shows our purchases from Rio Tinto as a percentage of our total combined metal purchases. Three Months Ended June 30, 2021 2020 Purchases from Rio Tinto as a percentage of total combined metal purchases 8 % 7 % |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2021USD ($)countrycontinentplant | Jun. 30, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of Countries in which Entity Operates | country | 9 | |
Number of continents Company operates in | continent | 4 | |
Number of Operating Plants | plant | 33 | |
Number of plants with recycling operations | plant | 15 | |
Number of operating segments | continent | 4 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accrued capital expenditures as of June 30 | $ 55 | $ 44 |
Capital expenditures [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | 6 | |
Changes in accounts payable [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | (4) | |
Supplemental Disclosure - Accrued capital expenditures [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | (43) | |
Changes in other liabilities | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prior Period Reclassification Adjustment | $ (2) |
Business Combination - Narrativ
Business Combination - Narrative (Details) | Apr. 14, 2020 |
Aleris Corporation | |
Business Acquisition [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Business Combination - Pro Form
Business Combination - Pro Forma Financial Information (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Revenue | $ 2,480 |
Business Acquisition, Pro Forma Net Income (Loss) | $ (94) |
Discontinued Operations (Detail
Discontinued Operations (Details) € in Millions, $ in Millions | Apr. 14, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2021EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Nov. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Jun. 30, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Cash and cash equivalents of discontinued operations | $ 0 | $ 89 | ||||||||
Loss on sale of discontinued operations, net of tax | € | € 51 | |||||||||
Aleris Corporation | ||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||
Business Combination, Consideration Transferred | $ 2,800 | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Business Combination, Consideration Transferred | $ 2,800 | |||||||||
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 | 45 | € 53 | $ 95 | € 112 | 93 | 109 | ||||
Gain Contingency, Unrecorded Amount | 117 | 100 | ||||||||
Loss on sale of discontinued operations, net of tax | 61 | |||||||||
Additional costs incurred | 2 | |||||||||
Cash and Cash Equivalents [Member] | Duffel [Member] | ||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 246 | 210 | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 246 | 210 | ||||||||
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 |
Restructuring and Impairment,_3
Restructuring and Impairment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment (reversal) expenses, net | $ (2) | $ 1 | ||
Restructuring liability | 26 | 24 | $ 34 | $ 34 |
Corporate, Non-Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment (reversal) expenses, net | 1 | |||
Restructuring liability | 3 | $ 0 | $ 3 | $ 0 |
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability | 26 | |||
Other Liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability | $ 20 |
Restructuring and Impairment,_4
Restructuring and Impairment, Net - Restructuring Liability Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Total restructuring liabilities | ||
Balance, beginning of period | $ 34 | $ 34 |
Restructuring and impairment (reversal) expenses, net | (2) | 1 |
Cash payments | (5) | (10) |
Foreign currency and other | (1) | (1) |
Balance, end of period | 26 | 24 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 26 | 24 |
Restructuring and impairment (reversal) expenses, net | (2) | 1 |
Payments for Restructuring | 5 | 10 |
Foreign currency and other | (1) | (1) |
Operating Segments [Member] | North America | ||
Total restructuring liabilities | ||
Balance, beginning of period | 3 | 1 |
Cash payments | (1) | |
Balance, end of period | 2 | 1 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 2 | 1 |
Payments for Restructuring | 1 | |
Operating Segments [Member] | Europe | ||
Total restructuring liabilities | ||
Balance, beginning of period | 19 | 21 |
Restructuring and impairment (reversal) expenses, net | (2) | |
Cash payments | (4) | (9) |
Balance, end of period | 13 | 12 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 13 | 12 |
Restructuring and impairment (reversal) expenses, net | (2) | |
Payments for Restructuring | 4 | 9 |
Operating Segments [Member] | Asia | ||
Total restructuring liabilities | ||
Balance, beginning of period | 0 | 0 |
Balance, end of period | 0 | 0 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | 0 |
Operating Segments [Member] | South America | ||
Total restructuring liabilities | ||
Balance, beginning of period | 9 | 12 |
Foreign currency and other | (1) | (1) |
Balance, end of period | 8 | 11 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 8 | 11 |
Foreign currency and other | (1) | (1) |
Corporate, Non-Segment [Member] | ||
Total restructuring liabilities | ||
Balance, beginning of period | 3 | 0 |
Restructuring and impairment (reversal) expenses, net | 1 | |
Cash payments | (1) | |
