Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and entity information [abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | CSTM |
Title of 12(b) Security | New York Stock Exchange |
Entity Registrant Name | Constellium SE |
Entity Central Index Key | 0001563411 |
Current Fiscal Year End Date | --12-31 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 137,867,418 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Revenue | € 5,907 | € 5,686 | € 5,237 |
Cost of sales | (5,305) | (5,148) | (4,682) |
Gross profit | 602 | 538 | 555 |
Selling and administrative expenses | (276) | (247) | (247) |
Research and development expenses | (48) | (40) | (36) |
Restructuring costs | (4) | (1) | (4) |
Other gains / (losses) - net | (19) | 154 | 70 |
Income from operations | 255 | 404 | 338 |
Finance costs - net | (175) | (149) | (260) |
Share of income / (loss) of joint-ventures | 2 | (33) | (29) |
Income before income tax | 82 | 222 | 49 |
Income tax expense | (18) | (32) | (80) |
Net income / (loss) | 64 | 190 | (31) |
Income attributable to: | |||
Equity holders of Constellium | 59 | 188 | (31) |
Non-controlling interests | 5 | 2 | 0 |
Net income / (loss) | € 64 | € 190 | € (31) |
Earnings per share attributable to the equity holders of Constellium | |||
Basic (in EUR per share) | € 0.43 | € 1.40 | € (0.28) |
Diluted (in EUR per share) | € 0.41 | € 1.37 | € (0.28) |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (LOSS) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Net income / (loss) | € 64 | € 190 | € (31) |
Items that will not be reclassified subsequently to the consolidated income statement | |||
Remeasurement on post-employment benefit obligations | (61) | 24 | 12 |
Income tax on remeasurement on post-employment benefit obligations | 13 | (6) | (8) |
Items that may be reclassified subsequently to the consolidated income statement | |||
Cash flow hedges | (8) | (25) | 46 |
Net investment hedges | 4 | (4) | 0 |
Income tax on hedges | 2 | 8 | (15) |
Currency translation differences | 1 | 10 | (20) |
Other comprehensive (loss) / income | (49) | 7 | 15 |
Total comprehensive income / (loss) | 15 | 197 | (16) |
Attributable to: | |||
Equity holders of Constellium | 10 | 195 | (15) |
Non-controlling interests | 5 | 2 | (1) |
Total comprehensive income / (loss) | € 15 | € 197 | € (16) |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | € 184,000,000 | € 164,000,000 |
Trade receivables and other | 474,000,000 | 587,000,000 |
Inventories | 670,000,000 | 660,000,000 |
Other financial assets | 22,000,000 | 30,000,000 |
Total current assets | 1,350,000,000 | 1,441,000,000 |
Non-current assets | ||
Property, plant and equipment | 2,056,000,000 | 1,666,000,000 |
Goodwill | 455,000,000 | 422,000,000 |
Intangible assets | 70,000,000 | 70,000,000 |
Investments accounted for under the equity method | 1,000,000 | 1,000,000 |
Deferred income tax assets | 185,000,000 | 163,000,000 |
Trade receivables and other | 60,000,000 | 64,000,000 |
Other financial assets | 7,000,000 | 74,000,000 |
Total non-current assets | 2,834,000,000 | 2,460,000,000 |
Total Assets | 4,184,000,000 | 3,901,000,000 |
Current liabilities | ||
Trade payables and other | 999,000,000 | 968,000,000 |
Borrowings | 201,000,000 | 57,000,000 |
Other financial liabilities | 35,000,000 | 60,000,000 |
Income tax payable | 14,000,000 | 8,000,000 |
Provisions | 23,000,000 | 46,000,000 |
Total current liabilities | 1,272,000,000 | 1,139,000,000 |
Non-current liabilities | ||
Trade payables and other | 21,000,000 | 27,000,000 |
Borrowings | 2,160,000,000 | 2,094,000,000 |
Other financial liabilities | 23,000,000 | 29,000,000 |
Pension and other post-employment benefit obligations | 670,000,000 | 610,000,000 |
Provisions | 99,000,000 | 94,000,000 |
Deferred income tax liabilities | 24,000,000 | 22,000,000 |
Total non-current liabilities | 2,997,000,000 | 2,876,000,000 |
Total Liabilities | 4,269,000,000 | 4,015,000,000 |
Equity | ||
Share capital | 2,757,348.36 | 3,000,000 |
Share premium | 420,000,000 | 420,000,000 |
Retained deficit and other reserves | (519,000,000) | (545,000,000) |
Equity attributable to equity holders of Constellium | (96,000,000) | (122,000,000) |
Non controlling interests | 11,000,000 | 8,000,000 |
Total Equity | (85,000,000) | (114,000,000) |
Total Equity and Liabilities | € 4,184,000,000 | € 3,901,000,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - EUR (€) € in Millions | Total | Share capital | Share premium | Re-measurement | Cash flow hedges and net investment hedges | Foreign currency translation reserve | Other reserves | Retained losses | Total Equity holders of Constellium | Non-controlling interests |
Beginning balance at Dec. 31, 2016 | € (570) | € 2 | € 162 | € (151) | € (18) | € 12 | € 17 | € (603) | € (579) | € 9 |
Net income / (loss) | (31) | (31) | (31) | |||||||
Other comprehensive (loss) / income | 15 | 4 | 31 | (19) | 16 | (1) | ||||
Total comprehensive income / (loss) | (16) | 4 | 31 | (19) | (31) | (15) | (1) | |||
Share issuance | 259 | 1 | 258 | 259 | ||||||
Share-based compensation | 8 | 8 | 8 | |||||||
Transactions with non-controlling interests | 0 | |||||||||
Ending balance (Restated) at Dec. 31, 2017 | (321) | 3 | 420 | (147) | 13 | (7) | 25 | (636) | (329) | 8 |
Ending balance at Dec. 31, 2017 | (319) | 3 | 420 | (147) | 13 | (7) | 25 | (634) | (327) | 8 |
Change in accounting policies | Change in accounting policies | (2) | (2) | (2) | |||||||
Net income / (loss) | 190 | 188 | 188 | 2 | ||||||
Other comprehensive (loss) / income | 7 | 18 | (21) | 10 | 7 | |||||
Total comprehensive income / (loss) | 197 | 18 | (21) | 10 | 188 | 195 | 2 | |||
Share issuance | 0 | |||||||||
Share-based compensation | 12 | 12 | 12 | |||||||
Transactions with non-controlling interests | (2) | (2) | ||||||||
Ending balance at Dec. 31, 2018 | (114) | 3 | 420 | (129) | (8) | 3 | 37 | (448) | (122) | 8 |
Net income / (loss) | 64 | 59 | 59 | 5 | ||||||
Other comprehensive (loss) / income | (49) | (48) | (2) | 1 | (49) | |||||
Total comprehensive income / (loss) | 15 | (48) | (2) | 1 | 59 | 10 | 5 | |||
Share issuance | 0 | 0 | ||||||||
Share-based compensation | 16 | 16 | 16 | |||||||
Transactions with non-controlling interests | (2) | (2) | ||||||||
Ending balance at Dec. 31, 2019 | € (85) | € 3 | € 420 | € (177) | € (10) | € 4 | € 53 | € (389) | € (96) | € 11 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | |||
Net income / (loss) | € 64 | € 190 | € (31) |
Adjustments | |||
Depreciation and amortization | 256 | 197 | 171 |
Finance costs - net | 175 | 149 | 260 |
Income tax expense | 18 | 32 | 80 |
Share of (income) / loss of joint-ventures | (2) | 33 | 29 |
Unrealized (gains) / losses on derivatives - net and from remeasurement of monetary assets and liabilities - net | (33) | 86 | (54) |
Losses / (gains) on disposal | 3 | (186) | 3 |
Other - net | 16 | 14 | 7 |
Interest paid | (158) | (129) | (185) |
Income tax paid | (6) | (23) | (18) |
Change in trade working capital | |||
Inventories | 57 | (9) | (99) |
Trade receivables | 104 | (145) | (91) |
Trade payables | (31) | (27) | 124 |
Margin calls | 5 | (5) | 0 |
Change in provisions and pension obligations | (25) | (58) | (24) |
Other working capital | 4 | (53) | (12) |
Net cash flows from operating activities | 447 | 66 | 160 |
Purchases of property, plant and equipment | (271) | (277) | (276) |
Acquisition of subsidiaries net of cash acquired | (83) | 0 | 0 |
Proceeds from disposals, net of cash | 2 | 200 | 2 |
Equity contribution and loan to joint ventures | 0 | (24) | (41) |
Other investing activities | (1) | 10 | 23 |
Net cash flows used in investing activities | (353) | (91) | (292) |
Net proceeds received from issuance of shares | 0 | 0 | 259 |
Proceeds from issuance of Senior Notes | 0 | 0 | 1,440 |
Repayment of Senior Notes | (100) | 0 | (1,559) |
Lease repayments | (86) | (15) | (13) |
Proceeds / (repayments) from revolving credit facilities and other loans | 109 | (68) | 29 |
Payment of deferred financing costs and exit fees | 0 | 0 | (118) |
Transactions with non-controlling interests | (4) | 0 | 0 |
Other financing activities | 5 | 1 | 23 |
Net cash flows (used in) / from financing activities | (76) | (82) | 61 |
Net increase / (decrease) in cash and cash equivalents | 18 | (107) | (71) |
Cash and cash equivalents - beginning of year | 164 | 269 | 347 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 2 | (7) |
Cash and cash equivalents - end of year | € 184 | € 164 | € 269 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of general information [abstract] | |
GENERAL INFORMATION | NOTE 1 - GENERAL INFORMATION Constellium is a global leader in the design and manufacture of a broad range of innovative specialty rolled and extruded aluminium products, serving primarily the packaging, aerospace and automotive end-markets. The Group has a strategic footprint of manufacturing facilities located in North America, Europe and China and operates 28 production facilities, 3 administrative centers and 3 R&D centers. The Group has approximately 13,200 employees. Constellium SE (formerly Constellium N.V.) is a parent company of the Group. On June 28, 2019, the Company was converted from a Dutch public limited liability company ( Naamloze Vennootschap , N.V.) into a Dutch Societas Europaea (SE) and changed its name from Constellium N.V. to Constellium SE. On December 12, 2019, Constellium SE completed the transfer of its head office from the Netherlands to France and became a French Societas Europaea (SE). The business address (head office) of Constellium SE is Washington Plaza, 40- 44 rue Washington, 75008 Paris, France. Unless the context indicates otherwise, when we refer to “we”, “our”, “us”, “Constellium”, the “Group” and the “Company” in this document, we are referring to Constellium SE and its subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of summary of significant accounting policies [abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Statement of compliance The Consolidated Financial Statements of Constellium SE and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as endorsed by the European Union (EU). The Group’s application of IFRS results in no difference between IFRS as issued by the IASB and IFRS as endorsed by the EU (https://ec.europa.eu/info/law/international-accounting-standards-regulation-ec-no-1606-2002_en). The Consolidated Financial Statements were authorized for issue by the Board of Directors on March 9, 2020. 2.2 Application of new and revised IFRS The Group has adopted IFRS 16 - Leases and IFRIC 23 - Uncertainty over Income Tax treatment effective January 1, 2019 . Several other amendments and interpretations apply for the first time in 2019 , but do not have any impact on the Consolidated Financial Statements of the Group. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. IFRS 16 - Leases IFRS 16 - Leases deals with principles for the recognition, measurement, presentation and disclosures of leases. The standard provides an accounting model, requiring a lessee to recognize assets and liabilities for leases. Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and are adjusted for remeasurement of lease liabilities resulting from a change in future lease payments arising from a change in an index or a rate, or a change in the assessment of whether the purchase, extension or termination options will be exercised. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognizes a lease liability measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentive receivables, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expense in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the implicit interest rate in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and which do not contain a purchase option. The Group also applies the low-value asset recognition exemption to leases of assets with a value below €5,000 . Lease payments on short-term leases and low-value asset leases are recognized as expense on a straight-line basis over the lease term. The standard replaced IAS 17 - Leases and is effective for accounting periods beginning on or after January 1, 2019. The Group adopted IFRS 16 retrospectively with the cumulative effect of initially applying the standard recognized at the initial date of application. The Group elected to apply the practical expedients for low-value assets, short-term leases and lease and non-lease components as a single component. In addition, the Group elected for the relief provision of IFRS 16 and did not apply IFRS 16 to contracts that were not previously identified as containing a lease under IAS 17 and IFRIC 4. On January 1, 2019, the Group recognized lease liabilities for €102 million and corresponding right-of-use assets for €102 million for leases previously accounted for as operating leases, excluding initial direct costs, based on an average incremental borrowing rate of 7.6% and no cumulative effect adjustment to the opening balance of retained earnings was recognized. (in millions of Euros) Carrying amount IFRS16 impact Carrying amount Property, plant and equipment 1,666 102 1,768 Borrowings (2,151 ) (102 ) (2,253 ) As of December 31, 2018, commitments for leases previously accounted for as operating leases amounted to €133 million . The difference compared to the lease liabilities recognized as of January 1, 2019 is primarily explained by the impact of discounting and the recognition of short-term leases and low-value asset leases on a straight-line basis as expense, partially offset by adjustments as a result of extension options. IFRIC 23 - Uncertainty over Income Tax treatment This interpretation provides guidance on how to determine an entity’s taxable result where there is uncertainty over whether tax positions taken by an entity will be accepted by the tax authority. The recognition criteria is based on the assessment of whether the tax authority will accept a tax treatment, on a more-likely-than-not basis, assuming that the tax authority has full knowledge of all relevant information. Uncertain tax positions recognized are measured using either (i) the most likely amount between two possible outcomes or (ii) the weighted average amount of several possible outcomes (expected value), depending on which is thought to give a better prediction of the resolution of the uncertainty. The Group adopted IFRIC 23 using the cumulative effect method of adoption at the date of initial application. There was no cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2019. The adoption of IFRIC 23 resulted in the reduction of provisions by €20 million to increase Income tax payable and reduce deferred income tax assets and current tax receivables at January 1, 2019. 2.3 New standards and interpretations not yet mandatorily applicable The Group has not applied the following new standards and interpretations that have been issued but are not yet effective and which could affect the Group’s future Consolidated Financial Statements: Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments on the date of transition. Amendments to IAS 1 and IAS 8: Definition of Material In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, 'Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.' The amendments to the definition of material is not expected to have a significant impact on the Group’s Consolidated Financial Statements. The Group plans to adopt the new standards and interpretations on their required effective dates. 2.4 Basis of preparation In accordance with IAS 1- Presentation of Financial Statements , the Consolidated Financial Statements are prepared on the assumption that Constellium is a going concern and will continue in operation for the foreseeable future. The Group's financial position, its cash flows, liquidity position and borrowing facilities are described in the Consolidated Financial Statements in NOTE 14 - Cash and Cash Equivalent , NOTE 22 - Borrowings and NOTE 24 - Financial Risk Management . The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, including an assessment of the current macroeconomic environment, indicate that the Group should be able to operate within the level of its current facilities and related covenants. Accordingly, the Group continues to adopt the going concern basis in preparing the Consolidated Financial Statements. Management considers that this assumption is not invalidated by the Group’s negative equity at December 31, 2019. This assessment was confirmed by the Board of Directors on March 5, 2020. 2.5 Presentation of the operating performance of each operating segment and of the Group In accordance with IFRS 8 - Operating Segments , operating segments are based upon the product lines, markets and industries served, and are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer. Constellium’s CODM measures the profitability and financial performance of its operating segments based on Adjusted EBITDA as it illustrates the underlying performance of continuing operations by excluding certain non-recurring and non-operating items. Adjusted EBITDA is defined as income / (loss) from continuing operations before income taxes, results from joint ventures, net finance costs, other expenses and depreciation and amortization as adjusted to exclude restructuring costs, impairment charges, unrealized gains or losses on derivatives and on foreign exchange differences on transactions that do not qualify for hedge accounting, metal price lag, share-based compensation expense, effects of certain purchase accounting adjustments, start-up and development costs or acquisition, integration and separation costs, certain incremental costs and other exceptional, unusual or generally non-recurring items. 2.6 Principles governing the preparation of the Consolidated Financial Statement Basis of consolidation These Consolidated Financial Statements include all the assets, liabilities, equity, revenues, expenses and cash flows of the entities and businesses controlled by Constellium. All intercompany transactions and balances are eliminated. Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group has power over the investee, is exposed to, or has rights to variable returns from its involvement in the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Investments over which the Group has significant influence are accounted for under the equity method. Investments over which the Group has joint control are accounted for either as joint ventures under the equity method or as joint arrangements in relation to their interest in the joint operation. Joint venture investments are initially recorded at cost. They are subsequently increased or decreased by the Group’s share in the profit or loss, or by other movements reflected directly in the equity of the entity. Business combinations The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities assumed and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The amount of non-controlling interests is determined for each business combination and is either based on the fair value (full goodwill method) or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets, resulting in recognition of only the share of goodwill attributable to equity holders of the parent (partial goodwill method). Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the amount of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized as a gain in Other gains / (losses) - net in the Consolidated Income Statement. At the acquisition date, the Group recognizes the identifiable acquired assets, liabilities and contingent liabilities (identifiable net assets) of the subsidiaries on the basis of fair value at the acquisition date. Recognized assets and liabilities may be adjusted during a maximum of 12 months from the acquisition date, depending on new information obtained about the facts and circumstances existing at the acquisition date. Significant assumptions used in determining allocation of fair value include the following valuation techniques: the cost approach, the income approach and the market approach which are determined based on cash flow projections and related discount rates, industry indices, market prices regarding replacement cost and comparable market transactions. Acquisition related costs are expensed as incurred and are included in Other gains / (losses) - net in the Consolidated Income Statement. Cash-generating units The reporting units, which generally correspond to industrial sites, are the lowest level of the Group’s internal reporting and have been identified as cash-generating units. Goodwill Goodwill arising from a business combination is carried at cost as established at the date of the business combination less accumulated impairment losses, if any. Goodwill is allocated at the operating segment levels which are the groups of cash-generating units that are expected to benefit from the synergies of the combination. The operating segments represent the lowest level within the Group at which goodwill is monitored for internal management purposes. Gains and losses on the disposal of a cash-generating unit include the carrying amount of goodwill relating to the cash-generating unit sold. Impairment of goodwill A group of cash-generating units to which goodwill is allocated is tested for impairment annually, or more frequently when there is an indication that the group of units may be impaired. The net carrying value of a group of cash-generating units is compared to its recoverable amount, which is the higher of the value in use and the fair value less cost of disposal. Value in use calculations use cash flow projections based on financial budgets approved by management and usually covering a 5-year period. Cash flows beyond this period are estimated using a perpetual long-term growth rate for the subsequent years. The value in use is the sum of discounted cash flows over the projected period and the terminal value. Discount rates are determined based on the weighted-average cost of capital of each operating segment. The fair value is the price that would be received for the group of cash-generating units, in an orderly transaction, from a market participant. This value is estimated on the basis of available and relevant market data or a discounted cash flow model reflecting market participant assumptions. An impairment loss is recognized for the amount by which the group of units carrying amount exceeds its recoverable amount. Any impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the group of cash-generating units and then, to the other assets of the group of units pro rata on the basis of the carrying amount of each asset in the group of units. Any impairment loss is recognized in the line Impairment in the Consolidated Income Statement. An impairment loss recognized for goodwill cannot be reversed in subsequent years. Non-current assets and disposal groups classified as held for sale & Discontinued operations IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations defines a discontinued operation as a component of an entity that (i) generates cash flows that are largely independent from cash flows generated by other components, (ii) is classified as held for sale or has been disposed of, and (iii) represents a separate major line of business or geographic areas of operations. Assets and liabilities are classified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Assets and liabilities are stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. Assets and liabilities held for sale are presented in separate lines in the Consolidated Statement of Financial Position of the year during which the decision to sell is made. The results of discontinued operations are shown separately in the Consolidated Income Statement and Consolidated Statement of Cash Flows. Foreign currency transactions and foreign operations Functional currency Items included in the Consolidated Financial Statements of each of the entities and businesses of Constellium are measured using the currency of the primary economic environment in which each of them operates (their functional currency). Foreign currency transactions Transactions denominated in currencies other than the functional currency are recorded in the functional currency at the exchange rate in effect at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated Income Statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented within Finance costs - net . Realized foreign exchange gains and losses that relate to commercial transactions are presented in Cost of sales . All other foreign exchange gains and losses, including those that relate to foreign currency derivatives hedging commercial transactions where hedge accounting has not been applied, are presented within Other gains / (losses) - net . Foreign operations: presentation currency and foreign currency translation In the preparation of the Consolidated Financial Statements, the year-end balances of assets, liabilities and components of equity of Constellium’s entities and businesses are translated from their functional currencies into Euros, the presentation currency of the Group, at their respective year-end exchange rates. Revenue, expenses and cash flows of Constellium’s entities and businesses are translated from their functional currencies into Euros using their respective average exchange rates for the year. The net differences arising from exchange rate translation are recognized in the Consolidated Statement of Comprehensive Income / (Loss). The following table summarizes the main exchange rates used for the preparation of the Consolidated Financial Statements : Foreign exchange rate for 1 Euro Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Average rate Closing rate Average rate Closing rate Average rate Closing rate U.S. Dollars USD 1.1193 1.1234 1.1798 1.1450 1.1273 1.1993 Swiss Francs CHF 1.1121 1.0854 1.1546 1.1269 1.1103 1.1702 Czech Koruna CZK 25.6698 25.4080 25.6452 25.7240 26.3151 25.5349 Revenue from Contracts with Customers Under IFRS 15, revenue is recognized in an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Group primarily contracts with customers for the sale of rolled or extruded aluminium products. For the majority of our business, performance obligations with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near-term. These purchase orders are short-term in nature, although they may be governed by long-term multi-year frame agreements. Revenue from product sales, measured at the fair value of the consideration received or receivable, should be recognized at the point in time when control of the asset is transferred to the customer, generally upon delivery. In certain limited circumstances, the Group may be required to recognize revenue over time for products that have no alternative use and for which the Group has an enforceable right to payment for production completed to date. Revenue from product sales, net of trade discounts, allowances and volume-based incentives, is recognized for the amount the Group expects to be entitled to, generally upon delivery, and provided persuasive evidence that control has transferred. Contract liabilities consist of expected volume discounts, rebates, incentives, refunds and penalties and price concessions. Contract liabilities are presented in Trade payables and other. Research and development costs Costs incurred on development projects are recognized as intangible assets when the following criteria are met: – It is technically feasible to complete the intangible asset so that it will be available for use; – Management intends to complete and use the intangible asset; – There is an ability to use the intangible asset; – It can be demonstrated how the intangible asset will generate probable future economic benefits; – Adequate technical, financial and other resources to complete the development and use or sell the intangible asset are available; and – The expenditure attributable to the intangible asset during its development can be reliably measured. Development expenditures that do not meet these criteria are expensed as incurred. Development costs previously recognized as expenses cannot be recognized as an asset in a subsequent period. Other gains / (losses) - net Other gains / (losses) - net include: (i) realized and unrealized gains and losses on derivatives contracted for commercial purposes and accounted for at fair value through profit or loss, (ii) unrealized exchange gains and losses from the remeasurement of monetary assets and liabilities and (iii) the ineffective portion of changes in fair value of derivatives, which are designated for hedge accounting. Other gains / (losses) - net separately identifies other unusual, infrequent or non-recurring items. Such items are those that, in management’s judgment, need to be disclosed by virtue of their size, nature or incidence. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. Interest income and expense Interest income is recorded using the effective interest rate method on loans receivables and on the interest bearing components of cash and cash equivalents. Interest expense on short and long-term financing is recorded at the relevant rates on the various borrowing agreements. Borrowing costs (including interest) incurred for the construction of any qualifying asset are capitalized during the period of time required to complete and prepare the asset for its intended use. Share-based payment arrangements Equity-settled share-based payments to employees and Board members providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting year, the Group revises its estimate of the number of equity instruments expected to vest. Property, plant and equipment Recognition and measurement Property, plant and equipment acquired by the Company are recorded at cost, which comprises the purchase price, including import duties and non-refundable purchase taxes, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated close down and restoration costs associated with the asset. Borrowing costs, including interests, directly attributable to the acquisition or construction of a Property, plant and equipment are included in the cost. Subsequent to the initial recognition, Property, plant and equipment are measured at cost less accumulated depreciation and impairment, if any. Costs are capitalized into construction work-in-progress until such projects are completed and the assets are available for use. Subsequent costs Enhancements and replacements are capitalized as additions to Property, plant and equipment only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the item can be measured with reliability. Ongoing regular maintenance costs related to Property, plant and equipment are expensed as incurred. Depreciation Land is not depreciated. Property, plant and equipment are depreciated over the estimated useful lives of the related assets using the straight-line method as follows: – Buildings 10 – 50 years; – Machinery and equipment 3 – 40 years; – Vehicles 5 – 8 years. Intangible assets Recognition and measurement Technology and customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and impairment losses. The useful lives of the Group intangible assets are assessed to be finite. Amortization Intangible assets are amortized over the estimated useful lives of the related assets using the straight-line method as follows: – Technology 20 years; – Customer relationships 25 years; – Software 3 – 5 years. Impairment of property, plant and equipment and intangible assets Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment if there is any indication that the carrying amount of the asset (or cash-generating unit to which it belongs) may not be recoverable. The recoverable amount is based on the higher of fair value less cost of disposal (market value) and value in use (determined using estimates of discounted future net cash flows of the asset or group of assets to which it belongs). Any impairment loss is recognized in the line Impairment in the Consolidated Income Statement. Financial Instruments i. Classification and measurement • Financial assets Financial assets are classified either: (a) at amortized cost, (b) at fair value through other comprehensive income (FVOCI), or (c) at fair value through profit or loss (FVPL). The classification depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing the financial assets. Management determines the classification of Constellium’s financial assets at initial recognition. i. Assets at amortized cost are comprised of other receivables, non-current loans receivable and current loans receivable in the Consolidated Statement of Financial Position. They are held within a business model whose objective is to hold assets in order to collect contractual cash flows provided they give rise to cash flows that are ‘solely payments of principal and interest’ on the principal amount outstanding. They are carried at amortized cost using the effective interest rate method, less any impairment. They are classified as current or non-current assets based on their maturity date. ii. Assets at fair value through OCI are comprised of trade receivables in the Consolidated Statement of Financial Position. The business model is to maintain liquidity for the Group, should the need arise, which leads to sales through factoring agreements that are more than infrequent and significant in value. Therefore, trade receivables are managed under an objective that results in both collecting the contractual cash flows and selling the receivables to the factors. The portfolio of trade receivables is therefore classified as measured at fair value through OCI. Foreign exchange revaluation and impairment losses or reversals are recognized in profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. These assets are classified as current or non-current assets based on their maturity date. iii. Assets at fair value through profit or loss are comprised of derivatives except when designated as hedging instruments in a hedging relationship that qualifies for hedge accounting in accordance with IAS 39, ‘Financial instruments’. Financial assets carried at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in the Consolidated Income Statement. • Financial liabilities Borrowings and other financial liabilities (excluding derivative liabilities) are recognized initially at fair value, net of transaction costs incurred and directly attributable to the issuance of the liability. These financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Any difference between the amounts originally received (net of transaction costs) and the redemption value is recognized in the Consolidated Income Statement using the effective interest rate method. ii. Impairment of financial assets Financial assets subject to IFRS 9’s expected credit loss model includes: cash and cash equivalents, trade receivables and other and loans to joint ventures. iii. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the Consolidated Statement of Financial Position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Derivatives financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument for accounting purposes, and if so, the nature of the item being hedged. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant |
ACQUISITION OF CONSTELLIUM-BOWL
ACQUISITION OF CONSTELLIUM-BOWLING GREEN | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about business combination [abstract] | |
ACQUISITION OF CONSTELLIUM-BOWLING GREEN | NOTE 3 - ACQUISITION OF CONSTELLIUM-BOWLING GREEN Constellium-UACJ ABS LLC was a joint venture in which Constellium held a 51% interest and was created in 2014. The joint venture started its operations in 2016, operating a facility located in Bowling Green, Kentucky and supplying aluminium sheet to the North American automotive industry. At creation date, we determined that, under the terms of the joint venture agreement, we did not control Constellium- UACJ ABS LLC because our existing rights associated with the decision-making process did not give us the ability to direct the relevant activities of the joint venture unilaterally and as a result, Constellium did not have power over the joint venture until January 10, 2019. The acquisition of 49% of Constellium-UACJ ABS LLC was completed on January 10, 2019, strengthening our position in the North American Auto Body Sheet market. The entity was renamed Constellium Bowling Green LLC ("Bowling Green") and is fully consolidated in 2019. In accordance with IFRS 3 - Business combinations , Constellium has recognized the assets acquired and liabilities assumed, measured at fair value at the acquisition date. The following table reflects the goodwill arising as a result of the allocation of purchase price to the Bowling Green assets acquired and liabilities assumed at January 10, 2019: (in millions of Euros) Fair Value Cash and cash equivalents 4 Trade receivables and other 49 Inventories 65 Property, plant and equipment 165 Deferred tax assets 3 Trade payables and other (41 ) Borrowings (75 ) Net asset acquired at fair value 170 Goodwill 24 Total Consideration 194 Total consideration includes €87 million of cash consideration paid for the 49% stake in Constellium-UACJ ABS LLC, €69 million for the fair value of Constellium’s previously held interest in Constellium-UACJ ABS LLC and €38 million from the effective settlement of preexisting trade receivables with Constellium-UACJ ABS LLC. Property, Plant and Equipment, Inventories and Borrowings were remeasured at fair value. The €24 million of goodwill is the result of expected synergies and will be amortized over 15 years for tax purposes. Considering the industries served, its major customers and product lines, Bowling Green and its related assets and liabilities are included in the Packaging and Automotive Rolled Products (P&ARP) operating segment. Acquisition costs were recognized as expenses in Other gains / (losses) - net in the Consolidated Income Statement ( €1 million in 2019). For the year-ended December 31, 2019 , Bowling Green revenue was €333 million and net loss of €48 million . |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
REVENUE | NOTE 4 - REVENUE 4.1 Disaggregation of revenue The following table presents our revenue by product line: (in millions of Euros) Year ended Year ended Year ended Packaging rolled products 2,172 2,245 2,146 Automotive rolled products 816 636 483 Specialty and other thin-rolled products 151 169 176 Aerospace rolled products 863 773 760 Transportation, Industry and other rolled products 557 566 541 Automotive extruded products 797 714 614 Other extruded products 551 573 504 Other — 10 13 Total Revenue 5,907 5,686 5,237 The following table presents our revenue by destination of shipment: (in millions of Euros) Year ended Year ended Year ended France 563 554 557 Germany 1,260 1,339 1,217 United Kingdom 194 175 188 Switzerland 68 77 123 Other Europe 1,078 1,038 940 United States 2,175 1,897 1,691 Canada 89 107 78 Asia and Other Pacific 277 300 270 All Other 203 199 173 Total Revenue 5,907 5,686 5,237 Revenue is recognized at a point in time, except for certain products representing less than 1% of total revenue with no alternative use for which we have a right to payment. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
OPERATING SEGMENT INFORMATION | NOTE 5 - OPERATING SEGMENT INFORMATION Management has defined Constellium’s operating segments based upon the product lines, markets and industries it serves, and prepares and reports operating segment information to Constellium’s chief operating decision maker (CODM) (see NOTE 2 - Summary of Significant Accounting Policies ) on that basis. Packaging and Automotive Rolled Products (P&ARP) P&ARP produces thin-gauge rolled products for customers in the beverage and closures, automotive, customized industrial sheet solutions and high-quality bright surface product markets. P&ARP operates four facilities, in three countries and had approximately 4,000 employees at December 31, 2019 . Aerospace and Transportation (A&T) A&T focuses on thick-gauge rolled high value-added products for customers in the aerospace, defense and mass-transportation markets and engineering industries. A&T operates six facilities in three countries and had approximately 4,000 employees at December 31, 2019 . Automotive Structures and Industry (AS&I) AS&I focuses on specialty products and supplies a variety of hard and soft alloy extruded products, including a range of technically advanced products, to the automotive, rail, industrial, energy and building industries, and to manufacturers of mass transport vehicles and shipbuilders. AS&I operates eighteen facilities in ten countries and had approximately 4,800 employees at December 31, 2019 . Holdings & Corporate Holdings & Corporate includes the net cost of Constellium’s head office and corporate support functions (including our technology centers). Intersegment elimination Intersegment transactions are conducted on an arm’s length basis and reflects market prices. The accounting principles used to prepare the Group’s operating segment information are the same as those used to prepare the Group’s Consolidated Financial Statements. 5.1 Segment Revenue Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 (in millions of Euros) Segment revenue Inter-segment elimination External revenue Segment revenue Inter-segment elimination External revenue Segment revenue Inter-segment elimination External revenue P&ARP 3,149 (10 ) 3,139 3,059 (9 ) 3,050 2,812 (7 ) 2,805 A&T 1,462 (42 ) 1,420 1,389 (50 ) 1,339 1,335 (34 ) 1,301 AS&I 1,351 (3 ) 1,348 1,290 (3 ) 1,287 1,123 (5 ) 1,118 Holdings & Corporate (A) — — — 10 — 10 13 — 13 Total 5,962 (55 ) 5,907 5,748 (62 ) 5,686 5,283 (46 ) 5,237 (A) For the years ended December 31, 2018 and 2017 , the Holdings & Corporate segment included revenue from supplying metal to third parties. 5.2 Segment Adjusted EBITDA and reconciliation of Adjusted EBITDA to Net Income (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 P&ARP 273 243 204 A&T 204 152 146 AS&I 106 125 120 Holdings & Corporate (21 ) (22 ) (22 ) Adjusted EBITDA 562 498 448 Metal price lag (A) (46 ) — 22 Start-up and development costs (B) (11 ) (21 ) (17 ) Manufacturing system and process transformation costs — — (2 ) Bowling Green one-time costs related to the acquisition (C) (5 ) — — Share based compensation costs (16 ) (12 ) (8 ) Gains on pensions plan amendments (D) 25 1 36 20 Depreciation and amortization 17,18 (256 ) (197 ) (171 ) Restructuring costs (4 ) (1 ) (4 ) Unrealized gains / (losses) on derivatives 9 33 (84 ) 57 Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net 9 — — (4 ) (Losses) / gains on disposals (E) 9 (3 ) 186 (3 ) Other (F) — (1 ) — Income from operations 255 404 338 Finance costs - net 11 (175 ) (149 ) (260 ) Share of income / (loss) of joint-ventures 19 2 (33 ) (29 ) Income before income tax 82 222 49 Income tax expense 12 (18 ) (32 ) (80 ) Net income / (loss) 64 190 (31 ) (A) Metal price lag represents the financial impact of the timing difference between when aluminium prices included within Constellium Revenues are established and when aluminium purchase prices included in Cost of sales are established. The Group accounts for inventory using a weighted average price basis and this adjustment aims to remove the effect of volatility in LME prices. The calculation of the Group metal price lag adjustment is based on an internal standardized methodology calculated at each of Constellium’s manufacturing sites and is primarily calculated as the average value of product recorded in inventory, which approximates the spot price in the market, less the average value transferred out of inventory, which is the weighted average of the metal element of cost of sales, based on the quantity sold in the year. (B) For the years ended December 31, 2019 , 2018 and 2017 , start-up and development costs include €11 million , €21 million and €16 million , respectively, related to new projects in our AS&I operating segment. (C) For the year ended December 31, 2019 , Bowling Green one-time costs related to the acquisition include the non-cash reversal of the inventory step-up. (D) For the year ended December 31, 2018 , the Group amended one of its OPEB plans in the U.S., which resulted in a €36 million gain. For the year ended December 31, 2017 , amendments to certain Swiss pension plans, U.S. pension plans and OPEB resulted in a €20 million gain. (E) In July 2018, Constellium completed the sale of the North Building assets of its Sierre plant in Switzerland to Novelis and contributed the Sierre site shared infrastructure to a joint-venture with Novelis, in exchange for cash consideration of €200 million . This transaction also resulted in the termination of the existing lease agreement for the North Building assets which had been leased and operated by Novelis since 2005. For the year ended December 31, 2018 , the transaction generated a €190 million net gain (See NOTE 32 - Subsidiaries and Operating Segments ). (F) For the year ended December 31, 2017 , other includes €3 million of legal fees and lump-sum payments in connection with the renegotiation of a new 5 -year collective bargaining agreement offset by accrual reversals of unused provisions related to one-time loss contingencies. 5.3 Segment capital expenditure (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 P&ARP (96 ) (97 ) (115 ) A&T (72 ) (70 ) (73 ) AS&I (97 ) (105 ) (83 ) Holdings & Corporate (6 ) (5 ) (5 ) Capital expenditures (271 ) (277 ) (276 ) 5.4 Segment assets Segment assets are comprised of total assets of Constellium by segment, less deferred income tax assets, cash and cash equivalents and other financial assets. (in millions of Euros) At December 31, 2019 At December 31, 2018 P&ARP 1,951 1,791 A&T 856 831 AS&I 703 544 Holdings & Corporate 276 304 Segment assets 3,786 3,470 Deferred income tax assets 185 163 Cash and cash equivalents 184 164 Other financial assets 29 104 Total Assets 4,184 3,901 5.5 Information about major customers No single customer contributed 10% or more to the Group's revenue for the year ended December 31, 2019 . Revenue in the P&ARP segment from sales to the Group’s largest customer was €812 million for the year ended December 31, 2018 . Revenue in the P&ARP segment from sales to the Group’s two largest customers was €1,364 million for the year ended December 31, 2017 . No other single customer contributed 10% or more to the Group’s revenue for 2018 and 2017 . |