Balance, end of period | 3 | 0 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 3 | 0 |
Restructuring and impairment (reversal) expenses, net | 1 | |
Payments for Restructuring | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
Schedule of inventories | ||
Finished goods | $ 551 | $ 455 |
Work in process | 1,080 | 874 |
Raw materials | 548 | 407 |
Supplies | 201 | 192 |
Inventories | $ 2,380 | $ 1,928 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 872 | $ 998 | $ 1,729 |
Accounts receivable, net | 1,990 | 1,687 | |
Inventories | 2,380 | 1,928 | |
Prepaid expenses and other current assets | 201 | 198 | |
Total current assets | 5,846 | 5,134 | |
Property, plant and equipment, net | 4,677 | 4,687 | |
Goodwill | 1,084 | 1,083 | |
Deferred income tax assets | 142 | 130 | |
Other long–term assets | 310 | 316 | |
Total assets | 13,587 | 12,885 | |
Current liabilities: | |||
Accounts payable | 2,916 | 2,498 | |
Accrued expenses and other current liabilities | 610 | 670 | |
Total current liabilities | 5,081 | 4,001 | |
Accrued postretirement benefits | 871 | 878 | |
Other long–term liabilities | 301 | 305 | |
Total liabilities | 11,443 | 10,999 | |
Primary Beneficiary | |||
Current assets: | |||
Cash and cash equivalents | 3 | 5 | |
Accounts receivable, net | 63 | 69 | |
Inventories | 85 | 81 | |
Prepaid expenses and other current assets | 3 | 4 | |
Total current assets | 154 | 159 | |
Property, plant and equipment, net | 21 | 19 | |
Goodwill | 12 | 12 | |
Deferred income tax assets | 57 | 57 | |
Other long–term assets | 7 | 8 | |
Total assets | 251 | 255 | |
Current liabilities: | |||
Accounts payable | 45 | 38 | |
Accrued expenses and other current liabilities | 21 | 26 | |
Total current liabilities | 66 | 64 | |
Accrued postretirement benefits | 208 | 214 | |
Other long–term liabilities | 5 | 5 | |
Total liabilities | $ 279 | $ 283 | |
Logan Aluminum Inc. [Member] | |||
Current liabilities: | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% |
Investment In and Advances to_3
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable, net-related parties net of Accounts payable-related parties (less than) | $ 210 | $ 166 | |
Parent Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties (less than) | 1 | ||
Accounts receivable, net-related parties net of Accounts payable-related parties (less than) | $ 2 | $ 2 | |
Purchases of raw materials (less than) | $ 2 | ||
Aluminum Norf GmbH | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Ulsan Aluminum, Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
AluInfra Services SA | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Investment In and Advances to_4
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Summary of Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Income tax provision (benefit) | $ 108 | $ (29) |
Net income (loss) | 240 | (79) |
Equity Method Investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Net sales | 385 | 280 |
Costs and expenses related to net sales | 372 | 274 |
Income tax provision (benefit) | 3 | 2 |
Net income (loss) | 10 | 4 |
Purchases of tolling services from Alunorf | $ 69 | $ 61 |
Investment In and Advances to_5
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Period End Account Balances (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties, Current | $ 210 | $ 166 | |
Accounts Payable, Related Parties, Current | 295 | 230 | |
Due from Other Related Parties, Noncurrent | 1 | 1 | $ 1 |
Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties, Current | 210 | 166 | |
Accounts Payable, Related Parties, Current | 295 | 230 | |
Parent Company | |||
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties, Current | $ 2 | $ 2 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt, Principal | $ 5,035,000,000 | $ 5,734,000,000 |
Long-term debt, Carrying Value | 5,479,000,000 | 5,702,000,000 |
Total debt | 5,939,000,000 | 6,041,000,000 |
Total debt, Unamortized Carrying Value Adjustment | (79,000,000) | (81,000,000) |
Total debt, carrying value | 5,860,000,000 | 5,960,000,000 |
Short-term borrowings | 359,000,000 | 236,000,000 |
us-gaap_LongTermDebtAndCapitalLeaseObligationsCurrent | 545,000,000 | 71,000,000 |
Current portion of long-term debt | (541,000,000) | (71,000,000) |
Long-term debt, net of current portion, Carrying Value | $ 4,960,000,000 | 5,653,000,000 |
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 2.00% | |
Long-term debt, Principal | $ 524,000,000 | 648,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (4,000,000) | (5,000,000) |
Long-term debt, Carrying Value | $ 520,000,000 | 643,000,000 |
Floating rate incremental term loan facility, due January 2025 | ||
Debt Instrument [Line Items] | ||
Stated rate | 1.90% | |
Long-term debt, Principal | $ 765,000,000 | 767,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (14,000,000) | (15,000,000) |
Long-term debt, Carrying Value | 751,000,000 | 752,000,000 |
Zhenjiang Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, Principal | 0 | 124,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 2,000,000 |
Long-term debt, Carrying Value | $ 0 | 126,000,000 |
Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.75% | |
Long-term debt, Principal | $ 1,600,000,000 | 1,600,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (27,000,000) | (28,000,000) |
Long-term debt, Carrying Value | $ 1,573,000,000 | 1,572,000,000 |
Senior Notes due September 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 5.875% | |
Long-term debt, Principal | $ 1,500,000,000 | 1,500,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (13,000,000) | (13,000,000) |
Long-term debt, Carrying Value | $ 1,487,000,000 | 1,487,000,000 |
Bank Loans, Due Through June 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.90% | |
Long-term debt, Principal | $ 77,000,000 | 76,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 77,000,000 | 76,000,000 |
Other Debt, due through December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 2.45% | |
Long-term debt, Principal | $ 22,000,000 | 22,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 22,000,000 | 22,000,000 |
Floating rate incremental term loan facility, due March 2028 | ||
Debt Instrument [Line Items] | ||
Stated rate | 2.15% | |
Long-term debt, Principal | $ 499,000,000 | 480,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (9,000,000) | (9,000,000) |
Long-term debt, Carrying Value | $ 490,000,000 | 471,000,000 |
Senior Notes due April 2029 | ||
Debt Instrument [Line Items] | ||
Stated rate | 3.375% | |
Long-term debt, Principal | $ 593,000,000 | 588,000,000 |
Long-term debt, Unamortized Carrying Value Adjustments | (12,000,000) | (13,000,000) |
Long-term debt, Carrying Value | 581,000,000 | 575,000,000 |
Long-term debt, net of current portion | ||
Debt Instrument [Line Items] | ||
Total debt, Unamortized Carrying Value Adjustment | $ (75,000,000) | |
Short term borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 1.94% | |
Long-term debt, Unamortized Carrying Value Adjustments | $ 0 | 0 |
Short-term borrowings | 359,000,000 | 236,000,000 |
current portion of long term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Unamortized Carrying Value Adjustments | $ 4,000,000 | |
Current portion of long-term debt | $ 0 |
Debt - Principal Repayments (De
Debt - Principal Repayments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 904 | |
2 years | 24 | |
3 years | 26 | |
4 years | 763 | |
5 years | 23 | |
Thereafter | 4,199 | |
Total debt | $ 5,939 | $ 6,041 |
Debt - Additional Information (
Debt - Additional Information (Details) ¥ in Millions, R$ in Millions | 3 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021BRL (R$) | Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 359,000,000 | $ 236,000,000 | |||
Gain on extinguishment of debt | (2,000,000) | $ 0 | |||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 225,000,000 | ||||
Brazil Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 50,000,000 | R$ 250 | |||
China Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 83,000,000 | ¥ 537 | |||
Other short-term borrowings | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | 1,000,000 | ||||
Letter of Credit [Member] | ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 143,000,000 | ||||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 1,200,000,000 | ||||
ABL Revolver [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 32,000,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation by Award [Line Items] | ||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ 23 | |
Additional Contributions To Funded Pension Plan | 36 | |
2010 LTIP [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Total compensation expense | $ 12 | $ 7 |
SARs [Member] | Hindalco SARs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Number of SARs granted (in shares) | 2,285,816 | |
Unrecognized compensation expense | $ 12 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 4 months 24 days | |
RSUs [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Number of RSUs granted (in shares) | 1,759,942 | |
Cash payments to settle liabilities | $ 16 | 4 |
Unrecognized compensation expense | $ 18 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 7 months 6 days | |
Cash [Member] | ||
Share-based Compensation by Award [Line Items] | ||
Cash payments to settle liabilities | $ 9 | $ 1 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Components of net periodic benefit cost for postretirement benefit plans | ||
Net periodic benefit cost(1) | $ 2 | $ (10) |
Discontinued Operations, Disposed of by Sale [Member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | 1 | |
Interest cost | 1 | |
Expected return on assets | 2 | |
Pension Benefit Plans [Member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | 8 | 12 |
Interest cost | 14 | 15 |
Expected return on assets | (20) | (19) |
Amortization — losses, net | 5 | 12 |
Termination/curtailment (benefit) cost | (3) | 0 |
Net periodic benefit cost(1) | 4 | 20 |
Other Benefit Plans [member] | ||
Components of net periodic benefit cost for postretirement benefit plans | ||
Service cost | 3 | 3 |
Interest cost | 2 | 2 |
Expected return on assets | 0 | 0 |
Amortization — losses, net | 0 | 0 |
Termination/curtailment (benefit) cost | 0 | 0 |
Net periodic benefit cost(1) | $ 5 | $ 5 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Employer Contributions to Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Contributions to employee benefit plans | ||
Funded pension plans | $ 7 | $ 10 |
Unfunded pension plans | 4 | 3 |
Savings and defined contribution pension plans | 15 | 11 |
Total contributions | $ 26 | $ 24 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | ||
Expected long-term rate of return on plan assets | 4.90% | |