INFORMATION BY GEOGRAPHIC AREA
INFORMATION BY GEOGRAPHIC AREA | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of geographical areas [abstract] | |
INFORMATION BY GEOGRAPHIC AREA | NOTE 6 - INFORMATION BY GEOGRAPHIC AREA Property, plant and equipment are reported based on the physical location of the assets: (in millions of Euros) At December 31, 2019 At December 31, 2018 United States 926 740 France 656 613 Germany 250 181 Czech Republic 106 84 Other 118 48 Total 2,056 1,666 |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
EXPENSES BY NATURE | NOTE 7 - EXPENSES BY NATURE (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Raw materials and consumables used (3,535 ) (3,561 ) (3,197 ) Employee benefit expenses (1,038 ) (927 ) (907 ) Energy costs (162 ) (140 ) (138 ) Sub-contractors (100 ) (92 ) (99 ) Freight out costs (156 ) (143 ) (124 ) Professional fees (97 ) (74 ) (77 ) Lease expenses (13 ) (31 ) (27 ) Depreciation and amortization (256 ) (197 ) (171 ) Other operating expenses (276 ) (271 ) (229 ) Other gains / (losses) - net (19 ) 154 70 Total operating expenses (5,652 ) (5,282 ) (4,899 ) |
EMPLOYEE BENEFIT EXPENSES
EMPLOYEE BENEFIT EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Classes of employee benefits expense [abstract] | |
EMPLOYEE BENEFIT EXPENSES | NOTE 8 - EMPLOYEE BENEFIT EXPENSES (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Wages and salaries (994 ) (889 ) (872 ) Pension costs - defined benefit plans 25 (19 ) (20 ) (21 ) Other post-employment benefits 25 (9 ) (6 ) (6 ) Share-based compensation 31 (16 ) (12 ) (8 ) Total employee benefit expenses (1,038 ) (927 ) (907 ) NOTE 25 - PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS The Group operates a number of pensions, other post-employment benefits and other long-term employee benefit plans. Some of these plans are defined contribution plans and some are defined benefit plans, with assets held in separate trustee-administered funds. Benefits paid through pension trusts are sufficiently funded to ensure the payment of benefits to retirees when they become due. Actuarial valuations are reflected in the Consolidated Financial Statements as described in NOTE 2.6 - Principles governing the preparation of the Consolidated Financial Statements. 25.1 Description of the plans Pension plans Constellium’s pension obligations are in the U.S., Switzerland, Germany and France. Pension benefits are generally based on the employee’s service and highest average eligible compensation before retirement and are periodically adjusted for cost of living increases, either by company practice, collective agreement or statutory requirement. U.S., Swiss and France benefit plans are funded through long-term employee benefit funds. Other post-employment benefits (OPEB) The Group provides health care and life insurance benefits to retired employees and in some cases to their beneficiaries and covered dependents, mainly in the U.S. Eligibility for coverage depends on certain age and service criteria. These benefit plans are unfunded. Other long-term employee benefits Other long term employee benefits mainly include jubilees in France, Germany and Switzerland and other long-term disability benefits in the U.S. These benefit plans are unfunded. 25.2 Description of risks Our estimates of liabilities and expenses for pensions and other post-employment benefits incorporate a number of assumptions, including discount rate, longevity estimate and inflation rate. The defined benefit obligations expose the Group to a number of risks, including longevity, inflation, interest rate, medical cost inflation, investment performance, and change in law governing the employee benefit obligations. These risks are mitigated when possible by applying an investment strategy for the funded schemes which aims to minimize the long-term costs. This is achieved by investing in a diversified selection of asset classes, which aims to reduce the volatility of returns and also achieves a level of matching with the underlying liabilities. Investment performance risk Our pension plan assets consist primarily of funds invested in listed stocks and bonds. The present value of funded defined benefit obligations is calculated using a discount rate determined by reference to high quality corporate bond yields. If the return on plan asset is below this rate, it will increase the plan deficit. Interest rate risk A decrease in the discount rate will increase the defined benefit obligation. At December 31, 2019 , impacts of the change on the defined benefit obligation of a 0.50% increase / decrease in the discount rates are calculated by using a proxy based on the duration of each scheme: (in millions of Euros) 0.50% increase in 0.50% decrease in France (10 ) 10 Germany (9 ) 11 Switzerland (25 ) 26 United States (32 ) 35 Total sensitivity on Defined Benefit Obligations (76 ) 82 Longevity risk The present value of the defined benefit obligation is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability. 25.3 Actuarial assumptions Pension and other post-employment benefit obligations were updated based on the discount rates applicable at December 31, 2019 . The principal actuarial assumptions used at December 31, 2019 and 2018 were as follows: At December 31, 2019 At December 31, 2018 Rate of increase in salaries Rate of increase in pensions Discount rate Rate of increase in salaries Rate of increase in pensions Discount rate Switzerland 1.50% — 0.15% 1.50% — 0.80% US — — — — — — Hourly pension 2.20% — 3.15% - 3.25% 2.20% — 4.40% - 4.45% Salaried pension 3.80% — 3.25% 3.80% — 4.45% OPEB (A) 3.80% — 3.20% - 3.40% 3.80% — 4.40% - 4.55% Other benefits 3.80% — 3.00% - 3.20% 3.80% — 4.25% - 4.40% France 1.50% - 3.50% 2.00% — 1.50% - 2.50% 2.00% — Retirements — — 0.95% — — 1.65% Other benefits — — 0.80% — — 1.35% Germany 2.75% 1.70% 1.00% 2.75% 1.70% 1.70% (A) The other main financial assumptions used for the OPEB (healthcare plans, which are predominantly in the U.S.) were: • Medical trend rate: pre 65: 6.40% starting in 2020 decreasing gradually to 4.50% until 2026 and stable onwards and post 65: 5.60% starting in 2020 decreasing gradually to 4.50% until 2026 and stable onwards, and • Claims costs are based on individual company experience. For both pension and healthcare plans, the post-employment mortality assumptions allow for future improvements in life expectancy. 25.4 Amounts recognized in the Consolidated Statement of Financial Position At December 31, 2019 At December 31, 2018 (in millions of Euros) Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Present value of funded obligation 768 — 768 674 — 674 Fair value of plan assets (445 ) — (445 ) (380 ) — (380 ) Deficit of funded plans 323 — 323 294 — 294 Present value of unfunded obligation 127 220 347 115 201 316 Net liability arising from defined benefit obligation 450 220 670 409 201 610 25.5 Movement in net defined benefit obligations At December 31, 2019 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2019 789 201 990 (380 ) 610 Included in the Consolidated Income Statement Current service cost 17 7 24 — 24 Interest cost / (income) 18 8 26 (10 ) 16 Past service cost (2 ) 1 (1 ) — (1 ) Immediate recognition of gains / (losses) arising over the year — 2 2 — 2 Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income / (Loss) Remeasurements due to: —actual return less interest on plan assets — — — (54 ) (54 ) —changes in financial assumptions 101 25 126 — 126 —changes in demographic assumptions (2 ) (2 ) (4 ) — (4 ) —experience losses (3 ) (6 ) (9 ) — (9 ) Effects of changes in foreign exchange rates 16 3 19 (11 ) 8 Included in the Consolidated Statement of Cash Flows Benefits paid (43 ) (20 ) (63 ) 38 (25 ) Contributions by the Group — — — (25 ) (25 ) Contributions by the plan participants 4 1 5 (5 ) — At December 31, 2019 895 220 1,115 (445 ) 670 At December 31, 2018 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2018 801 250 1,051 (387 ) 664 Included the Consolidated Income Statement Current service cost 18 6 24 — 24 Interest cost / (income) 16 8 24 (9 ) 15 Past service cost — (36 ) (36 ) — (36 ) Immediate recognition of gains / (losses) arising over the year — — — — — Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income / (Loss) Remeasurements due to: —actual return less interest on plan assets — — — 26 26 —changes in financial assumptions (30 ) (15 ) (45 ) — (45 ) —changes in demographic assumptions (5 ) (1 ) (6 ) — (6 ) —experience losses (1 ) (2 ) (3 ) — (3 ) Effects of changes in foreign exchange rates 22 9 31 (16 ) 15 Included in the Consolidated Statement of Cash Flows Benefits paid (35 ) (19 ) (54 ) 31 (23 ) Contributions by the Group — — — (23 ) (23 ) Contributions by the plan participants 3 1 4 (4 ) — At December 31, 2018 789 201 990 (380 ) 610 25.6 Benefit plan amendments In the third quarter of 2018 , the Group announced a plan to transfer certain participants in the Constellium Rolled Products Ravenswood Retiree Medical and Life Insurance Plan (“the Plan”) from a company sponsored program to a third-party health network that provides similar benefits at a lower cost. This change in benefits was accounted for as a plan amendment and resulted in a reduction of the defined benefit obligation and the recognition of a €36 million gain from negative past service cost. In 2019, the defined benefit obligation was adjusted and corresponding past service costs of €3 million were recorded, to reflect delays in the estimated implementation timetable (see 25.7 Ravenswood OPEB dispute ). During the year ended December 31, 2019, the Group decided to terminate the medical care plan for the active participants of one of its French entities effective October 1, 2019. This resulted in both a decrease of the defined benefit obligation and the recognition of a €2 million gain from negative past service cost. In addition, the Group offered lump sum option to Constellium Rolled Products Ravenswood former employees with deferred benefits. This resulted in both a decrease of the defined benefit obligation and the recognition of a €3 million gain from negative past service cost. 25.7 Ravenswood OPEB dispute s The United Steelworkers Local Union 5668 (the “Union”) is contesting the OPEB Amendments and filed a lawsuit against Constellium Rolled Products Ravenswood, LLC ("Ravenswood") in a federal district court in West Virginia (the “Court”) seeking to enjoin the Plan changes and to compel arbitration. The Court issued an order in December 2018, enjoining Ravenswood from implementing the OPEB Amendments pending resolution in arbitration. In September 2019, the arbitrator issued a decision ruling against Ravenswood and sustaining the Union’s grievance. Ravenswood filed a motion to vacate this decision, which is still pending, and will continue to vigorously defend this case. The Group believes it has a strong legal position and that it is probable that Ravenswood will ultimately prevail and be able to implement the OPEB amendments. Additionally, during 2019, the Union filed a grievance disputing the existing limitation of Ravenswood’s liability for the healthcare costs of pre-Medicare retirees. This matter is scheduled to be arbitrated in the coming months and the Group believes it is without merit and intends to defend it vigorously. 25.8 Net defined benefit obligations by country At December 31, 2019 At December 31, 2018 (in millions of Euros) Defined benefit obligations Plan assets Net defined benefit liability Defined benefit obligations Plan assets Net defined benefit liability France 161 (3 ) 158 151 (3 ) 148 Germany 144 (1 ) 143 136 (1 ) 135 Switzerland 299 (214 ) 85 251 (178 ) 73 United States 510 (227 ) 283 451 (198 ) 253 Other countries 1 — 1 1 — 1 Total 1,115 (445 ) 670 990 (380 ) 610 25.9 Plan asset categories At December 31, 2019 At December 31, 2018 (in millions of Euros) Quoted in an active market Unquoted in an active market Total Quoted in an active market Unquoted in an active market Total Cash & cash equivalents 5 — 5 6 — 6 Equities 119 51 170 95 40 135 Bonds 92 115 207 71 110 181 Property 14 37 51 10 33 43 Other — 12 12 5 10 15 Total fair value of plan assets 230 215 445 187 193 380 25.10 Cash flows Expected contributions to pension and other benefits amount to €32 million and €18 million , respectively, for the year ending December 31, 2020. Future benefit payments expected to be paid either by pension funds or directly by the Company to beneficiaries are as follows: (in millions of Euros) Estimated benefits payments Year ended December 31, 2020 54 2021 51 2022 52 2023 53 2024 58 2025 to 2029 289 At December 31, 2019 , the weighted-average maturity of the defined benefit obligations was 14.1 years ( 2018 : 13.3 years ). |
OTHER GAINS _ (LOSSES)_NET
OTHER GAINS / (LOSSES)—NET | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
OTHER GAINS / (LOSSES)—NET | NOTE 9 - OTHER GAINS / (LOSSES) - NET (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Realized (losses) / gains on derivatives (A) (49 ) 14 — Unrealized gains / (losses) on derivatives at fair value through profit and loss - net (A) 5 33 (84 ) 57 Unrealized exchange losses from the remeasurement of monetary assets and liabilities - net 5 — — (4 ) Gains on pension plan amendments (B) 25 1 36 20 (Losses) / gains on disposal (C) (3 ) 186 (3 ) Other (1 ) 2 — Total other gains / (losses) - net (19 ) 154 70 (A) Realized gains and losses are related to derivatives entered into with the purpose of mitigating exposure to volatility in foreign currencies and commodity prices. Unrealized gains and losses are related to derivatives that do not qualify for hedge accounting. (B) For the year ended December 31, 2018 , the Group amended one of its OPEB plans in the U.S., which resulted in a €36 million gain. For the year ended December 31, 2017 , amendments to certain Swiss pension plans, U.S. pension plans and OPEB resulted in a €20 million gain. (C) In July 2018, Constellium completed the sale of the North Building assets of its Sierre plant in Switzerland to Novelis and contributed the Sierre site shared infrastructure to a joint-venture with Novelis, in exchange for cash consideration of €200 million . This transaction also resulted in the termination of the existing lease agreement for the North Building assets which had been leased and operated by Novelis since 2005. For the year ended December 31, 2018 , the transaction generated a €190 million net gain (See NOTE 32 - Subsidiaries and Operating Segments ). |
CURRENCY GAINS _ (LOSSES)
CURRENCY GAINS / (LOSSES) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
CURRENCY GAINS / (LOSSES) | NOTE 10 - CURRENCY GAINS / (LOSSES) Currency gains and losses, which are included in Income from operations, are as follows: (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Included in Revenue 24 (7 ) 2 2 Included in Cost of sales 1 2 (4 ) Included in Other gains / (losses) - net 9 7 (4 ) Total 3 11 (6 ) Realized exchange gains / (losses) on foreign currency derivatives - net 24 1 11 (15 ) Unrealized gains / (losses) on foreign currency derivatives - net 24 1 (3 ) 17 Exchange gains / (losses) from the remeasurement of monetary assets and liabilities - net 1 3 (8 ) Total 3 11 (6 ) See NOTE 23 - Financial Instruments and NOTE 24 - Financial Risk Management for further information regarding the Company’s foreign currency derivatives and hedging activities. Foreign currency translation reserve (in millions of Euros) At December 31, 2019 At December 31, 2018 Foreign currency translation reserve at January 1 3 (7 ) Effect of currency translation differences 1 10 Foreign currency translation reserve at December 31 4 3 |
FINANCE COSTS_NET
FINANCE COSTS—NET | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
FINANCE COSTS—NET | NOTE 11 - FINANCE COSTS - NET (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Interest received — 7 7 Finance income — 7 7 Interest expense on borrowings (A) (124 ) (118 ) (147 ) Expenses on factoring arrangements (19 ) (18 ) (16 ) Interest expense on leases (13 ) (5 ) (3 ) Net loss on settlement of debt (B) — — (91 ) Realized and unrealized gains / (losses) on debt derivatives at fair value (C) 13 28 (79 ) Realized and unrealized exchange (losses) / gains on financing activities - net (C) (3 ) (22 ) 91 Interest cost on pension and other benefits (16 ) (15 ) (17 ) Other finance expenses (D) (16 ) (10 ) (12 ) Capitalized borrowing costs (E) 3 4 7 Finance expenses (175 ) (156 ) (267 ) Finance costs - net (175 ) (149 ) (260 ) (A) For the year ended December 31, 2019 , the Group incurred mainly (i) €115 million of interest related to Constellium SE Senior Notes and (ii) €7 million of interest expense and fees related to the Muscle Shoals and Ravenswood ABL Facility (“Pan-U.S. ABL”). For the year ended December 31, 2018 , the Group incurred (i) €113 million of interest related to Constellium SE Senior Notes, (ii) €4 million of interest expense and fees related to the Pan US ABL. (B) For the year ended December 31, 2017 , net loss on settlement of debt related to (i) the Muscle Shoals Senior Notes redemption in February 2017 for €13 million and (ii) the Constellium SE Senior Notes redemption in November 2017 for €78 million . The total exit fees incurred and paid related to refinancings in 2017 amounted to €88 million . (C) The Group hedges the dollar exposure relating to the principal of its Constellium SE U.S. Dollar Senior Notes, for the portion that has not been used to finance directly or indirectly U.S. Dollar functional currency entities. Changes in the fair value of these hedging derivatives are recognized within Finance costs – net in the Consolidated Income Statement and largely offset the unrealized results related to Constellium SE U.S. Dollar Senior Notes revaluation. (D) For the year ended December 31, 2018 , other finance expenses include a €6 million net loss resulting from the modification of our loan to Constellium-UACJ ABS LLC in February 2018. (E) Borrowing costs directly attributable to the construction of assets are capitalized. The capitalization rate was 6% for the years ended December 31, 2019 , 2018 and 2017 . |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
INCOME TAX | NOTE 12 - INCOME TAX The current and deferred components of income tax are as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Current tax expense (32 ) (30 ) (26 ) Deferred tax expense 14 (2 ) (54 ) Total income tax expense (18 ) (32 ) (80 ) Using a composite statutory income tax rate applicable by tax jurisdiction, the income tax can be reconciled as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Income before income tax 82 222 49 Composite statutory income tax rate applicable by tax jurisdiction 30.3 % 24.1 % 31.9 % Income tax expense calculated at composite statutory tax rate applicable by tax jurisdiction (25 ) (53 ) (16 ) Tax effect of: Changes in recognized and unrecognized deferred tax assets (A) (10 ) 30 (61 ) Change in tax laws and rates (B) 21 — (11 ) Other (4 ) (9 ) 8 Income tax expense (18 ) (32 ) (80 ) Effective income tax rate 22 % 14 % 163 % (A) For the year ended December 31, 2018, changes mainly relate to non-recurring transactions, especially the gain on the sale of the North Building of the Sierre plant and termination of an existing lease agreement, that generated a significant taxable profit compensated by the use of previously unrecognized tax losses carried forward. For the year ended December 31, 2017, changes mainly relate to unrecognized tax losses carried forward. (B) For the year ended December 31, 2019, the change in tax laws and rates relates mainly to the application of the Swiss Federal Tax Reform voted in May 2019 and enacted in the Canton where one of our entities is located. For the year ended December 31, 2017, the change in tax laws and rates relates mainly to the decrease in the U.S. income tax rate from 40% to 27% for €16 million and to the gradual decrease in the French tax rate to 25.82% starting 2022. Our composite statutory income tax rate of 30.3% for the year ended December 31, 2019 , 24.1% for the year ended December 31, 2018 and 31.9% for the year ended December 31, 2017 resulted from the statutory tax rates (i) in the United States of 26% in 2019 and 2018, and 40% in 2017, (ii) in France of 34.43% in 2019 and 2018, and 39.2% in 2017 (iii) in Germany of 29% , for each of the last three years (iv) in the Netherlands of 25% , for each of the last three years and (v) in Czech Republic of 19% , for each of the last three years. The variation in our composite tax rate mainly results from the geographical mix of our pre-tax results. The increase in our composite tax rate from 24.1% in 2018 to 30.3% in 2019 is mostly related to the gain on the sale of the North Building of the Sierre plant in Switzerland in 2018. The decrease in our composite tax rate from 31.9% in 2017 to 24.1% in 2018 is mostly related to the gain on the sale of the North Building of the Sierre plant. NOTE 20 - DEFERRED INCOME TAXES (in millions of Euros) At December 31, 2019 At December 31, 2018 Deferred income tax assets 185 163 Deferred income tax liabilities (24 ) (22 ) Net deferred income tax assets 161 141 The following tables show the changes in net deferred income tax assets / (liabilities) for the years ended December 31, 2019 and 2018 . (in millions of Euros) At January 1, 2019 Acquisitions Recognized in FX and reclassifications At December 31, 2019 Profit or loss OCI Long-term assets (94 ) 1 (3 ) — (3 ) (99 ) Inventories 5 — 2 — 1 8 Pensions 116 — (4 ) 13 2 127 Derivative valuation 12 — (8 ) 2 — 6 Tax losses carried forward (A) 61 — 27 — (13 ) 75 Other (B) 41 2 — — 1 44 Total 141 3 14 15 (12 ) 161 (A) The reclassifications resulted primarily from the adoption of IFRIC 23. (B) Other results mainly from non-deductible provisions and interest. (in millions of Euros) At January 1, 2018 Recognized in FX At December 31, 2018 Profit or loss OCI Long-term assets (76 ) (15 ) — (3 ) (94 ) Inventories 4 1 — — 5 Pensions 130 (12 ) (7 ) 5 116 Derivative valuation (20 ) 22 8 2 12 Tax losses carried forward 78 (13 ) — (4 ) 61 Other (A) 23 15 — 3 41 Total 139 (2 ) 1 3 141 (A) Other results mainly from non-deductible provisions and interest. Recognized Deferred Tax Assets Some deferred tax assets in respect of temporary differences and tax losses unused were recognized without being offset by deferred tax liabilities. In accordance with the accounting policies described in Note 2.6 of the Consolidated Financial Statements, a detailed assessment was performed based on expected future performance and taxable income. It concludes that it is more likely than not that the net deferred tax asset balance of €161 million ( €141 million at December 31, 2018 ) will be recoverable. Unrecognized Deferred Tax Assets Based on the expected taxable income of the entities, the Group believes that it is more likely than not that a total of €1,009 million ( €1,257 million at December 31, 2018 ) of unused tax losses and deductible temporary differences, will not be used. Consequently, net deferred tax assets have not been recognized. The related tax impact of €259 million ( €321 million at December 31, 2018 ) is attributable to the following: (in millions of Euros) At December 31, 2019 At December 31, 2018 Expiring within 5 years (2 ) (45 ) Expiring after 5 years and limited (62 ) (89 ) Unlimited (20 ) (19 ) Tax losses (84 ) (153 ) Long-term assets (104 ) (107 ) Pensions (20 ) (18 ) Other (51 ) (43 ) Deductible temporary differences (175 ) (168 ) Total (259 ) (321 ) Substantially all of the tax losses not expected to be used reside in the United States as of December 31, 2019 . As of December 31, 2018, the holding company in the Netherlands was not expecting to generate sufficient qualifying taxable profits in a foreseeable future to utilize its tax losses. At December 31, 2019, these tax losses were forfeited following the transfer of the head office from the Netherlands to France. The tax loss carryforwards limited to 20 years generated at one of our main operating entities in the United States are not expected to be utilized. Although this entity is expected to be profitable in the medium or long-term, considering notably the anticipated development of the Automotive Body Sheet business, it has significant non-cash depreciation and financial interest expenses that will result in generating additional tax losses in the coming years. Accordingly, it is not probable that the entity will be able to use at its level, given the absence of an overall U.S. tax group, these tax losses before they expire. Consequently, the related deferred tax assets have not been recognized. At December 31, 2019 and 2018 , most of the unrecognized deferred tax assets on deductible temporary differences on long-term assets and other differences relate to the U.S. An assessment has been performed on the recoverability of the deferred tax assets on deductible temporary differences. The related deferred tax assets on long term assets and on other differences have not been recognized. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | NOTE 13 - EARNINGS PER SHARE (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Earnings attributable to equity holders of the parent used to calculate basic and diluted earnings per share 59 188 (31 ) Number of shares attributable to equity holders of Constellium (number of shares) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Weighted average number of ordinary shares used to calculate basic earnings per share 136,856,978 134,761,736 110,164,320 Effect of other dilutive potential ordinary shares (A) 5,788,641 3,384,178 — Weighted average number of ordinary shares used to calculate diluted earnings per share 142,645,619 138,145,914 110,164,320 (A) For the year ended December 31, 2017 there were 3,291,875 potential ordinary shares that could have a dilutive impact but were considered antidilutive due to negative earnings. Earnings per share attributable to the equity holders of Constellium (in Euro per share) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Basic 0.43 1.40 (0.28 ) Diluted 0.41 1.37 (0.28 ) |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 14 - CASH AND CASH EQUIVALENTS (in millions of Euros) At December 31, 2019 At December 31, 2018 Cash in bank and on hand 184 164 Total Cash and cash equivalent 184 164 At December 31, 2019 , cash in bank and on hand includes a total of €22 million held by subsidiaries that operate in countries where capital control restrictions prevent the balances from being immediately available for general use by the other entities within the Group. At December 31, 2018 the amount subject to these restrictions was €18 million . |
TRADE RECEIVABLES AND OTHER
TRADE RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
TRADE RECEIVABLES AND OTHER | NOTE 15 - TRADE RECEIVABLES AND OTHER Trade receivables and other are comprised of the following: At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Trade receivables - gross — 395 — 483 Impairment — (2 ) — (2 ) Total trade receivables - net — 393 — 481 Income tax receivables 35 22 28 43 Other taxes — 35 — 33 Contract assets 16 2 28 2 Prepaid expenses 1 8 1 12 Other 8 14 7 16 Total other receivables 60 81 64 106 Total trade receivables and other 60 474 64 587 15.1 Contract assets At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Unbilled tooling costs 16 — 26 — Other — 2 2 2 Total Contract assets 16 2 28 2 15.2 Aging The aging of total trade receivables - net is as follows: (in millions of Euros) At December 31, 2019 At December 31, 2018 Not past due 380 453 1 – 30 days past due 10 23 31 – 60 days past due 3 2 61 – 90 days past due — 2 Greater than 90 days past due — 1 Total trade receivables - net 393 481 Impairment allowance Revisions to the impairment allowance arising from changes in estimates are included as either additional allowance or recoveries. An allowance was recognized for €0.4 million during the year ended December 31, 2019 ( €1.1 million reversal of allowance recognized during the year ended December 31, 2018 ). None of the other amounts included in Other receivables were deemed to be impaired. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable shown above. The Group does not hold any collateral from its customers or debtors as security. 15.3 Currency concentration The composition of the carrying amounts of total Trade receivables – net by currency is shown in Euro equivalents as follows: (in millions of Euros) At December 31, 2019 At December 31, 2018 Euro 126 177 U.S. Dollar 251 284 Swiss franc 3 4 Other currencies 13 16 Total trade receivables - net 393 481 15.4 Factoring arrangements The Group factors trade receivables in France by entering into factoring agreements with a third party for a maximum capacity of €235 million . This agreement matures on October 29, 2021 . The Group factors trade receivables in Germany, Switzerland and Czech Republic by entering into factoring agreements with a third party for a maximum capacity of €150 million . This agreement matures on October 29, 2021 . In addition, the Group sells receivables from one of its German customers under an uncommitted factoring facility whereby receivables sold are confirmed by the customer. Constellium Automotive USA LLC entered into a factoring agreement which provides for the sale of specific account receivables up to a maximum capacity of $33 million . The facility was amended, on December 10, 2019, to decrease its maximum capacity to $25 million and to extend its maturity to December 10, 2020. Muscle Shoals entered into a factoring agreement that provides for the sale of specific trade receivables up to a maximum capacity of $375 million . The facility was amended, on September 30, 2019, to decrease its maximum capacity to $300 million and to extend its maturity to September 30, 2021. Under the Group’s factoring agreements, most of the trade receivables are sold without recourse. Where the Group has transferred substantially all the risks and rewards of ownership of the receivables, the receivables are derecognized. Some remaining receivables do not qualify for derecognition under IFRS 9 - Financial Instruments, as the Group retains substantially all the associated risks and rewards. Under the agreements, at December 31, 2019 , the total carrying amount of the original assets factored is €574 million ( December 31, 2018 : €601 million ) of which: • €463 million ( December 31, 2018 : €446 million ) have been derecognized from the Consolidated Statement of Financial Position as the Group transferred substantially all of the associated risks and rewards to the factor; • €111 million ( December 31, 2018 : €155 million ) were recognized on the Consolidated Statement of Financial Position. There was no debt due to the factor relating to trade account receivables sold at December 31, 2019 and 2018 . Covenants The factoring arrangements contain certain customary affirmative and negative covenants, including some relating to the administration and collection of the assigned receivables, the terms of the invoices and the exchange of information, but do not contain maintenance financial covenants. The commitment of the factor to buy receivables under the Muscle Shoals factoring agreement is subject to certain credit ratings being maintained. The Group was in compliance with all applicable covenants at December 31, 2019 and 2018 . |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
INVENTORIES | NOTE 16 - INVENTORIES (in millions of Euros) At December 31, 2019 At December 31, 2018 Finished goods 203 165 Work in progress 321 347 Raw materials 106 112 Stores and supplies 74 67 Inventories write down (34 ) (31 ) Total inventories 670 660 Constellium records inventories at the lower of cost and net realizable value. Any change in the net realizable value adjustment on inventories is included in Cost of sales in the Consolidated Income Statement. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 17 - PROPERTY, PLANT AND EQUIPMENT (in millions of Euros) Notes Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at December 31, 2018 18 217 1,227 194 10 1,666 IFRS 16 application — 82 17 — 3 102 Net balance at January 1, 2019 18 299 1,244 194 13 1,768 Property, plant and equipment acquired through business combination 3 — 40 120 4 1 165 Additions 1 22 81 245 3 352 Disposals — — (5 ) — — (5 ) Depreciation expense — (27 ) (208 ) — (11 ) (246 ) Transfer during the year — 28 203 (242 ) 11 — Effects of changes in foreign exchange rates — 4 16 2 — 22 Net balance at December 31, 2019 19 366 1,451 203 17 2,056 Cost 35 527 2,407 213 46 3,228 Less accumulated depreciation and impairment (16 ) (161 ) (956 ) (10 ) (29 ) (1,172 ) Net balance at December 31, 2019 19 366 1,451 203 17 2,056 (in millions of Euros) Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at January 1, 2018 14 206 1,089 198 10 1,517 Additions 1 5 98 195 4 303 Disposals — — (6 ) — — (6 ) Depreciation expense (4 ) (13 ) (161 ) — (6 ) (184 ) Transfer during the year 6 16 181 (202 ) 2 3 Effects of changes in foreign exchange rates 1 3 26 3 — 33 Net balance at December 31, 2018 18 217 1,227 194 10 1,666 Cost 33 349 2,000 200 35 2,617 Less accumulated depreciation and impairment (15 ) (132 ) (773 ) (6 ) (25 ) (951 ) Net balance at December 31, 2018 18 217 1,227 194 10 1,666 Right of use assets Right of use have been included within the same line item as that within which the corresponding underlying assets would be presented if they were owned. (in millions of Euros) Buildings Machinery and Equipment Other Total Net balance at December 31, 2018 24 53 — 77 IFRS 16 application (A) 82 17 3 102 Net balance at January 1, 2019 106 70 3 179 Additions 20 21 2 43 Disposals — — — — Depreciation expense (11 ) (18 ) (2 ) (31 ) Transfer during the period — (3 ) — (3 ) Effects of changes in foreign exchange rates 1 1 — 2 Net balance at December 31, 2019 116 71 3 190 Cost 134 113 5 252 Less accumulated depreciation and impairment (18 ) (42 ) (2 ) (62 ) Net balance at December 31, 2019 116 71 3 190 (A) The IFRS 16 application included assets acquired through finance leases reclassified as right-of-use assets of €77 million and operating leases recognized as right-of-use assets of €102 million at January 1, 2019. The total expense relating to short-term leases, low value asset leases and variable lease payments that are still recognized as operating expenses was €13 million for the year ended December 31, 2019 . Depreciation expense and impairment losses Total depreciation expense and impairment losses relating to property, plant and equipment and intangible assets are presented in the Consolidated Income Statement as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Cost of sales (237 ) (184 ) (160 ) Selling and administrative expenses (13 ) (9 ) (8 ) Research and development expenses (6 ) (4 ) (3 ) Total (256 ) (197 ) (171 ) The amount of contractual commitments for the acquisition of property, plant and equipment is disclosed in NOTE 29 - Commitments . Impairment tests for property, plant and equipment and intangibles assets A triggering event was identified at December 31, 2019 for Automotive Structure USA cash-generating units due to the fact that actual operating profit and net cash flows were impacted by higher than expected costs related to operational challenges on some of the newer automotive programs. In accordance with the accounting policies described in Note 2.6 of the Consolidated Financial Statements, the Automotive Structure USA cash- generating units were tested for impairment at December 31, 2019 and management concluded that no impairment charge was required. No triggering events were identified at December 31, 2019 for our other cash-generating units. No triggering events were identified at December 31, 2018 and 2017 for our cash-generating units. |
INTANGIBLE ASSETS (INCLUDING GO
INTANGIBLE ASSETS (INCLUDING GOODWILL) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
INTANGIBLE ASSETS (INCLUDING GOODWILL) | NOTE 18 - INTANGIBLE ASSETS (INCLUDING GOODWILL) (in millions of Euros) Notes Goodwill Technology Computer Software Customer relationships Work in Progress Other Total intangible assets (excluding goodwill) Net balance at January 1, 2019 422 22 18 15 13 2 70 Intangible assets acquired through business combination 3 24 — — — — — — Additions — — 1 — 8 — 9 Amortization expense — (1 ) (8 ) (1 ) — — (10 ) Transfer during the year — — 7 — (7 ) — — Effects of changes in foreign exchange rates 9 — 1 — — — 1 Net balance at December 31, 2019 455 21 19 14 14 2 70 Cost 455 87 73 39 16 2 217 Less accumulated depreciation and impairment — (66 ) (54 ) (25 ) (2 ) — (147 ) Net balance at December 31, 2019 455 21 19 14 14 2 70 (in millions of Euros) Goodwill Technology Computer Software Customer relationships Work in Progress Other Total intangible assets (excluding goodwill) Net balance at January 1, 2018 403 24 18 15 9 2 68 Additions — — 2 — 8 1 11 Amortization expense — (3 ) (8 ) (1 ) — (1 ) (13 ) Transfer during the year — — 5 — (5 ) — — Effects of changes in foreign exchange rates 19 1 1 1 1 — 4 Net balance at December 31, 2018 422 22 18 15 13 2 70 Cost 422 84 65 39 13 3 204 Less accumulated depreciation and impairment — (62 ) (47 ) (24 ) — (1 ) (134 ) Net balance at December 31, 2018 422 22 18 15 13 2 70 Impairment tests for goodwill Goodwill in the amount of €455 million has been allocated to the Group’s operating segment Packaging and Automotive Rolled Products (“P&ARP”) for €448 million , Aerospace and Transportation (“A&T”) for €5 million and Automotive Structures and Industry (“AS&I”) for €2 million . At December 31, 2019 , the recoverable amount of our operating segments has been determined based on value in use calculations. The recoverable amount of the A&T and AS&I operating segments significantly exceeded their carrying value. No reasonable change in the assumptions used could lead to a potential impairment charge. For the P&ARP operating segment, the terminal value assumes a normative cash flow and a long term growth rate ranging from 0% to 1.5% . The discount rates applied to cash flows projections range between 9% and 9.5% . It was concluded that the carrying value ( €1,763 million ) did not exceed the recoverable value ( €2,653 million ) at December 31, 2019 . Accordingly, the impairment test carried out at the P&ARP operating segment level did not lead to a goodwill impairment. The key assumptions used in the determination of the value in use for the P&ARP operating segment are the discount rates and the perpetual growth rates used to extrapolate cash-flows beyond the forecast year. – Discount rates used represent the current market assessment of the risks specific to the P&ARP operating segment taking into consideration the time value of money and the risks associated with the underlying assets. – The growth rates used to extrapolate cash-flows beyond the forecast year were developed internally and are consistent with external sources of information. The calculation of the recoverable value of the P&ARP operating segment is most sensitive to the following assumptions: – Discount rate: an increase in the discount rate by 5% would result in the recoverable value equaling the carrying value. – Perpetual growth rate: a decrease in the perpetual growth rate by 9% would result in the recoverable value equaling the carrying value. |
INVESTMENTS ACCOUNTED FOR UNDER
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD | NOTE 19 - INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD The acquisition of 49% of Constellium-UACJ ABS LLC was completed on January 10, 2019 and the entity is consolidated since the acquisition date. The remeasurement of the 51% previously held equity interest in Constellium-UACJ ABS LLC at the acquisition date resulted in the recognition of a €2 million profit presented in Share of income / (loss) of joint ventures in the Consolidated Income Statement. The Group's investment accounted for under the Equity method is Rhenaroll S.A. (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 At January 1 1 1 Group share in loss — (33 ) Reclassified to non-current other financial assets (A) — 33 At December 31 1 1 (A) At December 31, 2018, the loan to Constellium-UACJ ABS LLC was, in substance, part of Constellium’s investment in the joint-venture. Thus, Constellium’s accumulated share of the losses of joint-ventures, in excess of the initial investment, was recognized against other financial assets for a cumulative amount of €49 million at December 31, 2018, of which €33 million was recognized during the year ended December 31, 2018. Group share of joint venture’s net assets Group share of joint venture’s profit/ (loss) (in millions of Euros) % interest At December 31, 2019 At December 31, 2018 At December 31, 2019 At December 31, 2018 Constellium-UACJ ABS LLC 51.00 % — (49 ) — (33 ) Rhenaroll S.A. (A) 49.85 % 1 1 — — Group share 1 (48 ) — (33 ) Reclassified to non-current other financial assets — 49 — — Investment in joint venture 1 1 — (33 ) (A) The Group holds a 49.85% interest in a joint venture named Rhenaroll S.A. (located in Biesheim, France), specialized in the chrome-plating, grinding and repairing of rolling mills’ roll and rollers. Rhenaroll S.A. is a private company with no quoted market price available for its shares. The investment is included in P&ARP segment assets. Constellium-UACJ ABS LLC financial statements as of and for the year ended December 31, 2018 The information presented hereafter reflects the amounts included in the Consolidated Financial Statements of the relevant entity in accordance with Group accounting principles and not the Company’s share of those amounts. (in millions of Euros) At December 31, 2018 Current assets Cash and cash equivalents 8 Trade receivables and other 49 Inventories 68 Non-current assets Property, plant and equipment 166 Intangible assets — Total Assets 291 Current liabilities Trade payables and other 79 Borrowings (A) 36 Non-current liabilities Borrowings (A) 271 Equity (95 ) Total Equity and Liabilities 291 (A) In February 2018, the shareholders had agreed to modify the terms of their loan to Constellium-UACJ ABS LLC by reducing the interest rate and extending the maturity to March 31, 2023. (in millions of Euros) Year ended December 31, 2018 Revenue 262 Cost of sales (309 ) Selling and administrative expenses (10 ) Loss from operations (57 ) Finance costs (A) (7 ) Net loss (64 ) (A) Finance costs include a €11 million gain related to the shareholders’ loan modification for the year ended December 31, 2018. |
DEFERRED INCOME TAXES
DEFERRED INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
DEFERRED INCOME TAXES | NOTE 12 - INCOME TAX The current and deferred components of income tax are as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Current tax expense (32 ) (30 ) (26 ) Deferred tax expense 14 (2 ) (54 ) Total income tax expense (18 ) (32 ) (80 ) Using a composite statutory income tax rate applicable by tax jurisdiction, the income tax can be reconciled as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Income before income tax 82 222 49 Composite statutory income tax rate applicable by tax jurisdiction 30.3 % 24.1 % 31.9 % Income tax expense calculated at composite statutory tax rate applicable by tax jurisdiction (25 ) (53 ) (16 ) Tax effect of: Changes in recognized and unrecognized deferred tax assets (A) (10 ) 30 (61 ) Change in tax laws and rates (B) 21 — (11 ) Other (4 ) (9 ) 8 Income tax expense (18 ) (32 ) (80 ) Effective income tax rate 22 % 14 % 163 % (A) For the year ended December 31, 2018, changes mainly relate to non-recurring transactions, especially the gain on the sale of the North Building of the Sierre plant and termination of an existing lease agreement, that generated a significant taxable profit compensated by the use of previously unrecognized tax losses carried forward. For the year ended December 31, 2017, changes mainly relate to unrecognized tax losses carried forward. (B) For the year ended December 31, 2019, the change in tax laws and rates relates mainly to the application of the Swiss Federal Tax Reform voted in May 2019 and enacted in the Canton where one of our entities is located. For the year ended December 31, 2017, the change in tax laws and rates relates mainly to the decrease in the U.S. income tax rate from 40% to 27% for €16 million and to the gradual decrease in the French tax rate to 25.82% starting 2022. Our composite statutory income tax rate of 30.3% for the year ended December 31, 2019 , 24.1% for the year ended December 31, 2018 and 31.9% for the year ended December 31, 2017 resulted from the statutory tax rates (i) in the United States of 26% in 2019 and 2018, and 40% in 2017, (ii) in France of 34.43% in 2019 and 2018, and 39.2% in 2017 (iii) in Germany of 29% , for each of the last three years (iv) in the Netherlands of 25% , for each of the last three years and (v) in Czech Republic of 19% , for each of the last three years. The variation in our composite tax rate mainly results from the geographical mix of our pre-tax results. The increase in our composite tax rate from 24.1% in 2018 to 30.3% in 2019 is mostly related to the gain on the sale of the North Building of the Sierre plant in Switzerland in 2018. The decrease in our composite tax rate from 31.9% in 2017 to 24.1% in 2018 is mostly related to the gain on the sale of the North Building of the Sierre plant. NOTE 20 - DEFERRED INCOME TAXES (in millions of Euros) At December 31, 2019 At December 31, 2018 Deferred income tax assets 185 163 Deferred income tax liabilities (24 ) (22 ) Net deferred income tax assets 161 141 The following tables show the changes in net deferred income tax assets / (liabilities) for the years ended December 31, 2019 and 2018 . (in millions of Euros) At January 1, 2019 Acquisitions Recognized in FX and reclassifications At December 31, 2019 Profit or loss OCI Long-term assets (94 ) 1 (3 ) — (3 ) (99 ) Inventories 5 — 2 — 1 8 Pensions 116 — (4 ) 13 2 127 Derivative valuation 12 — (8 ) 2 — 6 Tax losses carried forward (A) 61 — 27 — (13 ) 75 Other (B) 41 2 — — 1 44 Total 141 3 14 15 (12 ) 161 (A) The reclassifications resulted primarily from the adoption of IFRIC 23. (B) Other results mainly from non-deductible provisions and interest. (in millions of Euros) At January 1, 2018 Recognized in FX At December 31, 2018 Profit or loss OCI Long-term assets (76 ) (15 ) — (3 ) (94 ) Inventories 4 1 — — 5 Pensions 130 (12 ) (7 ) 5 116 Derivative valuation (20 ) 22 8 2 12 Tax losses carried forward 78 (13 ) — (4 ) 61 Other (A) 23 15 — 3 41 Total 139 (2 ) 1 3 141 (A) Other results mainly from non-deductible provisions and interest. Recognized Deferred Tax Assets Some deferred tax assets in respect of temporary differences and tax losses unused were recognized without being offset by deferred tax liabilities. In accordance with the accounting policies described in Note 2.6 of the Consolidated Financial Statements, a detailed assessment was performed based on expected future performance and taxable income. It concludes that it is more likely than not that the net deferred tax asset balance of €161 million ( €141 million at December 31, 2018 ) will be recoverable. Unrecognized Deferred Tax Assets Based on the expected taxable income of the entities, the Group believes that it is more likely than not that a total of €1,009 million ( €1,257 million at December 31, 2018 ) of unused tax losses and deductible temporary differences, will not be used. Consequently, net deferred tax assets have not been recognized. The related tax impact of €259 million ( €321 million at December 31, 2018 ) is attributable to the following: (in millions of Euros) At December 31, 2019 At December 31, 2018 Expiring within 5 years (2 ) (45 ) Expiring after 5 years and limited (62 ) (89 ) Unlimited (20 ) (19 ) Tax losses (84 ) (153 ) Long-term assets (104 ) (107 ) Pensions (20 ) (18 ) Other (51 ) (43 ) Deductible temporary differences (175 ) (168 ) Total (259 ) (321 ) Substantially all of the tax losses not expected to be used reside in the United States as of December 31, 2019 . As of December 31, 2018, the holding company in the Netherlands was not expecting to generate sufficient qualifying taxable profits in a foreseeable future to utilize its tax losses. At December 31, 2019, these tax losses were forfeited following the transfer of the head office from the Netherlands to France. The tax loss carryforwards limited to 20 years generated at one of our main operating entities in the United States are not expected to be utilized. Although this entity is expected to be profitable in the medium or long-term, considering notably the anticipated development of the Automotive Body Sheet business, it has significant non-cash depreciation and financial interest expenses that will result in generating additional tax losses in the coming years. Accordingly, it is not probable that the entity will be able to use at its level, given the absence of an overall U.S. tax group, these tax losses before they expire. Consequently, the related deferred tax assets have not been recognized. At December 31, 2019 and 2018 , most of the unrecognized deferred tax assets on deductible temporary differences on long-term assets and other differences relate to the U.S. An assessment has been performed on the recoverability of the deferred tax assets on deductible temporary differences. The related deferred tax assets on long term assets and on other differences have not been recognized. |