Maximum amortization period of unfunded actuarial liability | 15 years | |
Expected additional contribution to funded pension plan | $ 36 | |
Expected additional contribution to unfunded pension plan | 13 | |
Expected additional contribution to savings and defined contribution plans | 30 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Additional Contributions To Funded Pension Plan | 36 | |
Payment for Pension and Other Postretirement Benefits | 26 | $ 24 |
Pension Plan [Member] | ||
Retirement Benefits [Abstract] | ||
Defined Benefit Plan, Service Cost | 8 | 12 |
Defined Benefit Plan, Interest Cost | 14 | 15 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (20) | (19) |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Interest Cost | 14 | 15 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 20 | 19 |
Termination/curtailment (benefit) cost | (3) | $ 0 |
Discontinued Operations, Disposed of by Sale [Member] | ||
Retirement Benefits [Abstract] | ||
Defined Benefit Plan, Service Cost | 1 | |
Defined Benefit Plan, Interest Cost | 1 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 2 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Interest Cost | 1 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (2) | |
Discontinued Operations, Disposed of by Sale [Member] | Defined Benefit Plan, Funded Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Payment for Pension and Other Postretirement Benefits | $ 2 |
Currency Losses (Gains) - Inclu
Currency Losses (Gains) - Included in Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Currency (gains) losses included in other income expense | ||
Gain (Loss) on Remeasurement of Monetary Assets and Liabilities, Net | $ 13 | $ (4) |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (8) | 2 |
Foreign Currency Transaction Gain (Loss), before Tax | $ 5 | $ (2) |
Currency Losses (Gains) - Inc_2
Currency Losses (Gains) - Included in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Currency gains included in AOCI, net of tax and Non controlling interests | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | $ (366) | $ (620) | $ (620) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | |||
Translation Adjustment Functional to Reporting Currency, Gain (Loss), Reclassified to Earnings, Net of Tax | 0 | (30) | |
Currency translation adjustment | 30 | 55 | |
Currency Translation [Member] | |||
Currency gains included in AOCI, net of tax and Non controlling interests | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | (95) | $ (309) | (309) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance | (65) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (65) | ||
Currency translation adjustment | $ 30 | $ 244 |
Financial Instruments and Com_3
Financial Instruments and Commodity Contracts - Summary of Gross Fair Values of Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
Assets | ||
Derivative Assets, Current | $ 174 | $ 137 |
Derivative Asset, Noncurrent | 11 | 4 |
Liabilities | ||
Derivative Liabilities, Current | (346) | (280) |
Derivative Liabilities, Noncurrent | (9) | (5) |
Net Fair Value Assets/Liabilities | (170) | (144) |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 26 | 11 |
Derivative Asset, Noncurrent | 7 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (188) | (128) |
Derivative Liabilities, Noncurrent | (6) | (4) |
Net Fair Value Assets/Liabilities | (161) | (120) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 1 | 4 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (178) | (105) |
Derivative Liabilities, Noncurrent | (3) | 0 |
Net Fair Value Assets/Liabilities | (180) | (101) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 18 | 6 |
Derivative Asset, Noncurrent | 4 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (9) | (20) |
Derivative Liabilities, Noncurrent | (3) | (4) |
Net Fair Value Assets/Liabilities | 10 | (18) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 7 | 1 |
Derivative Asset, Noncurrent | 3 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (1) | (3) |
Derivative Liabilities, Noncurrent | 0 | 0 |
Net Fair Value Assets/Liabilities | 9 | (1) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 148 | 126 |
Derivative Asset, Noncurrent | 4 | 3 |
Liabilities | ||
Derivative Liabilities, Current | (158) | (152) |
Derivative Liabilities, Noncurrent | (3) | (1) |
Net Fair Value Assets/Liabilities | (9) | (24) |
Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 136 | 104 |
Derivative Asset, Noncurrent | 4 | 3 |
Liabilities | ||
Derivative Liabilities, Current | (137) | (124) |
Derivative Liabilities, Noncurrent | (2) | (1) |
Net Fair Value Assets/Liabilities | 1 | (18) |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 12 | 22 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (21) | (28) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Net Fair Value Assets/Liabilities | (10) | $ (6) |
Not Designated as Hedging Instrument [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | |
Derivative Asset, Noncurrent | 0 | |
Liabilities | ||
Derivative Liabilities, Current | 0 | |
Derivative Liabilities, Noncurrent | 0 | |
Net Fair Value Assets/Liabilities | $ 0 |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts - Additional Information (Details) MWh in Millions | 3 Months Ended | ||
Jun. 30, 2021USD ($)MWhMMBTUgallon | Mar. 31, 2021USD ($)MMBTUgallon | Jun. 30, 2020USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Expected reclassification from AOCI to earnings | $ 159,000,000 | ||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative remaining maturity | 1 year | ||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative remaining maturity | 2 years | ||
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative remaining maturity | 2 years | ||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | $ 1,400,000,000 | $ 1,300,000,000 | |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 1,100,000,000 | 936,000,000 | |
Electricity Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | 2,000,000 | |
Derivative, Nonmonetary Notional Amount | MWh | (1) | ||
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of derivative, liability (less than) | 1,000,000 | ||
Derivative, Nonmonetary Notional Amount | MMBTU | (1,000,000) | ||
Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of derivative, liability (less than) | $ 8,000,000 | $ 1,000,000 | |
Derivative, Nonmonetary Notional Amount | MMBTU | (16,000,000) | (13,000,000) | |
Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 2,000,000 | |
Derivative, Nonmonetary Notional Amount | gallon | (4,000,000) | (5,000,000) |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts - Summary of Notional Amount (Details) kt in Thousands, $ in Millions | 3 Months Ended | ||
Jun. 30, 2021USD ($)MMBTUgallonkt | Mar. 31, 2021USD ($)gallonktMMBTU | Jun. 30, 2020USD ($) | |
Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Fair value of derivative, liability (less than) | $ 7 | ||
Derivative Asset | $ 5 | ||
Designated as Hedging Instrument [Member] | Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | gallon | 4,000,000 | 5,000,000 | |
Fair value of derivative, liability (less than) | $ 1 | $ 2 | |
Designated as Hedging Instrument [Member] | Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 16,000,000 | 13,000,000 | |
Fair value of derivative, liability (less than) | $ 8 | $ 1 | |
Designated as Hedging Instrument [Member] | Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Derivative remaining maturity | 2 years | ||
Not Designated as Hedging Instrument [Member] | Natural Gas Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 1,000,000 | ||
Fair value of derivative, liability (less than) | $ 1 | ||
Not Designated as Hedging Instrument [Member] | Aluminum Forward Sales Contracts [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Derivative remaining maturity | 1 year | ||
Long [Member] | Designated as Hedging Instrument [Member] | Metal Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 1,000 | 10,000 | |
Short [Member] | Metal Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 924,000 | 628,000 | |
Short [Member] | Designated as Hedging Instrument [Member] | Metal Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 880,000 | 594,000 | |
Short [Member] | Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | kt | 45,000 | 44,000 |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts - Gain (Loss) Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | $ (13) | $ (15) |
Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gains Losses On Balance Sheet Remeasurement Currency Exchange Contracts Net | 8 | (2) |
Realized Gains Losses On Derivative Net | 12 | 9 |
Unrealized Gains Losses On Other Derivative Instruments Net | (4) | (33) |
Total gain (loss) recognized | 16 | (26) |
Other Operating Income (Expense) [Member] | Metal Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | 3 | (25) |
Other Operating Income (Expense) [Member] | Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | 11 | (3) |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) recognized | $ 2 | $ 2 |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts - Summary of the Impact on AOCI and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) | $ (153) | $ (28) | |
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of derivative, liability (less than) | $ 1 | ||
Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of derivative, liability (less than) | $ 7 | ||
Cash Flow Hedges [Member] | Metal Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) | (193) | (22) | |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (139) | 70 | |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 2 | (4) | |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Depreciation and Amortization [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) | 30 | (8) | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 1 | (2) | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | (11) | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | (1) | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (1) | 0 | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other comprehensive income (Effective Portion) | 10 | 2 | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (1) | (3) | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Selling, General and Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Depreciation and Amortization [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | $ 0 | $ 0 |
Financial Instruments and Com_8
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income Tax Expense (Benefit) | $ (108) | $ 29 |
Net income (loss) | $ 240 | $ (79) |
Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (138) | 49 |
Income Tax Expense (Benefit) | $ 37 | $ (13) |