TRADE PAYABLES AND OTHER
TRADE PAYABLES AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
TRADE PAYABLES AND OTHER | NOTE 21 - TRADE PAYABLES AND OTHER At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Trade payables — 711 — 685 Fixed assets payables — 43 — 30 Employees' entitlements — 171 — 160 Taxes payable other than income tax — 14 — 16 Contract liabilities and other liabilities to customers 6 54 9 68 Other payables 15 6 18 9 Total Other 21 288 27 283 Total Trade payables and other 21 999 27 968 Contract liabilities At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Deferred tooling revenue 2 — — — Advance payment from customers 2 5 7 9 Unrecognized variable consideration (A) 2 46 2 57 Other — 3 — 2 Total contract liabilities and other liabilities to customers 6 54 9 68 (A) Unrecognized variable consideration consists of expected volume rebates, discounts, incentives, refunds penalties and price concessions. For the twelve months ended December 31, 2019 , €57 million of revenue that related to contract liabilities at December 31, 2018 was recognized. Revenue of €62 million generated in the year ended December 31, 2019 was deferred. For the twelve months ended December 31, 2018 , €55 million of revenue that related to contract liabilities at January 1, 2018 was recognized. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
BORROWINGS | NOTE 22 - BORROWINGS 22.1 Analysis by nature (in millions of Euros) December 31, 2019 December 31, 2018 Nominal Value in Currency Nominal rate Effective rate Nominal Value In Euros (Arrangement fees) Accrued interests Carrying value Carrying value Secured Pan-U.S. ABL (due 2022) (A) $ 142 Floating 4.2 % 127 — — 127 — Secured Inventory Based Facility (due 2021) (B) — Floating — — — — — — Senior Unsecured Notes Constellium SE $ 400 5.75 % 6.26 % 356 (3 ) 2 355 348 Constellium SE € 200 4.63 % 5.16 % 200 (1 ) 1 200 300 Constellium SE $ 650 6.63 % 7.13 % 579 (10 ) 13 582 568 Constellium SE $ 500 5.88 % 6.26 % 445 (6 ) 10 449 440 Constellium SE € 400 4.25 % 4.57 % 400 (6 ) 6 400 399 Unsecured Revolving Credit Facility (due 2021) (C) — Floating — — — — — — Lease liabilities 187 — 1 188 73 Other loans (D) 59 — 1 60 23 Total Borrowings 2,353 (26 ) 34 2,361 2,151 Of which non-current 2,160 2,094 Of which current 201 57 Constellium SE Senior Notes are guaranteed by certain subsidiaries. (A) On February 20, 2019, the Pan-U.S. ABL was amended to include Bowling Green and increased to $350 million . The Pan-U.S. ABL was increased to $400 million on May 10, 2019. (B) On March 15, 2019, the French secured Inventory Based Facility maturity was extended to 2021. (C) The Unsecured Revolving Credit Facility has a €7 million borrowing base and is provided by Bpifrance Financement, a related party. (D) Other loans include €36 million of financial liabilities relating to the sale and leaseback of assets that were considered to be financing arrangements in substance. 22.2 Movements in borrowings (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 At December 31, prior period 2,151 2,127 IFRS 16 application 102 — At January 1 2,253 2,127 Cash flows Repayment of Senior Notes (A) (100 ) — Proceeds / (repayments) from revolving credit facilities and other loans 109 (68 ) Lease repayments (86 ) (15 ) Non-cash changes Borrowings assumed through business combination 3 75 — Movement in interests accrued or capitalized 1 12 New leases and other loans 75 28 Deferred arrangement fees, step-up amortization and other 5 2 Effects of changes in foreign exchange rates 29 65 At December 31 2,361 2,151 (A) On August 8, 2019, €100 million of the €300 million outstanding aggregate principal amount of the 4.63% Senior Notes due 2021 were redeemed. 22.3 Currency concentration The composition of the carrying amounts of total borrowings in Euro equivalents is denominated in the currencies shown below: (in millions of Euros) At December 31, 2019 At December 31, 2018 U.S. Dollar 1,597 1,408 Euro 746 726 Other currencies 18 17 Total borrowings 2,361 2,151 Covenants The Group was in compliance with all applicable debt covenants at and for the years ended December 31, 2019 and 2018 . Constellium SE Senior Notes The indentures for our outstanding Senior Notes contain customary terms and conditions, including amongst other things, limitations on incurring or guaranteeing additional indebtedness, on paying dividends, on making other restricted payments, on creating restriction on dividend and other payments to us from certain of our subsidiaries, on incurring certain liens, on selling assets and subsidiary stock, and on merging. Pan-U.S. ABL Facility This facility contains a fixed charge coverage ratio covenant and an EBITDA contribution ratio covenant along with customary affirmative and negative covenants. Evaluation of compliance with the maintenance covenants is only required if the excess availability falls below 10% of the aggregate revolving loan commitment. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | NOTE 23 - FINANCIAL INSTRUMENTS 23.1 Financial assets and liabilities by categories At December 31, 2019 At December 31, 2018 (in millions of Euros) Notes At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total Cash and cash equivalents 14 184 — — 184 164 — — 164 Trade receivables 15 — — 393 393 — — 481 481 Other financial assets — 29 — 29 74 30 — 104 Total 184 29 393 606 238 30 481 749 At December 31, 2019 At December 31, 2018 (in millions of Euros) Notes At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total Trade payables and fixed assets payables 21 754 — — 754 715 — — 715 Borrowings 22 2,361 — — 2,361 2,151 — — 2,151 Other financial liabilities — 44 14 58 — 79 10 89 Total 3,115 44 14 3,173 2,866 79 10 2,955 The table below details other financial assets and other financial liabilities positions: At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Total Non-current Current Total Derivatives 7 22 29 7 23 30 Aluminium and premium future contracts 1 8 9 2 7 9 Energy future contracts — — — — — — Other future contracts — — — — — — Currency commercial contracts 5 12 17 3 12 15 Currency net debt derivatives 1 2 3 2 4 6 Loans (A) — — — 67 2 69 Margin call — — — — 5 5 Other financial assets 7 22 29 74 30 104 Derivatives 23 35 58 29 60 89 Aluminium and premium future contracts 4 10 14 6 38 44 Energy future contracts — 1 1 — — — Other future contracts 2 4 6 5 3 8 Currency commercial contracts 12 16 28 7 12 19 Net investment hedge — — — — 4 4 Currency net debt derivatives 5 4 9 11 3 14 Other financial liabilities 23 35 58 29 60 89 (A) At December 31, 2018, Loans corresponds to a loan facility to Constellium-UACJ ABS LLC (See NOTE 19 - Investments Accounted for under the Equity Method ). 23.2 Fair values All derivatives are presented at fair value in the Consolidated Statement of Financial Position. The carrying value of the Group’s borrowings at maturity is the redemption value. The fair value of Constellium SE Senior Notes issued in May 2014, February 2017 and November 2017 account for 102% , 104% and 105% respectively of the nominal value and amount to €570 million , €603 million and €887 million , respectively, at December 31, 2019 . The fair value was classified as a Level 1 measurement under the fair value hierarchy provided by IFRS 13 – Fair Value Measurement . The fair values of the other financial assets and liabilities approximate their carrying values, as a result of their liquidity or short maturity. 23.3 Valuation hierarchy The following table provides an analysis of derivatives measured at fair value, grouped into levels based on the degree to which the fair value is observable: • Level 1 valuation is based on a quoted price (unadjusted) in active markets for identical financial instruments. Level 1 includes aluminium, copper and zinc futures that are traded on the LME. • Level 2 valuation is based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. prices) or indirectly (i.e. derived from prices). Level 2 includes foreign exchange derivatives; • Level 3 valuation is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). Trade receivables are classified as a Level 3 measurement under the fair value hierarchy. At December 31, 2019 At December 31, 2018 (in millions of Euros) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Other financial assets - derivatives 8 21 — 29 9 21 — 30 Other financial liabilities - derivatives 19 39 — 58 50 39 — 89 There was no material transfer of asset and liability categories into or out of Level 1, Level 2 or Level 3 during the years ended December 31, 2019 and 2018 . |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of financial risk management [Abstract] | |
FINANCIAL RISK MANAGEMENT | NOTE 24 - FINANCIAL RISK MANAGEMENT The Group’s financial risk management strategy focuses on minimizing the cash flow impacts of volatility in foreign currency exchange rates, metal prices and interest rates, while maintaining the financial flexibility the Group requires in order to successfully execute the Group’s business strategy. Due to Constellium’s capital structure and the nature of its operations, the Group is exposed to the following financial risks: (i) market risk (including foreign exchange risk, commodity price risk and interest rate risk); (ii) credit risk and (iii) liquidity and capital management risk. 24.1 Market risk i. Foreign exchange risk Net assets, earnings and cash flows are influenced by multiple currencies due to the geographic diversity of sales and the countries in which the Group operates. Constellium is exposed to foreign exchange risk in the following areas: • Transaction exposures, which include: ◦ Commercial transactions related to forecasted sales and purchases and on-balance sheet receivables/payables resulting from such transactions; ◦ Financing transactions, related to external and internal net debt; • Translation exposures, which relate to net investments in foreign entities that are converted in Euros in the Consolidated Financial Statements. Commercial transaction exposures The Group policy is to hedge committed and highly probable forecasted foreign currency operational transactions. The Group uses foreign exchange forwards and foreign exchange swaps for this purpose. The following tables outline the nominal value (converted to millions of Euros at the closing rate) of derivatives for Constellium’s most significant foreign exchange exposures as at December 31, 2019 . Forward derivative sales Maturity Year Less than 1 year Over 1 year USD/EUR 2020-2024 446 157 EUR/CHF 2020-2023 79 35 Other currencies 2020 10 — Forward derivative purchases Maturity Year Less than 1 year Over 1 year USD/EUR 2020-2024 473 77 EUR/CHF 2020-2024 130 61 EUR/CZK 2020 81 — Other currencies 2020 2 — Forward derivative sales mean that the Group sells currency 1 versus currency 2. Forward derivative purchases mean that the Group buys currency 1 versus currency 2. In 2016, the Group agreed with a major customer for the sale of fabricated metal products in U.S. Dollars to be supplied from a Euro functional currency entity. In line with its hedging policy, the Group entered into significant foreign exchange derivatives which match related highly probable future conversion sales by selling U.S. Dollars against Euros. The Group designated these derivatives for hedge accounting, with total nominal amount of $233 million , as of December 31, 2019 ( $369 million as of December 31, 2018 ), and maturities of 2020 to 2022 . For hedges that do not qualify for hedge accounting, any mark-to-market movements are recognized in Other gains / (losses) - net. The table below details the effect of foreign currency derivatives in the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income / (Loss): (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Derivatives that do not qualify for hedge accounting Included in Other gains / (losses) - net Realized gains / (losses) on foreign currency derivatives - net 10 7 7 (16 ) Unrealized gains / (losses) on foreign currency derivatives - net (A) 10 2 (1 ) 16 Derivatives that qualify for hedge accounting Included in Revenue Realized (losses) / gains on foreign currency derivatives - net 10 (6 ) 4 1 Unrealized (losses) / gains on foreign currency derivatives - net 10 (1 ) (2 ) 1 Included in Other gains / (losses) - net Realized gains / (losses) in ineffective portion of derivatives — — — Included in Other comprehensive income / (loss) Unrealized (losses) / gains on foreign currency derivatives - net (15 ) (23 ) 48 Gains / (losses) reclassified from cash flow hedge reserve to Consolidated Income Statement 7 (2 ) (2 ) (A) Gains or losses on the hedging instruments are expected to offset losses or gains on the underlying hedged forecasted sales that will be reflected in future years when these sales are recognized. Financing transaction exposures When the Group enters into intercompany loans and deposits, the financing is generally provided in the functional currency of the subsidiary. The foreign currency exposure of the Group’s external funding and liquid assets is systematically hedged either naturally through external foreign currency loans and deposits or through cross currency basis swaps and simple foreign currency swaps. At December 31, 2019 , the net position hedged related to loans and deposits was $334 million versus the Euro. This comprised of a forward purchase of $415 million versus the Euro, a forward sale of $125 million versus the Euro, both using cross currency basis swaps, and a forward purchase of $44 million versus the Euro using simple foreign exchange forward contracts. The table below details the effect of foreign currency derivatives in the Consolidated Income Statement: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Derivatives Included in Finance costs - net Realized gains / (losses) on foreign currency derivatives - net 9 5 31 Unrealized gains / (losses) on foreign currency derivatives - net 4 23 (110 ) Total 13 28 (79 ) In accordance with the Group policy, the net foreign exchange result related to financing activities is expected to be balanced at any time. Net debt derivatives settled during the year are presented in ‘Other financing activities’ in the Consolidated Statement of Cash Flows. Foreign exchange sensitivity on commercial and financing transaction exposures The largest exposures of the Group are related to the Euro/U.S. Dollar exchange rate. The table below summarizes the impact on profit and Equity (before tax effect) of a 10% strengthening of the U.S. Dollar versus the Euro for non U.S. Dollar functional currency entities. (in millions of Euros) Effect on profit before tax Effect on pretax equity Trade receivables 2 — Trade payables (1 ) — Derivatives on commercial transaction (A) (4 ) (23 ) Commercial transaction exposure (3 ) (23 ) Cash in Bank and intercompany loans 120 — Borrowings (153 ) — Derivatives on financing transaction 33 — Financing transaction exposure — — Total (3 ) (23 ) (A) Gains or losses on the hedging instruments are expected to offset losses or gains on the underlying hedged forecasted sales that will be reflected in future years when these sales are recognized. The impact on pretax equity ( €23 million ) relates to derivatives hedging future sales spread from 2020 to 2022 which are designated as cash flow hedges. The amounts shown in the table above may not be indicative of future results since the balances of financial assets and liabilities may change. Translation exposures Foreign exchange impacts related to the translation to Euro of net investments in foreign subsidiaries, and related revenues and expenses are not hedged as the Group operates in these various countries on permanent basis (except as described below). In June 2018, the Group entered into forward contracts with nominal amount of CHF 174 million to hedge the currency risk associated with the translation of the net assets of its Swiss operations into the Group’s presentation currency. The Group designated these derivatives as a net investment hedge. The loss of the net investment hedge realized in 2019 is included in Currency translation differences within Other comprehensive income for €3 million . Foreign exchange sensitivity The exposure relates to foreign currency translation of net investments in foreign subsidiaries and arises mainly from operations conducted by U.S. Dollar functional currency subsidiaries. The table below summarizes the impact on profit and Equity (before tax effect) of a 10% strengthening of the U.S. Dollar versus the Euro (on average rate for profit before tax and closing rate for pretax equity) for U.S. Dollar functional currency entities. (in millions of Euros) Effect on profit before tax Effect on pretax equity 10% strengthening U.S. Dollar/Euro (4 ) 16 The amounts shown in the table above may not be indicative of future results since the balances of financial assets and liabilities may change. Margin calls Our financial counterparties may require margin calls should our mark-to-market exceed a pre-agreed contractual limit. In order to protect from the potential margin calls for significant market movements, the Group ensures that financial counterparts hedging the transactional exposure are also hedging the foreign currency loan and deposit exposure. Further, the Group holds a significant liquidity buffer in cash or in availability under its various borrowing facilities, enters into derivatives with a large number of financial counterparties and monitors margin requirements on a daily basis. At December 31, 2019 and 2018 , the margin requirement related to foreign exchange hedges was not material and the Group was not exposed to material margin call risk. ii. Commodity price risk The Group is subject to the effects of market fluctuations in the price of aluminium, which is the Group’s primary metal input and a significant component of its output. The Group is also exposed to variation in the regional premium and in the price of zinc, natural gas, silver and copper but in a less significant way. The Group policy is to minimize exposure to aluminium price volatility by passing through the aluminium price risk to customers and using derivatives where necessary. For most of its aluminium price exposure, sales and purchases of aluminium are converted to be on the same floating basis and then the same quantities are bought and sold at the same (market) price. The Group also purchases fixed price aluminium forwards to offset the exposure of LME volatility on its fixed price sales agreements for the supply of metal. The group also purchases fixed price copper, aluminium premium, silver and zinc forwards to offset the commodity exposure where sales contracts have embedded fixed price agreements for the relevant commodity. In addition, the Group also purchases natural gas fixed price forwards to lock in energy costs where a fixed price purchase contract is not possible. At December 31, 2019 , the nominal amount of commodity derivatives is as follows: (in millions of Euros) Maturity Less than 1 year Over 1 year Aluminium 2020-2023 283 33 Premium 2020-2021 11 2 Copper 2020-2022 10 7 Silver 2020-2021 6 — Zinc 2020-2022 9 9 Natural gas 2020-2021 5 2 The value of the contracts will fluctuate due to changes in market prices but the hedge strategy helps protecting the Group’s margin on future conversion and fabrication activities. At December 31, 2019 , these contracts were directly entered into with external counterparties. The Group does not apply hedge accounting on commodity derivatives and therefore any mark-to-market movements are recognized in Other gains / (losses) - net. (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Derivatives Included in Other gains / (losses) - net Realized (losses) / gains on commodity derivatives - net (56 ) 7 16 Unrealized gains / (losses) on commodity derivatives - net 31 (83 ) 41 Commodity price sensitivity: risks associated with derivatives The net impact on earnings and equity of a 10% increase in the market price of aluminium, based on the aluminium derivatives held by the Group at December 31, 2019 (before tax effect), with all other variables held constant was estimated to be a €28 million gain. The balances of such financial instruments may change in future years however, and therefore the amounts shown may not be indicative of future results. Margin Calls As the LME price for aluminium falls, the derivative contracts entered into with financial institution counterparties have a negative mark-to-market. The Group’s financial institution counterparties may require margin calls should the negative mark-to-market exceed a pre-agreed contractual limit. In order to protect from the potential margin calls for significant market movements, the Group enters into derivatives with a large number of financial counterparties and monitors margin requirements on a daily basis for adverse movements in aluminium prices. At December 31, 2019 , there was no margin requirement related to aluminium or any other commodity hedges. At December 31, 2018 , the margin requirement related to aluminium or any other commodity hedges was €5 million . Margins call supported by the Group was to be partially offset by advance payments received from customers and the Group was not exposed to any other material margin call risk. iii. Interest rate risk Interest rate risk refers to the risk that the value of financial instruments held by the Group and that are subject to variable rates will fluctuate, or the cash flows associated with such instruments will be impacted due to changes in market interest rates. The Group’s interest rate risk arises principally from borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk, which is partially offset by cash and cash equivalent deposits (including short-term investments) earning interest at variable interest rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. (See NOTE 23 - Financial Instruments ). At December 31, 2019 , Group’s borrowings were mainly at fixed rate. Interest rate sensitivity: risks associated with variable-rate financial instruments The impact on income before income tax for the year of a 50 basis point increase or decrease in the LIBOR or EURIBOR interest rates, based on the variable rate financial instruments held by the Group at December 31, 2019 , with all other variables held constant, was estimated to be less than €1 million for the years ended December 31, 2019 and 2018 . However, the balances of such financial instruments may not remain constant in future years, and therefore the amounts shown may not be indicative of future results. 24.2 Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk with financial institutions and other parties as a result of cash-in-bank, cash deposits, mark-to-market on derivative transactions and customer trade receivables arising from the Group’s operating activities. The maximum exposure to credit risk for the year ended December 31, 2019 is the carrying value of each class of financial asset as described in NOTE 23 - Financial Instruments . The Group does not generally hold any collateral as security. Credit risk related to transactions with financial institutions Credit risk with financial institutions is managed by the Group’s Treasury department in accordance with a Board approved policy. Management is not aware of any significant risks associated with financial institutions as a result of cash and cash equivalent deposits, including short-term investments, and financial derivative transactions. The number of financial counterparties is tabulated below showing our exposure to the counterparty by rating type (Parent company ratings from Moody’s Investor Services): At December 31, 2019 At December 31, 2018 Number of financial counterparties (A) Exposure (in millions of Euros) Number of financial counterparties (A) Exposure (in millions of Euros) Rated Aa or better 2 83 2 22 Rated A 9 81 8 110 Rated Baa 3 5 2 4 Total 14 169 12 136 (A) Financial Counterparties for which the Group’s exposure is below €0.25 million have been excluded from the analysis. Credit risks related to customer trade receivables The Group has a diverse customer base geographically and by industry. The responsibility for customer credit risk management rests with management. Payment terms vary and are set in accordance with practices in the different geographies and end-markets served. Credit limits are typically established based on internal or external rating criteria, which take into account such factors as the financial condition of the customers, their credit history and the risk associated with their industry segment. Trade receivables are actively monitored and managed, at the business unit or site level. Business units report credit exposure information to Constellium management on a regular basis. Over 82% of the Group’s trade account receivables are insured by insurance companies rated A3 or better, or sold to a factor on a non-recourse basis. In situations where collection risk is considered to be above acceptable levels, risk is mitigated through the use of advance payments, bank guarantees or letters of credit. Historically, we have a very low level of customer default as a result of long history of dealing with our customer base and an active credit monitoring function. See NOTE 15 - Trade Receivables and Other for the aging of trade receivables. 24.3 Liquidity and capital risk management The Group’s capital structure includes shareholder’s equity, borrowings and various third-party financing arrangements (such as credit facilities and factoring arrangements). Constellium’s total capital is defined as total equity plus net debt. Net debt includes borrowings due to third parties less cash and cash equivalents. Constellium’s overriding objectives when managing capital are to safeguard the business as a going concern, to maximize returns for its owners and to maintain an optimal capital structure in order to minimize the weighted cost of capital. All activities around cash funding, borrowings and financial instruments are centralized within Constellium’s Treasury department. Direct external funding or transactions with banks at the operating entity level are generally not permitted, and exceptions must be approved by Constellium’s Treasury department. The liquidity requirements of the overall Company are funded by drawing on available credit facilities, while the internal management of liquidity is optimized by means of cash pooling agreements and/or intercompany loans and deposits between the Company’s operating entities and central Treasury. At December 31, 2019 , the borrowing base for the Pan-U.S. ABL facility and the French Inventory Based Facility were $375 million and €82 million respectively. After deduction of amount drawn and letters of credit, the Group had €281 million outstanding availability under these secured revolving credit facilities at December 31, 2019 . At December 31, 2019 , liquidity was €516 million , comprised of €184 million of cash and cash equivalents and €332 million of available undrawn facilities, including the €281 million described above. The tables below show undiscounted contractual financial assets and financial liabilities values by relevant maturity groupings based on the remaining periods from December 31, 2019 and December 31, 2018 respectively to the contractual maturity date. At December 31, 2019 At December 31, 2018 (in millions of Euros) Less than 1 year Between 1- 5 years Over 5 years Less than 1 year Between 1 - 5 years Over 5 years Financial assets Net debt derivatives 3 4 — 5 12 — Net cash flows from derivative assets related to currencies and commodities 21 9 — 22 12 — Total 24 13 — 27 24 — At December 31, 2019 At December 31, 2018 (in millions of Euros) Notes Less than 1 year Between 1 - 5 years After 5 years Less than 1 year Between 1 - 5 Years After 5 years Financial liabilities Borrowings (A) 139 589 1,438 6 315 1,754 Leases 40 113 88 20 50 16 Interest (B) 112 404 85 114 422 173 Net debt derivatives 4 — — 3 4 — Net cash flows from derivative liabilities related to currencies and commodities 31 25 — 56 35 — Trade payables and other (excluding contract liabilities) 21 945 15 — 900 18 — Total 1,271 1,146 1,611 1,079 794 1,927 (A) Borrowings include the Pan-U.S. ABL facility, which is considered short-term in nature and is included in the category “Less than 1 year”. (B) Interest disclosed is an undiscounted forecast interest amount and excludes interest on leases. |
PENSIONS AND OTHER POST-EMPLOYM
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of employee benefits [Abstract] | |
PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS | NOTE 8 - EMPLOYEE BENEFIT EXPENSES (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Wages and salaries (994 ) (889 ) (872 ) Pension costs - defined benefit plans 25 (19 ) (20 ) (21 ) Other post-employment benefits 25 (9 ) (6 ) (6 ) Share-based compensation 31 (16 ) (12 ) (8 ) Total employee benefit expenses (1,038 ) (927 ) (907 ) NOTE 25 - PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS The Group operates a number of pensions, other post-employment benefits and other long-term employee benefit plans. Some of these plans are defined contribution plans and some are defined benefit plans, with assets held in separate trustee-administered funds. Benefits paid through pension trusts are sufficiently funded to ensure the payment of benefits to retirees when they become due. Actuarial valuations are reflected in the Consolidated Financial Statements as described in NOTE 2.6 - Principles governing the preparation of the Consolidated Financial Statements. 25.1 Description of the plans Pension plans Constellium’s pension obligations are in the U.S., Switzerland, Germany and France. Pension benefits are generally based on the employee’s service and highest average eligible compensation before retirement and are periodically adjusted for cost of living increases, either by company practice, collective agreement or statutory requirement. U.S., Swiss and France benefit plans are funded through long-term employee benefit funds. Other post-employment benefits (OPEB) The Group provides health care and life insurance benefits to retired employees and in some cases to their beneficiaries and covered dependents, mainly in the U.S. Eligibility for coverage depends on certain age and service criteria. These benefit plans are unfunded. Other long-term employee benefits Other long term employee benefits mainly include jubilees in France, Germany and Switzerland and other long-term disability benefits in the U.S. These benefit plans are unfunded. 25.2 Description of risks Our estimates of liabilities and expenses for pensions and other post-employment benefits incorporate a number of assumptions, including discount rate, longevity estimate and inflation rate. The defined benefit obligations expose the Group to a number of risks, including longevity, inflation, interest rate, medical cost inflation, investment performance, and change in law governing the employee benefit obligations. These risks are mitigated when possible by applying an investment strategy for the funded schemes which aims to minimize the long-term costs. This is achieved by investing in a diversified selection of asset classes, which aims to reduce the volatility of returns and also achieves a level of matching with the underlying liabilities. Investment performance risk Our pension plan assets consist primarily of funds invested in listed stocks and bonds. The present value of funded defined benefit obligations is calculated using a discount rate determined by reference to high quality corporate bond yields. If the return on plan asset is below this rate, it will increase the plan deficit. Interest rate risk A decrease in the discount rate will increase the defined benefit obligation. At December 31, 2019 , impacts of the change on the defined benefit obligation of a 0.50% increase / decrease in the discount rates are calculated by using a proxy based on the duration of each scheme: (in millions of Euros) 0.50% increase in 0.50% decrease in France (10 ) 10 Germany (9 ) 11 Switzerland (25 ) 26 United States (32 ) 35 Total sensitivity on Defined Benefit Obligations (76 ) 82 Longevity risk The present value of the defined benefit obligation is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability. 25.3 Actuarial assumptions Pension and other post-employment benefit obligations were updated based on the discount rates applicable at December 31, 2019 . The principal actuarial assumptions used at December 31, 2019 and 2018 were as follows: At December 31, 2019 At December 31, 2018 Rate of increase in salaries Rate of increase in pensions Discount rate Rate of increase in salaries Rate of increase in pensions Discount rate Switzerland 1.50% — 0.15% 1.50% — 0.80% US — — — — — — Hourly pension 2.20% — 3.15% - 3.25% 2.20% — 4.40% - 4.45% Salaried pension 3.80% — 3.25% 3.80% — 4.45% OPEB (A) 3.80% — 3.20% - 3.40% 3.80% — 4.40% - 4.55% Other benefits 3.80% — 3.00% - 3.20% 3.80% — 4.25% - 4.40% France 1.50% - 3.50% 2.00% — 1.50% - 2.50% 2.00% — Retirements — — 0.95% — — 1.65% Other benefits — — 0.80% — — 1.35% Germany 2.75% 1.70% 1.00% 2.75% 1.70% 1.70% (A) The other main financial assumptions used for the OPEB (healthcare plans, which are predominantly in the U.S.) were: • Medical trend rate: pre 65: 6.40% starting in 2020 decreasing gradually to 4.50% until 2026 and stable onwards and post 65: 5.60% starting in 2020 decreasing gradually to 4.50% until 2026 and stable onwards, and • Claims costs are based on individual company experience. For both pension and healthcare plans, the post-employment mortality assumptions allow for future improvements in life expectancy. 25.4 Amounts recognized in the Consolidated Statement of Financial Position At December 31, 2019 At December 31, 2018 (in millions of Euros) Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Present value of funded obligation 768 — 768 674 — 674 Fair value of plan assets (445 ) — (445 ) (380 ) — (380 ) Deficit of funded plans 323 — 323 294 — 294 Present value of unfunded obligation 127 220 347 115 201 316 Net liability arising from defined benefit obligation 450 220 670 409 201 610 25.5 Movement in net defined benefit obligations At December 31, 2019 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2019 789 201 990 (380 ) 610 Included in the Consolidated Income Statement Current service cost 17 7 24 — 24 Interest cost / (income) 18 8 26 (10 ) 16 Past service cost (2 ) 1 (1 ) — (1 ) Immediate recognition of gains / (losses) arising over the year — 2 2 — 2 Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income / (Loss) Remeasurements due to: —actual return less interest on plan assets — — — (54 ) (54 ) —changes in financial assumptions 101 25 126 — 126 —changes in demographic assumptions (2 ) (2 ) (4 ) — (4 ) —experience losses (3 ) (6 ) (9 ) — (9 ) Effects of changes in foreign exchange rates 16 3 19 (11 ) 8 Included in the Consolidated Statement of Cash Flows Benefits paid (43 ) (20 ) (63 ) 38 (25 ) Contributions by the Group — — — (25 ) (25 ) Contributions by the plan participants 4 1 5 (5 ) — At December 31, 2019 895 220 1,115 (445 ) 670 At December 31, 2018 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2018 801 250 1,051 (387 ) 664 Included the Consolidated Income Statement Current service cost 18 6 24 — 24 Interest cost / (income) 16 8 24 (9 ) 15 Past service cost — (36 ) (36 ) — (36 ) Immediate recognition of gains / (losses) arising over the year — — — — — Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income / (Loss) Remeasurements due to: —actual return less interest on plan assets — — — 26 26 —changes in financial assumptions (30 ) (15 ) (45 ) — (45 ) —changes in demographic assumptions (5 ) (1 ) (6 ) — (6 ) —experience losses (1 ) (2 ) (3 ) — (3 ) Effects of changes in foreign exchange rates 22 9 31 (16 ) 15 Included in the Consolidated Statement of Cash Flows Benefits paid (35 ) (19 ) (54 ) 31 (23 ) Contributions by the Group — — — (23 ) (23 ) Contributions by the plan participants 3 1 4 (4 ) — At December 31, 2018 789 201 990 (380 ) 610 25.6 Benefit plan amendments In the third quarter of 2018 , the Group announced a plan to transfer certain participants in the Constellium Rolled Products Ravenswood Retiree Medical and Life Insurance Plan (“the Plan”) from a company sponsored program to a third-party health network that provides similar benefits at a lower cost. This change in benefits was accounted for as a plan amendment and resulted in a reduction of the defined benefit obligation and the recognition of a €36 million gain from negative past service cost. In 2019, the defined benefit obligation was adjusted and corresponding past service costs of €3 million were recorded, to reflect delays in the estimated implementation timetable (see 25.7 Ravenswood OPEB dispute ). During the year ended December 31, 2019, the Group decided to terminate the medical care plan for the active participants of one of its French entities effective October 1, 2019. This resulted in both a decrease of the defined benefit obligation and the recognition of a €2 million gain from negative past service cost. In addition, the Group offered lump sum option to Constellium Rolled Products Ravenswood former employees with deferred benefits. This resulted in both a decrease of the defined benefit obligation and the recognition of a €3 million gain from negative past service cost. 25.7 Ravenswood OPEB dispute s The United Steelworkers Local Union 5668 (the “Union”) is contesting the OPEB Amendments and filed a lawsuit against Constellium Rolled Products Ravenswood, LLC ("Ravenswood") in a federal district court in West Virginia (the “Court”) seeking to enjoin the Plan changes and to compel arbitration. The Court issued an order in December 2018, enjoining Ravenswood from implementing the OPEB Amendments pending resolution in arbitration. In September 2019, the arbitrator issued a decision ruling against Ravenswood and sustaining the Union’s grievance. Ravenswood filed a motion to vacate this decision, which is still pending, and will continue to vigorously defend this case. The Group believes it has a strong legal position and that it is probable that Ravenswood will ultimately prevail and be able to implement the OPEB amendments. Additionally, during 2019, the Union filed a grievance disputing the existing limitation of Ravenswood’s liability for the healthcare costs of pre-Medicare retirees. This matter is scheduled to be arbitrated in the coming months and the Group believes it is without merit and intends to defend it vigorously. 25.8 Net defined benefit obligations by country At December 31, 2019 At December 31, 2018 (in millions of Euros) Defined benefit obligations Plan assets Net defined benefit liability Defined benefit obligations Plan assets Net defined benefit liability France 161 (3 ) 158 151 (3 ) 148 Germany 144 (1 ) 143 136 (1 ) 135 Switzerland 299 (214 ) 85 251 (178 ) 73 United States 510 (227 ) 283 451 (198 ) 253 Other countries 1 — 1 1 — 1 Total 1,115 (445 ) 670 990 (380 ) 610 25.9 Plan asset categories At December 31, 2019 At December 31, 2018 (in millions of Euros) Quoted in an active market Unquoted in an active market Total Quoted in an active market Unquoted in an active market Total Cash & cash equivalents 5 — 5 6 — 6 Equities 119 51 170 95 40 135 Bonds 92 115 207 71 110 181 Property 14 37 51 10 33 43 Other — 12 12 5 10 15 Total fair value of plan assets 230 215 445 187 193 380 25.10 Cash flows Expected contributions to pension and other benefits amount to €32 million and €18 million , respectively, for the year ending December 31, 2020. Future benefit payments expected to be paid either by pension funds or directly by the Company to beneficiaries are as follows: (in millions of Euros) Estimated benefits payments Year ended December 31, 2020 54 2021 51 2022 52 2023 53 2024 58 2025 to 2029 289 At December 31, 2019 , the weighted-average maturity of the defined benefit obligations was 14.1 years ( 2018 : 13.3 years ). |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |
PROVISIONS | NOTE 26 - PROVISIONS (in millions of Euros) Notes Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2019 83 3 54 140 IFRIC 23 application 2 — — (20 ) (20 ) Allowance 1 2 6 9 Amounts used (2 ) (1 ) (4 ) (7 ) Unused amounts reversed (1 ) — (4 ) (5 ) Unwinding of discounts 4 — — 4 Effects of changes in foreign exchange rates 2 — — 2 Transfer 3 — (4 ) (1 ) At December 31, 2019 90 4 28 122 Current 7 2 14 23 Non-Current 83 2 14 99 Total Provisions 90 4 28 122 (in millions of Euros) Notes Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2018 81 5 67 153 Transfer from provision to contract liability — — (23 ) (23 ) Allowance 3 1 15 19 Amounts used (2 ) (2 ) (4 ) (8 ) Unused amounts reversed — (1 ) (6 ) (7 ) Unwinding of discounts (1 ) — — (1 ) Effects of changes in foreign exchange rates 2 — 1 3 Transfer — — 4 4 At December 31, 2018 83 3 54 140 Current 5 1 40 46 Non-Current 78 2 14 94 Total Provisions 83 3 54 140 Close down, environmental and remediation costs The Group records provisions for the estimated present value of the costs of its environmental clean-up obligations and close down and restoration efforts based on the net present value of estimated future costs of the dismantling and demolition of infrastructure and the removal of residual material of disturbed areas, using an average discount rate of 0.28% . A change in the discount rate of 0.5% would change the provision by €3 million . It is expected that these provisions will be settled over the next 40 years depending on the nature of the disturbance and the technical remediation plans. Restructuring costs The Group records provisions for restructuring costs when management has a detailed formal plan, is demonstrably committed to its execution and can reasonably estimate the associated liabilities. The related expenses are presented as Restructuring costs in the Consolidated Income Statement. Legal claims and other costs (in millions of Euros) At December 31, 2019 At December 31, 2018 Litigation (A) 21 45 Disease claims (B) 4 4 Other 3 5 Total Provisions for legal claims and other costs 28 54 (A) The decrease in provisions for litigation is mainly explained by the €20 million reclassification upon the adoption of IFRIC 23. (B) Since the early 1990s, certain activities of the Group’s businesses have been subject to claims and lawsuits in France relating to occupational diseases resulting from alleged asbestos exposure, such as mesothelioma and asbestosis. It is not uncommon for the investigation and resolution of such claims to go on over many years as the latency period for acquiring such diseases is typically between 25 and 40 years. For any such claim, it is up to the social security authorities in each jurisdiction to determine if a claim qualifies as an occupational illness claim. If so determined, the Group must settle the case or defend its position in court. At December 31, 2019 , seven cases in which gross negligence is alleged (“faute inexcusable”) remain outstanding ( six at December 31, 2018 ), the average amount per claim being less than €0.1 million . The average settlement amount per claim in 2019 and 2018 was less than €0.1 million . It is not anticipated that the resolution of such litigation and proceedings will have a material effect on the future results from continuing operations, financial position, or cash flows of the Group. Contingencies The Group is involved, and may become involved, in various lawsuits, claims and proceedings relating to customer claims, product liability, employee and retiree benefit matters and other commercial matters. The Group records provisions for pending litigation matters when it determines that it is probable that an outflow of resources will be required to settle the obligation, and such amounts can be reasonably estimated. In some proceedings, the issues raised are or can be highly complex and subject to significant uncertainties and amounts claimed are and can be substantial. As a result, the probability of loss and an estimation of damages are and can be difficult to ascertain. In exceptional cases, when the Group considers that disclosures relating to provisions and contingencies may prejudice its position, disclosures are limited to the general nature of the dispute. The Group is currently subject to an arbitration by a customer claiming that Constellium supplied defective products as a result of which the customer alleges it has suffered significant damages. The Group considers that the claim is without merit on both technical and legal grounds and is vigorously defending the action. For this matter and in respect of others which the Group considers are without merit, while it is possible that an unfavorable outcome may result, after assessing the information available, the Group has concluded that it is not probable that a loss has been incurred. |