Net income (loss) | $ (101) | $ 36 |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (1) | (3) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 2 | (4) |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (139) | 70 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | — | (11) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | — | (1) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 1 | (2) |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | (1) | — |
Financial Instruments and Com_9
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification Summarization (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Metal Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | $ (139) | $ 70 |
Metal Contracts [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 2 | (4) |
Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Metal Contracts [Member] | Depreciation and Amortization [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Energy Related Derivative [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Energy Related Derivative [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (1) | (3) |
Energy Related Derivative [Member] | Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Energy Related Derivative [Member] | Depreciation and Amortization [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Currency Exchange Contracts [Member] | Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 1 | (2) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 |
Currency Exchange Contracts [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | (11) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 |
Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | (1) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 |
Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | (1) | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 |
Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other (income) expenses, net (Excluded Portion) | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | $ (366) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (84) | $ 31 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 102 | (27) | ||
Other comprehensive income, net of tax | 18 | 4 | ||
Balance as of end of period | (348) | (616) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (366) | $ (620) | ||
Currency Translation [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (95) | (309) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 30 | 55 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other comprehensive income, net of tax | 30 | 55 | ||
Balance as of end of period | (65) | (254) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (65) | $ (95) | $ (309) | |
Cash Flow Hedges [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (133) | (26) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (115) | (20) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 101 | (36) | ||
Other comprehensive income, net of tax | (14) | (56) | ||
Balance as of end of period | (147) | (82) | ||
Postretirement Benefit Plans [Member] | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance as of beginning of period | (138) | (285) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | (4) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 9 | ||
Other comprehensive income, net of tax | 2 | 5 | ||
Balance as of end of period | $ (136) | $ (280) |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | $ 185 | $ 141 |
Derivative Asset, Master Netting Adjustment | (102) | (81) |
Derivative Asset | 83 | 60 |
Liabilities | (355) | (285) |
Derivative Liability, Master Netting Adjustment | 102 | 81 |
Derivative Liability | (253) | (204) |
Level 2 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 185 | 141 |
Liabilities | (354) | (283) |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 141 | 111 |
Liabilities | (320) | (230) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 34 | 28 |
Liabilities | (34) | (52) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 10 | 2 |
Liabilities | 0 | (1) |
Level 3 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | (1) | (2) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | $ (1) | $ (2) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Fair Value Activity for Level 3 Contracts (Details) - Level 3 Derivative Instruments [Member] $ in Millions | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Balance as of beginning of period | $ (2) |
Realized/unrealized gain included in earnings | 2 |
Settlements | (1) |
Balance as of end of period | $ (1) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | $ 5,479 | $ 5,702 |
Total debt - third parties (excluding short term borrowings), fair value | 5,754 | 5,967 |
Due from Other Related Parties | 1 | 1 |
Other Assets, Fair Value Disclosure | $ 1 | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | |||||
Jun. 30, 2021USD ($)$ / MWh | Jun. 30, 2021EUR (€)$ / MWh | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | |
Duffel [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||||||
Contingent Consideration Receivable | $ 45 | € 53 | $ 95 | € 112 | $ 93 | € 109 |
Electricity Swaps [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||||||
Premium over forward prices in nearby observable market (per megawatt hour) | 43,000,000 | 43,000,000 | ||||
Actual swap settlement price (per megawatt hour) | 44,000,000 | 44,000,000 | ||||
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1 | |||||
Extended Electricity Swaps [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||||||
Premium over forward prices in nearby observable market (per megawatt hour) | 5,000,000 | 5,000,000 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||
Foreign Currency Transaction Gain (Loss), before Tax | $ 5 | $ (2) |
Unrealized losses on change in fair value of derivative instruments, net(2) | (4) | (33) |
Realized gains on change in fair value of derivative instruments, net(2) | (12) | (9) |
Gain on sale of assets, net | 0 | (2) |
Interest income | (3) | (3) |
Non-operating net periodic benefit cost(4) | (2) | 10 |
Charitable contribution(5) | 0 | 50 |
Other, net(6) | 20 | (2) |
Other (income) expenses, net | 64 | (75) |
Gain (Loss) Related to Litigation Settlement | (76) | $ 0 |
Other Nonrecurring Expense | $ 18 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Net deferred tax liability | $ 88 | |
Deferred Tax Assets, Valuation Allowance | $ 822 | |
Effective tax rate | 26.00% | 32.00% |
Deferred Tax Assets, Gross | $ 1,500 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | |
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Gross | $ 1,500 | |
UNITED KINGDOM | ||
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 8 | |
Income Tax Contingency [Line Items] | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 8 | |
Minimum [Member] | UNITED KINGDOM | ||
Income Tax Disclosure [Abstract] | ||
Foreign Statutory Tax Rate | 19.00% | |
Income Tax Contingency [Line Items] | ||
Foreign Statutory Tax Rate | 19.00% | |
Maximum [Member] | UNITED KINGDOM | ||
Income Tax Disclosure [Abstract] | ||
Foreign Statutory Tax Rate | 25.00% | |
Income Tax Contingency [Line Items] | ||
Foreign Statutory Tax Rate | 25.00% |
Income Taxes (Details)_2
Income Taxes (Details) $ in Millions | Jun. 30, 2021USD ($) |
Income Tax Contingency [Line Items] | |
Deferred Tax Assets, Valuation Allowance | $ 822 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies, noncurrent | $ 24 | $ 23 | |
Gain (Loss) Related to Litigation Settlement | 76 | $ 0 | |
Litigation Settlement Interest | 29 | ||
Litigation Settlement, Amount Awarded from Other Party | 48 | ||
Litigation Settlement, Expense | 1 | ||
Gain on litigation settlement, net of tax | 51 | ||
Accrued expenses and other current liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies, noncurrent | 6 | ||
BRAZIL | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies, current | 21 | 20 | |
BRAZIL | Accrued expenses and other current liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies, noncurrent | 2 | ||
Accrual for environmental loss contingencies, current | 6 | ||
BRAZIL | Other long-term liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies, noncurrent | 31 | $ 24 | |
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Range of possible loss | 0 | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Range of possible loss | 65 | ||
Restructuring Action | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | 5 | ||
Undiscounted Environmental Clean-Up Costs | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | $ 19 |
Segment, Major Customer and M_3
Segment, Major Customer and Major Supplier Information - Additional Information (Details) | 3 Months Ended |
Jun. 30, 2021countryplantcontinent | |
Segment Reporting Information [Line Items] | |
Number of operating segments | continent | 4 |
Number of operating plants | 33 |
Number of plants with recycling operations | 15 |
Number of countries Company operates in | country | 9 |
North America | |
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 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 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, Major Customer and M_4
Segment, Major Customer and Major Supplier Information - Selected Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliates | $ 850 | $ 838 | |
Total assets | 13,587 | 12,885 | |
Net sales | 3,855 | $ 2,426 | |
Depreciation and amortization | 134 | 118 | |
Income tax provision (benefit) | 108 | (29) | |
Capital expenditures | 101 | 112 | |
Operating Segments [Member] | North America | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliates | 0 | 0 | |
Total assets | 4,501 | 4,084 | |
Net sales | 1,456 | 828 | |
Operating Segments [Member] | Europe | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliates | 517 | 510 | |
Total assets | 4,153 | 3,974 | |
Net sales | 1,120 | 687 | |
Operating Segments [Member] | Asia | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliates | 333 | 328 | |
Total assets | 2,370 | 2,423 | |
Net sales | 672 | 505 | |
Operating Segments [Member] | South America | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliates | 0 | 0 | |
Total assets | 1,943 | 1,797 | |
Net sales | 576 | 352 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Investment in and advances to non–consolidated affiliates | 0 | 0 | |
Total assets | 620 | $ 607 | |
Net sales | 31 | 54 | |
Net sales - third party | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,855 | 2,426 | |
Net sales - third party | Operating Segments [Member] | North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,456 | 828 | |
Depreciation and amortization | 56 | 49 | |
Income tax provision (benefit) | 17 | (33) | |
Capital expenditures | 45 | 49 | |