NON-CASH INVESTING AND FINANCIN
NON-CASH INVESTING AND FINANCING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of cash flow statement [Abstract] | |
NON-CASH INVESTING AND FINANCING TRANSACTIONS | NOTE 27 - NON-CASH INVESTING AND FINANCING TRANSACTIONS Property, plant and equipment acquired through leases or financed by third parties amounted to €75 million , €28 million and €17 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. These leases and financings are excluded from the Statement of Cash Flow as they are non-cash investing transactions. Fair values of vested Restricted Stock Units and Performance Stock Units amounted to €8 million , €8 million and €1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. They are excluded from the Statement of Cash flows as non-cash financing activities. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
SHARE CAPITAL | NOTE 28 - SHARE CAPITAL At December 31, 2019 , the share capital amounted to €2,757,348.36 divided into 137,867,418 ordinary shares, each with a nominal value of two cents , fully paid-up and of the same class. All shares have the right to one vote. (in millions of Euros) Number of shares Share capital Share premium At January 1, 2019 135,999,394 3 420 New shares issued (A) 1,868,024 — — At December 31, 2019 137,867,418 3 420 (A) Constellium SE issued and granted 1,868,024 ordinary shares to certain employees related to share-based compensation plans. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosures of commitments [Abstract] | |
COMMITMENTS | NOTE 29 - COMMITMENTS Non-cancellable lease commitments The future aggregate minimum lease payments under non-cancellable leases not capitalized are as follows: (in millions of Euros) At December 31, 2019 Less than 1 year 5 1 to 5 years 10 More than 5 years 1 Total non-cancellable lease minimum payments 16 Tangible and intangible asset commitments (in millions of Euros) At December 31, 2019 At December 31, 2018 Computer Software 2 1 Property, plant and equipment 89 123 Total tangible and intangible asset commitments 91 124 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES | NOTE 30 - RELATED PARTIES Subsidiaries and affiliates A list of the principal companies controlled by the Group is presented in NOTE 32 - Subsidiaries and Operating Segments . Transactions between fully consolidated companies are eliminated when preparing the Consolidated Financial Statements. Shareholders On March 28, 2018, Constellium Issoire entered into a three -year €10 million unsecured revolving credit facility with Bpifrance Financement, an affiliate of one the shareholders of Constellium SE, Bpifrance Participations S.A., a related party. At December 31, 2019 , the revolving credit facility has a €7 million borrowing base. Key management remuneration The Group’s key management comprises the Board members and the Executive committee members effectively present during 2019 . Executive committee members are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly reporting to the CEO. The costs reported below are compensation and benefits for key management: – Short term employee benefits include their base salary plus bonus; – Directors’ fees include annual director fees, Board and committees’ attendance fees; – Share-based compensation includes the portion of the IFRS 2 expense as allocated to key management; – Post-employment benefits mainly include pension costs; – Termination benefits include departure costs. As a result, the aggregate compensation for the Group’s key management is comprised of the following: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Short-term employee benefits 9 9 8 Directors' fees 1 1 1 Share-based compensation 10 6 4 Post-employments benefits — — — Termination benefits — — 1 Employer social contribution 1 1 1 Total 21 17 15 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based payment arrangements [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 31 - SHARE-BASED COMPENSATION Description of the plans Performance-Based Restricted Stock Units (equity-settled) The Company granted Performance Stock Units (PSUs) to selected employees. These units will vest after three years from the grant date if the following conditions are met: • A vesting condition under which the beneficiaries must be continuously employed by the Company through the end of the vesting period ( 3 years ); and • For PSUs granted in 2016, a performance condition, contingent on the Total Stockholder Return (TSR) performance of Constellium over the measurement periods compared to the TSR of a specified group of peer companies. PSUs will ultimately vest, depending on the TSR performance at each testing period, based on a vesting multiplier in a range from 0% to 300% ; • For PSUs granted from 2017 to 2019, a performance condition, contingent on the Total Stockholder Return (TSR) performance of Constellium shares over the vesting period compared to the TSR of specified indices. PSUs will ultimately vest based on a vesting multiplier which ranges from 0% to 200% . The PSUs granted in March 2016, May 2016, August 2016 and November 2016 achieved, respectively, a TSR performance of 115.9% , 98.1% , 191.6% and 223.8% at their first testing period, 229.9% , 217.2% , 282.2% and 148.7% at their second testing period, and 108.4% , 125.4% , 230.4% and 286.4% at their third testing period, which represented respectively 184,469 potential additional shares in 2017, 433,032 potential additional shares in 2018, and 248,230 potential additional shares in 2019. The PSUs vested respectively in March 2019, May 2019, August 2019 and November 2019 and 684,329 shares, 123,336 shares, 434,256 shares and 516,141 shares were respectively granted to beneficiaries. The following table lists the inputs to the model used for the PSUs granted in 2019 and 2018 : Year ended December 31, 2019 Year ended December 31, 2018 Fair value at grant date (in euros) 10.44 15.31 Share price at grant date (in euros) 7.1 10.27 Dividend yield — — Expected volatility (A) 52 % 75 % Risk-free interest rate (US government bond yield) 2.29 % 2.6 % Model used Monte Carlo Monte Carlo (A) Volatilities for the Company and companies included in indices were estimated based on observed historical volatilities over period equal to PSU vesting period. Restricted Stock Units Award Agreements (equity-settled) The Company granted Restricted Stock Units (RSUs) to a certain number of employees’ subject to the beneficiaries remaining continuously employed within the Group from the grant date through the end of the vesting period. Vesting period is three years . The fair value of RSUs awarded under the plans described above is the quoted market price at grant date. Equity Awards Plans (equity-settled) In 2019, our Company Board members were granted two RSU awards. These RSUs vest in equal installments on the earlier of (i) the first anniversary or (ii) the date of the annual general meeting of shareholders of that year, and on the earlier of (i) the second anniversary or (ii) the date of the annual general meeting of shareholders of that year, subject to continued service. The fair value of RSUs awarded under the plan is the quoted market price at grant date. Expense recognized during the year In accordance with IFRS 2, share-based compensation is recognized as an expense over the vesting period. The estimate of this expense is based upon the fair value of a potential ordinary share at the grant date. The total expense related to the potential ordinary shares for the year ended December 31, 2019 , 2018 and 2017 amounted to €16 million , €12 million and €8 million respectively. Movement of potential shares The following table illustrates the number and movements in potential shares: Performance-Based RSU Restricted Stock Units Equity Award Plans Potential Shares Weighted-Average Grant-Date Fair Value per Share Potential Shares Weighted-Average Grant-Date Fair Value per Share Potential Shares Weighted-Average Grant-Date Fair Value per Share At January 1, 2018 3,257,840 € 8.56 944,500 € 7.76 95,340 € 5.20 Granted 701,109 € 15.31 595,687 € 10.23 30,709 € 10.27 Over-performance 633,670 € 7.28 — € — — € — Vested (1,265,635 ) € 7.09 (155,000 ) € 10.83 (68,136 ) € 4.85 Forfeited (241,820 ) € 8.40 (72,663 ) € 8.57 — € — At December 31, 2018 3,085,164 € 10.45 1,312,524 € 8.47 57,913 € 8.31 Granted (A) 1,028,342 € 10.44 899,926 € 7.10 73,799 € 8.39 Over-performance (B) 248,230 € 8.94 — € — — € — Vested (1,758,062 ) € 7.97 (106,000 ) € 4.55 (42,559 ) € 7.60 Forfeited (C) (84,380 ) € 8.02 (39,947 ) € 8.31 (9,627 ) € 8.71 At December 31, 2019 2,519,294 € 12.11 2,066,503 € 8.08 79,526 € 8.71 (A) For PSUs, the number of potential shares granted is presented using a vesting multiplier of 100% . (B) When the achievement of TSR performance exceeds the vesting multiplier of 100% , the additional potential shares are presented as over-performance shares. (C) For potential shares related to PSUs, 84,380 were forfeited following the departure of certain beneficiaries and none were forfeited in relation to the non-fulfilment of performance conditions. |
SUBSIDIARIES AND OPERATING SEGM
SUBSIDIARIES AND OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [abstract] | |
SUBSIDIARIES AND OPERATING SEGMENTS | NOTE 32 - SUBSIDIARIES AND OPERATING SEGMENTS The following Group’s affiliates are legal entities included in the Consolidated Financial Statements of the Group at December 31, 2019 . Entity Country % Group Interest Consolidation Cross Operating Segment Constellium Singen GmbH (AS&I and P&ARP) Germany 100 % Full Constellium Valais S.A. (AS&I and A&T) Switzerland 100 % Full AS&I Constellium Automotive USA, LLC U.S. 100 % Full Constellium Engley (Changchun) Automotive Structures Co Ltd. China 54 % Full Constellium Extrusions Decin S.r.o. Czech Republic 100 % Full Constellium Extrusions Deutschland GmbH Germany 100 % Full Constellium Extrusions Landau GmbH Germany 100 % Full Constellium Extrusions Burg GmbH Germany 100 % Full Constellium Extrusions France S.A.S. France 100 % Full Constellium Extrusions Levice S.r.o. Slovakia 100 % Full Constellium Automotive Mexico, S. DE R.L. DE C.V. Mexico 100 % Full Constellium Automotive Mexico Trading, S. DE R.L. DE C.V. Mexico 100 % Full Astrex Inc Canada 50 % Full Constellium Automotive Zilina S.r.o. Slovakia 100 % Full Constellium Automotive Nanjing Co Ltd China 100 % Full Constellium Automotive Spain SL Spain 100 % Full A&T Constellium Issoire S.A.S. France 100 % Full Constellium Montreuil Juigné S.A.S. France 100 % Full Constellium China Limited China 100 % Full Constellium Japan KK Japan 100 % Full Constellium Rolled Products Ravenswood, LLC U.S. 100 % Full Constellium Southeast Asia PTE LTD Singapore 100 % Full Constellium Ussel S.A.S. France 100 % Full AluInfra Services SA (A) Switzerland 50 % Full P&ARP Constellium Deutschland GmbH Germany 100 % Full Constellium Rolled Products Singen GmbH KG Germany 100 % Full Constellium Property and Equipment Company, LLC U.S. 100 % Full Constellium Neuf Brisach S.A.S. France 100 % Full Constellium Muscle Shoals LLC U.S. 100 % Full Constellium Holding Muscle Shoals LLC U.S. 100 % Full Constellium Muscle Shoals Funding II LLC U.S. 100 % Full Listerhill Total Maintenance Center LLC U.S. 100 % Full Constellium Metal Procurement LLC U.S. 100 % Full Constellium Bowling Green LLC U.S. 100 % Full Rhenaroll France 50 % Equity Holdings & Corporate C-TEC Constellium Technology Center S.A.S. France 100 % Full Constellium Finance S.A.S. France 100 % Full Constellium France III France 100 % Full Constellium France Holdco S.A.S. France 100 % Full Constellium International France 100 % Full Constellium Paris S.A.S France 100 % Full Constellium Germany Holdco GmbH & Co. KG Germany 100 % Full Constellium Germany Verwaltungs GmbH Germany 100 % Full Constellium UK Limited United Kingdom 100 % Full Constellium U.S. Holdings I, LLC U.S. 100 % Full Constellium Switzerland AG Switzerland 100 % Full Constellium W S.A.S. France 100 % Full Constellium Treuhand UG Germany 100 % Full Engineered Products International S.A.S. France 100 % Full (A) AluInfra Services SA, the joint venture created with Novelis in July 2018, is consolidated as a joint operation and is immaterial to the Group Consolidated Financial Statements. |
PARENT COMPANY
PARENT COMPANY | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of condensed financial information of parent company [abstract] | |
PARENT COMPANY | NOTE 33 - PARENT COMPANY Statement of Financial Position of Constellium SE (parent company only). (in millions of Euros) At December 31, 2019 At December 31, 2018 Assets Current assets Cash and cash equivalents — — Trade receivables and other 200 109 Other financial assets 37 38 237 147 Non-current assets Property, plant and equipment — — Financial assets 2,002 2,106 Investments in subsidiaries 159 144 Trade receivables and other 27 — Deferred income tax assets 1 2 2,189 2,252 Total Assets 2,426 2,399 Liabilities Current liabilities Trade payables and other 6 5 Income tax payable 45 21 Other financial liabilities 33 33 84 59 Non-current liabilities Borrowings 1,954 2,022 Income tax payable 19 — 1,973 2,022 Total Liabilities 2,057 2,081 Equity Share capital 3 3 Share premium 429 429 Accumulated retained earnings (153 ) (239 ) Other reserves 53 38 Net income 37 87 Total Equity 369 318 Total Equity and Liabilities 2,426 2,399 Statement of Comprehensive income / (loss) of Constellium SE (parent company only). (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Revenue 3 3 1 Gross profit 3 3 1 Selling and administrative expenses (19 ) (15 ) (5 ) Employee benefit expenses (3 ) (3 ) (1 ) Loss from recurring operations (19 ) (15 ) (5 ) Other income — — — Other expense (3 ) (3 ) — Loss from operations (22 ) (18 ) (5 ) Financial result - net 41 80 (65 ) Income / (loss) before income tax 19 62 (70 ) Income tax 18 25 — Net income / (loss) 37 87 (70 ) Other comprehensive income / (loss) — — — Total comprehensive income / (loss) 37 87 (70 ) Statement of Cash Flows of Constellium SE (parent company only) (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Net income / (loss) 37 87 (70 ) Adjustments Finance cost - net (41 ) (80 ) 65 Dividend received — — — Income tax (18 ) (25 ) — Interest paid (115 ) (102 ) (148 ) Interest received 143 134 149 Changes in working capital — — — Trade receivables and other 27 — (1 ) Income tax paid 50 — — Trade payables and other 2 — 2 Net cash flows from / (used in) operating activities 85 14 (3 ) Investments in subsidiaries — (1 ) (11 ) Current account with subsidiaries and related parties (135 ) (13 ) 180 Loans granted to subsidiaries and related parties — — (1,640 ) Repayment of loans granted to subsidiaries and related parties 150 — 823 Exit fees received from subsidiaries — — 9 Net cash flows from / (used in) investing activities 15 (14 ) (639 ) Net proceeds received from issuance of shares — — 259 Proceeds from issuance of Senior Notes — — 1,440 Payment of deferred financing costs — — (29 ) Repayment of Senior Notes (100 ) — (949 ) Payment of exit fees — — (61 ) Realized foreign exchange gains / (losses) — — (17 ) Other — — (1 ) Net cash flows (used in) / from financing activities (100 ) — 642 Net increase in cash and cash equivalents — — — Cash and cash equivalents - beginning of year — — — Effect of exchange rate changes on cash and cash equivalents — — — Cash and cash equivalents - end of year — — — Basis of preparation The parent company only financial information of Constellium SE, presented above, is prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and as endorsed by the European Union. Accounting policies adopted in the preparation of this condensed parent company only financial information are the same as those adopted in the consolidated financial statements and described in NOTE 2 - Summary of Significant Accounting Policies , except that the cost method has been used to account for investments in subsidiaries. As at December 31, 2019 , there were no material contingencies at Constellium SE. A description of Constellium SE's parent company only borrowings and related maturity dates is provided in NOTE 22 - Borrowings . Other financial liabilities represent interest payable on borrowings. Non-current financial assets represent loans to Constellium International and Constellium France Holdco, and current other financial assets represent related interest receivables. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | NOTE 34 - SUBSEQUENT EVENTS No subsequent events identified. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of summary of significant accounting policies [abstract] | |
Statement of compliance | Statement of compliance The Consolidated Financial Statements of Constellium SE and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as endorsed by the European Union (EU). The Group’s application of IFRS results in no difference between IFRS as issued by the IASB and IFRS as endorsed by the EU (https://ec.europa.eu/info/law/international-accounting-standards-regulation-ec-no-1606-2002_en). The Consolidated Financial Statements were authorized for issue by the Board of Directors on March 9, 2020. |
Application of new and revised IFRS | Application of new and revised IFRS The Group has adopted IFRS 16 - Leases and IFRIC 23 - Uncertainty over Income Tax treatment effective January 1, 2019 . Several other amendments and interpretations apply for the first time in 2019 , but do not have any impact on the Consolidated Financial Statements of the Group. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. |
IFRS 16 - Leases and Leases (Prior to January 1, 2019) | Leases (Prior to January 1, 2019) Constellium as the lessee Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Various buildings, machinery and equipment are leased from third parties under operating lease agreements. Under operating leases, lease payments are recognized as rent expense on a straight-line basis over the term of the lease agreement, and are included in Cost of sales or Selling and administrative expenses, depending on the nature of the leased assets. Leases of property, plant and equipment under which the Group has substantially all the risks and rewards of ownership are classified as finance leases. Various buildings and equipment are leased from third parties under finance lease agreements. Under such finance leases, the asset financed is recognized in Property, plant and equipment and the financing is recognized as a financial liability, in Borrowings. Constellium as the lessor Certain land, buildings, machinery and equipment are leased to third parties under finance lease agreements. At lease inception, the net book value of the related assets is removed from Property, plant and equipment and a Finance lease receivable is recorded at the lower of the fair value and the aggregate future cash payments to be received from the lessee computed at an interest rate implicit in the lease. As the Finance lease receivable from the lessee is due, interest income is recognized. IFRS 16 - Leases IFRS 16 - Leases deals with principles for the recognition, measurement, presentation and disclosures of leases. The standard provides an accounting model, requiring a lessee to recognize assets and liabilities for leases. Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and are adjusted for remeasurement of lease liabilities resulting from a change in future lease payments arising from a change in an index or a rate, or a change in the assessment of whether the purchase, extension or termination options will be exercised. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognizes a lease liability measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentive receivables, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expense in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the implicit interest rate in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and which do not contain a purchase option. The Group also applies the low-value asset recognition exemption to leases of assets with a value below €5,000 . Lease payments on short-term leases and low-value asset leases are recognized as expense on a straight-line basis over the lease term. The standard replaced IAS 17 - Leases and is effective for accounting periods beginning on or after January 1, 2019. The Group adopted IFRS 16 retrospectively with the cumulative effect of initially applying the standard recognized at the initial date of application. The Group elected to apply the practical expedients for low-value assets, short-term leases and lease and non-lease components as a single component. In addition, the Group elected for the relief provision of IFRS 16 and did not apply IFRS 16 to contracts that were not previously identified as containing a lease under IAS 17 and IFRIC 4. |
New standards and interpretations not yet mandatorily applicable | New standards and interpretations not yet mandatorily applicable The Group has not applied the following new standards and interpretations that have been issued but are not yet effective and which could affect the Group’s future Consolidated Financial Statements: Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments on the date of transition. Amendments to IAS 1 and IAS 8: Definition of Material In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, 'Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.' The amendments to the definition of material is not expected to have a significant impact on the Group’s Consolidated Financial Statements. The Group plans to adopt the new standards and interpretations on their required effective dates. |
Basis of preparation | Basis of preparation In accordance with IAS 1- Presentation of Financial Statements , the Consolidated Financial Statements are prepared on the assumption that Constellium is a going concern and will continue in operation for the foreseeable future. The Group's financial position, its cash flows, liquidity position and borrowing facilities are described in the Consolidated Financial Statements in NOTE 14 - Cash and Cash Equivalent , NOTE 22 - Borrowings and NOTE 24 - Financial Risk Management . The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, including an assessment of the current macroeconomic environment, indicate that the Group should be able to operate within the level of its current facilities and related covenants. Accordingly, the Group continues to adopt the going concern basis in preparing the Consolidated Financial Statements. Management considers that this assumption is not invalidated by the Group’s negative equity at December 31, 2019. This assessment was confirmed by the Board of Directors on March 5, 2020. |
Presentation of the operating performance of each operating segment and of the Group | Presentation of the operating performance of each operating segment and of the Group In accordance with IFRS 8 - Operating Segments , operating segments are based upon the product lines, markets and industries served, and are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer. Constellium’s CODM measures the profitability and financial performance of its operating segments based on Adjusted EBITDA as it illustrates the underlying performance of continuing operations by excluding certain non-recurring and non-operating items. Adjusted EBITDA is defined as income / (loss) from continuing operations before income taxes, results from joint ventures, net finance costs, other expenses and depreciation and amortization as adjusted to exclude restructuring costs, impairment charges, unrealized gains or losses on derivatives and on foreign exchange differences on transactions that do not qualify for hedge accounting, metal price lag, share-based compensation expense, effects of certain purchase accounting adjustments, start-up and development costs or acquisition, integration and separation costs, certain incremental costs and other exceptional, unusual or generally non-recurring items. |
Basis of consolidation | Basis of consolidation These Consolidated Financial Statements include all the assets, liabilities, equity, revenues, expenses and cash flows of the entities and businesses controlled by Constellium. All intercompany transactions and balances are eliminated. Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group has power over the investee, is exposed to, or has rights to variable returns from its involvement in the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Investments over which the Group has significant influence are accounted for under the equity method. Investments over which the Group has joint control are accounted for either as joint ventures under the equity method or as joint arrangements in relation to their interest in the joint operation. Joint venture investments are initially recorded at cost. They are subsequently increased or decreased by the Group’s share in the profit or loss, or by other movements reflected directly in the equity of the entity. |
Business combinations | Business combinations The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities assumed and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The amount of non-controlling interests is determined for each business combination and is either based on the fair value (full goodwill method) or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets, resulting in recognition of only the share of goodwill attributable to equity holders of the parent (partial goodwill method). Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the amount of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized as a gain in Other gains / (losses) - net in the Consolidated Income Statement. At the acquisition date, the Group recognizes the identifiable acquired assets, liabilities and contingent liabilities (identifiable net assets) of the subsidiaries on the basis of fair value at the acquisition date. Recognized assets and liabilities may be adjusted during a maximum of 12 months from the acquisition date, depending on new information obtained about the facts and circumstances existing at the acquisition date. Significant assumptions used in determining allocation of fair value include the following valuation techniques: the cost approach, the income approach and the market approach which are determined based on cash flow projections and related discount rates, industry indices, market prices regarding replacement cost and comparable market transactions. Acquisition related costs are expensed as incurred and are included in Other gains / (losses) - net in the Consolidated Income Statement. |
Cash-generating units | Cash-generating units The reporting units, which generally correspond to industrial sites, are the lowest level of the Group’s internal reporting and have been identified as cash-generating units. |
Goodwill | Goodwill Goodwill arising from a business combination is carried at cost as established at the date of the business combination less accumulated impairment losses, if any. Goodwill is allocated at the operating segment levels which are the groups of cash-generating units that are expected to benefit from the synergies of the combination. The operating segments represent the lowest level within the Group at which goodwill is monitored for internal management purposes. Gains and losses on the disposal of a cash-generating unit include the carrying amount of goodwill relating to the cash-generating unit sold. |
Impairment of goodwill | Impairment of goodwill A group of cash-generating units to which goodwill is allocated is tested for impairment annually, or more frequently when there is an indication that the group of units may be impaired. The net carrying value of a group of cash-generating units is compared to its recoverable amount, which is the higher of the value in use and the fair value less cost of disposal. Value in use calculations use cash flow projections based on financial budgets approved by management and usually covering a 5-year period. Cash flows beyond this period are estimated using a perpetual long-term growth rate for the subsequent years. The value in use is the sum of discounted cash flows over the projected period and the terminal value. Discount rates are determined based on the weighted-average cost of capital of each operating segment. The fair value is the price that would be received for the group of cash-generating units, in an orderly transaction, from a market participant. This value is estimated on the basis of available and relevant market data or a discounted cash flow model reflecting market participant assumptions. An impairment loss is recognized for the amount by which the group of units carrying amount exceeds its recoverable amount. Any impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the group of cash-generating units and then, to the other assets of the group of units pro rata on the basis of the carrying amount of each asset in the group of units. Any impairment loss is recognized in the line Impairment in the Consolidated Income Statement. An impairment loss recognized for goodwill cannot be reversed in subsequent years. |
Non-current assets and disposal groups classified as held for sale & discontinued operations | Non-current assets and disposal groups classified as held for sale & Discontinued operations IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations defines a discontinued operation as a component of an entity that (i) generates cash flows that are largely independent from cash flows generated by other components, (ii) is classified as held for sale or has been disposed of, and (iii) represents a separate major line of business or geographic areas of operations. Assets and liabilities are classified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Assets and liabilities are stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. Assets and liabilities held for sale are presented in separate lines in the Consolidated Statement of Financial Position of the year during which the decision to sell is made. The results of discontinued operations are shown separately in the Consolidated Income Statement and Consolidated Statement of Cash Flows. |
Foreign currency transactions and foreign operations | Foreign currency transactions and foreign operations Functional currency Items included in the Consolidated Financial Statements of each of the entities and businesses of Constellium are measured using the currency of the primary economic environment in which each of them operates (their functional currency). Foreign currency transactions Transactions denominated in currencies other than the functional currency are recorded in the functional currency at the exchange rate in effect at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated Income Statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented within Finance costs - net . Realized foreign exchange gains and losses that relate to commercial transactions are presented in Cost of sales . All other foreign exchange gains and losses, including those that relate to foreign currency derivatives hedging commercial transactions where hedge accounting has not been applied, are presented within Other gains / (losses) - net . Foreign operations: presentation currency and foreign currency translation In the preparation of the Consolidated Financial Statements, the year-end balances of assets, liabilities and components of equity of Constellium’s entities and businesses are translated from their functional currencies into Euros, the presentation currency of the Group, at their respective year-end exchange rates. Revenue, expenses and cash flows of Constellium’s entities and businesses are translated from their functional currencies into Euros using their respective average exchange rates for the year. The net differences arising from exchange rate translation are recognized in the Consolidated Statement of Comprehensive Income / (Loss). |
Revenue from contracts with customers | Revenue from Contracts with Customers Under IFRS 15, revenue is recognized in an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Group primarily contracts with customers for the sale of rolled or extruded aluminium products. For the majority of our business, performance obligations with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near-term. These purchase orders are short-term in nature, although they may be governed by long-term multi-year frame agreements. Revenue from product sales, measured at the fair value of the consideration received or receivable, should be recognized at the point in time when control of the asset is transferred to the customer, generally upon delivery. In certain limited circumstances, the Group may be required to recognize revenue over time for products that have no alternative use and for which the Group has an enforceable right to payment for production completed to date. Revenue from product sales, net of trade discounts, allowances and volume-based incentives, is recognized for the amount the Group expects to be entitled to, generally upon delivery, and provided persuasive evidence that control has transferred. Contract liabilities consist of expected volume discounts, rebates, incentives, refunds and penalties and price concessions. Contract liabilities are presented in Trade payables and other. |
Research and development costs | Research and development costs Costs incurred on development projects are recognized as intangible assets when the following criteria are met: – It is technically feasible to complete the intangible asset so that it will be available for use; – Management intends to complete and use the intangible asset; – There is an ability to use the intangible asset; – It can be demonstrated how the intangible asset will generate probable future economic benefits; – Adequate technical, financial and other resources to complete the development and use or sell the intangible asset are available; and – The expenditure attributable to the intangible asset during its development can be reliably measured. Development expenditures that do not meet these criteria are expensed as incurred. Development costs previously recognized as expenses cannot be recognized as an asset in a subsequent period. |
Other gains / (losses) - net | Other gains / (losses) - net Other gains / (losses) - net include: (i) realized and unrealized gains and losses on derivatives contracted for commercial purposes and accounted for at fair value through profit or loss, (ii) unrealized exchange gains and losses from the remeasurement of monetary assets and liabilities and (iii) the ineffective portion of changes in fair value of derivatives, which are designated for hedge accounting. Other gains / (losses) - net separately identifies other unusual, infrequent or non-recurring items. Such items are those that, in management’s judgment, need to be disclosed by virtue of their size, nature or incidence. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. |
Interest income and expense | Interest income and expense Interest income is recorded using the effective interest rate method on loans receivables and on the interest bearing components of cash and cash equivalents. Interest expense on short and long-term financing is recorded at the relevant rates on the various borrowing agreements. Borrowing costs (including interest) incurred for the construction of any qualifying asset are capitalized during the period of time required to complete and prepare the asset for its intended use. |
Share-based payment arrangements | Share-based payment arrangements Equity-settled share-based payments to employees and Board members providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting year, the Group revises its estimate of the number of equity instruments expected to vest. |
Property, plant and equipment | Property, plant and equipment Recognition and measurement Property, plant and equipment acquired by the Company are recorded at cost, which comprises the purchase price, including import duties and non-refundable purchase taxes, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated close down and restoration costs associated with the asset. Borrowing costs, including interests, directly attributable to the acquisition or construction of a Property, plant and equipment are included in the cost. Subsequent to the initial recognition, Property, plant and equipment are measured at cost less accumulated depreciation and impairment, if any. Costs are capitalized into construction work-in-progress until such projects are completed and the assets are available for use. Subsequent costs Enhancements and replacements are capitalized as additions to Property, plant and equipment only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the item can be measured with reliability. Ongoing regular maintenance costs related to Property, plant and equipment are expensed as incurred. Depreciation Land is not depreciated. Property, plant and equipment are depreciated over the estimated useful lives of the related assets using the straight-line method as follows: – Buildings 10 – 50 years; – Machinery and equipment 3 – 40 years; – Vehicles 5 – 8 years. |
Intangible assets | Intangible assets Recognition and measurement Technology and customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and impairment losses. The useful lives of the Group intangible assets are assessed to be finite. Amortization Intangible assets are amortized over the estimated useful lives of the related assets using the straight-line method as follows: – Technology 20 years; – Customer relationships 25 years; – Software 3 – 5 years. |
Impairment of property, plant and equipment and intangible assets | Impairment of property, plant and equipment and intangible assets Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment if there is any indication that the carrying amount of the asset (or cash-generating unit to which it belongs) may not be recoverable. The recoverable amount is based on the higher of fair value less cost of disposal (market value) and value in use (determined using estimates of discounted future net cash flows of the asset or group of assets to which it belongs). Any impairment loss is recognized in the line Impairment in the Consolidated Income Statement. |
Financial instruments | Financial Instruments i. Classification and measurement • Financial assets Financial assets are classified either: (a) at amortized cost, (b) at fair value through other comprehensive income (FVOCI), or (c) at fair value through profit or loss (FVPL). The classification depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing the financial assets. Management determines the classification of Constellium’s financial assets at initial recognition. i. Assets at amortized cost are comprised of other receivables, non-current loans receivable and current loans receivable in the Consolidated Statement of Financial Position. They are held within a business model whose objective is to hold assets in order to collect contractual cash flows provided they give rise to cash flows that are ‘solely payments of principal and interest’ on the principal amount outstanding. They are carried at amortized cost using the effective interest rate method, less any impairment. They are classified as current or non-current assets based on their maturity date. ii. Assets at fair value through OCI are comprised of trade receivables in the Consolidated Statement of Financial Position. The business model is to maintain liquidity for the Group, should the need arise, which leads to sales through factoring agreements that are more than infrequent and significant in value. Therefore, trade receivables are managed under an objective that results in both collecting the contractual cash flows and selling the receivables to the factors. The portfolio of trade receivables is therefore classified as measured at fair value through OCI. Foreign exchange revaluation and impairment losses or reversals are recognized in profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. These assets are classified as current or non-current assets based on their maturity date. iii. Assets at fair value through profit or loss are comprised of derivatives except when designated as hedging instruments in a hedging relationship that qualifies for hedge accounting in accordance with IAS 39, ‘Financial instruments’. Financial assets carried at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in the Consolidated Income Statement. • Financial liabilities Borrowings and other financial liabilities (excluding derivative liabilities) are recognized initially at fair value, net of transaction costs incurred and directly attributable to the issuance of the liability. These financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Any difference between the amounts originally received (net of transaction costs) and the redemption value is recognized in the Consolidated Income Statement using the effective interest rate method. ii. Impairment of financial assets Financial assets subject to IFRS 9’s expected credit loss model includes: cash and cash equivalents, trade receivables and other and loans to joint ventures. iii. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the Consolidated Statement of Financial Position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. |
Derivatives financial instruments | Derivatives financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument for accounting purposes, and if so, the nature of the item being hedged. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, relevant market prices are used to determine fair values. The Group periodically estimates the impact of credit risk on its derivatives instruments aggregated by counterparties and takes it into account when estimating the fair value of its derivatives. Credit Value Adjustments are calculated for asset derivatives based on Constellium counterparties credit risk. Debit Value Adjustments are calculated for credit derivatives based on Constellium's own credit risk. The fair value method used is based on historical probability of default, provided by leading rating agencies. For derivative instruments that do not qualify for hedge accounting, changes in the fair value are recognized immediately in profit or loss and are included in ‘ Other gains / (losses) - net ’. The Group did not adopt the disposition of IFRS 9 on hedging and will therefore continue to apply the provisions of IAS 39. For derivative instruments that are designated for hedge accounting, the group documents at the inception of the hedging transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking the hedge transaction. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in Other Comprehensive Income and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in the Consolidated Income Statement in ‘ Other gains / (losses) - net ’. Amounts accumulated in equity are reclassified to the Consolidated Income Statement when the hedged item affects the Consolidated Income Statement. The gain or loss relating to the effective portion of derivative instruments hedging forecasted cash-flows under customer agreements is recognized in ‘ Revenue ’. When the forecasted transaction that is hedged results in the recognition of a non-financial asset, the gains and losses previously deferred in equity are reclassified from equity and included in the initial measurement of the cost of the asset. The deferred amounts would ultimately be recognized in the Consolidated Income Statement upon the sale, depreciation or impairment of the asset. When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecasted transaction is ultimately recognized in the Consolidated Income Statement. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was recognized in equity is immediately reclassified to the Consolidated Income Statement. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value, primarily on a weighted-average cost basis. Weighted-average costs for raw materials, stores, work in progress and finished goods are calculated using the costs experienced in the current period based on normal operating capacity (and include the purchase price of materials, freight, duties and customs, the costs of production, which includes labor costs, materials and other expenses, that are directly attributable to the production process and production overheads). |