Net sales - third party | Operating Segments [Member] | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,068 | 669 | |
Depreciation and amortization | 44 | 38 | |
Income tax provision (benefit) | 11 | (10) | |
Capital expenditures | 15 | 16 | |
Net sales - third party | Operating Segments [Member] | Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 666 | 499 | |
Depreciation and amortization | 22 | 20 | |
Income tax provision (benefit) | 18 | 10 | |
Capital expenditures | 14 | 24 | |
Net sales - third party | Operating Segments [Member] | South America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 574 | 345 | |
Depreciation and amortization | 18 | 18 | |
Income tax provision (benefit) | 63 | 25 | |
Capital expenditures | 29 | 24 | |
Net sales - third party | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 91 | 85 | |
Depreciation and amortization | (6) | (7) | |
Income tax provision (benefit) | (1) | (21) | |
Capital expenditures | (2) | (1) | |
Net sales - intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Net sales - intersegment | Operating Segments [Member] | North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Net sales - intersegment | Operating Segments [Member] | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 52 | 18 | |
Net sales - intersegment | Operating Segments [Member] | Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6 | 6 | |
Net sales - intersegment | Operating Segments [Member] | South America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2 | 7 | |
Net sales - intersegment | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ (60) | $ (31) |
Segment, Major Customer and M_5
Segment, Major Customer and Major Supplier Information - Reconciliation from Segment Income to Consolidated Net Income (Details) € in Millions, $ in Millions | 3 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2020USD ($) | |
Segment Reporting [Abstract] | |||
Net income attributable to our common shareholder | $ 240 | $ (79) | |
Income Tax Expense (Benefit) | 108 | (29) | |
Depreciation, Depletion and Amortization | (134) | (118) | |
Interest Expense | (59) | (70) | |
Adjustment To Eliminate Proportional Consolidation | 14 | 14 | |
Unrealized losses on change in fair value of derivative instruments, net(2) | (4) | (33) | |
Realized Gain (Loss) on Derivative Instruments, Not Included in Segment Income | (1) | 3 | |
Restructuring Costs and Asset Impairment Charges | 2 | (1) | |
Gain on sale of assets | 0 | (2) | |
Recognized cost of inventory step-up | 0 | 28 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 63 | 18 | |
Metal Price Lag | (54) | 20 | |
Business acquisition and other integration related costs | 0 | (11) | |
Other costs, net | (8) | 47 | |
Operating Income (Loss) | 555 | 253 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | € | € (51) | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 411 | (90) | |
Gain on extinguishment of debt | $ (2) | $ 0 |
Segment, Major Customer and M_6
Segment, Major Customer and Major Supplier Information - Income from Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ 555 | $ 253 |
Operating Segments [Member] | South America | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 193 | 76 |
Operating Segments [Member] | Asia | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 88 | 75 |
Operating Segments [Member] | Europe | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 102 | 20 |
Operating Segments [Member] | North America | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 172 | 78 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ 0 | $ 4 |
Segment, Major Customer and M_7
Segment, Major Customer and Major Supplier Information - Net Sales by Value Stream (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,855 | $ 2,426 |
Can Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,940 | 1,380 |
Automotive Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 746 | 313 |
Aerospace Products [Domain] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 114 | 102 |
Specialty And Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,055 | $ 631 |
Segment, Major Customer and M_8
Segment, Major Customer and Major Supplier Information - Information About Major Customers and Primary Supplier (Details) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cost of Goods Sold [Member] | Rio Tinto Alcan [Member] | Supplier Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 8.00% | 7.00% |
Ball [Member] | Net Sales [Member] | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 16.00% | 17.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Subsequent Event [Line Items] | |||
Long-term debt, Principal | $ 5,035 | $ 5,734 | |
Subsequent Event [Member] | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 150 | ||
Floating rate incremental term loan facility, due March 2028 | |||
Subsequent Event [Line Items] | |||
Long-term debt, Principal | $ 499 | 480 | |
Stated rate | 2.15% | ||
Senior Notes due September 2026 [Member] | |||
Subsequent Event [Line Items] | |||
Long-term debt, Principal | $ 1,500 | $ 1,500 | |
Stated rate | 5.875% | ||
3.25% Senior Notes Due 2026 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Long-term debt, Principal | $ 750 | ||
Stated rate | 3.25% | ||
3.875% Senior Notes Due 2031 | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Long-term debt, Principal | $ 750 | ||
Stated rate | 3.875% |