Trade account receivables | Trade account receivables Recognition and measurement Trade account receivables are recognized at fair value through OCI since they are managed under an objective that results in both collecting the contractual cash flows and selling the receivables to the factors. The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. Factoring arrangements In non-recourse factoring arrangements, under which the Group has transferred substantially all the risks and rewards of ownership of the receivables, the receivables are derecognized from the Consolidated Statement of Financial Position. When trade account receivables are sold with limited recourse, and substantially all the risks and rewards associated with these receivables are not transferred, receivables are not derecognized. Where the entity does not derecognize the receivables, the cash received from the Factor is classified as a financing cash inflow, the derecognition of the related liability as a financing cash outflow and the settlement of the receivables as an operating cash inflow. Arrangements in which the Group derecognizes receivables result in changes in trade receivables which are reflected as cash flows from operating activities. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are comprised of cash in bank accounts and on hand, short-term deposits held on call with banks and other short-term highly liquid investments with original maturities of three months or less that are readily convertible into known amounts of cash and are subject to insignificant risk of changes in value, less bank overdrafts that are repayable on demand, provided there is an offset right. |
Share capital | Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Trade payables | Trade payables Trade payables are initially recorded at fair value and classified as current liabilities if payment is due in one year or less. |
Provisions | Provisions Provisions are recorded for the best estimate of expenditures required to settle liabilities of uncertain timing or amount when management determines that a legal or constructive obligation exists as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and such amounts can be reasonably estimated. Provisions are measured at the present value of the expected expenditures to be required to settle the obligation. The ultimate cost to settle such liabilities is uncertain, and cost estimates can vary in response to many factors. The settlement of these liabilities could materially differ from recorded amounts. In addition, the expected timing of expenditure can also change. As a result, there could be significant adjustments to provisions, which could result in additional charges or recoveries affecting future financial results. Types of liabilities for which the Group establishes provisions include: Close down and restoration costs Estimated close down and restoration costs are accounted for in the year when the legal or constructive obligation arising from the related disturbance occurs and it is probable that an outflow of resources will be required to settle the obligation. These costs are based on the net present value of estimated future costs. Provisions for close down and restoration costs do not include any additional obligations which are expected to arise from future disturbance. The costs are estimated on the basis of a closure plan including feasibility and engineering studies, are updated annually during the life of the operation to reflect known developments (e.g. revisions to cost estimates and to the estimated lives of operations) and are subject to formal review at regular intervals each year. The initial closure provision together with subsequent movements in the provisions for close down and restoration costs, including those resulting from new disturbance, updated cost estimates, changes to the estimated lives of operations and revisions to discount rates are capitalized within Property, plant and equipment. These costs are then depreciated over the remaining useful lives of the related assets. The amortization or unwinding of the discount applied in establishing the net present value of the provisions is charged to the Consolidated Income Statement as a financing cost. Environmental remediation costs Environmental remediation costs are accounted for based on the estimated present value of the costs of the Group’s environmental clean-up obligations. Movements in the environmental clean-up provisions are presented as an operating cost within Cost of sales . Remediation procedures may commence soon after the time at which the disturbance, remediation process and estimated remediation costs become known, and can continue for many years depending on the nature of the disturbance and the technical remediation. Restructuring costs Provisions for restructuring are recorded when Constellium’s management is demonstrably committed to the restructuring plan and where such liabilities can be reasonably estimated. The Group recognizes liabilities that primarily include one-time termination benefits, or severance, and contract termination costs, primarily related to equipment and facility lease obligations. These amounts are based on the remaining amounts due under various contractual agreements, and are periodically adjusted for any anticipated or unanticipated events or changes in circumstances that would reduce or increase these obligations. Legal, tax and other potential claims Provisions for legal claims are made when it is probable that liabilities will be incurred and when such liabilities can be reasonably estimated. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Management determines the likelihood of an unfavorable outcome based on many factors such as the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals, process and outcomes of similar historical matters, amongst others. Once an unfavorable outcome is considered probable, management weights the probability of possible outcomes and the most likely loss is recorded. Legal matters are reviewed on a regular basis to determine if there have been changes in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. Depending on their nature, these costs may be charged to the line Cost of sales or Other gains / (losses) - net in the Consolidated Income Statement. Included in other potential claims are provisions for product warranties and guarantees to settle the net present value portion of any settlement costs for potential future legal actions, claims and other assertions that may be brought by Constellium’s customers or the end-users of products. Provisions for product warranty and guarantees are charged to the line Cost of sales in the Consolidated Income Statement. When any legal action, claim or assertion related to product warranty or guarantee is settled, the net settlement amount incurred is charged against the provision established in the Consolidated Statement of Financial Position. The outstanding provision is reviewed periodically for adequacy and reasonableness by Constellium management. Management establishes tax reserves and accrues interest thereon, if deemed appropriate, in expectation that certain tax positions other than income tax may be challenged and that the Group might not succeed in defending such positions, despite management’s belief that the positions taken were fully supportable. |
Pension, other post-employment benefits and other long-term employee benefits | Pension, other post-employment plans and other long-term employee benefits For defined contribution plans, the contribution paid in respect of service rendered over the service year is recognized in the Consolidated Income Statement. This expense is included in Cost of sales , Selling and administrative expenses or Research and development expenses , depending on its nature. For defined benefit plans, the retirement benefit obligation recognized in the Consolidated Statement of Financial Position represents the present value of the defined benefit obligation as reduced by the fair value of plan assets. The effects of changes in actuarial assumptions and experience adjustments are presented in the Consolidated Statement of Comprehensive Income / (Loss). The amount charged to the Consolidated Income Statement in respect of these plans is included within the Income / (loss) from operations except for the net Interest costs, which are included within Finance costs - net . The defined benefit obligations are assessed using the projected unit credit method. The most significant assumption is the discount rate. Other post-employment benefit plans mainly relate to health and life insurance benefits to retired employees and in some cases to their beneficiaries and covered dependents. Eligibility for coverage is dependent upon certain age and service criteria. These benefit plans are unfunded and are accounted for as defined benefit obligations, as described above. Other long-term employee benefits mainly include jubilees and other long-term disability benefits. For these plans, actuarial gains and losses arising in the year are recognized immediately in the Consolidated Income Statement. |
Taxation | Taxation The current Income tax (expense) / benefit is calculated on the basis of the tax laws enacted or substantively enacted at the Consolidated Statement of Financial Position date in the countries where the Company and its subsidiaries operate and generate taxable income. The Group is subject to income taxes in the Netherlands, France, United States and numerous other jurisdictions. Certain of Constellium’s businesses may be included in consolidated tax returns within the Company. In certain circumstances, these businesses may be jointly and severally liable with the entity filing the consolidated return, for additional taxes that may be assessed. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the Consolidated Financial Statement carrying amounts of existing assets and liabilities and their respective tax bases. This approach also requires the recognition of deferred income tax assets for operating loss carryforwards and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates and laws is recognized as income tax benefit/ (expense) in the year when the rate change is substantively enacted. Deferred income tax assets and liabilities are measured using tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on the tax rates and laws that have been enacted or substantively enacted at the date of the Consolidated Statement of Financial Position. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. IFRIC 23 - Uncertainty over Income Tax treatment This interpretation provides guidance on how to determine an entity’s taxable result where there is uncertainty over whether tax positions taken by an entity will be accepted by the tax authority. The recognition criteria is based on the assessment of whether the tax authority will accept a tax treatment, on a more-likely-than-not basis, assuming that the tax authority has full knowledge of all relevant information. Uncertain tax positions recognized are measured using either (i) the most likely amount between two possible outcomes or (ii) the weighted average amount of several possible outcomes (expected value), depending on which is thought to give a better prediction of the resolution of the uncertainty. |
Presentation of financial statements | Presentation of financial statements The Consolidated Financial Statements are presented in millions of Euros, except Earnings per share in Euros. Certain reclassifications may have been made to prior year amounts to conform to the current year presentation. |
Judgments in applying accounting policies and key sources of estimation uncertainty | Judgments in applying accounting policies and key sources of estimation uncertainty Many of the amounts included in the Consolidated Financial Statements involve the use of judgment and/or estimation. These judgments and estimates are based on management’s best knowledge of the relevant facts and circumstances, giving consideration to previous experience. However, actual results may differ from the amounts included in the Consolidated Financial Statements. Key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include the items presented below. Impairment tests for goodwill, intangible assets and property, plant and equipment The determination of fair value and value in use of cash-generating units or groups of cash-generating units depends on a number of assumptions, in particular market data, estimated future cash flows and discount rates. These assumptions are subject to risk and uncertainty. Any material changes in these assumptions could result in a significant change in a cash-generating units’ recoverable value or in a goodwill impairment. Details of the key assumptions applied are set out in NOTE 18 - Intangible Assets (including Goodwill) . Pension, other post-employment benefits and other long-term employee benefits The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions and its determination requires the application of judgment. Assumptions used and judgments made in determining the defined benefit obligations and net pension costs include discount rates, rates of future compensation increase as well as the criteria considered to determine, in the context of a plan amendment, when the plan amendment has occurred. Any material changes in these assumptions could result in a significant change in employee benefit expenses recognized in the Consolidated Income Statement or actuarial gains and losses recognized in Equity and prepaid and accrued benefits. Details of the key assumptions made and judgments applied are set out in NOTE 25 - Pensions and Other Post-Employment Benefit Obligations . Income Taxes Significant judgment is sometimes required in determining the accrual for income taxes as there are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognizes liabilities based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were recorded, such differences will impact the current and deferred income tax provisions, results of operations and possibly cash flows in the year in which such determination is made. Management judgment is required to determine the extent to which deferred tax assets can be recognized. In assessing the recognition of deferred tax assets, management considers whether it is more likely than not that the deferred tax assets will be utilized. The deferred tax assets will be ultimately utilized to the extent that sufficient taxable profits will be available in the years in which the temporary differences become deductible. This assessment is conducted through a detailed review of deferred tax assets by jurisdiction and takes into account the scheduled reversals of taxable and deductible temporary differences, past, current and expected future performance deriving from the budget, the business plan and tax planning strategies. Deferred tax assets are not recognized in the jurisdictions where it is less likely than not that sufficient taxable profits will be available against which the deductible temporary differences can be utilized. Provisions Provisions have been recorded for: (a) close-down and restoration costs; (b) environmental remediation and monitoring costs; (c) restructuring programs; (d) legal and other potential claims including provisions for tax risks other than income tax, product warranty and guarantees, at amounts which represent management’s best estimates of the expenditure required to settle the obligation at the date of the Consolidated Statement of Financial Position. Expectations are revised each year until the actual liability is settled, with any difference accounted for in the year in which the revision is made. Main assumptions used are described in NOTE 26 - Provisions . |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of summary of significant accounting policies [abstract] | |
Schedule of Impact of Initial Application of IFRS 16 - Leases | (in millions of Euros) Carrying amount IFRS16 impact Carrying amount Property, plant and equipment 1,666 102 1,768 Borrowings (2,151 ) (102 ) (2,253 ) |
Schedule of Main Exchange Rates Used for Preparation of Financial Statements | The following table summarizes the main exchange rates used for the preparation of the Consolidated Financial Statements : Foreign exchange rate for 1 Euro Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Average rate Closing rate Average rate Closing rate Average rate Closing rate U.S. Dollars USD 1.1193 1.1234 1.1798 1.1450 1.1273 1.1993 Swiss Francs CHF 1.1121 1.0854 1.1546 1.1269 1.1103 1.1702 Czech Koruna CZK 25.6698 25.4080 25.6452 25.7240 26.3151 25.5349 |
ACQUISITION OF CONSTELLIUM-BO_2
ACQUISITION OF CONSTELLIUM-BOWLING GREEN (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of Goodwill Arising as a Result of Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The following table reflects the goodwill arising as a result of the allocation of purchase price to the Bowling Green assets acquired and liabilities assumed at January 10, 2019: (in millions of Euros) Fair Value Cash and cash equivalents 4 Trade receivables and other 49 Inventories 65 Property, plant and equipment 165 Deferred tax assets 3 Trade payables and other (41 ) Borrowings (75 ) Net asset acquired at fair value 170 Goodwill 24 Total Consideration 194 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Schedule of Disaggregation Revenue | The following table presents our revenue by product line: (in millions of Euros) Year ended Year ended Year ended Packaging rolled products 2,172 2,245 2,146 Automotive rolled products 816 636 483 Specialty and other thin-rolled products 151 169 176 Aerospace rolled products 863 773 760 Transportation, Industry and other rolled products 557 566 541 Automotive extruded products 797 714 614 Other extruded products 551 573 504 Other — 10 13 Total Revenue 5,907 5,686 5,237 The following table presents our revenue by destination of shipment: (in millions of Euros) Year ended Year ended Year ended France 563 554 557 Germany 1,260 1,339 1,217 United Kingdom 194 175 188 Switzerland 68 77 123 Other Europe 1,078 1,038 940 United States 2,175 1,897 1,691 Canada 89 107 78 Asia and Other Pacific 277 300 270 All Other 203 199 173 Total Revenue 5,907 5,686 5,237 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of Segment Revenue | Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 (in millions of Euros) Segment revenue Inter-segment elimination External revenue Segment revenue Inter-segment elimination External revenue Segment revenue Inter-segment elimination External revenue P&ARP 3,149 (10 ) 3,139 3,059 (9 ) 3,050 2,812 (7 ) 2,805 A&T 1,462 (42 ) 1,420 1,389 (50 ) 1,339 1,335 (34 ) 1,301 AS&I 1,351 (3 ) 1,348 1,290 (3 ) 1,287 1,123 (5 ) 1,118 Holdings & Corporate (A) — — — 10 — 10 13 — 13 Total 5,962 (55 ) 5,907 5,748 (62 ) 5,686 5,283 (46 ) 5,237 (A) For the years ended December 31, 2018 and 2017 , the Holdings & Corporate segment included revenue from supplying metal to third parties. |
Schedule of Segment Adjusted EBITDA and reconciliation of Adjusted EBITDA to Net Income | (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 P&ARP 273 243 204 A&T 204 152 146 AS&I 106 125 120 Holdings & Corporate (21 ) (22 ) (22 ) Adjusted EBITDA 562 498 448 Metal price lag (A) (46 ) — 22 Start-up and development costs (B) (11 ) (21 ) (17 ) Manufacturing system and process transformation costs — — (2 ) Bowling Green one-time costs related to the acquisition (C) (5 ) — — Share based compensation costs (16 ) (12 ) (8 ) Gains on pensions plan amendments (D) 25 1 36 20 Depreciation and amortization 17,18 (256 ) (197 ) (171 ) Restructuring costs (4 ) (1 ) (4 ) Unrealized gains / (losses) on derivatives 9 33 (84 ) 57 Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net 9 — — (4 ) (Losses) / gains on disposals (E) 9 (3 ) 186 (3 ) Other (F) — (1 ) — Income from operations 255 404 338 Finance costs - net 11 (175 ) (149 ) (260 ) Share of income / (loss) of joint-ventures 19 2 (33 ) (29 ) Income before income tax 82 222 49 Income tax expense 12 (18 ) (32 ) (80 ) Net income / (loss) 64 190 (31 ) (A) Metal price lag represents the financial impact of the timing difference between when aluminium prices included within Constellium Revenues are established and when aluminium purchase prices included in Cost of sales are established. The Group accounts for inventory using a weighted average price basis and this adjustment aims to remove the effect of volatility in LME prices. The calculation of the Group metal price lag adjustment is based on an internal standardized methodology calculated at each of Constellium’s manufacturing sites and is primarily calculated as the average value of product recorded in inventory, which approximates the spot price in the market, less the average value transferred out of inventory, which is the weighted average of the metal element of cost of sales, based on the quantity sold in the year. (B) For the years ended December 31, 2019 , 2018 and 2017 , start-up and development costs include €11 million , €21 million and €16 million , respectively, related to new projects in our AS&I operating segment. (C) For the year ended December 31, 2019 , Bowling Green one-time costs related to the acquisition include the non-cash reversal of the inventory step-up. (D) For the year ended December 31, 2018 , the Group amended one of its OPEB plans in the U.S., which resulted in a €36 million gain. For the year ended December 31, 2017 , amendments to certain Swiss pension plans, U.S. pension plans and OPEB resulted in a €20 million gain. (E) In July 2018, Constellium completed the sale of the North Building assets of its Sierre plant in Switzerland to Novelis and contributed the Sierre site shared infrastructure to a joint-venture with Novelis, in exchange for cash consideration of €200 million . This transaction also resulted in the termination of the existing lease agreement for the North Building assets which had been leased and operated by Novelis since 2005. For the year ended December 31, 2018 , the transaction generated a €190 million net gain (See NOTE 32 - Subsidiaries and Operating Segments ). (F) For the year ended December 31, 2017 , other includes €3 million of legal fees and lump-sum payments in connection with the renegotiation of a new 5 -year collective bargaining agreement offset by accrual reversals of unused provisions related to one-time loss contingencies. |
Schedule of Segment Capital Expenditures | (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 P&ARP (96 ) (97 ) (115 ) A&T (72 ) (70 ) (73 ) AS&I (97 ) (105 ) (83 ) Holdings & Corporate (6 ) (5 ) (5 ) Capital expenditures (271 ) (277 ) (276 ) |
Schedule of Segment Assets | Segment assets are comprised of total assets of Constellium by segment, less deferred income tax assets, cash and cash equivalents and other financial assets. (in millions of Euros) At December 31, 2019 At December 31, 2018 P&ARP 1,951 1,791 A&T 856 831 AS&I 703 544 Holdings & Corporate 276 304 Segment assets 3,786 3,470 Deferred income tax assets 185 163 Cash and cash equivalents 184 164 Other financial assets 29 104 Total Assets 4,184 3,901 |
INFORMATION BY GEOGRAPHIC AREA
INFORMATION BY GEOGRAPHIC AREA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of geographical areas [abstract] | |
Schedule of Property, Plant and Equipment Reported Based on Physical Location of Assets | Property, plant and equipment are reported based on the physical location of the assets: (in millions of Euros) At December 31, 2019 At December 31, 2018 United States 926 740 France 656 613 Germany 250 181 Czech Republic 106 84 Other 118 48 Total 2,056 1,666 |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
Schedule of Total Operating Expenses by Nature | (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Raw materials and consumables used (3,535 ) (3,561 ) (3,197 ) Employee benefit expenses (1,038 ) (927 ) (907 ) Energy costs (162 ) (140 ) (138 ) Sub-contractors (100 ) (92 ) (99 ) Freight out costs (156 ) (143 ) (124 ) Professional fees (97 ) (74 ) (77 ) Lease expenses (13 ) (31 ) (27 ) Depreciation and amortization (256 ) (197 ) (171 ) Other operating expenses (276 ) (271 ) (229 ) Other gains / (losses) - net (19 ) 154 70 Total operating expenses (5,652 ) (5,282 ) (4,899 ) |
EMPLOYEE BENEFIT EXPENSES (Tabl
EMPLOYEE BENEFIT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Classes of employee benefits expense [abstract] | |
Schedule of Total Employee Benefit Expenses | (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Wages and salaries (994 ) (889 ) (872 ) Pension costs - defined benefit plans 25 (19 ) (20 ) (21 ) Other post-employment benefits 25 (9 ) (6 ) (6 ) Share-based compensation 31 (16 ) (12 ) (8 ) Total employee benefit expenses (1,038 ) (927 ) (907 ) |
OTHER GAINS _ (LOSSES)_NET (Tab
OTHER GAINS / (LOSSES)—NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Other Gains / (Losses)—Net | (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Realized (losses) / gains on derivatives (A) (49 ) 14 — Unrealized gains / (losses) on derivatives at fair value through profit and loss - net (A) 5 33 (84 ) 57 Unrealized exchange losses from the remeasurement of monetary assets and liabilities - net 5 — — (4 ) Gains on pension plan amendments (B) 25 1 36 20 (Losses) / gains on disposal (C) (3 ) 186 (3 ) Other (1 ) 2 — Total other gains / (losses) - net (19 ) 154 70 (A) Realized gains and losses are related to derivatives entered into with the purpose of mitigating exposure to volatility in foreign currencies and commodity prices. Unrealized gains and losses are related to derivatives that do not qualify for hedge accounting. (B) For the year ended December 31, 2018 , the Group amended one of its OPEB plans in the U.S., which resulted in a €36 million gain. For the year ended December 31, 2017 , amendments to certain Swiss pension plans, U.S. pension plans and OPEB resulted in a €20 million gain. (C) In July 2018, Constellium completed the sale of the North Building assets of its Sierre plant in Switzerland to Novelis and contributed the Sierre site shared infrastructure to a joint-venture with Novelis, in exchange for cash consideration of €200 million . This transaction also resulted in the termination of the existing lease agreement for the North Building assets which had been leased and operated by Novelis since 2005. For the year ended December 31, 2018 , the transaction generated a €190 million net gain (See NOTE 32 - Subsidiaries and Operating Segments ). |
CURRENCY GAINS _ (LOSSES) (Tabl
CURRENCY GAINS / (LOSSES) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Currency Gains and Losses Included in Income from Operations | Currency gains and losses, which are included in Income from operations, are as follows: (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Included in Revenue 24 (7 ) 2 2 Included in Cost of sales 1 2 (4 ) Included in Other gains / (losses) - net 9 7 (4 ) Total 3 11 (6 ) Realized exchange gains / (losses) on foreign currency derivatives - net 24 1 11 (15 ) Unrealized gains / (losses) on foreign currency derivatives - net 24 1 (3 ) 17 Exchange gains / (losses) from the remeasurement of monetary assets and liabilities - net 1 3 (8 ) Total 3 11 (6 ) |
Schedule of Foreign Currency Translation Reserve | (in millions of Euros) At December 31, 2019 At December 31, 2018 Foreign currency translation reserve at January 1 3 (7 ) Effect of currency translation differences 1 10 Foreign currency translation reserve at December 31 4 3 |
FINANCE COSTS_NET (Tables)
FINANCE COSTS—NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Finance Costs—Net | (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Interest received — 7 7 Finance income — 7 7 Interest expense on borrowings (A) (124 ) (118 ) (147 ) Expenses on factoring arrangements (19 ) (18 ) (16 ) Interest expense on leases (13 ) (5 ) (3 ) Net loss on settlement of debt (B) — — (91 ) Realized and unrealized gains / (losses) on debt derivatives at fair value (C) 13 28 (79 ) Realized and unrealized exchange (losses) / gains on financing activities - net (C) (3 ) (22 ) 91 Interest cost on pension and other benefits (16 ) (15 ) (17 ) Other finance expenses (D) (16 ) (10 ) (12 ) Capitalized borrowing costs (E) 3 4 7 Finance expenses (175 ) (156 ) (267 ) Finance costs - net (175 ) (149 ) (260 ) (A) For the year ended December 31, 2019 , the Group incurred mainly (i) €115 million of interest related to Constellium SE Senior Notes and (ii) €7 million of interest expense and fees related to the Muscle Shoals and Ravenswood ABL Facility (“Pan-U.S. ABL”). For the year ended December 31, 2018 , the Group incurred (i) €113 million of interest related to Constellium SE Senior Notes, (ii) €4 million of interest expense and fees related to the Pan US ABL. (B) For the year ended December 31, 2017 , net loss on settlement of debt related to (i) the Muscle Shoals Senior Notes redemption in February 2017 for €13 million and (ii) the Constellium SE Senior Notes redemption in November 2017 for €78 million . The total exit fees incurred and paid related to refinancings in 2017 amounted to €88 million . (C) The Group hedges the dollar exposure relating to the principal of its Constellium SE U.S. Dollar Senior Notes, for the portion that has not been used to finance directly or indirectly U.S. Dollar functional currency entities. Changes in the fair value of these hedging derivatives are recognized within Finance costs – net in the Consolidated Income Statement and largely offset the unrealized results related to Constellium SE U.S. Dollar Senior Notes revaluation. (D) For the year ended December 31, 2018 , other finance expenses include a €6 million net loss resulting from the modification of our loan to Constellium-UACJ ABS LLC in February 2018. (E) Borrowing costs directly attributable to the construction of assets are capitalized. The capitalization rate was 6% for the years ended December 31, 2019 , 2018 and 2017 . |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule of Current and Deferred Components of Income Tax | The current and deferred components of income tax are as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Current tax expense (32 ) (30 ) (26 ) Deferred tax expense 14 (2 ) (54 ) Total income tax expense (18 ) (32 ) (80 ) |
Schedule of Income Tax Reconciliation Using Composite Statutory Income Tax Rate Applicable by Tax Jurisdiction | Using a composite statutory income tax rate applicable by tax jurisdiction, the income tax can be reconciled as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Income before income tax 82 222 49 Composite statutory income tax rate applicable by tax jurisdiction 30.3 % 24.1 % 31.9 % Income tax expense calculated at composite statutory tax rate applicable by tax jurisdiction (25 ) (53 ) (16 ) Tax effect of: Changes in recognized and unrecognized deferred tax assets (A) (10 ) 30 (61 ) Change in tax laws and rates (B) 21 — (11 ) Other (4 ) (9 ) 8 Income tax expense (18 ) (32 ) (80 ) Effective income tax rate 22 % 14 % 163 % (A) For the year ended December 31, 2018, changes mainly relate to non-recurring transactions, especially the gain on the sale of the North Building of the Sierre plant and termination of an existing lease agreement, that generated a significant taxable profit compensated by the use of previously unrecognized tax losses carried forward. For the year ended December 31, 2017, changes mainly relate to unrecognized tax losses carried forward. (B) For the year ended December 31, 2019, the change in tax laws and rates relates mainly to the application of the Swiss Federal Tax Reform voted in May 2019 and enacted in the Canton where one of our entities is located. For the year ended December 31, 2017, the change in tax laws and rates relates mainly to the decrease in the U.S. income tax rate from 40% to 27% for €16 million and to the gradual decrease in the French tax rate to 25.82% starting 2022. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Schedule of Earnings Per Share | (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Earnings attributable to equity holders of the parent used to calculate basic and diluted earnings per share 59 188 (31 ) Number of shares attributable to equity holders of Constellium (number of shares) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Weighted average number of ordinary shares used to calculate basic earnings per share 136,856,978 134,761,736 110,164,320 Effect of other dilutive potential ordinary shares (A) 5,788,641 3,384,178 — Weighted average number of ordinary shares used to calculate diluted earnings per share 142,645,619 138,145,914 110,164,320 (A) For the year ended December 31, 2017 there were 3,291,875 potential ordinary shares that could have a dilutive impact but were considered antidilutive due to negative earnings. Earnings per share attributable to the equity holders of Constellium (in Euro per share) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Basic 0.43 1.40 (0.28 ) Diluted 0.41 1.37 (0.28 ) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of Cash and Cash Equivalents | (in millions of Euros) At December 31, 2019 At December 31, 2018 Cash in bank and on hand 184 164 Total Cash and cash equivalent 184 164 |
TRADE RECEIVABLES AND OTHER (Ta
TRADE RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Schedule of Trade Receivables and Other | Trade receivables and other are comprised of the following: At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Trade receivables - gross — 395 — 483 Impairment — (2 ) — (2 ) Total trade receivables - net — 393 — 481 Income tax receivables 35 22 28 43 Other taxes — 35 — 33 Contract assets 16 2 28 2 Prepaid expenses 1 8 1 12 Other 8 14 7 16 Total other receivables 60 81 64 106 Total trade receivables and other 60 474 64 587 |
Schedule of Contract Assets | At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Unbilled tooling costs 16 — 26 — Other — 2 2 2 Total Contract assets 16 2 28 2 |
Schedule of Aging of Total Trade Receivables—Net | The aging of total trade receivables - net is as follows: (in millions of Euros) At December 31, 2019 At December 31, 2018 Not past due 380 453 1 – 30 days past due 10 23 31 – 60 days past due 3 2 61 – 90 days past due — 2 Greater than 90 days past due — 1 Total trade receivables - net 393 481 |
Schedule of Carrying Amounts of Total Trade Receivables—Net by Currency | The composition of the carrying amounts of total Trade receivables – net by currency is shown in Euro equivalents as follows: (in millions of Euros) At December 31, 2019 At December 31, 2018 Euro 126 177 U.S. Dollar 251 284 Swiss franc 3 4 Other currencies 13 16 Total trade receivables - net 393 481 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Inventories | (in millions of Euros) At December 31, 2019 At December 31, 2018 Finished goods 203 165 Work in progress 321 347 Raw materials 106 112 Stores and supplies 74 67 Inventories write down (34 ) (31 ) Total inventories 670 660 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | (in millions of Euros) Notes Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at December 31, 2018 18 217 1,227 194 10 1,666 IFRS 16 application — 82 17 — 3 102 Net balance at January 1, 2019 18 299 1,244 194 13 1,768 Property, plant and equipment acquired through business combination 3 — 40 120 4 1 165 Additions 1 22 81 245 3 352 Disposals — — (5 ) — — (5 ) Depreciation expense — (27 ) (208 ) — (11 ) (246 ) Transfer during the year — 28 203 (242 ) 11 — Effects of changes in foreign exchange rates — 4 16 2 — 22 Net balance at December 31, 2019 19 366 1,451 203 17 2,056 Cost 35 527 2,407 213 46 3,228 Less accumulated depreciation and impairment (16 ) (161 ) (956 ) (10 ) (29 ) (1,172 ) Net balance at December 31, 2019 19 366 1,451 203 17 2,056 (in millions of Euros) Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at January 1, 2018 14 206 1,089 198 10 1,517 Additions 1 5 98 195 4 303 Disposals — — (6 ) — — (6 ) Depreciation expense (4 ) (13 ) (161 ) — (6 ) (184 ) Transfer during the year 6 16 181 (202 ) 2 3 Effects of changes in foreign exchange rates 1 3 26 3 — 33 Net balance at December 31, 2018 18 217 1,227 194 10 1,666 Cost 33 349 2,000 200 35 2,617 Less accumulated depreciation and impairment (15 ) (132 ) (773 ) (6 ) (25 ) (951 ) Net balance at December 31, 2018 18 217 1,227 194 10 1,666 |
Schedule of Right of Use Assets Included in Property, Plant and Equipment | Right of use have been included within the same line item as that within which the corresponding underlying assets would be presented if they were owned. (in millions of Euros) Buildings Machinery and Equipment Other Total Net balance at December 31, 2018 24 53 — 77 IFRS 16 application (A) 82 17 3 102 Net balance at January 1, 2019 106 70 3 179 Additions 20 21 2 43 Disposals — — — — Depreciation expense (11 ) (18 ) (2 ) (31 ) Transfer during the period — (3 ) — (3 ) Effects of changes in foreign exchange rates 1 1 — 2 Net balance at December 31, 2019 116 71 3 190 Cost 134 113 5 252 Less accumulated depreciation and impairment (18 ) (42 ) (2 ) (62 ) Net balance at December 31, 2019 116 71 3 190 (A) The IFRS 16 application included assets acquired through finance leases reclassified as right-of-use assets of €77 million and operating leases recognized as right-of-use assets of €102 million at January 1, 2019. |
Schedule of Depreciation Expense and Impairment Losses Relating to Property, Plant and Equipment | Total depreciation expense and impairment losses relating to property, plant and equipment and intangible assets are presented in the Consolidated Income Statement as follows: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Cost of sales (237 ) (184 ) (160 ) Selling and administrative expenses (13 ) (9 ) (8 ) Research and development expenses (6 ) (4 ) (3 ) Total (256 ) (197 ) (171 ) |
INTANGIBLE ASSETS (INCLUDING _2
INTANGIBLE ASSETS (INCLUDING GOODWILL) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Schedule of Changes in Intangible Assets and Goodwill | (in millions of Euros) Notes Goodwill Technology Computer Software Customer relationships Work in Progress Other Total intangible assets (excluding goodwill) Net balance at January 1, 2019 422 22 18 15 13 2 70 Intangible assets acquired through business combination 3 24 — — — — — — Additions — — 1 — 8 — 9 Amortization expense — (1 ) (8 ) (1 ) — — (10 ) Transfer during the year — — 7 — (7 ) — — Effects of changes in foreign exchange rates 9 — 1 — — — 1 Net balance at December 31, 2019 455 21 19 14 14 2 70 Cost 455 87 73 39 16 2 217 Less accumulated depreciation and impairment — (66 ) (54 ) (25 ) (2 ) — (147 ) Net balance at December 31, 2019 455 21 19 14 14 2 70 (in millions of Euros) Goodwill Technology Computer Software Customer relationships Work in Progress Other Total intangible assets (excluding goodwill) Net balance at January 1, 2018 403 24 18 15 9 2 68 Additions — — 2 — 8 1 11 Amortization expense — (3 ) (8 ) (1 ) — (1 ) (13 ) Transfer during the year — — 5 — (5 ) — — Effects of changes in foreign exchange rates 19 1 1 1 1 — 4 Net balance at December 31, 2018 422 22 18 15 13 2 70 Cost 422 84 65 39 13 3 204 Less accumulated depreciation and impairment — (62 ) (47 ) (24 ) — (1 ) (134 ) Net balance at December 31, 2018 422 22 18 15 13 2 70 |
INVESTMENTS ACCOUNTED FOR UND_2
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Schedule of Group Investments Accounted for Under Equity Method | The Group's investment accounted for under the Equity method is Rhenaroll S.A. (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 At January 1 1 1 Group share in loss — (33 ) Reclassified to non-current other financial assets (A) — 33 At December 31 1 1 (A) At December 31, 2018, the loan to Constellium-UACJ ABS LLC was, in substance, part of Constellium’s investment in the joint-venture. Thus, Constellium’s accumulated share of the losses of joint-ventures, in excess of the initial investment, was recognized against other financial assets for a cumulative amount of €49 million at December 31, 2018, of which €33 million was recognized during the year ended December 31, 2018. |
Schedule of Group Share of Joint Ventures | Group share of joint venture’s net assets Group share of joint venture’s profit/ (loss) (in millions of Euros) % interest At December 31, 2019 At December 31, 2018 At December 31, 2019 At December 31, 2018 Constellium-UACJ ABS LLC 51.00 % — (49 ) — (33 ) Rhenaroll S.A. (A) 49.85 % 1 1 — — Group share 1 (48 ) — (33 ) Reclassified to non-current other financial assets — 49 — — Investment in joint venture 1 1 — (33 ) (A) The Group holds a 49.85% interest in a joint venture named Rhenaroll S.A. (located in Biesheim, France), specialized in the chrome-plating, grinding and repairing of rolling mills’ roll and rollers. Rhenaroll S.A. is a private company with no quoted market price available for its shares. The investment is included in P&ARP segment assets. |
Schedule of Amounts Included in Consolidated Financial Statements in Accordance with Group Accounting Principles | The information presented hereafter reflects the amounts included in the Consolidated Financial Statements of the relevant entity in accordance with Group accounting principles and not the Company’s share of those amounts. (in millions of Euros) At December 31, 2018 Current assets Cash and cash equivalents 8 Trade receivables and other 49 Inventories 68 Non-current assets Property, plant and equipment 166 Intangible assets — Total Assets 291 Current liabilities Trade payables and other 79 Borrowings (A) 36 Non-current liabilities Borrowings (A) 271 Equity (95 ) Total Equity and Liabilities 291 (A) In February 2018, the shareholders had agreed to modify the terms of their loan to Constellium-UACJ ABS LLC by reducing the interest rate and extending the maturity to March 31, 2023. (in millions of Euros) Year ended December 31, 2018 Revenue 262 Cost of sales (309 ) Selling and administrative expenses (10 ) Loss from operations (57 ) Finance costs (A) (7 ) Net loss (64 ) (A) Finance costs include a €11 million gain related to the shareholders’ loan modification for the year ended December 31, 2018. |
DEFERRED INCOME TAXES (Tables)
DEFERRED INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule or Net Deferred Income Tax Assets | (in millions of Euros) At December 31, 2019 At December 31, 2018 Deferred income tax assets 185 163 Deferred income tax liabilities (24 ) (22 ) Net deferred income tax assets 161 141 |
Schedule of Significant Changes in Net Deferred Income Tax Assets / (Liabilities) | (in millions of Euros) At December 31, 2019 At December 31, 2018 Deferred income tax assets 185 163 Deferred income tax liabilities (24 ) (22 ) Net deferred income tax assets 161 141 The following tables show the changes in net deferred income tax assets / (liabilities) for the years ended December 31, 2019 and 2018 . (in millions of Euros) At January 1, 2019 Acquisitions Recognized in FX and reclassifications At December 31, 2019 Profit or loss OCI Long-term assets (94 ) 1 (3 ) — (3 ) (99 ) Inventories 5 — 2 — 1 8 Pensions 116 — (4 ) 13 2 127 Derivative valuation 12 — (8 ) 2 — 6 Tax losses carried forward (A) 61 — 27 — (13 ) 75 Other (B) 41 2 — — 1 44 Total 141 3 14 15 (12 ) 161 (A) The reclassifications resulted primarily from the adoption of IFRIC 23. (B) Other results mainly from non-deductible provisions and interest. (in millions of Euros) At January 1, 2018 Recognized in FX At December 31, 2018 Profit or loss OCI Long-term assets (76 ) (15 ) — (3 ) (94 ) Inventories 4 1 — — 5 Pensions 130 (12 ) (7 ) 5 116 Derivative valuation (20 ) 22 8 2 12 Tax losses carried forward 78 (13 ) — (4 ) 61 Other (A) 23 15 — 3 41 Total 139 (2 ) 1 3 141 (A) Other results mainly from non-deductible provisions and interest. |
Schedule of Unrecognized Deferred Tax Assets | The related tax impact of €259 million ( €321 million at December 31, 2018 ) is attributable to the following: (in millions of Euros) At December 31, 2019 At December 31, 2018 Expiring within 5 years (2 ) (45 ) Expiring after 5 years and limited (62 ) (89 ) Unlimited (20 ) (19 ) Tax losses (84 ) (153 ) Long-term assets (104 ) (107 ) Pensions (20 ) (18 ) Other (51 ) (43 ) Deductible temporary differences (175 ) (168 ) Total (259 ) (321 ) |
TRADE PAYABLES AND OTHER (Table
TRADE PAYABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule of Trade Payables and Other | At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Trade payables — 711 — 685 Fixed assets payables — 43 — 30 Employees' entitlements — 171 — 160 Taxes payable other than income tax — 14 — 16 Contract liabilities and other liabilities to customers 6 54 9 68 Other payables 15 6 18 9 Total Other 21 288 27 283 Total Trade payables and other 21 999 27 968 |
Schedule of Contract Liabilities | At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Non-current Current Deferred tooling revenue 2 — — — Advance payment from customers 2 5 7 9 Unrecognized variable consideration (A) 2 46 2 57 Other — 3 — 2 Total contract liabilities and other liabilities to customers 6 54 9 68 (A) Unrecognized variable consideration consists of expected volume rebates, discounts, incentives, refunds penalties and price concessions. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Schedule of Borrowings by Nature | (in millions of Euros) December 31, 2019 December 31, 2018 Nominal Value in Currency Nominal rate Effective rate Nominal Value In Euros (Arrangement fees) Accrued interests Carrying value Carrying value Secured Pan-U.S. ABL (due 2022) (A) $ 142 Floating 4.2 % 127 — — 127 — Secured Inventory Based Facility (due 2021) (B) — Floating — — — — — — Senior Unsecured Notes Constellium SE $ 400 5.75 % 6.26 % 356 (3 ) 2 355 348 Constellium SE € 200 4.63 % 5.16 % 200 (1 ) 1 200 300 Constellium SE $ 650 6.63 % 7.13 % 579 (10 ) 13 582 568 Constellium SE $ 500 5.88 % 6.26 % 445 (6 ) 10 449 440 Constellium SE € 400 4.25 % 4.57 % 400 (6 ) 6 400 399 Unsecured Revolving Credit Facility (due 2021) (C) — Floating — — — — — — Lease liabilities 187 — 1 188 73 Other loans (D) 59 — 1 60 23 Total Borrowings 2,353 (26 ) 34 2,361 2,151 Of which non-current 2,160 2,094 Of which current 201 57 Constellium SE Senior Notes are guaranteed by certain subsidiaries. (A) On February 20, 2019, the Pan-U.S. ABL was amended to include Bowling Green and increased to $350 million . The Pan-U.S. ABL was increased to $400 million on May 10, 2019. (B) On March 15, 2019, the French secured Inventory Based Facility maturity was extended to 2021. (C) The Unsecured Revolving Credit Facility has a €7 million borrowing base and is provided by Bpifrance Financement, a related party. (D) Other loans include €36 million of financial liabilities relating to the sale and leaseback of assets that were considered to be financing arrangements in substance. |
Schedule of Movement in Borrowings | (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 At December 31, prior period 2,151 2,127 IFRS 16 application 102 — At January 1 2,253 2,127 Cash flows Repayment of Senior Notes (A) (100 ) — Proceeds / (repayments) from revolving credit facilities and other loans 109 (68 ) Lease repayments (86 ) (15 ) Non-cash changes Borrowings assumed through business combination 3 75 — Movement in interests accrued or capitalized 1 12 New leases and other loans 75 28 Deferred arrangement fees, step-up amortization and other 5 2 Effects of changes in foreign exchange rates 29 65 At December 31 2,361 2,151 (A) On August 8, 2019, €100 million of the €300 million outstanding aggregate principal amount of the 4.63% Senior Notes due 2021 were redeemed. |
Schedule of Currency Concentration of Total Borrowings | The composition of the carrying amounts of total borrowings in Euro equivalents is denominated in the currencies shown below: (in millions of Euros) At December 31, 2019 At December 31, 2018 U.S. Dollar 1,597 1,408 Euro 746 726 Other currencies 18 17 Total borrowings 2,361 2,151 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Financial Assets and Liabilities by Categories | At December 31, 2019 At December 31, 2018 (in millions of Euros) Notes At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total Cash and cash equivalents 14 184 — — 184 164 — — 164 Trade receivables 15 — — 393 393 — — 481 481 Other financial assets — 29 — 29 74 30 — 104 Total 184 29 393 606 238 30 481 749 At December 31, 2019 At December 31, 2018 (in millions of Euros) Notes At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total At amortized cost At Fair Value through Profit and loss At Fair Value through OCI Total Trade payables and fixed assets payables 21 754 — — 754 715 — — 715 Borrowings 22 2,361 — — 2,361 2,151 — — 2,151 Other financial liabilities — 44 14 58 — 79 10 89 Total 3,115 44 14 3,173 2,866 79 10 2,955 |
Schedule of Other Financial Assets and Other Financial Liabilities Positions | The table below details other financial assets and other financial liabilities positions: At December 31, 2019 At December 31, 2018 (in millions of Euros) Non-current Current Total Non-current Current Total Derivatives 7 22 29 7 23 30 Aluminium and premium future contracts 1 8 9 2 7 9 Energy future contracts — — — — — — Other future contracts — — — — — — Currency commercial contracts 5 12 17 3 12 15 Currency net debt derivatives 1 2 3 2 4 6 Loans (A) — — — 67 2 69 Margin call — — — — 5 5 Other financial assets 7 22 29 74 30 104 Derivatives 23 35 58 29 60 89 Aluminium and premium future contracts 4 10 14 6 38 44 Energy future contracts — 1 1 — — — Other future contracts 2 4 6 5 3 8 Currency commercial contracts 12 16 28 7 12 19 Net investment hedge — — — — 4 4 Currency net debt derivatives 5 4 9 11 3 14 Other financial liabilities 23 35 58 29 60 89 (A) At December 31, 2018, Loans corresponds to a loan facility to Constellium-UACJ ABS LLC (See NOTE 19 - Investments Accounted for under the Equity Method ). |
Schedule of Derivatives Measured at Fair Value | At December 31, 2019 At December 31, 2018 (in millions of Euros) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Other financial assets - derivatives 8 21 — 29 9 21 — 30 Other financial liabilities - derivatives 19 39 — 58 50 39 — 89 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of Effect of Foreign Currency Derivatives Impacts in Consolidated Income Statement and Statement of Comprehensive Income/(Loss) | The table below details the effect of foreign currency derivatives in the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income / (Loss): (in millions of Euros) Notes Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Derivatives that do not qualify for hedge accounting Included in Other gains / (losses) - net Realized gains / (losses) on foreign currency derivatives - net 10 7 7 (16 ) Unrealized gains / (losses) on foreign currency derivatives - net (A) 10 2 (1 ) 16 Derivatives that qualify for hedge accounting Included in Revenue Realized (losses) / gains on foreign currency derivatives - net 10 (6 ) 4 1 Unrealized (losses) / gains on foreign currency derivatives - net 10 (1 ) (2 ) 1 Included in Other gains / (losses) - net Realized gains / (losses) in ineffective portion of derivatives — — — Included in Other comprehensive income / (loss) Unrealized (losses) / gains on foreign currency derivatives - net (15 ) (23 ) 48 Gains / (losses) reclassified from cash flow hedge reserve to Consolidated Income Statement 7 (2 ) (2 ) (A) Gains or losses on the hedging instruments are expected to offset losses or gains on the underlying hedged forecasted sales that will be reflected in future years when these sales are recognized. |
Schedule of Exposure to Financial Counterparties by Rating Type | The number of financial counterparties is tabulated below showing our exposure to the counterparty by rating type (Parent company ratings from Moody’s Investor Services): At December 31, 2019 At December 31, 2018 Number of financial counterparties (A) Exposure (in millions of Euros) Number of financial counterparties (A) Exposure (in millions of Euros) Rated Aa or better 2 83 2 22 Rated A 9 81 8 110 Rated Baa 3 5 2 4 Total 14 169 12 136 (A) Financial Counterparties for which the Group’s exposure is below €0.25 million have been excluded from the analysis. |
Schedule of Undiscounted Contractual Financial Assets and Financial Liabilities Values by Relevant Maturity Groupings | The tables below show undiscounted contractual financial assets and financial liabilities values by relevant maturity groupings based on the remaining periods from December 31, 2019 and December 31, 2018 respectively to the contractual maturity date. At December 31, 2019 At December 31, 2018 (in millions of Euros) Less than 1 year Between 1- 5 years Over 5 years Less than 1 year Between 1 - 5 years Over 5 years Financial assets Net debt derivatives 3 4 — 5 12 — Net cash flows from derivative assets related to currencies and commodities 21 9 — 22 12 — Total 24 13 — 27 24 — At December 31, 2019 At December 31, 2018 (in millions of Euros) Notes Less than 1 year Between 1 - 5 years After 5 years Less than 1 year Between 1 - 5 Years After 5 years Financial liabilities Borrowings (A) 139 589 1,438 6 315 1,754 Leases 40 113 88 20 50 16 Interest (B) 112 404 85 114 422 173 Net debt derivatives 4 — — 3 4 — Net cash flows from derivative liabilities related to currencies and commodities 31 25 — 56 35 — Trade payables and other (excluding contract liabilities) 21 945 15 — 900 18 — Total 1,271 1,146 1,611 1,079 794 1,927 (A) Borrowings include the Pan-U.S. ABL facility, which is considered short-term in nature and is included in the category “Less than 1 year”. (B) Interest disclosed is an undiscounted forecast interest amount and excludes interest on leases. |
Currency risk | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of Nominal Value of Derivatives | The following tables outline the nominal value (converted to millions of Euros at the closing rate) of derivatives for Constellium’s most significant foreign exchange exposures as at December 31, 2019 . Forward derivative sales Maturity Year Less than 1 year Over 1 year USD/EUR 2020-2024 446 157 EUR/CHF 2020-2023 79 35 Other currencies 2020 10 — Forward derivative purchases Maturity Year Less than 1 year Over 1 year USD/EUR 2020-2024 473 77 EUR/CHF 2020-2024 130 61 EUR/CZK 2020 81 — Other currencies 2020 2 — |
Schedule of Effect of Foreign Currency Derivatives Impacts in Consolidated Income Statement | The table below details the effect of foreign currency derivatives in the Consolidated Income Statement: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Derivatives Included in Finance costs - net Realized gains / (losses) on foreign currency derivatives - net 9 5 31 Unrealized gains / (losses) on foreign currency derivatives - net 4 23 (110 ) Total 13 28 (79 ) |
Commodity price risk | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of Nominal Value of Derivatives | At December 31, 2019 , the nominal amount of commodity derivatives is as follows: (in millions of Euros) Maturity Less than 1 year Over 1 year Aluminium 2020-2023 283 33 Premium 2020-2021 11 2 Copper 2020-2022 10 7 Silver 2020-2021 6 — Zinc 2020-2022 9 9 Natural gas 2020-2021 5 2 |
Schedule of Effect of Foreign Currency Derivatives Impacts in Consolidated Income Statement | The Group does not apply hedge accounting on commodity derivatives and therefore any mark-to-market movements are recognized in Other gains / (losses) - net. (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Derivatives Included in Other gains / (losses) - net Realized (losses) / gains on commodity derivatives - net (56 ) 7 16 Unrealized gains / (losses) on commodity derivatives - net 31 (83 ) 41 |
Other currencies | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of Impact on Profit and Equity (before tax effect) of a 10% strengthening of the US Dollar versus the Euro | The largest exposures of the Group are related to the Euro/U.S. Dollar exchange rate. The table below summarizes the impact on profit and Equity (before tax effect) of a 10% strengthening of the U.S. Dollar versus the Euro for non U.S. Dollar functional currency entities. (in millions of Euros) Effect on profit before tax Effect on pretax equity Trade receivables 2 — Trade payables (1 ) — Derivatives on commercial transaction (A) (4 ) (23 ) Commercial transaction exposure (3 ) (23 ) Cash in Bank and intercompany loans 120 — Borrowings (153 ) — Derivatives on financing transaction 33 — Financing transaction exposure — — Total (3 ) (23 ) (A) Gains or losses on the hedging instruments are expected to offset losses or gains on the underlying hedged forecasted sales that will be reflected in future years when these sales are recognized. The impact on pretax equity ( €23 million ) relates to derivatives hedging future sales spread from 2020 to 2022 which are designated as cash flow hedges. |
U.S. Dollars | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of Impact on Profit and Equity (before tax effect) of a 10% strengthening of the US Dollar versus the Euro | The table below summarizes the impact on profit and Equity (before tax effect) of a 10% strengthening of the U.S. Dollar versus the Euro (on average rate for profit before tax and closing rate for pretax equity) for U.S. Dollar functional currency entities. (in millions of Euros) Effect on profit before tax Effect on pretax equity 10% strengthening U.S. Dollar/Euro (4 ) 16 |
PENSIONS AND OTHER POST-EMPLO_2
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | |
Schedule of Sensitivity Analysis and Actuarial Assumptions | Pension and other post-employment benefit obligations were updated based on the discount rates applicable at December 31, 2019 . The principal actuarial assumptions used at December 31, 2019 and 2018 were as follows: At December 31, 2019 At December 31, 2018 Rate of increase in salaries Rate of increase in pensions Discount rate Rate of increase in salaries Rate of increase in pensions Discount rate Switzerland 1.50% — 0.15% 1.50% — 0.80% US — — — — — — Hourly pension 2.20% — 3.15% - 3.25% 2.20% — 4.40% - 4.45% Salaried pension 3.80% — 3.25% 3.80% — 4.45% OPEB (A) 3.80% — 3.20% - 3.40% 3.80% — 4.40% - 4.55% Other benefits 3.80% — 3.00% - 3.20% 3.80% — 4.25% - 4.40% France 1.50% - 3.50% 2.00% — 1.50% - 2.50% 2.00% — Retirements — — 0.95% — — 1.65% Other benefits — — 0.80% — — 1.35% Germany 2.75% 1.70% 1.00% 2.75% 1.70% 1.70% (A) The other main financial assumptions used for the OPEB (healthcare plans, which are predominantly in the U.S.) were: • Medical trend rate: pre 65: 6.40% starting in 2020 decreasing gradually to 4.50% until 2026 and stable onwards and post 65: 5.60% starting in 2020 decreasing gradually to 4.50% until 2026 and stable onwards, and • Claims costs are based on individual company experience. |
Schedule of Amounts Recognized in the Consolidated Statement of Financial Position | At December 31, 2019 At December 31, 2018 (in millions of Euros) Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Present value of funded obligation 768 — 768 674 — 674 Fair value of plan assets (445 ) — (445 ) (380 ) — (380 ) Deficit of funded plans 323 — 323 294 — 294 Present value of unfunded obligation 127 220 347 115 201 316 Net liability arising from defined benefit obligation 450 220 670 409 201 610 |
Schedule of Movement in Net Defined Benefit Obligations | At December 31, 2019 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2019 789 201 990 (380 ) 610 Included in the Consolidated Income Statement Current service cost 17 7 24 — 24 Interest cost / (income) 18 8 26 (10 ) 16 Past service cost (2 ) 1 (1 ) — (1 ) Immediate recognition of gains / (losses) arising over the year — 2 2 — 2 Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income / (Loss) Remeasurements due to: —actual return less interest on plan assets — — — (54 ) (54 ) —changes in financial assumptions 101 25 126 — 126 —changes in demographic assumptions (2 ) (2 ) (4 ) — (4 ) —experience losses (3 ) (6 ) (9 ) — (9 ) Effects of changes in foreign exchange rates 16 3 19 (11 ) 8 Included in the Consolidated Statement of Cash Flows Benefits paid (43 ) (20 ) (63 ) 38 (25 ) Contributions by the Group — — — (25 ) (25 ) Contributions by the plan participants 4 1 5 (5 ) — At December 31, 2019 895 220 1,115 (445 ) 670 At December 31, 2018 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2018 801 250 1,051 (387 ) 664 Included the Consolidated Income Statement Current service cost 18 6 24 — 24 Interest cost / (income) 16 8 24 (9 ) 15 Past service cost — (36 ) (36 ) — (36 ) Immediate recognition of gains / (losses) arising over the year — — — — — Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income / (Loss) Remeasurements due to: —actual return less interest on plan assets — — — 26 26 —changes in financial assumptions (30 ) (15 ) (45 ) — (45 ) —changes in demographic assumptions (5 ) (1 ) (6 ) — (6 ) —experience losses (1 ) (2 ) (3 ) — (3 ) Effects of changes in foreign exchange rates 22 9 31 (16 ) 15 Included in the Consolidated Statement of Cash Flows Benefits paid (35 ) (19 ) (54 ) 31 (23 ) Contributions by the Group — — — (23 ) (23 ) Contributions by the plan participants 3 1 4 (4 ) — At December 31, 2018 789 201 990 (380 ) 610 |
Schedule of Net Defined Benefit Obligations by Country | At December 31, 2019 At December 31, 2018 (in millions of Euros) Defined benefit obligations Plan assets Net defined benefit liability Defined benefit obligations Plan assets Net defined benefit liability France 161 (3 ) 158 151 (3 ) 148 Germany 144 (1 ) 143 136 (1 ) 135 Switzerland 299 (214 ) 85 251 (178 ) 73 United States 510 (227 ) 283 451 (198 ) 253 Other countries 1 — 1 1 — 1 Total 1,115 (445 ) 670 990 (380 ) 610 |
Schedule of Plan Asset Categories | At December 31, 2019 At December 31, 2018 (in millions of Euros) Quoted in an active market Unquoted in an active market Total Quoted in an active market Unquoted in an active market Total Cash & cash equivalents 5 — 5 6 — 6 Equities 119 51 170 95 40 135 Bonds 92 115 207 71 110 181 Property 14 37 51 10 33 43 Other — 12 12 5 10 15 Total fair value of plan assets 230 215 445 187 193 380 |
Schedule of Benefit Payments Expected to be Paid Either by Pension Funds or Directly to Beneficiaries | Future benefit payments expected to be paid either by pension funds or directly by the Company to beneficiaries are as follows: (in millions of Euros) Estimated benefits payments Year ended December 31, 2020 54 2021 51 2022 52 2023 53 2024 58 2025 to 2029 289 |
Actuarial assumption of discount rates | |
Disclosure of defined benefit plans [line items] | |
Schedule of Sensitivity Analysis and Actuarial Assumptions | At December 31, 2019 , impacts of the change on the defined benefit obligation of a 0.50% increase / decrease in the discount rates are calculated by using a proxy based on the duration of each scheme: (in millions of Euros) 0.50% increase in 0.50% decrease in France (10 ) 10 Germany (9 ) 11 Switzerland (25 ) 26 United States (32 ) 35 Total sensitivity on Defined Benefit Obligations (76 ) 82 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |
Schedule of Changes in Provisions | (in millions of Euros) Notes Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2019 83 3 54 140 IFRIC 23 application 2 — — (20 ) (20 ) Allowance 1 2 6 9 Amounts used (2 ) (1 ) (4 ) (7 ) Unused amounts reversed (1 ) — (4 ) (5 ) Unwinding of discounts 4 — — 4 Effects of changes in foreign exchange rates 2 — — 2 Transfer 3 — (4 ) (1 ) At December 31, 2019 90 4 28 122 Current 7 2 14 23 Non-Current 83 2 14 99 Total Provisions 90 4 28 122 (in millions of Euros) Notes Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2018 81 5 67 153 Transfer from provision to contract liability — — (23 ) (23 ) Allowance 3 1 15 19 Amounts used (2 ) (2 ) (4 ) (8 ) Unused amounts reversed — (1 ) (6 ) (7 ) Unwinding of discounts (1 ) — — (1 ) Effects of changes in foreign exchange rates 2 — 1 3 Transfer — — 4 4 At December 31, 2018 83 3 54 140 Current 5 1 40 46 Non-Current 78 2 14 94 Total Provisions 83 3 54 140 |
Schedule of Legal Claims and Other Costs | (in millions of Euros) At December 31, 2019 At December 31, 2018 Litigation (A) 21 45 Disease claims (B) 4 4 Other 3 5 Total Provisions for legal claims and other costs 28 54 (A) The decrease in provisions for litigation is mainly explained by the €20 million reclassification upon the adoption of IFRIC 23. (B) Since the early 1990s, certain activities of the Group’s businesses have been subject to claims and lawsuits in France relating to occupational diseases resulting from alleged asbestos exposure, such as mesothelioma and asbestosis. It is not uncommon for the investigation and resolution of such claims to go on over many years as the latency period for acquiring such diseases is typically between 25 and 40 years. For any such claim, it is up to the social security authorities in each jurisdiction to determine if a claim qualifies as an occupational illness claim. If so determined, the Group must settle the case or defend its position in court. At December 31, 2019 , seven cases in which gross negligence is alleged (“faute inexcusable”) remain outstanding ( six at December 31, 2018 ), the average amount per claim being less than €0.1 million . The average settlement amount per claim in 2019 and 2018 was less than €0.1 million . It is not anticipated that the resolution of such litigation and proceedings will have a material effect on the future results from continuing operations, financial position, or cash flows of the Group. |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
Schedule of Share Capital | At December 31, 2019 , the share capital amounted to €2,757,348.36 divided into 137,867,418 ordinary shares, each with a nominal value of two cents , fully paid-up and of the same class. All shares have the right to one vote. (in millions of Euros) Number of shares Share capital Share premium At January 1, 2019 135,999,394 3 420 New shares issued (A) 1,868,024 — — At December 31, 2019 137,867,418 3 420 (A) Constellium SE issued and granted 1,868,024 ordinary shares to certain employees related to share-based compensation plans. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosures of commitments [Abstract] | |
Schedule of Non-cancellable Lease Commitments Not Capitalized | The future aggregate minimum lease payments under non-cancellable leases not capitalized are as follows: (in millions of Euros) At December 31, 2019 Less than 1 year 5 1 to 5 years 10 More than 5 years 1 Total non-cancellable lease minimum payments 16 |
Schedule of Tangible and Intangible Assets Commitments | (in millions of Euros) At December 31, 2019 At December 31, 2018 Computer Software 2 1 Property, plant and equipment 89 123 Total tangible and intangible asset commitments 91 124 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of Key Management Personnel Compensation | As a result, the aggregate compensation for the Group’s key management is comprised of the following: (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Short-term employee benefits 9 9 8 Directors' fees 1 1 1 Share-based compensation 10 6 4 Post-employments benefits — — — Termination benefits — — 1 Employer social contribution 1 1 1 Total 21 17 15 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based payment arrangements [Abstract] | |
Schedule of Inputs to the Model Used for PSUs Granted | The following table lists the inputs to the model used for the PSUs granted in 2019 and 2018 : Year ended December 31, 2019 Year ended December 31, 2018 Fair value at grant date (in euros) 10.44 15.31 Share price at grant date (in euros) 7.1 10.27 Dividend yield — — Expected volatility (A) 52 % 75 % Risk-free interest rate (US government bond yield) 2.29 % 2.6 % Model used Monte Carlo Monte Carlo (A) Volatilities for the Company and companies included in indices were estimated based on observed historical volatilities over period equal to PSU vesting period. |
Schedule of Number and Movement of Potential Shares | The following table illustrates the number and movements in potential shares: Performance-Based RSU Restricted Stock Units Equity Award Plans Potential Shares Weighted-Average Grant-Date Fair Value per Share Potential Shares Weighted-Average Grant-Date Fair Value per Share Potential Shares Weighted-Average Grant-Date Fair Value per Share At January 1, 2018 3,257,840 € 8.56 944,500 € 7.76 95,340 € 5.20 Granted 701,109 € 15.31 595,687 € 10.23 30,709 € 10.27 Over-performance 633,670 € 7.28 — € — — € — Vested (1,265,635 ) € 7.09 (155,000 ) € 10.83 (68,136 ) € 4.85 Forfeited (241,820 ) € 8.40 (72,663 ) € 8.57 — € — At December 31, 2018 3,085,164 € 10.45 1,312,524 € 8.47 57,913 € 8.31 Granted (A) 1,028,342 € 10.44 899,926 € 7.10 73,799 € 8.39 Over-performance (B) 248,230 € 8.94 — € — — € — Vested (1,758,062 ) € 7.97 (106,000 ) € 4.55 (42,559 ) € 7.60 Forfeited (C) (84,380 ) € 8.02 (39,947 ) € 8.31 (9,627 ) € 8.71 At December 31, 2019 2,519,294 € 12.11 2,066,503 € 8.08 79,526 € 8.71 (A) For PSUs, the number of potential shares granted is presented using a vesting multiplier of 100% . (B) When the achievement of TSR performance exceeds the vesting multiplier of 100% , the additional potential shares are presented as over-performance shares. (C) For potential shares related to PSUs, 84,380 were forfeited following the departure of certain beneficiaries and none were forfeited in relation to the non-fulfilment of performance conditions. |
SUBSIDIARIES AND OPERATING SE_2
SUBSIDIARIES AND OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [abstract] | |
Schedule of Group's Affiliates and Legal Entities Included in Consolidated Financial Statements | The following Group’s affiliates are legal entities included in the Consolidated Financial Statements of the Group at December 31, 2019 . Entity Country % Group Interest Consolidation Cross Operating Segment Constellium Singen GmbH (AS&I and P&ARP) Germany 100 % Full Constellium Valais S.A. (AS&I and A&T) Switzerland 100 % Full AS&I Constellium Automotive USA, LLC U.S. 100 % Full Constellium Engley (Changchun) Automotive Structures Co Ltd. China 54 % Full Constellium Extrusions Decin S.r.o. Czech Republic 100 % Full Constellium Extrusions Deutschland GmbH Germany 100 % Full Constellium Extrusions Landau GmbH Germany 100 % Full Constellium Extrusions Burg GmbH Germany 100 % Full Constellium Extrusions France S.A.S. France 100 % Full Constellium Extrusions Levice S.r.o. Slovakia 100 % Full Constellium Automotive Mexico, S. DE R.L. DE C.V. Mexico 100 % Full Constellium Automotive Mexico Trading, S. DE R.L. DE C.V. Mexico 100 % Full Astrex Inc Canada 50 % Full Constellium Automotive Zilina S.r.o. Slovakia 100 % Full Constellium Automotive Nanjing Co Ltd China 100 % Full Constellium Automotive Spain SL Spain 100 % Full A&T Constellium Issoire S.A.S. France 100 % Full Constellium Montreuil Juigné S.A.S. France 100 % Full Constellium China Limited China 100 % Full Constellium Japan KK Japan 100 % Full Constellium Rolled Products Ravenswood, LLC U.S. 100 % Full Constellium Southeast Asia PTE LTD Singapore 100 % Full Constellium Ussel S.A.S. France 100 % Full AluInfra Services SA (A) Switzerland 50 % Full P&ARP Constellium Deutschland GmbH Germany 100 % Full Constellium Rolled Products Singen GmbH KG Germany 100 % Full Constellium Property and Equipment Company, LLC U.S. 100 % Full Constellium Neuf Brisach S.A.S. France 100 % Full Constellium Muscle Shoals LLC U.S. 100 % Full Constellium Holding Muscle Shoals LLC U.S. 100 % Full Constellium Muscle Shoals Funding II LLC U.S. 100 % Full Listerhill Total Maintenance Center LLC U.S. 100 % Full Constellium Metal Procurement LLC U.S. 100 % Full Constellium Bowling Green LLC U.S. 100 % Full Rhenaroll France 50 % Equity Holdings & Corporate C-TEC Constellium Technology Center S.A.S. France 100 % Full Constellium Finance S.A.S. France 100 % Full Constellium France III France 100 % Full Constellium France Holdco S.A.S. France 100 % Full Constellium International France 100 % Full Constellium Paris S.A.S France 100 % Full Constellium Germany Holdco GmbH & Co. KG Germany 100 % Full Constellium Germany Verwaltungs GmbH Germany 100 % Full Constellium UK Limited United Kingdom 100 % Full Constellium U.S. Holdings I, LLC U.S. 100 % Full Constellium Switzerland AG Switzerland 100 % Full Constellium W S.A.S. France 100 % Full Constellium Treuhand UG Germany 100 % Full Engineered Products International S.A.S. France 100 % Full (A) AluInfra Services SA, the joint venture created with Novelis in July 2018, is consolidated as a joint operation and is immaterial to the Group Consolidated Financial Statements |
PARENT COMPANY (Tables)
PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of condensed financial information of parent company [abstract] | |
Statement of Financial Position of Constellium SE (parent company only) | Statement of Financial Position of Constellium SE (parent company only). (in millions of Euros) At December 31, 2019 At December 31, 2018 Assets Current assets Cash and cash equivalents — — Trade receivables and other 200 109 Other financial assets 37 38 237 147 Non-current assets Property, plant and equipment — — Financial assets 2,002 2,106 Investments in subsidiaries 159 144 Trade receivables and other 27 — Deferred income tax assets 1 2 2,189 2,252 Total Assets 2,426 2,399 Liabilities Current liabilities Trade payables and other 6 5 Income tax payable 45 21 Other financial liabilities 33 33 84 59 Non-current liabilities Borrowings 1,954 2,022 Income tax payable 19 — 1,973 2,022 Total Liabilities 2,057 2,081 Equity Share capital 3 3 Share premium 429 429 Accumulated retained earnings (153 ) (239 ) Other reserves 53 38 Net income 37 87 Total Equity 369 318 Total Equity and Liabilities 2,426 2,399 |
Statement of Comprehensive income / (loss) of Constellium SE (parent company only) | Statement of Comprehensive income / (loss) of Constellium SE (parent company only). (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Revenue 3 3 1 Gross profit 3 3 1 Selling and administrative expenses (19 ) (15 ) (5 ) Employee benefit expenses (3 ) (3 ) (1 ) Loss from recurring operations (19 ) (15 ) (5 ) Other income — — — Other expense (3 ) (3 ) — Loss from operations (22 ) (18 ) (5 ) Financial result - net 41 80 (65 ) Income / (loss) before income tax 19 62 (70 ) Income tax 18 25 — Net income / (loss) 37 87 (70 ) Other comprehensive income / (loss) — — — Total comprehensive income / (loss) 37 87 (70 ) |
Statement of Cash Flows of Constellium SE (parent company only) | Statement of Cash Flows of Constellium SE (parent company only) (in millions of Euros) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Net income / (loss) 37 87 (70 ) Adjustments Finance cost - net (41 ) (80 ) 65 Dividend received — — — Income tax (18 ) (25 ) — Interest paid (115 ) (102 ) (148 ) Interest received 143 134 149 Changes in working capital — — — Trade receivables and other 27 — (1 ) Income tax paid 50 — — Trade payables and other 2 — 2 Net cash flows from / (used in) operating activities 85 14 (3 ) Investments in subsidiaries — (1 ) (11 ) Current account with subsidiaries and related parties (135 ) (13 ) 180 Loans granted to subsidiaries and related parties — — (1,640 ) Repayment of loans granted to subsidiaries and related parties 150 — 823 Exit fees received from subsidiaries — — 9 Net cash flows from / (used in) investing activities 15 (14 ) (639 ) Net proceeds received from issuance of shares — — 259 Proceeds from issuance of Senior Notes — — 1,440 Payment of deferred financing costs — — (29 ) Repayment of Senior Notes (100 ) — (949 ) Payment of exit fees — — (61 ) Realized foreign exchange gains / (losses) — — (17 ) Other — — (1 ) Net cash flows (used in) / from financing activities (100 ) — 642 Net increase in cash and cash equivalents — — — Cash and cash equivalents - beginning of year — — — Effect of exchange rate changes on cash and cash equivalents — — — Cash and cash equivalents - end of year — — — |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) | Dec. 31, 2019EmployeesCenterFacilitysite |
Disclosure of general information [abstract] | |
Number of production facilities | Facility | 28 |
Number of administrative and commercial sites | site | 3 |
Number of R&D centers | Center | 3 |
Number of employees | Employees | 13,200 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - EUR (€) | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of significant accounting policies [line items] | |||
Leases | € 188,000,000 | ||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 7.60% | ||
Minimum lease payments payable under non-cancellable operating lease | 16,000,000 | € 133,000,000 | |
Decrease in provision for reclassification upon adoption of new accounting standard | € (20,000,000) | (23,000,000) | |
Technology | |||
Summary of significant accounting policies [line items] | |||
Intangible assets amortized estimated useful life | 20 years | ||
Customer relationships | |||
Summary of significant accounting policies [line items] | |||
Intangible assets amortized estimated useful life | 25 years | ||
Bottom of range | Computer Software | |||
Summary of significant accounting policies [line items] | |||
Intangible assets amortized estimated useful life | 3 years | ||
Bottom of range | Buildings | |||
Summary of significant accounting policies [line items] | |||
Property, plant and equipment, useful life | 10 years | ||
Bottom of range | Machinery and Equipment | |||
Summary of significant accounting policies [line items] | |||
Property, plant and equipment, useful life | 3 years | ||
Bottom of range | Vehicles | |||
Summary of significant accounting policies [line items] | |||
Property, plant and equipment, useful life | 5 years | ||
Top of range | |||
Summary of significant accounting policies [line items] | |||
Low-value asset recognition exemption to leased assets | € 5,000 | ||
Top of range | Computer Software | |||
Summary of significant accounting policies [line items] | |||
Intangible assets amortized estimated useful life | 5 years | ||
Top of range | Buildings | |||
Summary of significant accounting policies [line items] | |||
Property, plant and equipment, useful life | 50 years | ||
Top of range | Machinery and Equipment | |||
Summary of significant accounting policies [line items] | |||
Property, plant and equipment, useful life | 40 years | ||
Top of range | Vehicles | |||
Summary of significant accounting policies [line items] | |||
Property, plant and equipment, useful life | 8 years | ||
Legal claims and other costs | |||
Summary of significant accounting policies [line items] | |||
Decrease in provision for reclassification upon adoption of new accounting standard | (20,000,000) | € (23,000,000) | |
IFRIC 23 | Legal claims and other costs | |||
Summary of significant accounting policies [line items] | |||
Decrease in provision for reclassification upon adoption of new accounting standard | € 20,000,000 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Summary of significant accounting policies [line items] | |||
Right-of-use assets | 102,000,000 | ||
Leases | 102,000,000 | ||
Accumulated retained earnings | 0 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs | IFRIC 23 | |||
Summary of significant accounting policies [line items] | |||
Accumulated retained earnings | € 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of Initial Application of IFRS 16 - Leases (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of initial application of standards or interpretations [abstract] | ||||
Property, plant and equipment | € 2,056 | € 1,768 | € 1,666 | € 1,517 |
Borrowings | € (2,361) | (2,253) | (2,151) | € (2,127) |
Carrying amount December 31, 2018 | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Property, plant and equipment | 1,666 | |||
Borrowings | (2,151) | |||
IFRS 16 | IFRS 16 application | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Property, plant and equipment | 102 | 102 | ||
Borrowings | € (102) | € (102) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disclosure of Foreign Exchange Rates (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Dollars | |||
Disclosure of foreign exchange rates [line items] | |||
Average rate | 1.1193 | 1.1798 | 1.1273 |
Closing rate | 1.1234 | 1.1450 | 1.1993 |
Swiss Francs | |||
Disclosure of foreign exchange rates [line items] | |||
Average rate | 1.1121 | 1.1546 | 1.1103 |
Closing rate | 1.0854 | 1.1269 | 1.1702 |
Czech Koruna | |||
Disclosure of foreign exchange rates [line items] | |||
Average rate | 25.6698 | 25.6452 | 26.3151 |
Closing rate | 25.4080 | 25.7240 | 25.5349 |
ACQUISITION OF CONSTELLIUM-BO_3
ACQUISITION OF CONSTELLIUM-BOWLING GREEN - Additional Information (Details) - EUR (€) € in Millions | Jan. 09, 2019 | Dec. 31, 2019 | Jan. 10, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about business combination [line items] | ||||
Preexisting trade receivables with acquiree | € 393 | € 481 | ||
Constellium-UACJ ABS LLC | ||||
Disclosure of detailed information about business combination [line items] | ||||
Percentage of voting equity interest acquired | 49.00% | |||
Consideration transferred | € 87 | |||
Fair value of previously held interest | 69 | |||
Preexisting trade receivables with acquiree | 38 | |||
Goodwill | € 24 | |||
Acquisition-related costs recognized as expense in other gains / (losses) | 1 | |||
Combined revenue | 333 | |||
Combined net loss | € 48 | |||
Constellium-UACJ ABS LLC | ||||
Disclosure of detailed information about business combination [line items] | ||||
Proportion of ownership interest in joint venture | 51.00% | 51.00% |
ACQUISITION OF CONSTELLIUM-BO_4
ACQUISITION OF CONSTELLIUM-BOWLING GREEN - Goodwill Arising as a Result of Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Details) - Constellium Bowling Green LLC € in Millions | Jan. 10, 2019EUR (€) |
Disclosure of detailed information about business combination [line items] | |
Cash and cash equivalents | € 4 |
Trade receivables and other | 49 |
Inventories | 65 |
Property, plant and equipment | 165 |
Deferred tax assets | 3 |
Trade payables and other | (41) |
Borrowings | (75) |
Net asset acquired at fair value | 170 |
Goodwill | 24 |
Total Consideration | € 194 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Product Line (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of products and services [line items] | |||
Total Revenue | € 5,907 | € 5,686 | € 5,237 |
Packaging rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 2,172 | 2,245 | 2,146 |
Automotive rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 816 | 636 | 483 |
Specialty and other thin-rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 151 | 169 | 176 |
Aerospace rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 863 | 773 | 760 |
Transportation, Industry and other rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 557 | 566 | 541 |
Automotive extruded products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 797 | 714 | 614 |
Other extruded products | |||
Disclosure of products and services [line items] | |||
Total Revenue | 551 | 573 | 504 |
Other | |||
Disclosure of products and services [line items] | |||
Total Revenue | € 0 | € 10 | € 13 |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Destination of Shipment (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of geographical areas [line items] | |||
Total Revenue | € 5,907 | € 5,686 | € 5,237 |
France | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 563 | 554 | 557 |
Germany | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 1,260 | 1,339 | 1,217 |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 194 | 175 | 188 |
Switzerland | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 68 | 77 | 123 |
Other Europe | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 1,078 | 1,038 | 940 |
United States | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 2,175 | 1,897 | 1,691 |
United States | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 89 | 107 | 78 |
Asia and Other Pacific | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | 277 | 300 | 270 |
All Other | |||
Disclosure of geographical areas [line items] | |||
Total Revenue | € 203 | € 199 | € 173 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Performance obligations satisfied over time | |
Disclosure of geographical areas [line items] | |
Percentage of payment option over total revenue | 1.00% |
OPERATING SEGMENT INFORMATION -
OPERATING SEGMENT INFORMATION - Additional Information (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€)EmployeesFacilitycountry | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Disclosure of operating segments [line items] | |||
Number of employees | Employees | 13,200 | ||
Revenue | € 5,907 | € 5,686 | € 5,237 |
P&ARP | |||
Disclosure of operating segments [line items] | |||
Number of facilities | Facility | 4 | ||
Number of countries in which entity operates | country | 3 | ||
Number of employees | Employees | 4,000 | ||
Revenue | € 3,139 | 3,050 | 2,805 |
P&ARP | One largest customer | |||
Disclosure of operating segments [line items] | |||
Revenue | 812 | ||
P&ARP | Two largest customers | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,364 | ||
A&T | |||
Disclosure of operating segments [line items] | |||
Number of facilities | Facility | 6 | ||
Number of countries in which entity operates | country | 3 | ||
Number of employees | Employees | 4,000 | ||
Revenue | € 1,420 | 1,339 | 1,301 |
AS&I | |||
Disclosure of operating segments [line items] | |||
Number of facilities | Facility | 18 | ||
Number of countries in which entity operates | country | 10 | ||
Number of employees | Employees | 4,800 | ||
Revenue | € 1,348 | € 1,287 | € 1,118 |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION - Segment Revenue (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | € 5,907 | € 5,686 | € 5,237 |
P&ARP | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,139 | 3,050 | 2,805 |
A&T | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,420 | 1,339 | 1,301 |
AS&I | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,348 | 1,287 | 1,118 |
Holdings & Corporate | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 10 | 13 |
Segment revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 5,962 | 5,748 | 5,283 |
Segment revenue | P&ARP | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,149 | 3,059 | 2,812 |
Segment revenue | A&T | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,462 | 1,389 | 1,335 |
Segment revenue | AS&I | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,351 | 1,290 | 1,123 |
Segment revenue | Holdings & Corporate | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 10 | 13 |
Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Revenue | (55) | (62) | (46) |
Inter-segment elimination | P&ARP | |||
Disclosure of operating segments [line items] | |||
Revenue | (10) | (9) | (7) |
Inter-segment elimination | A&T | |||
Disclosure of operating segments [line items] | |||
Revenue | (42) | (50) | (34) |
Inter-segment elimination | AS&I | |||
Disclosure of operating segments [line items] | |||
Revenue | (3) | (3) | (5) |
Inter-segment elimination | Holdings & Corporate | |||
Disclosure of operating segments [line items] | |||
Revenue | € 0 | € 0 | € 0 |
OPERATING SEGMENT INFORMATION_3
OPERATING SEGMENT INFORMATION - Segment Adjusted EBITDA and reconciliation of Adjusted EBITDA to Net Income (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | € 562 | € 498 | € 448 | |
Metal price lag | (46) | 0 | 22 | |
Start-up and development costs | (11) | (21) | (17) | |
Manufacturing system and process transformation costs | 0 | 0 | (2) | |
Bowling Green one-time costs related to the acquisition | (5) | 0 | 0 | |
Share based compensation costs | (16) | (12) | (8) | |
Gains on pension plan amendments | 1 | 36 | 20 | |
Depreciation and amortization | (256) | (197) | (171) | |
Restructuring costs | (4) | (1) | (4) | |
Unrealized gains / (losses) on derivatives | 33 | (84) | 57 | |
Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net | 0 | 0 | (4) | |
(Losses) / gains on disposals | (3) | 186 | (3) | |
Other | 0 | (1) | 0 | |
Income from operations | 255 | 404 | 338 | |
Finance costs - net | (175) | (149) | (260) | |
Share of income / (loss) of joint-ventures | 2 | (33) | (29) | |
Income before income tax | 82 | 222 | 49 | |
Income tax expense | (18) | (32) | (80) | |
Net income / (loss) | 64 | 190 | (31) | |
Collective Bargaining agreement renegotiation | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Legal fees and lump-sum payments | € 3 | |||
Collective bargaining agreement term | 5 years | |||
Novelis | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Sale of assets | € 200 | |||
Net gain on sale of assets | 190 | |||
P&ARP | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | 273 | 243 | € 204 | |
A&T | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | 204 | 152 | 146 | |
AS&I | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | 106 | 125 | 120 | |
Start-up and development costs | (11) | (21) | (16) | |
Holdings & Corporate | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | € (21) | € (22) | € (22) |
OPERATING SEGMENT INFORMATION_4
OPERATING SEGMENT INFORMATION - Segment Capital Expenditures (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Capital expenditures | € (271) | € (277) | € (276) |
P&ARP | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | (96) | (97) | (115) |
A&T | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | (72) | (70) | (73) |
AS&I | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | (97) | (105) | (83) |
Holdings & Corporate | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | € (6) | € (5) | € (5) |
OPERATING SEGMENT INFORMATION_5
OPERATING SEGMENT INFORMATION - Segment Assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of operating segments [line items] | ||||
Total Assets | € 4,184 | € 3,901 | ||
Deferred income tax assets | 185 | 163 | ||
Cash and cash equivalents | 184 | 164 | € 269 | € 347 |
Other financial assets | 29 | 104 | ||
Segment revenue | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 3,786 | 3,470 | ||
Segment revenue | P&ARP | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 1,951 | 1,791 | ||
Segment revenue | A&T | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 856 | 831 | ||
Segment revenue | AS&I | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 703 | 544 | ||
Segment revenue | Holdings & Corporate | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 276 | 304 | ||
Unallocated | ||||
Disclosure of operating segments [line items] | ||||
Deferred income tax assets | 185 | 163 | ||
Cash and cash equivalents | 184 | 164 | ||
Other financial assets | € 29 | € 104 |
INFORMATION BY GEOGRAPHIC ARE_2
INFORMATION BY GEOGRAPHIC AREA (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | € 2,056 | € 1,768 | € 1,666 | € 1,517 |
United States | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 926 | 740 | ||
France | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 656 | 613 | ||
Germany | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 250 | 181 | ||
Czech Republic | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 106 | 84 | ||
Other | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | € 118 | € 48 |
EXPENSES BY NATURE (Details)
EXPENSES BY NATURE (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expenses by nature [abstract] | |||
Raw materials and consumables used | € (3,535) | € (3,561) | € (3,197) |
Employee benefit expenses | (1,038) | (927) | (907) |
Energy costs | (162) | (140) | (138) |
Sub-contractors | (100) | (92) | (99) |
Freight out costs | (156) | (143) | (124) |
Professional fees | (97) | (74) | (77) |
Lease expenses | (13) | (31) | (27) |
Depreciation and amortization | (256) | (197) | (171) |
Other operating expenses | (276) | (271) | (229) |
Other gains / (losses) - net | (19) | 154 | 70 |
Total operating expenses | € (5,652) | € (5,282) | € (4,899) |
EMPLOYEE BENEFIT EXPENSES (Deta
EMPLOYEE BENEFIT EXPENSES (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of employee benefits expense [abstract] | |||
Wages and salaries | € (994) | € (889) | € (872) |
Pension costs - defined benefit plans | (19) | (20) | (21) |
Other post-employment benefits | (9) | (6) | (6) |
Share-based compensation | (16) | (12) | (8) |
Total employee benefit expenses | € (1,038) | € (927) | € (907) |
OTHER GAINS _ (LOSSES)_NET (Det
OTHER GAINS / (LOSSES)—NET (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||||
Realized (losses) / gains on derivatives | € (49) | € 14 | € 0 | |
Unrealized gains / (losses) on derivatives at fair value through profit and loss—net | 33 | (84) | 57 | |
Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net | 0 | 0 | (4) | |
Gains on pension plan amendments | 1 | 36 | 20 | |
(Losses) / gains on disposals | (3) | 186 | (3) | |
Other | (1) | 2 | 0 | |
Total other gains / (losses) - net | € (19) | 154 | € 70 | |
Novelis | ||||
Analysis of income and expense [line items] | ||||
Sale of assets | € 200 | |||
Net gain on sale of assets | € 190 |
CURRENCY GAINS _ (LOSSES) - Cur
CURRENCY GAINS / (LOSSES) - Currency Gains and Losses Included in Income from Operations (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | |
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | € 3 | $ 3 | € 11 | $ 11 | € (6) | $ (6) |
Realized exchange gains / (losses) on foreign currency derivatives - net | 1 | 11 | (15) | |||
Unrealized gains / (losses) on foreign currency derivatives - net | 1 | (3) | 17 | |||
Exchange gains / (losses) from the remeasurement of monetary assets and liabilities - net | 1 | 3 | (8) | |||
Included in Revenue | ||||||
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | (7) | 2 | 2 | |||
Included in Cost of sales | ||||||
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | 1 | 2 | (4) | |||
Included in Other gains / (losses) - net | ||||||
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | € 9 | € 7 | € (4) |
CURRENCY GAINS _ (LOSSES) - For
CURRENCY GAINS / (LOSSES) - Foreign Currency Translation Reserve (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in foreign currency translation reserve [abstract] | ||
Foreign currency translation reserve at January 1 | € 3 | € (7) |
Effect of currency translation differences | 1 | 10 |
Foreign currency translation reserve at December 31 | € 4 | € 3 |
FINANCE COSTS_NET (Details)
FINANCE COSTS—NET (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 | Feb. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [line items] | |||||
Interest received | € 0 | € 7 | € 7 | ||
Finance income | 0 | 7 | 7 | ||
Interest expense on borrowings | (124) | (118) | (147) | ||
Expenses on factoring arrangements | (19) | (18) | (16) | ||
Interest expense on leases | (13) | ||||
Interest expense on leases | (5) | (3) | |||
Net loss on settlement of debt | 0 | 0 | 91 | ||
Total | 13 | 28 | (79) | ||
Realized and unrealized exchange (losses) / gains on financing activities - net | (3) | (22) | 91 | ||
Interest cost on pension and other benefits | (16) | (15) | (17) | ||
Other finance expenses | (16) | (10) | (12) | ||
Capitalized borrowing costs | 3 | 4 | 7 | ||
Finance expenses | (175) | (156) | (267) | ||
Finance costs - net | € (175) | € (149) | (260) | ||
Exit fees | € 88 | ||||
Capitalisation rate | 6.00% | 6.00% | 6.00% | ||
Constellium SE Senior Notes | |||||
Analysis of income and expense [line items] | |||||
Net loss on settlement of debt | € 78 | ||||
Interest expense on debt instruments issued | € 115 | € 113 | |||
Pan US ABL Facility | |||||
Analysis of income and expense [line items] | |||||
Interest expense on debt instruments issued | € 7 | ||||
Muscle Shoals' Senior Notes | |||||
Analysis of income and expense [line items] | |||||
Net loss on settlement of debt | € 13 | ||||
Interest expense on debt instruments issued | 4 | ||||
Constellium UACJ loan modification | |||||
Analysis of income and expense [line items] | |||||
Other finance expenses | € (6) |
INCOME TAX - Current and Deferr
INCOME TAX - Current and Deferred Components of Income Tax (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current tax expense | € (32) | € (30) | € (26) |
Deferred tax expense | 14 | (2) | (54) |
Total income tax expense | € (18) | € (32) | € (80) |
INCOME TAX - Income Tax Reconci
INCOME TAX - Income Tax Reconciliation Using Composite Statutory Income Tax Rate Applicable by Tax Jurisdiction (Details) - EUR (€) € in Millions | Jan. 01, 2022 | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||||
Income before income tax | € 82 | € 222 | € 49 | ||
Composite statutory income tax rate applicable by tax jurisdiction | 30.30% | 24.10% | 31.90% | ||
Income tax expense calculated at composite statutory tax rate applicable by tax jurisdiction | € (25) | € (53) | € (16) | ||
Tax effect of: | |||||
Changes in recognized and unrecognized deferred tax assets | (10) | 30 | (61) | ||
Change in laws and tax rates | 21 | 0 | (11) | ||
Other | (4) | (9) | 8 | ||
Total income tax expense | € (18) | € (32) | € (80) | ||
Effective income tax rate | 22.00% | 14.00% | 163.00% | ||
United States | |||||
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||||
Composite statutory income tax rate applicable by tax jurisdiction | 27.00% | 26.00% | 26.00% | 40.00% | |
Tax effect of: | |||||
Change in laws and tax rates | € (16) | ||||
France | |||||
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||||
Composite statutory income tax rate applicable by tax jurisdiction | 34.43% | 34.43% | 39.20% | ||
France | Changes in tax rates or tax laws enacted or announced | |||||
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||||
Composite statutory income tax rate applicable by tax jurisdiction | 25.82% |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of income tax expense [line Items] | ||||
Statutory income tax rate | 30.30% | 24.10% | 31.90% | |
United States | ||||
Disclosure of income tax expense [line Items] | ||||
Statutory income tax rate | 27.00% | 26.00% | 26.00% | 40.00% |
France | ||||
Disclosure of income tax expense [line Items] | ||||
Statutory income tax rate | 34.43% | 34.43% | 39.20% | |
Germany | ||||
Disclosure of income tax expense [line Items] | ||||
Statutory income tax rate | 29.00% | 29.00% | 29.00% | |
Netherlands | ||||
Disclosure of income tax expense [line Items] | ||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | |
Czech Republic | ||||
Disclosure of income tax expense [line Items] | ||||
Statutory income tax rate | 19.00% | 19.00% | 19.00% |
EARNINGS PER SHARE - Earnings A
EARNINGS PER SHARE - Earnings Attributable to Equity Holders of Parent used to Calculate Basic and Diluted Earnings per share (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Earnings attributable to equity holders of the parent used to calculate basic and diluted earnings per share | € 59 | € 188 | € (31) |
EARNINGS PER SHARE - Number of
EARNINGS PER SHARE - Number of Shares Attributable to Equity Holders (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Weighted average number of ordinary shares used to calculate basic earnings per share (in shares) | 136,856,978 | 134,761,736 | 110,164,320 |
Effect of other dilutive potential ordinary shares (in shares) | 5,788,641 | 3,384,178 | 0 |
Weighted average number of ordinary shares used to calculate diluted earnings per share (in shares) | 142,645,619 | 138,145,914 | 110,164,320 |
Potential ordinary shares (in shares) | 3,291,875 |
EARNINGS PER SHARE - Earnings P
EARNINGS PER SHARE - Earnings Per Share Attributable to the Equity Holders (Details) - € / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Basic (in EUR per share) | € 0.43 | € 1.40 | € (0.28) |
Diluted (in EUR per share) | € 0.41 | € 1.37 | € (0.28) |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||||
Cash in bank and on hand | € 184 | € 164 | ||
Total Cash and cash equivalent | € 184 | € 164 | € 269 | € 347 |
CASH AND CASH EQUIVALENTS - Add
CASH AND CASH EQUIVALENTS - Additional Information (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of cash and cash equivalents [line Items] | ||
Cash in bank and on hand | € 184 | € 164 |
Subsidiaries in capital control restrictions countries | ||
Disclosure of cash and cash equivalents [line Items] | ||
Cash in bank and on hand | € 22 | € 18 |
TRADE RECEIVABLES AND OTHER (De
TRADE RECEIVABLES AND OTHER (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current | ||
Trade receivables | € 0 | € 0 |
Income tax receivables | 35 | 28 |
Other taxes | 0 | 0 |
Contract assets | 16 | 28 |
Prepaid expenses | 1 | 1 |
Other | 8 | 7 |
Total other receivables | 60 | 64 |
Total trade receivables and other | 60 | 64 |
Current | ||
Trade receivables | 393 | 481 |
Income tax receivables | 22 | 43 |
Other taxes | 35 | 33 |
Contract assets | 2 | 2 |
Prepaid expenses | 8 | 12 |
Other | 14 | 16 |
Total other receivables | 81 | 106 |
Total trade receivables and other | 474 | 587 |
Cost | ||
Non-current | ||
Trade receivables | 0 | 0 |
Current | ||
Trade receivables | 395 | 483 |
Impairment | ||
Non-current | ||
Trade receivables | 0 | 0 |
Current | ||
Trade receivables | € (2) | € (2) |
TRADE RECEIVABLES AND OTHER - C
TRADE RECEIVABLES AND OTHER - Contract Assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Contact assets, Non-current | € 16 | € 28 |
Contract assets, Current | 2 | 2 |
Unbilled tooling costs | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Contact assets, Non-current | 16 | 26 |
Contract assets, Current | 0 | 0 |
Other | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Contact assets, Non-current | 0 | 2 |
Contract assets, Current | € 2 | € 2 |
TRADE RECEIVABLES AND OTHER - A
TRADE RECEIVABLES AND OTHER - Aging of Total Trade Receivables - Net (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade receivables [line items] | ||
Trade receivables | € 393 | € 481 |
Not past due | ||
Trade receivables [line items] | ||
Trade receivables | 380 | 453 |
1 – 30 days past due | ||
Trade receivables [line items] | ||
Trade receivables | 10 | 23 |
31 – 60 days past due | ||
Trade receivables [line items] | ||
Trade receivables | 3 | 2 |
61 – 90 days past due | ||
Trade receivables [line items] | ||
Trade receivables | 0 | 2 |
Greater than 90 days past due | ||
Trade receivables [line items] | ||
Trade receivables | € 0 | € 1 |
TRADE RECEIVABLES AND OTHER -_2
TRADE RECEIVABLES AND OTHER - Additional Information (Details) | Dec. 10, 2019USD ($) | Dec. 09, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 29, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) |
Disclosure of trade and other receivables [line items] | ||||||
Allowance (reversal) for impairment on trade receivables recognized | € 400,000 | € (1,100,000) | ||||
Factored assets | 574,000,000 | 601,000,000 | ||||
Factored assets, derecognized from Consolidated Statement of Financial Position | (463,000,000) | 446,000,000 | ||||
Factored assets, recognized in Consolidated Statement of Financial Position | 111,000,000 | 155,000,000 | ||||
Debt due factor | 0 | € 0 | ||||
Factoring of receivables | Muscle Shoals factoring facility | ||||||
Disclosure of trade and other receivables [line items] | ||||||
Factoring maximum capacity | $ | $ 300,000,000 | $ 375,000,000 | ||||
France | Factoring of receivables | ||||||
Disclosure of trade and other receivables [line items] | ||||||
Factoring maximum capacity | 235,000,000 | |||||
Germany, Switzerland and Czech Republic | Factoring of receivables | ||||||
Disclosure of trade and other receivables [line items] | ||||||
Factoring maximum capacity | € 150,000,000 | |||||
United States | Factoring of receivables | Constellium automotive | ||||||
Disclosure of trade and other receivables [line items] | ||||||
Factoring maximum capacity | $ | $ 25,000,000 | $ 33,000,000 |
TRADE RECEIVABLES AND OTHER -_3
TRADE RECEIVABLES AND OTHER - Carrying Amounts of Total Trade Receivables - Net by Currency (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade receivables [line items] | ||
Trade receivables | € 393 | € 481 |
Euro | ||
Trade receivables [line items] | ||
Trade receivables | 126 | 177 |
U.S. Dollars | ||
Trade receivables [line items] | ||
Trade receivables | 251 | 284 |
Swiss Francs | ||
Trade receivables [line items] | ||
Trade receivables | 3 | 4 |
Other currencies | ||
Trade receivables [line items] | ||
Trade receivables | € 13 | € 16 |
INVENTORIES (Details)
INVENTORIES (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Finished goods | € 203 | € 165 |
Work in progress | 321 | 347 |
Raw materials | 106 | 112 |
Stores and supplies | 74 | 67 |
Inventories write down | (34) | (31) |
Total inventories | € 670 | € 660 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | € 1,666 | € 1,517 |
Property, plant and equipment acquired through business combination | 165 | |
Additions | 352 | 303 |
Disposals | (5) | (6) |
Depreciation expense | (246) | (184) |
Transfer during the year | 0 | 3 |
Effects of changes in foreign exchange rates | 22 | 33 |
Ending balance | 2,056 | 1,666 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 2,617 | |
Ending balance | 3,228 | 2,617 |
Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (951) | |
Ending balance | (1,172) | (951) |
Land and Property Rights | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 18 | 14 |
Property, plant and equipment acquired through business combination | 0 | |
Additions | 1 | 1 |
Disposals | 0 | 0 |
Depreciation expense | 0 | (4) |
Transfer during the year | 0 | 6 |
Effects of changes in foreign exchange rates | 0 | 1 |
Ending balance | 19 | 18 |
Land and Property Rights | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 33 | |
Ending balance | 35 | 33 |
Land and Property Rights | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (15) | |
Ending balance | (16) | (15) |
Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 217 | 206 |
Property, plant and equipment acquired through business combination | 40 | |
Additions | 22 | 5 |
Disposals | 0 | 0 |
Depreciation expense | (27) | (13) |
Transfer during the year | 28 | 16 |
Effects of changes in foreign exchange rates | 4 | 3 |
Ending balance | 366 | 217 |
Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 349 | |
Ending balance | 527 | 349 |
Buildings | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (132) | |
Ending balance | (161) | (132) |
Machinery and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,227 | 1,089 |
Property, plant and equipment acquired through business combination | 120 | |
Additions | 81 | 98 |
Disposals | (5) | (6) |
Depreciation expense | (208) | (161) |
Transfer during the year | 203 | 181 |
Effects of changes in foreign exchange rates | 16 | 26 |
Ending balance | 1,451 | 1,227 |
Machinery and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 2,000 | |
Ending balance | 2,407 | 2,000 |
Machinery and Equipment | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (773) | |
Ending balance | (956) | (773) |
Construction Work in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 194 | 198 |
Property, plant and equipment acquired through business combination | 4 | |
Additions | 245 | 195 |
Disposals | 0 | 0 |
Depreciation expense | 0 | 0 |
Transfer during the year | (242) | (202) |
Effects of changes in foreign exchange rates | 2 | 3 |
Ending balance | 203 | 194 |
Construction Work in Progress | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 200 | |
Ending balance | 213 | 200 |
Construction Work in Progress | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (6) | |
Ending balance | (10) | (6) |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 10 | 10 |
Property, plant and equipment acquired through business combination | 1 | |
Additions | 3 | 4 |
Disposals | 0 | 0 |
Depreciation expense | (11) | (6) |
Transfer during the year | 11 | 2 |
Effects of changes in foreign exchange rates | 0 | 0 |
Ending balance | 17 | 10 |
Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 35 | |
Ending balance | 46 | 35 |
Other | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (25) | |
Ending balance | (29) | (25) |
Previously stated | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,666 | |
Ending balance | 1,666 | |
Previously stated | Land and Property Rights | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 18 | |
Ending balance | 18 | |
Previously stated | Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 217 | |
Ending balance | 217 | |
Previously stated | Machinery and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,227 | |
Ending balance | 1,227 | |
Previously stated | Construction Work in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 194 | |
Ending balance | 194 | |
Previously stated | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 10 | |
Ending balance | 10 | |
Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 102 | |
Ending balance | 102 | |
Increase (decrease) due to changes in accounting policy required by IFRSs | Land and Property Rights | IFRS 16 | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 0 | |
Ending balance | 0 | |
Increase (decrease) due to changes in accounting policy required by IFRSs | Buildings | IFRS 16 | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 82 | |
Ending balance | 82 | |
Increase (decrease) due to changes in accounting policy required by IFRSs | Machinery and Equipment | IFRS 16 | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 17 | |
Ending balance | 17 | |
Increase (decrease) due to changes in accounting policy required by IFRSs | Construction Work in Progress | IFRS 16 | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 0 | |
Ending balance | 0 | |
Increase (decrease) due to changes in accounting policy required by IFRSs | Other | IFRS 16 | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 3 | |
Ending balance | 3 | |
Restated | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,768 | |
Ending balance | 1,768 | |
Restated | Land and Property Rights | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 18 | |
Ending balance | 18 | |
Restated | Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 299 | |
Ending balance | 299 | |
Restated | Machinery and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,244 | |
Ending balance | 1,244 | |
Restated | Construction Work in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 194 | |
Ending balance | 194 | |
Restated | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | € 13 | |
Ending balance | € 13 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Right of Use Assets Included in Property, Plant and Equipment (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | € 1,666 | € 1,517 | |
Additions | 352 | 303 | |
Disposals | (5) | (6) | |
Depreciation expense | (246) | (184) | |
Transfer during the year | 0 | 3 | |
Effects of changes in foreign exchange rates | 22 | 33 | |
Ending balance | 2,056 | 1,666 | |
Expense related to short-term leases, low value asset leases and variable lease still recognized as operating expenses | 13 | ||
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 2,617 | ||
Ending balance | 3,228 | 2,617 | |
Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (951) | ||
Ending balance | (1,172) | (951) | |
Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,666 | ||
Ending balance | 1,666 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 102 | ||
Ending balance | 102 | ||
Right-of-use assets | € 102 | ||
Buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 217 | 206 | |
Additions | 22 | 5 | |
Disposals | 0 | 0 | |
Depreciation expense | (27) | (13) | |
Transfer during the year | 28 | 16 | |
Effects of changes in foreign exchange rates | 4 | 3 | |
Ending balance | 366 | 217 | |
Buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 349 | ||
Ending balance | 527 | 349 | |
Buildings | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (132) | ||
Ending balance | (161) | (132) | |
Buildings | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 217 | ||
Ending balance | 217 | ||
Buildings | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 82 | ||
Ending balance | 82 | ||
Machinery and Equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,227 | 1,089 | |
Additions | 81 | 98 | |
Disposals | (5) | (6) | |
Depreciation expense | (208) | (161) | |
Transfer during the year | 203 | 181 | |
Effects of changes in foreign exchange rates | 16 | 26 | |
Ending balance | 1,451 | 1,227 | |
Machinery and Equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 2,000 | ||
Ending balance | 2,407 | 2,000 | |
Machinery and Equipment | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (773) | ||
Ending balance | (956) | (773) | |
Machinery and Equipment | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,227 | ||
Ending balance | 1,227 | ||
Machinery and Equipment | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 17 | ||
Ending balance | 17 | ||
Other | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 10 | 10 | |
Additions | 3 | 4 | |
Disposals | 0 | 0 | |
Depreciation expense | (11) | (6) | |
Transfer during the year | 11 | 2 | |
Effects of changes in foreign exchange rates | 0 | 0 | |
Ending balance | 17 | 10 | |
Other | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 35 | ||
Ending balance | 46 | 35 | |
Other | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (25) | ||
Ending balance | (29) | (25) | |
Other | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 10 | ||
Ending balance | 10 | ||
Other | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 3 | ||
Ending balance | 3 | ||
Right-of-use assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 179 | ||
Additions | 43 | ||
Disposals | 0 | ||
Depreciation expense | (31) | ||
Transfer during the year | (3) | ||
Effects of changes in foreign exchange rates | 2 | ||
Ending balance | 190 | 179 | |
Right-of-use assets | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | 252 | ||
Right-of-use assets | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | (62) | ||
Right-of-use assets | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 77 | ||
Ending balance | 77 | ||
Right-of-use assets | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 102 | ||
Ending balance | 102 | ||
Right-of-use assets | Buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 106 | ||
Additions | 20 | ||
Disposals | 0 | ||
Depreciation expense | (11) | ||
Transfer during the year | 0 | ||
Effects of changes in foreign exchange rates | 1 | ||
Ending balance | 116 | 106 | |
Right-of-use assets | Buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | 134 | ||
Right-of-use assets | Buildings | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | (18) | ||
Right-of-use assets | Buildings | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 24 | ||
Ending balance | 24 | ||
Right-of-use assets | Buildings | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 82 | ||
Ending balance | 82 | ||
Right-of-use assets | Machinery and Equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 70 | ||
Additions | 21 | ||
Disposals | 0 | ||
Depreciation expense | (18) | ||
Transfer during the year | (3) | ||
Effects of changes in foreign exchange rates | 1 | ||
Ending balance | 71 | 70 | |
Right-of-use assets | Machinery and Equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | 113 | ||
Right-of-use assets | Machinery and Equipment | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | (42) | ||
Right-of-use assets | Machinery and Equipment | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 53 | ||
Ending balance | 53 | ||
Right-of-use assets | Machinery and Equipment | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 17 | ||
Ending balance | 17 | ||
Right-of-use assets | Other | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 3 | ||
Additions | 2 | ||
Disposals | 0 | ||
Depreciation expense | (2) | ||
Transfer during the year | 0 | ||
Effects of changes in foreign exchange rates | 0 | ||
Ending balance | 3 | 3 | |
Right-of-use assets | Other | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | 5 | ||
Right-of-use assets | Other | Less accumulated depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Ending balance | (2) | ||
Right-of-use assets | Other | Previously stated | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Right-of-use assets | Other | Increase (decrease) due to changes in accounting policy required by IFRSs | IFRS 16 | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | € 3 | ||
Ending balance | € 3 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Depreciation Expense and Impairment Losses (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | € (256,000,000) | € (197,000,000) | € (171,000,000) |
Impairment charges related to cash-generating units | 0 | ||
Cost of sales | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | (237,000,000) | (184,000,000) | (160,000,000) |
Selling and administrative expenses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | (13,000,000) | (9,000,000) | (8,000,000) |
Research and development expenses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | € (6,000,000) | € (4,000,000) | € (3,000,000) |
INTANGIBLE ASSETS (INCLUDING _3
INTANGIBLE ASSETS (INCLUDING GOODWILL) - Changes in Intangible Assets and Goodwill (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in goodwill [abstract] | ||
Goodwill, beginning balance | € 422 | € 403 |
Acquired through business combination | 24 | |
Effects of changes in foreign exchange rates | 9 | 19 |
Goodwill, ending balance | 455 | 422 |
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 70 | 68 |
Acquired through business combination | 0 | |
Additions | 9 | 11 |
Amortization expense | (10) | (13) |
Transfer during the year | 0 | 0 |
Effects of changes in foreign exchange rates | 1 | 4 |
Intangible assets (excluding goodwill), ending balance | 70 | 70 |
Cost | ||
Changes in goodwill [abstract] | ||
Goodwill, beginning balance | 422 | |
Goodwill, ending balance | 455 | 422 |
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 204 | |
Intangible assets (excluding goodwill), ending balance | 217 | 204 |
Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (134) | |
Intangible assets (excluding goodwill), ending balance | (147) | (134) |
Technology | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 22 | 24 |
Acquired through business combination | 0 | |
Additions | 0 | 0 |
Amortization expense | (1) | (3) |
Transfer during the year | 0 | 0 |
Effects of changes in foreign exchange rates | 0 | 1 |
Intangible assets (excluding goodwill), ending balance | 21 | 22 |
Technology | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 84 | |
Intangible assets (excluding goodwill), ending balance | 87 | 84 |
Technology | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (62) | |
Intangible assets (excluding goodwill), ending balance | (66) | (62) |
Computer Software | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 18 | 18 |
Acquired through business combination | 0 | |
Additions | 1 | 2 |
Amortization expense | (8) | (8) |
Transfer during the year | 7 | 5 |
Effects of changes in foreign exchange rates | 1 | 1 |
Intangible assets (excluding goodwill), ending balance | 19 | 18 |
Computer Software | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 65 | |
Intangible assets (excluding goodwill), ending balance | 73 | 65 |
Computer Software | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (47) | |
Intangible assets (excluding goodwill), ending balance | (54) | (47) |
Customer relationships | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 15 | 15 |
Acquired through business combination | 0 | |
Additions | 0 | 0 |
Amortization expense | (1) | (1) |
Transfer during the year | 0 | 0 |
Effects of changes in foreign exchange rates | 0 | 1 |
Intangible assets (excluding goodwill), ending balance | 14 | 15 |
Customer relationships | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 39 | |
Intangible assets (excluding goodwill), ending balance | 39 | 39 |
Customer relationships | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (24) | |
Intangible assets (excluding goodwill), ending balance | (25) | (24) |
Work in Progress | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 13 | 9 |
Acquired through business combination | 0 | |
Additions | 8 | 8 |
Amortization expense | 0 | 0 |
Transfer during the year | (7) | (5) |
Effects of changes in foreign exchange rates | 0 | 1 |
Intangible assets (excluding goodwill), ending balance | 14 | 13 |
Work in Progress | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 13 | |
Intangible assets (excluding goodwill), ending balance | 16 | 13 |
Work in Progress | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 0 | |
Intangible assets (excluding goodwill), ending balance | (2) | 0 |
Other | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 2 | 2 |
Acquired through business combination | 0 | |
Additions | 0 | 1 |
Amortization expense | 0 | (1) |
Transfer during the year | 0 | 0 |
Effects of changes in foreign exchange rates | 0 | 0 |
Intangible assets (excluding goodwill), ending balance | 2 | 2 |
Other | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 3 | |
Intangible assets (excluding goodwill), ending balance | 2 | 3 |
Other | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (1) | |
Intangible assets (excluding goodwill), ending balance | € 0 | € (1) |
INTANGIBLE ASSETS (INCLUDING _4
INTANGIBLE ASSETS (INCLUDING GOODWILL) - Additional Information (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 455 | € 422 | € 403 |
P&ARP | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 448 | ||
Carrying value | 1,763 | ||
Recoverable value | € 2,653 | ||
Increase discount rate | 5.00% | ||
Decrease in the perpetual growth | 9.00% | ||
P&ARP | Bottom of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Growth rate, cash flows projections | 0.00% | ||
Discount rate, cash flows projections | 9.00% | ||
P&ARP | Top of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Growth rate, cash flows projections | 1.50% | ||
Discount rate, cash flows projections | 9.50% | ||
A&T | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 5 | ||
AS&I | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 2 |
INVESTMENTS ACCOUNTED FOR UND_3
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD - Additional Information (Details) - EUR (€) € in Millions | Jan. 09, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 10, 2019 |
Disclosure of investments accounted for using equity method [line items] | |||||
Gain (loss) recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | € 2 | ||||
Gain on remeasurement of previously held equity interest in joint venture | € 2 | € (33) | € (29) | ||
Constellium-UACJ ABS LLC | |||||
Disclosure of investments accounted for using equity method [line items] | |||||
Proportion of ownership interest in joint venture | 51.00% | 51.00% | |||
Gain on remeasurement of previously held equity interest in joint venture | € 0 | € (33) | |||
Constellium-UACJ ABS LLC | |||||
Disclosure of investments accounted for using equity method [line items] | |||||
Percentage of voting equity interest acquired | 49.00% |
INVESTMENTS ACCOUNTED FOR UND_4
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD - Group Investments Accounted for Under Equity Method (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of investments accounted for using equity method [line items] | |||
At January 1 | € 1 | ||
Group share in loss | 2 | € (33) | € (29) |
At December 31 | 1 | 1 | |
Cumulative share of profit (loss) of joint ventures accounted for using equity method | 49 | ||
Investment accounted for using equity method | |||
Disclosure of investments accounted for using equity method [line items] | |||
At January 1 | 1 | 1 | |
Group share in loss | 0 | (33) | |
At December 31 | 1 | 1 | € 1 |
Reclassified to non-current other financial assets | € 0 | € 33 |
INVESTMENTS ACCOUNTED FOR UND_5
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD - Group Share of Joint Ventures (Details) - EUR (€) € in Millions | Jan. 09, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of joint ventures [line items] | ||||
Group share of joint venture’s net assets | € 1 | € 1 | ||
Group share of joint venture’s profit/ (loss) | (2) | 33 | € 29 | |
Investment in joint venture | ||||
Disclosure of joint ventures [line items] | ||||
Group share of joint venture’s net assets | 1 | 1 | ||
Group share of joint venture’s profit/ (loss) | 0 | 33 | ||
Reclassified to non-current other financial assets | ||||
Disclosure of joint ventures [line items] | ||||
Group share of joint venture’s net assets | 0 | 49 | ||
Group share of joint venture’s profit/ (loss) | € 0 | 0 | ||
Constellium-UACJ ABS LLC | ||||
Disclosure of joint ventures [line items] | ||||
% interest | 51.00% | 51.00% | ||
Group share of joint venture’s net assets | € 0 | (49) | ||
Group share of joint venture’s profit/ (loss) | € 0 | 33 | ||
Rhenaroll S.A. | ||||
Disclosure of joint ventures [line items] | ||||
% interest | 49.85% | |||
Group share of joint venture’s net assets | € 1 | 1 | ||
Group share of joint venture’s profit/ (loss) | 0 | 0 | ||
Group share | ||||
Disclosure of joint ventures [line items] | ||||
Group share of joint venture’s net assets | 1 | (48) | ||
Group share of joint venture’s profit/ (loss) | € 0 | € 33 |
INVESTMENTS ACCOUNTED FOR UND_6
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD - Amounts Included in Consolidated Financial Statements in Accordance with Group Accounting Principles (Details) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Dec. 31, 2016 | |
Current assets | |||||
Cash and cash equivalents | € 184 | € 164 | € 269 | € 347 | |
Trade receivables and other | 474 | 587 | |||
Inventories | 670 | 660 | |||
Non-current assets | |||||
Property, plant and equipment | 2,056 | 1,666 | 1,517 | € 1,768 | |
Intangible assets | 70 | 70 | 68 | ||
Total Assets | 4,184 | 3,901 | |||
Current liabilities | |||||
Trade payables and other | 999 | 968 | |||
Borrowings | 201 | 57 | |||
Non-current liabilities | |||||
Borrowings | 2,160 | 2,094 | |||
Equity | (85) | (114) | (319) | € (570) | |
Total Equity and Liabilities | 4,184 | 3,901 | |||
Revenue | 5,907 | 5,686 | 5,237 | ||
Cost of sales | (5,305) | (5,148) | (4,682) | ||
Selling and administrative expenses | (276) | (247) | (247) | ||
Income from operations | 255 | 404 | 338 | ||
Finance costs | (175) | (156) | (267) | ||
Net income / (loss) | € 64 | 190 | € (31) | ||
Gain related shareholders loan facilities modification | 11 | ||||
Constellium-UACJ ABS LLC | |||||
Current assets | |||||
Cash and cash equivalents | 8 | ||||
Trade receivables and other | 49 | ||||
Inventories | 68 | ||||
Non-current assets | |||||
Property, plant and equipment | 166 | ||||
Intangible assets | 0 | ||||
Total Assets | 291 | ||||
Current liabilities | |||||
Trade payables and other | 79 | ||||
Borrowings | 36 | ||||
Non-current liabilities | |||||
Borrowings | 271 | ||||
Equity | (95) | ||||
Total Equity and Liabilities | 291 | ||||
Revenue | 262 | ||||
Cost of sales | (309) | ||||
Selling and administrative expenses | (10) | ||||
Income from operations | (57) | ||||
Finance costs | (7) | ||||
Net income / (loss) | € (64) |
DEFERRED INCOME TAXES - Net Def
DEFERRED INCOME TAXES - Net Deferred Income Tax Assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Deferred income tax assets | € 185 | € 163 |
Deferred income tax liabilities | (24) | (22) |
Net deferred income tax assets | € 161 | € 141 |
DEFERRED INCOME TAXES - Changes
DEFERRED INCOME TAXES - Changes in Net Deferred Income Tax Assets / (Liabilities) (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | € 141 | € 139 |
Acquisitions | 3 | |
Recognized in Profit or loss | 14 | (2) |
Recognized in OCI | 15 | 1 |
FX and reclassifications | (12) | 3 |
At December 31 | 161 | 141 |
Long-term assets | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | (94) | (76) |
Acquisitions | 1 | |
Recognized in Profit or loss | (3) | (15) |
Recognized in OCI | 0 | 0 |
FX and reclassifications | (3) | (3) |
At December 31 | (99) | (94) |
Inventories | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 5 | 4 |
Acquisitions | 0 | |
Recognized in Profit or loss | 2 | 1 |
Recognized in OCI | 0 | 0 |
FX and reclassifications | 1 | 0 |
At December 31 | 8 | 5 |
Pensions | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 116 | 130 |
Acquisitions | 0 | |
Recognized in Profit or loss | (4) | (12) |
Recognized in OCI | 13 | (7) |
FX and reclassifications | 2 | 5 |
At December 31 | 127 | 116 |
Derivative valuation | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 12 | (20) |
Acquisitions | 0 | |
Recognized in Profit or loss | (8) | 22 |
Recognized in OCI | 2 | 8 |
FX and reclassifications | 0 | 2 |
At December 31 | 6 | 12 |
Tax losses carried forward | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 61 | 78 |
Acquisitions | 0 | |
Recognized in Profit or loss | 27 | (13) |
Recognized in OCI | 0 | 0 |
FX and reclassifications | (13) | (4) |
At December 31 | 75 | 61 |
Other | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 41 | 23 |
Acquisitions | 2 | |
Recognized in Profit or loss | 0 | 15 |
Recognized in OCI | 0 | 0 |
FX and reclassifications | 1 | 3 |
At December 31 | € 44 | € 41 |
DEFERRED INCOME TAXES - Additio
DEFERRED INCOME TAXES - Additional Information (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | |||
Net deferred tax asset balance | € 161 | € 141 | € 139 |
Deductible temporary differences and unused tax losses for which no deferred tax asset recognized | 1,009 | 1,257 | |
Related tax impact | € 259 | € 321 |
DEFERRED INCOME TAXES - Compone
DEFERRED INCOME TAXES - Components of Unrecognized Deferred Tax Assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | € (259) | € (321) |
Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (84) | (153) |
Long-term assets | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (104) | (107) |
Pensions | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (20) | (18) |
Other | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (51) | (43) |
Deductible temporary differences | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (175) | (168) |
Expiring within 5 years | Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (2) | (45) |
Expiring after 5 years and limited | Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (62) | (89) |
Unlimited | Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | € (20) | € (19) |
TRADE PAYABLES AND OTHER (Detai
TRADE PAYABLES AND OTHER (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current | ||
Trade payables | € 0 | € 0 |
Fixed assets payables | 0 | 0 |
Employees' entitlements | 0 | 0 |
Taxes payable other than income tax | 0 | 0 |
Contract liabilities and other liabilities to customers | 6 | 9 |
Other payables | 15 | 18 |
Total Other | 21 | 27 |
Total Trade payables and other | 21 | 27 |
Current | ||
Trade payables | 711 | 685 |
Fixed assets payables | 43 | 30 |
Employees' entitlements | 171 | 160 |
Taxes payable other than income tax | 14 | 16 |
Contract liabilities and other liabilities to customers | 54 | 68 |
Other payables | 6 | 9 |
Total Other | 288 | 283 |
Total Trade payables and other | € 999 | € 968 |
TRADE PAYABLES AND OTHER - Cont
TRADE PAYABLES AND OTHER - Contract Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | € 6 | € 9 |
Current | 54 | 68 |
Deferred tooling revenue | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 2 | 0 |
Current | 0 | 0 |
Advance payment from customers | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 2 | 7 |
Current | 5 | 9 |
Unrecognized variable consideration | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 2 | 2 |
Current | 46 | 57 |
Other | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 0 | 0 |
Current | € 3 | € 2 |
TRADE PAYABLES AND OTHER - Addi
TRADE PAYABLES AND OTHER - Additional Information (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other payables [abstract] | ||
Revenue recognized related to contract liabilities | € 57 | € 55 |
Deferred revenue related to contract liabilities | € 62 |
BORROWINGS - Borrowings by Natu
BORROWINGS - Borrowings by Nature (Details) | Aug. 08, 2019EUR (€) | May 10, 2019EUR (€) | Feb. 20, 2019EUR (€) | Mar. 28, 2018EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Jan. 01, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) |
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 2,353,000,000 | ||||||||
Gross lease liabilities | 187,000,000 | ||||||||
Arrangement fees | (26,000,000) | ||||||||
Accrued interests | 34,000,000 | ||||||||
Interest Accrued lease liabilities | 1,000,000 | ||||||||
Leases | 188,000,000 | ||||||||
Lease liabilities | € 73,000,000 | ||||||||
Borrowings | 2,361,000,000 | € 2,253,000,000 | 2,151,000,000 | € 2,127,000,000 | |||||
Non-current borrowings | 2,160,000,000 | 2,094,000,000 | |||||||
Current borrowings | 201,000,000 | 57,000,000 | |||||||
Secured Pan-U.S. ABL (due 2022) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 127,000,000 | $ 142,000,000 | |||||||
Effective rate | 4.20% | 4.20% | |||||||
Borrowings | € 127,000,000 | 0 | |||||||
Borrowing capacity | € 400,000,000 | € 350,000,000 | |||||||
Secured Inventory Based Facility (due 2021) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | 0 | 0 | |||||||
Constellium SE (Issued May 2014, due 2024) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 356,000,000 | $ 400,000,000 | |||||||
Nominal rate | 5.75% | ||||||||
Effective rate | 6.26% | 6.26% | |||||||
Arrangement fees | € (3,000,000) | ||||||||
Accrued interests | 2,000,000 | ||||||||
Borrowings | 355,000,000 | 348,000,000 | |||||||
Constellium SE (Issued May 2014, due 2021) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 200,000,000 | ||||||||
Nominal rate | 4.63% | 4.63% | |||||||
Effective rate | 5.16% | 5.16% | |||||||
Arrangement fees | € (1,000,000) | ||||||||
Accrued interests | 1,000,000 | ||||||||
Borrowings | € 300,000,000 | 200,000,000 | 300,000,000 | ||||||
Constellium SE (Issued February 2017, due 2025) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 579,000,000 | $ 650,000,000 | |||||||
Nominal rate | 6.63% | ||||||||
Effective rate | 7.13% | 7.13% | |||||||
Arrangement fees | € (10,000,000) | ||||||||
Accrued interests | 13,000,000 | ||||||||
Borrowings | 582,000,000 | 568,000,000 | |||||||
Constellium SE (Issued November 2017, due 2026) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 445,000,000 | $ 500,000,000 | |||||||
Nominal rate | 5.88% | ||||||||
Effective rate | 6.26% | 6.26% | |||||||
Arrangement fees | € (6,000,000) | ||||||||
Accrued interests | 10,000,000 | ||||||||
Borrowings | 449,000,000 | 440,000,000 | |||||||
Constellium SE (Issued November 2017, due 2026) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | € 400,000,000 | ||||||||
Nominal rate | 4.25% | ||||||||
Effective rate | 4.57% | 4.57% | |||||||
Arrangement fees | € (6,000,000) | ||||||||
Accrued interests | 6,000,000 | ||||||||
Borrowings | 400,000,000 | 399,000,000 | |||||||
Unsecured Revolving Credit Facility (due 2021) | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | 0 | 0 | |||||||
Unsecured Revolving Credit Facility (due 2021) | BPI France | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowing capacity | € 10,000,000 | 7,000,000 | |||||||
Other loans | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal value | 59,000,000 | ||||||||
Accrued interests | 1,000,000 | ||||||||
Borrowings | 60,000,000 | € 23,000,000 | |||||||
Financing Arrangements | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | € 36,000,000 |
BORROWINGS - Movement in Borrow
BORROWINGS - Movement in Borrowings (Details) - EUR (€) € in Millions | Aug. 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Beginning Balance | € 2,151 | € 2,127 | ||
(Repayments) of Senior Notes | (100) | 0 | € (1,559) | |
Proceeds / (repayments) from revolving credit facilities and other loans | 109 | (68) | ||
Lease repayments | (86) | (15) | ||
Borrowings assumed through business combination | 75 | 0 | ||
Movement in interests accrued or capitalized | 1 | 12 | ||
New leases and other loans | 75 | 28 | ||
Deferred arrangement fees, step-up amortization and other | 5 | 2 | ||
Effects of changes in foreign exchange rates | 29 | 65 | ||
Ending Balance | 2,361 | 2,151 | € 2,127 | |
Constellium SE (Issued May 2014, due 2021) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Beginning Balance | 300 | |||
(Repayments) of Senior Notes | € (100) | |||
Ending Balance | € 300 | € 200 | 300 | |
Nominal rate | 4.63% | 4.63% | ||
Previously stated | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Beginning Balance | € 2,151 | |||
Ending Balance | 2,151 | |||
IFRS 16 application | IFRS 16 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Beginning Balance | 102 | |||
Ending Balance | 102 | |||
Restated | IFRS 16 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Beginning Balance | € 2,253 | |||
Ending Balance | € 2,253 |
BORROWINGS - Currency Concentra
BORROWINGS - Currency Concentration of Total Borrowings (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | € 2,361 | € 2,253 | € 2,151 | € 2,127 |
U.S. Dollars | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,597 | 1,408 | ||
Euro | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 746 | 726 | ||
Other currencies | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | € 18 | € 17 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Secured Pan-U.S. ABL (due 2022) | |
Disclosure of detailed information about borrowings [line items] | |
Debt covenant, percentage of aggregate revolving loan commitments | 10.00% |
FINANCIAL INSTRUMENTS - Financi
FINANCIAL INSTRUMENTS - Financial Assets and Liabilities by Categories (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | € 606 | € 749 |
Financial liabilities | 3,173 | 2,955 |
Trade payables and fixed assets payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 754 | 715 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 2,361 | 2,151 |
Other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 58 | 89 |
At amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 3,115 | 2,866 |
At amortized cost | Trade payables and fixed assets payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 754 | 715 |
At amortized cost | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 2,361 | 2,151 |
At amortized cost | Other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
At Fair Value through Profit and loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 44 | 79 |
At Fair Value through Profit and loss | Trade payables and fixed assets payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
At Fair Value through Profit and loss | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
At Fair Value through Profit and loss | Other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 44 | 79 |
At Fair Value through OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 14 | 10 |
At Fair Value through OCI | Trade payables and fixed assets payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
At Fair Value through OCI | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
At Fair Value through OCI | Other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 14 | 10 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 184 | 164 |
Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 393 | 481 |
Other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 29 | 104 |
At amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 184 | 238 |
At amortized cost | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 184 | 164 |
At amortized cost | Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
At amortized cost | Other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 74 |
At Fair Value through Profit and loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 29 | 30 |
At Fair Value through Profit and loss | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
At Fair Value through Profit and loss | Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
At Fair Value through Profit and loss | Other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 29 | 30 |
At Fair Value through OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 393 | 481 |
At Fair Value through OCI | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
At Fair Value through OCI | Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 393 | 481 |
At Fair Value through OCI | Other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | € 0 | € 0 |
FINANCIAL INSTRUMENTS - Other F
FINANCIAL INSTRUMENTS - Other Financial Assets and Other Financial Liabilities Positions (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | € 7 | € 7 |
Current derivatives assets | 22 | 23 |
Derivatives assets | 29 | 30 |
Non-current loans | 0 | 67 |
Current loans | 0 | 2 |
Loans | 0 | 69 |
Other non-current financial assets | 7 | 74 |
Other current financial assets | 22 | 30 |
Other financial assets | 29 | 104 |
Non-current derivatives liabilities | 23 | 29 |
Current derivative liabilities | 35 | 60 |
Derivatives liabilities | 58 | 89 |
Other non-current financial liabilities | 23 | 29 |
Other current financial liabilities | 35 | 60 |
Other financial liabilities | 58 | 89 |
Aluminium and premium future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives liabilities | 4 | 6 |
Current derivative liabilities | 10 | 38 |
Derivatives liabilities | 14 | 44 |
Energy future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives liabilities | 0 | 0 |
Current derivative liabilities | 1 | 0 |
Derivatives liabilities | 1 | 0 |
Other future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives liabilities | 2 | 5 |
Current derivative liabilities | 4 | 3 |
Derivatives liabilities | 6 | 8 |
Currency commercial contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives liabilities | 12 | 7 |
Current derivative liabilities | 16 | 12 |
Derivatives liabilities | 28 | 19 |
Currency net debt derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives liabilities | 5 | 11 |
Current derivative liabilities | 4 | 3 |
Derivatives liabilities | 9 | 14 |
Net investment hedge | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives liabilities | 0 | 0 |
Current derivative liabilities | 0 | 4 |
Derivatives liabilities | 0 | 4 |
Aluminium and premium future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | 1 | 2 |
Current derivatives assets | 8 | 7 |
Derivatives assets | 9 | 9 |
Energy future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | 0 | 0 |
Current derivatives assets | 0 | 0 |
Derivatives assets | 0 | 0 |
Other future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | 0 | 0 |
Current derivatives assets | 0 | 0 |
Derivatives assets | 0 | 0 |
Currency commercial contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | 5 | 3 |
Current derivatives assets | 12 | 12 |
Derivatives assets | 17 | 15 |
Currency net debt derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | 1 | 2 |
Current derivatives assets | 2 | 4 |
Derivatives assets | 3 | 6 |
Margin call | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current derivatives assets | 0 | 0 |
Current derivatives assets | 0 | 5 |
Derivatives assets | € 0 | € 5 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - Fair value - Level 1 € in Millions | Dec. 31, 2019EUR (€) |
Constellium N.V. senior unsecured notes (Issued May 2014) | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 102.00% |
Senior notes issued | € 570 |
Constellium N.V. Senior Unsecured Notes (Issued February 2017, due 2025) | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 104.00% |
Senior notes issued | € 603 |
Constellium N.V. EUR and USD Senior Unsecured Notes (Issued November 2017, due 2026) | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 105.00% |
Senior notes issued | € 887 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives Measured at Fair Value (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | € 29 | € 30 |
Other financial liabilities - derivatives | 58 | 89 |
Level 1 | ||
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | 8 | 9 |
Other financial liabilities - derivatives | 19 | 50 |
Level 2 | ||
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | 21 | 21 |
Other financial liabilities - derivatives | 39 | 39 |
Level 3 | ||
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | 0 | 0 |
Other financial liabilities - derivatives | € 0 | € 0 |
FINANCIAL RISK MANAGEMENT - Nom
FINANCIAL RISK MANAGEMENT - Nominal Value of Currency Derivatives (Details) - Currency risk EUR_ in Millions | Dec. 31, 2019EUR_ |
Less than 1 year | Forward derivatives sales - USD/EUR | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 446 |
Less than 1 year | Forward derivatives sales - EUR/CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 79 |
Less than 1 year | Forward derivatives sales - Other currencies | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 10 |
Less than 1 year | Forward derivatives purchases - USD/EUR | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 473 |
Less than 1 year | Forward derivatives purchases - EUR/CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 130 |
Less than 1 year | Forward derivatives purchases - EUR/CZK | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 81 |
Less than 1 year | Forward derivatives purchases - Other currencies | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 2 |
Over 1 year | Forward derivatives sales - USD/EUR | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 157 |
Over 1 year | Forward derivatives sales - EUR/CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 35 |
Over 1 year | Forward derivatives sales - Other currencies | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 0 |
Over 1 year | Forward derivatives purchases - USD/EUR | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 77 |
Over 1 year | Forward derivatives purchases - EUR/CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 61 |
Over 1 year | Forward derivatives purchases - EUR/CZK | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 0 |
Over 1 year | Forward derivatives purchases - Other currencies | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 0 |
FINANCIAL RISK MANAGEMENT - Add
FINANCIAL RISK MANAGEMENT - Additional Information (Details) SFr in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018CHF (SFr) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Disclosure of liquidity risk [line items] | ||||||||
Percentage of trade account receivables insured | 82.00% | 82.00% | ||||||
Revolving credit facilities outstanding | € 281,000,000 | |||||||
Liquidity value | 516,000,000 | |||||||
Cash and cash equivalents | 184,000,000 | € 164,000,000 | € 269,000,000 | € 347,000,000 | ||||
Undrawn facilities | 332,000,000 | |||||||
Forward contract | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Total nominal amount forward contracts | SFr | SFr 174 | |||||||
Unrealized loss of the net investment hedge | 3,000,000 | |||||||
Derivative classified as cash flow hedge | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Nominal amount hedging instrument | $ | $ 233 | $ 369 | ||||||
Forward purchase contracts versus EURO | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Net position hedges related to loans and deposits | $ | $ 334 | |||||||
Forward purchase contracts versus EURO | Foreign exchange forward contracts | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Net position hedges related to loans and deposits | $ | 44 | |||||||
Forward purchase contracts versus EURO | Cross currency swaps | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Net position hedges related to loans and deposits | $ | 415 | |||||||
Forward sale contracts | Cross currency swaps | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Net position hedges related to loans and deposits | $ | $ 125 | |||||||
Secured Pan-U.S. ABL (due 2022) | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Borrowing base | $ | $ 375 | |||||||
French inventory facility | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Borrowing base | 82,000,000 | |||||||
Commodity price risk | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Margin requirement for aluminum and other commodity hedges | 0 | 5,000,000 | ||||||
10% increase or decrease in the market price | Aluminium | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Impact of increase or decrease in market price in gain or loss from derivatives | 28,000,000 | |||||||
Top of range | 50 basis point increase or decrease in the LIBOR or EURIBOR interest rates | ||||||||
Disclosure of liquidity risk [line items] | ||||||||
Impact of increase or decrease in interest rate in income before income tax | € 1,000,000 | € 1,000,000 |
FINANCIAL RISK MANAGEMENT - Eff
FINANCIAL RISK MANAGEMENT - Effect of Foreign Currency Derivatives Impacts and Commercial Transactions Exposures (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | € 1 | € 11 | € (15) |
Unrealized (losses) / gains on foreign currency derivatives - net | 1 | (3) | 17 |
Derivatives that do not qualify for hedge accounting | Included in Other gains / (losses) - net | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | 7 | 7 | (16) |
Unrealized (losses) / gains on foreign currency derivatives - net | 2 | (1) | 16 |
Derivatives that qualify for hedge accounting | Included in Other gains / (losses) - net | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) in ineffective portion of derivatives | 0 | 0 | 0 |
Derivatives that qualify for hedge accounting | Included in Revenue | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | (6) | 4 | 1 |
Unrealized (losses) / gains on foreign currency derivatives - net | (1) | (2) | 1 |
Derivatives that qualify for hedge accounting | Included in Other comprehensive income / (loss) | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Unrealized (losses) / gains on foreign currency derivatives - net | (15) | (23) | 48 |
Gains / (losses) reclassified from cash flow hedge reserve to Consolidated Income Statement | € 7 | € (2) | € (2) |
FINANCIAL RISK MANAGEMENT - E_2
FINANCIAL RISK MANAGEMENT - Effect of Foreign Currency Derivatives Impacts and Financing Transaction Exposures (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | € 1 | € 11 | € (15) |
Unrealized gains / (losses) on foreign currency derivatives - net | 1 | (3) | 17 |
Total | 13 | 28 | (79) |
Currency risk | Included in Finance costs - net | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | 9 | 5 | 31 |
Unrealized gains / (losses) on foreign currency derivatives - net | 4 | 23 | (110) |
Total | € 13 | € 28 | € (79) |
FINANCIAL RISK MANAGEMENT - Imp
FINANCIAL RISK MANAGEMENT - Impact on Profit and Equity (Before Tax Effect) of a 10% Strengthening of US Dollar Versus Euro for Non-US Dollar Functional Currency Entities (Details) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Derivatives on commercial transaction | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on pretax equity | € (23) |
10% strengthening U.S. Dollar/Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | (3) |
Effect on pretax equity | (23) |
10% strengthening U.S. Dollar/Euro | Commercial transaction exposure | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | (3) |
Effect on pretax equity | (23) |
10% strengthening U.S. Dollar/Euro | Financing transaction exposure | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | 0 |
Effect on pretax equity | 0 |
10% strengthening U.S. Dollar/Euro | Trade receivables | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | 2 |
Effect on pretax equity | 0 |
10% strengthening U.S. Dollar/Euro | Trade payables | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | (1) |
Effect on pretax equity | 0 |
10% strengthening U.S. Dollar/Euro | Derivatives on commercial transaction | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | (4) |
Effect on pretax equity | (23) |
10% strengthening U.S. Dollar/Euro | Cash in Bank and intercompany loans | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | 120 |
Effect on pretax equity | 0 |
10% strengthening U.S. Dollar/Euro | Borrowings | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | (153) |
Effect on pretax equity | 0 |
10% strengthening U.S. Dollar/Euro | Derivatives on financing transaction | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | 33 |
Effect on pretax equity | € 0 |
FINANCIAL RISK MANAGEMENT - I_2
FINANCIAL RISK MANAGEMENT - Impact on Profit and Equity (Before Tax Effect) of a 10% Strengthening of US Dollar Versus Euro for US Dollar Functional Currency Entities (Details) - 10% strengthening U.S. Dollar/Euro € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on profit before tax | € (4) |
Effect on pretax equity | € 16 |
FINANCIAL RISK MANAGEMENT - N_2
FINANCIAL RISK MANAGEMENT - Nominal Value of Commodity Derivatives (Details) - Commodity price risk € in Millions | Dec. 31, 2019EUR (€) |
Less than 1 year | Aluminium | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | € 283 |
Less than 1 year | Premium | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 11 |
Less than 1 year | Copper | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 10 |
Less than 1 year | Silver | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 6 |
Less than 1 year | Zinc | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 9 |
Less than 1 year | Natural gas | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 5 |
Over 1 year | Aluminium | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 33 |
Over 1 year | Premium | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 2 |
Over 1 year | Copper | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 7 |
Over 1 year | Silver | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 0 |
Over 1 year | Zinc | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 9 |
Over 1 year | Natural gas | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | € 2 |
FINANCIAL RISK MANAGEMENT - Mar
FINANCIAL RISK MANAGEMENT - Mark-to-market Movements Recognized in Other Gains (Losses) - Net (Details) - Commodity price risk - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized (losses) / gains on commodity derivatives - net | € (56) | € 7 | € 16 |
Unrealized gains / (losses) on commodity derivatives - net | € 31 | € (83) | € 41 |
FINANCIAL RISK MANAGEMENT - Exp
FINANCIAL RISK MANAGEMENT - Exposure to Financial Counterparties by Rating Type (Details) € in Thousands | Dec. 31, 2019EUR (€)Counterparty | Dec. 31, 2018EUR (€)Counterparty |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | Counterparty | 14 | 12 |
Exposure | € 169,000 | € 136,000 |
Credit exposure threshold amount | € 250 | € 250 |
Rated Aa or better | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | Counterparty | 2 | 2 |
Exposure | € 83,000 | € 22,000 |
Rated A | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | Counterparty | 9 | 8 |
Exposure | € 81,000 | € 110,000 |
Rated Baa | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | Counterparty | 3 | 2 |
Exposure | € 5,000 | € 4,000 |
FINANCIAL RISK MANAGEMENT - Und
FINANCIAL RISK MANAGEMENT - Undiscounted Contractual Financial Assets and Financial Liabilities Values by Relevant Maturity Groupings (Details) € in Millions, $ in Millions | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Leases | € 188 | ||
Leases | € 73 | ||
Less than 1 year | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 24 | 27 | |
Financial liabilities | 1,271 | 1,079 | |
Leases | 40 | ||
Leases | 20 | ||
Less than 1 year | Borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 139 | 6 | |
Less than 1 year | Interest | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 112 | 114 | |
Less than 1 year | Net debt derivatives | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 4 | 3 | |
Less than 1 year | Net cash flows from derivative liabilities related to currencies and commodities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 31 | 56 | |
Less than 1 year | Trade payables and other (excluding contract liabilities) | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 945 | 900 | |
Less than 1 year | Net debt derivatives | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 3 | 5 | |
Less than 1 year | Net cash flows from derivative assets related to currencies and commodities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 21 | 22 | |
Expiring within 5 years | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 13 | 24 | |
Financial liabilities | 1,146 | 794 | |
Leases | 113 | ||
Leases | $ | $ 50 | ||
Expiring within 5 years | Borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 589 | 315 | |
Expiring within 5 years | Interest | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 404 | 422 | |
Expiring within 5 years | Net debt derivatives | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 0 | 4 | |
Expiring within 5 years | Net cash flows from derivative liabilities related to currencies and commodities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 25 | 35 | |
Expiring within 5 years | Trade payables and other (excluding contract liabilities) | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 15 | 18 | |
Expiring within 5 years | Net debt derivatives | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 4 | 12 | |
Expiring within 5 years | Net cash flows from derivative assets related to currencies and commodities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 9 | 12 | |
More than 5 years | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 0 | 0 | |
Financial liabilities | 1,611 | 1,927 | |
Leases | 88 | ||
Leases | $ | $ 16 | ||
More than 5 years | Borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 1,438 | 1,754 | |
More than 5 years | Interest | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 85 | 173 | |
More than 5 years | Net debt derivatives | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 0 | 0 | |
More than 5 years | Net cash flows from derivative liabilities related to currencies and commodities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 0 | 0 | |
More than 5 years | Trade payables and other (excluding contract liabilities) | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial liabilities | 0 | 0 | |
More than 5 years | Net debt derivatives | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | 0 | 0 | |
More than 5 years | Net cash flows from derivative assets related to currencies and commodities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Financial assets | € 0 | € 0 |
PENSIONS AND OTHER POST-EMPLO_3
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Additional Information (Details) - EUR (€) € in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||||
Reduction in defined benefit liability | € 36 | ||||
Weighted-average maturity of defined benefit obligations | 14 years 1 month 6 days | 13 years 3 months 18 days | |||
Pension Benefits | |||||
Disclosure of defined benefit plans [line items] | |||||
Expected contributions to pension and other benefits | € 32 | ||||
Other Benefits | |||||
Disclosure of defined benefit plans [line items] | |||||
Reduction in defined benefit liability | € 3 | € 2 | |||
Expected contributions to pension and other benefits | € 18 | ||||
Actuarial assumption of discount rates | |||||
Disclosure of defined benefit plans [line items] | |||||
Increase in actuarial assumption | 0.50% | 0.50% | |||
Decrease in actuarial assumption | 0.50% | 0.50% |
PENSIONS AND OTHER POST-EMPLO_4
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Sensitivity Analysis on Defined Benefit Obligations (Details) - Actuarial assumption of discount rates € in Millions | Dec. 31, 2019EUR (€) |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
0.50% increase in discount rates | € (76) |
0.50% decrease in discount rates | 82 |
France | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
0.50% increase in discount rates | (10) |
0.50% decrease in discount rates | 10 |
Germany | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
0.50% increase in discount rates | (9) |
0.50% decrease in discount rates | 11 |
Switzerland | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
0.50% increase in discount rates | (25) |
0.50% decrease in discount rates | 26 |
United States | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
0.50% increase in discount rates | (32) |
0.50% decrease in discount rates | € 35 |
PENSIONS AND OTHER POST-EMPLO_5
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Actuarial Assumptions (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
OPEB | Pre 65 | 2020 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 6.40% | |
OPEB | Pre 65 | 2026 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 4.50% | |
OPEB | Post 65 | 2020 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 5.60% | |
OPEB | Post 65 | 2026 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 4.50% | |
Switzerland | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 1.50% | 1.50% |
Rate of increase in pensions | 0.00% | 0.00% |
Discount rate | 0.15% | 0.80% |
U.S. | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 0.00% | 0.00% |
Rate of increase in pensions | 0.00% | 0.00% |
Discount rate | 0.00% | 0.00% |
U.S. | Hourly pension | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 2.20% | 2.20% |
Rate of increase in pensions | 0.00% | 0.00% |
U.S. | Hourly pension | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.15% | 4.40% |
U.S. | Hourly pension | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.25% | 4.45% |
U.S. | Salaried pension | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 3.80% | 3.80% |
Rate of increase in pensions | 0.00% | 0.00% |
Discount rate | 3.25% | 4.45% |
U.S. | OPEB | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 3.80% | 3.80% |
Rate of increase in pensions | 0.00% | 0.00% |
U.S. | OPEB | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.20% | 4.40% |
U.S. | OPEB | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.40% | 4.55% |
U.S. | Other benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 3.80% | 3.80% |
Rate of increase in pensions | 0.00% | 0.00% |
U.S. | Other benefits | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.00% | 4.25% |
U.S. | Other benefits | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.20% | 4.40% |
France | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in pensions | 2.00% | 2.00% |
Discount rate | 0.00% | 0.00% |
France | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 1.50% | 1.50% |
France | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 3.50% | 2.50% |
France | Retirements | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 0.00% | 0.00% |
Rate of increase in pensions | 0.00% | 0.00% |
Discount rate | 0.95% | 1.65% |
France | Other benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 0.00% | 0.00% |
Rate of increase in pensions | 0.00% | 0.00% |
Discount rate | 0.80% | 1.35% |
Germany | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 2.75% | 2.75% |
Rate of increase in pensions | 1.70% | 1.70% |
Discount rate | 1.00% | 1.70% |
PENSIONS AND OTHER POST-EMPLO_6
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Amounts Recognized in the Consolidated Statement of Financial Position (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of net defined benefit liability (asset) [line items] | ||
Present value of funded obligation | € 768 | € 674 |
Fair value of plan assets | (445) | (380) |
Deficit of funded plans | 323 | 294 |
Present value of unfunded obligation | 347 | 316 |
Net liability arising from defined benefit obligation | 670 | 610 |
Pension Benefits | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Present value of funded obligation | 768 | 674 |
Fair value of plan assets | (445) | (380) |
Deficit of funded plans | 323 | 294 |
Present value of unfunded obligation | 127 | 115 |
Net liability arising from defined benefit obligation | 450 | 409 |
Other Benefits | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Present value of funded obligation | 0 | 0 |
Fair value of plan assets | 0 | 0 |
Deficit of funded plans | 0 | 0 |
Present value of unfunded obligation | 220 | 201 |
Net liability arising from defined benefit obligation | € 220 | € 201 |
PENSIONS AND OTHER POST-EMPLO_7
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Movement in Net Defined Benefit Obligations (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019EUR (€) | Sep. 30, 2019EUR (€) | Sep. 30, 2018EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | |
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Beginning balance | € 610 | € 664 | ||||
Past service cost | € (36) | |||||
Remeasurements due to: | ||||||
Closing balance | € 670 | 670 | 610 | $ 610 | ||
Included in the Consolidated Income Statement | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 24 | 24 | ||||
Interest cost / (income) | 16 | 15 | ||||
Past service cost | (1) | (36) | ||||
Immediate recognition of gains / (losses) arising over the year | 2 | 0 | ||||
Administration expenses | 2 | 2 | ||||
Included in the Statement of Comprehensive Income / (Loss) | ||||||
Remeasurements due to: | ||||||
—actual return less interest on plan assets | (54) | 26 | ||||
—changes in financial assumptions | 126 | (45) | ||||
—changes in demographic assumptions | (4) | (6) | ||||
—experience losses | (9) | (3) | ||||
Effects of changes in foreign exchange rates | 8 | 15 | ||||
Included in the Consolidated Statement of Cash Flows | ||||||
Remeasurements due to: | ||||||
Benefits paid | (25) | (23) | ||||
Contributions by the Group | (25) | (23) | ||||
Contributions by the plan participants | 0 | 0 | ||||
Other Benefits | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Past service cost | (3) | € (2) | ||||
Defined benefit obligations | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Beginning balance | 990 | 1,051 | ||||
Remeasurements due to: | ||||||
Closing balance | 1,115 | 1,115 | 990 | |||
Defined benefit obligations | Included in the Consolidated Income Statement | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 24 | 24 | ||||
Interest cost / (income) | 26 | 24 | ||||
Past service cost | (1) | (36) | ||||
Immediate recognition of gains / (losses) arising over the year | 2 | 0 | ||||
Administration expenses | 0 | 0 | ||||
Defined benefit obligations | Included in the Statement of Comprehensive Income / (Loss) | ||||||
Remeasurements due to: | ||||||
—actual return less interest on plan assets | 0 | 0 | ||||
—changes in financial assumptions | 126 | (45) | ||||
—changes in demographic assumptions | (4) | (6) | ||||
—experience losses | (9) | (3) | ||||
Effects of changes in foreign exchange rates | 19 | 31 | ||||
Defined benefit obligations | Included in the Consolidated Statement of Cash Flows | ||||||
Remeasurements due to: | ||||||
Benefits paid | (63) | (54) | ||||
Contributions by the Group | 0 | 0 | ||||
Contributions by the plan participants | 5 | 4 | ||||
Defined benefit obligations | Pension Benefits | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Beginning balance | 789 | 801 | ||||
Remeasurements due to: | ||||||
Closing balance | 895 | 895 | 789 | |||
Defined benefit obligations | Pension Benefits | Included in the Consolidated Income Statement | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 17 | 18 | ||||
Interest cost / (income) | 18 | 16 | ||||
Past service cost | (2) | 0 | ||||
Immediate recognition of gains / (losses) arising over the year | 0 | 0 | ||||
Administration expenses | 0 | 0 | ||||
Defined benefit obligations | Pension Benefits | Included in the Statement of Comprehensive Income / (Loss) | ||||||
Remeasurements due to: | ||||||
—actual return less interest on plan assets | 0 | 0 | ||||
—changes in financial assumptions | 101 | (30) | ||||
—changes in demographic assumptions | (2) | (5) | ||||
—experience losses | (3) | (1) | ||||
Effects of changes in foreign exchange rates | 16 | 22 | ||||
Defined benefit obligations | Pension Benefits | Included in the Consolidated Statement of Cash Flows | ||||||
Remeasurements due to: | ||||||
Benefits paid | (43) | (35) | ||||
Contributions by the Group | 0 | 0 | ||||
Contributions by the plan participants | 4 | 3 | ||||
Defined benefit obligations | Other Benefits | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Beginning balance | 201 | 250 | ||||
Remeasurements due to: | ||||||
Closing balance | 220 | 220 | 201 | |||
Defined benefit obligations | Other Benefits | Included in the Consolidated Income Statement | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 7 | 6 | ||||
Interest cost / (income) | 8 | 8 | ||||
Past service cost | 1 | (36) | ||||
Immediate recognition of gains / (losses) arising over the year | 2 | 0 | ||||
Administration expenses | 0 | 0 | ||||
Defined benefit obligations | Other Benefits | Included in the Statement of Comprehensive Income / (Loss) | ||||||
Remeasurements due to: | ||||||
—actual return less interest on plan assets | 0 | 0 | ||||
—changes in financial assumptions | 25 | (15) | ||||
—changes in demographic assumptions | (2) | (1) | ||||
—experience losses | (6) | (2) | ||||
Effects of changes in foreign exchange rates | 3 | 9 | ||||
Defined benefit obligations | Other Benefits | Included in the Consolidated Statement of Cash Flows | ||||||
Remeasurements due to: | ||||||
Benefits paid | (20) | (19) | ||||
Contributions by the Group | 0 | 0 | ||||
Contributions by the plan participants | 1 | 1 | ||||
Plan Assets | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Beginning balance | (380) | (387) | ||||
Remeasurements due to: | ||||||
Closing balance | € (445) | (445) | (380) | |||
Plan Assets | Included in the Consolidated Income Statement | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 0 | 0 | ||||
Interest cost / (income) | (10) | (9) | ||||
Past service cost | 0 | 0 | ||||
Immediate recognition of gains / (losses) arising over the year | 0 | 0 | ||||
Administration expenses | 2 | 2 | ||||
Plan Assets | Included in the Statement of Comprehensive Income / (Loss) | ||||||
Remeasurements due to: | ||||||
—actual return less interest on plan assets | (54) | 26 | ||||
—changes in financial assumptions | 0 | 0 | ||||
—changes in demographic assumptions | 0 | 0 | ||||
—experience losses | 0 | 0 | ||||
Effects of changes in foreign exchange rates | (11) | (16) | ||||
Plan Assets | Included in the Consolidated Statement of Cash Flows | ||||||
Remeasurements due to: | ||||||
Benefits paid | 38 | 31 | ||||
Contributions by the Group | (25) | (23) | ||||
Contributions by the plan participants | € (5) | € (4) |
PENSIONS AND OTHER POST-EMPLO_8
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Net Defined Benefit Obligations by Country (Details) € in Millions, $ in Millions | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) |
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | € 1,115 | € 990 | ||
Plan assets | (445) | (380) | ||
Net defined benefit liability | 670 | 610 | $ 610 | € 664 |
France | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 161 | 151 | ||
Plan assets | (3) | (3) | ||
Net defined benefit liability | 158 | 148 | ||
Germany | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 144 | 136 | ||
Plan assets | (1) | (1) | ||
Net defined benefit liability | 143 | 135 | ||
Switzerland | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 299 | 251 | ||
Plan assets | (214) | (178) | ||
Net defined benefit liability | 85 | 73 | ||
United States | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 510 | 451 | ||
Plan assets | (227) | (198) | ||
Net defined benefit liability | 283 | 253 | ||
Other | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 1 | 1 | ||
Plan assets | 0 | 0 | ||
Net defined benefit liability | € 1 | € 1 |
PENSIONS AND OTHER POST-EMPLO_9
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Plan Asset Categories (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of changes in financial position [line items] | ||
Cash & cash equivalents | € 5 | € 6 |
Equities | 170 | 135 |
Bonds | 207 | 181 |
Property | 51 | 43 |
Other | 12 | 15 |
Total fair value of plan assets | 445 | 380 |
Quoted in an active market | ||
Disclosure of changes in financial position [line items] | ||
Cash & cash equivalents | 5 | 6 |
Equities | 119 | 95 |
Bonds | 92 | 71 |
Property | 14 | 10 |
Other | 0 | 5 |
Total fair value of plan assets | 230 | 187 |
Unquoted in an active market | ||
Disclosure of changes in financial position [line items] | ||
Cash & cash equivalents | 0 | 0 |
Equities | 51 | 40 |
Bonds | 115 | 110 |
Property | 37 | 33 |
Other | 12 | 10 |
Total fair value of plan assets | € 215 | € 193 |
PENSIONS AND OTHER POST-EMPL_10
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Benefit Payments Expected to be Paid Either by Pension Funds or Directly to Beneficiaries (Details) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of employee benefits [Abstract] | |
2020 | € 54 |
2021 | 51 |
2022 | 52 |
2023 | 53 |
2024 | 58 |
2025 to 2029 | € 289 |
PROVISIONS - Changes in Provisi
PROVISIONS - Changes in Provisions (Details) - EUR (€) € in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Changes in other provisions [abstract] | |||||
Beginning balance | € 140 | € 140 | € 153 | ||
Transfer from provision to contract liability | (20) | (23) | |||
Allowance | 9 | 19 | |||
Amounts used | (7) | (8) | |||
Unused amounts reversed | (5) | (7) | |||
Unwinding of discounts | 4 | (1) | |||
Effects of changes in foreign exchange rates | 2 | 3 | |||
Transfer | (1) | 4 | |||
Ending balance | 122 | 140 | |||
Current | € 23 | € 46 | |||
Non-Current | 99 | 94 | |||
Total Provisions | 140 | 122 | 140 | 122 | 140 |
Close down and environmental remediation costs | |||||
Changes in other provisions [abstract] | |||||
Beginning balance | 83 | 83 | 81 | ||
Transfer from provision to contract liability | 0 | 0 | |||
Allowance | 1 | 3 | |||
Amounts used | (2) | (2) | |||
Unused amounts reversed | (1) | 0 | |||
Unwinding of discounts | 4 | (1) | |||
Effects of changes in foreign exchange rates | 2 | 2 | |||
Transfer | 3 | 0 | |||
Ending balance | 90 | 83 | |||
Current | 7 | 5 | |||
Non-Current | 83 | 78 | |||
Total Provisions | 83 | 90 | 83 | 90 | 83 |
Restructuring costs | |||||
Changes in other provisions [abstract] | |||||
Beginning balance | 3 | 3 | 5 | ||
Transfer from provision to contract liability | 0 | 0 | |||
Allowance | 2 | 1 | |||
Amounts used | (1) | (2) | |||
Unused amounts reversed | 0 | (1) | |||
Unwinding of discounts | 0 | 0 | |||
Effects of changes in foreign exchange rates | 0 | 0 | |||
Transfer | 0 | 0 | |||
Ending balance | 4 | 3 | |||
Current | 2 | 1 | |||
Non-Current | 2 | 2 | |||
Total Provisions | 3 | 4 | 3 | 4 | 3 |
Legal claims and other costs | |||||
Changes in other provisions [abstract] | |||||
Beginning balance | 54 | 54 | 67 | ||
Transfer from provision to contract liability | (20) | (23) | |||
Allowance | 6 | 15 | |||
Amounts used | (4) | (4) | |||
Unused amounts reversed | (4) | (6) | |||
Unwinding of discounts | 0 | 0 | |||
Effects of changes in foreign exchange rates | 0 | 1 | |||
Transfer | (4) | 4 | |||
Ending balance | 28 | 54 | |||
Current | 14 | 40 | |||
Non-Current | 14 | 14 | |||
Total Provisions | € 54 | € 28 | € 54 | € 28 | € 54 |
PROVISIONS - Additional Informa
PROVISIONS - Additional Information (Details) - Close down and environmental remediation costs € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of other provisions [line items] | |
Average discount rate | 0.28% |
Change in discount rate | 0.50% |
Change in provision | € 3 |
Expected provisions settlement period | 40 years |
PROVISIONS - Legal Claims and O
PROVISIONS - Legal Claims and Other Costs (Details) € in Millions | Jan. 01, 2019EUR (€) | Dec. 31, 2019EUR (€)Claim | Dec. 31, 2018EUR (€)Claim |
Disclosure of other provisions [line items] | |||
Decrease in provision for reclassification upon adoption of new accounting standard | € (20) | € (23) | |
Disease claims | Top of range | |||
Disclosure of other provisions [line items] | |||
Average amount per claim outstanding (less than) | 0.1 | ||
Average settlement amount per disease claim (less than) | 0.1 | ||
Legal claims and other costs | |||
Disclosure of other provisions [line items] | |||
Litigation | 21 | 45 | |
Disease claims | 4 | 4 | |
Other | 3 | 5 | |
Total Provisions for legal claims and other costs | € 28 | 54 | |
Decrease in provision for reclassification upon adoption of new accounting standard | € (20) | € (23) | |
Legal claims and other costs | Disease claims | |||
Disclosure of other provisions [line items] | |||
Number of cases outstanding for disease claims | Claim | 7 | 6 | |
Legal claims and other costs | Disease claims | Bottom of range | |||
Disclosure of other provisions [line items] | |||
Latency period for acquiring diseases | 25 years | ||
Legal claims and other costs | Disease claims | Top of range | |||
Disclosure of other provisions [line items] | |||
Latency period for acquiring diseases | 40 years | ||
Average amount per claim outstanding (less than) | € 0.1 | ||
Average settlement amount per disease claim (less than) | 0.1 | ||
Legal claims and other costs | IFRIC 23 | |||
Disclosure of other provisions [line items] | |||
Decrease in provision for reclassification upon adoption of new accounting standard | € 20 |
NON-CASH INVESTING AND FINANC_2
NON-CASH INVESTING AND FINANCING TRANSACTIONS (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of cash flow statement [Abstract] | |||
Property, plant and equipment acquired by finance lease | € 75 | € 28 | € 17 |
Fair value of vested PSUs and RSUs | € 8 | € 8 | € 1 |
SHARE CAPITAL - Additional Info
SHARE CAPITAL - Additional Information (Details) | Dec. 31, 2019EUR (€)€ / sharesshares | Dec. 31, 2018EUR (€)shares |
Disclosure of classes of share capital [line items] | ||
Share capital | € | € 2,757,348.36 | € 3,000,000 |
Nominal value of ordinary fully-paid shares (in EUR per share) | € / shares | € 0.02 | |
Number of vote rights per share | 1 | |
Ordinary shares | ||
Disclosure of classes of share capital [line items] | ||
Number of ordinary shares (in shares) | shares | 137,867,418 | 135,999,394 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | |||
Beginning balance | € (114) | € (319) | € (570) |
New shares issued | 0 | 259 | |
Ending balance | (85) | (114) | (319) |
Share capital | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 3 | 3 | 2 |
New shares issued | 0 | 1 | |
Ending balance | 3 | 3 | 3 |
Share premium | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 420 | 420 | 162 |
New shares issued | 0 | 258 | |
Ending balance | € 420 | € 420 | € 420 |
Ordinary shares | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance (in shares) | 135,999,394 | ||
Ending balance (in shares) | 137,867,418 | 135,999,394 | |
Ordinary shares | Employees | |||
Disclosure of classes of share capital [line items] | |||
New shares issued (in shares) | 1,868,024 |
COMMITMENTS - Non-cancellable L
COMMITMENTS - Non-cancellable Lease Commitments Not Capitalized (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of non-cancellable operating leases commitments [line items] | ||
Non-cancellable operating lease minimum payments | € 16 | € 133 |
Less than 1 year | ||
Disclosure of non-cancellable operating leases commitments [line items] | ||
Non-cancellable operating lease minimum payments | 5 | |
Expiring within 5 years | ||
Disclosure of non-cancellable operating leases commitments [line items] | ||
Non-cancellable operating lease minimum payments | 10 | |
More than 5 years | ||
Disclosure of non-cancellable operating leases commitments [line items] | ||
Non-cancellable operating lease minimum payments | € 1 |
COMMITMENTS - Tangible and Inta
COMMITMENTS - Tangible and Intangible Asset Commitments (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of capital expenditures commitments [line items] | ||
Total tangible and intangible asset commitments | € 91 | € 124 |
Property, plant and equipment | ||
Disclosure of capital expenditures commitments [line items] | ||
Total tangible and intangible asset commitments | 89 | 123 |
Computer Software | ||
Disclosure of capital expenditures commitments [line items] | ||
Total tangible and intangible asset commitments | € 2 | € 1 |
RELATED PARTIES - Additional In
RELATED PARTIES - Additional Information (Details) - Unsecured Revolving Credit Facility (due 2021) - BPI France - EUR (€) € in Millions | May 28, 2018 | Mar. 28, 2018 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | |||
Term of credit facility | 3 years | ||
Borrowing capacity | € 10 | € 7 |
RELATED PARTIES - Key Managemen
RELATED PARTIES - Key Management Personnel Compensation (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits | € 9 | € 9 | € 8 |
Directors' fees | 1 | 1 | 1 |
Share-based compensation | 10 | 6 | 4 |
Post-employments benefits | 0 | 0 | 0 |
Termination benefits | 0 | 0 | 1 |
Employer social contribution | 1 | 1 | 1 |
Total | € 21 | € 17 | € 15 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Payment Plans [line items] | |||
Total expense related to the potential ordinary shares | € (16) | € (12) | € (8) |
PSUs | |||
Share Based Payment Plans [line items] | |||
Share based compensation, vesting period | 3 years | ||
PSUs | Bottom of range | |||
Share Based Payment Plans [line items] | |||
Percentage of vesting multiplier | 0.00% | ||
PSUs | Top of range | |||
Share Based Payment Plans [line items] | |||
Percentage of vesting multiplier | 200.00% | ||
PSUs granted in 2016 | |||
Share Based Payment Plans [line items] | |||
Potential additional shares to be vested (in shares) | 248,230 | 433,032 | 184,469 |
PSUs granted in 2016 | Bottom of range | |||
Share Based Payment Plans [line items] | |||
Percentage of vesting multiplier | 0.00% | ||
PSUs granted in 2016 | Top of range | |||
Share Based Payment Plans [line items] | |||
Percentage of vesting multiplier | 300.00% | ||
PSUs granted in March 2016 | First testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 115.90% | ||
PSUs granted in March 2016 | Second testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 229.90% | ||
PSUs granted in March 2016 | Third testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 108.40% | ||
PSUs granted in May 2016 | First testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 98.10% | ||
PSUs granted in May 2016 | Second testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 217.20% | ||
PSUs granted in May 2016 | Third testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 125.40% | ||
PSUs granted in August 2016 | First testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 191.60% | ||
PSUs granted in August 2016 | Second testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 282.20% | ||
PSUs granted in August 2016 | Third testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 230.40% | ||
PSUs granted in November 2016 | First testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 223.80% | ||
PSUs granted in November 2016 | Second testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 148.70% | ||
PSUs granted in November 2016 | Third testing period | |||
Share Based Payment Plans [line items] | |||
Total shareholder return (TSR) percentage achieved | 286.40% | ||
PSUs vested in March 2019 | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 684,329 | ||
PSUs vested in May 2019 | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 123,336 | ||
PSUs vested in August 2019 | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 434,256 | ||
PSUs vested in November 2019 | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 516,141 | ||
RSUs | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 899,926 | 595,687 | |
Vesting period on the grant date | 3 years | ||
RSUs | Board Members | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 2 | ||
Equity Award Plans | |||
Share Based Payment Plans [line items] | |||
Potential additional shares granted (in shares) | 73,799 | 30,709 |
SHARE-BASED COMPENSATION - Inpu
SHARE-BASED COMPENSATION - Inputs to the Model Used for PSUs Granted (Details) - PSUs - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Input of Model Used for Performance-Based RSU [Line Items] | ||
Fair value at grant date (in euros) (in EUR per share) | € 10.44 | € 15.31 |
Share price at grant date (in euros) | € 7.1 | € 10.27 |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 52.00% | 75.00% |
Risk-free interest rate (US government bond yield) | 2.29% | 2.60% |
SHARE-BASED COMPENSATION - Numb
SHARE-BASED COMPENSATION - Number and Movement of Potential Shares (Details) | 12 Months Ended | |
Dec. 31, 2019EUR (€)shares | Dec. 31, 2018EUR (€)shares | |
Performance-Based RSU | ||
Disclosure of movement of potential shares [line items] | ||
Potential Shares, Beginning balance (in shares) | 3,085,164 | 3,257,840 |
Potential Shares, Granted (in shares) | 1,028,342 | 701,109 |
Potential Shares, Over-performance (in shares) | 248,230 | 633,670 |
Potential Shares, Vested (in shares) | (1,758,062) | (1,265,635) |
Potential Shares, Forfeited (in shares) | (84,380) | (241,820) |
Potential Shares, Ending balance (in shares) | 2,519,294 | 3,085,164 |
Weighted- Average Grant-Date Fair Value per Share, Beginning balance | € | € 10.45 | € 8.56 |
Weighted- Average Grant-Date Fair Value per Share, Granted | € | 10.44 | 15.31 |
Weighted- Average Grant-Date Fair Value per Share, Over-performance | € | 8.94 | 7.28 |
Weighted- Average Grant-Date Fair Value per Share, Vested | € | 7.97 | 7.09 |
Weighted- Average Grant-Date Fair Value per Share, Forfeited | € | 8.02 | 8.40 |
Weighted- Average Grant-Date Fair Value per Share, Ending balance | € | € 12.11 | € 10.45 |
Percentage of vesting multiplier | 100.00% | |
Performance based shares forfeited upon departure of certain beneficiaries (in shares) | 84,380 | |
Performance based shares forfeited upon non-fulfillment of performance conditions (in shares) | 0 | |
Restricted Stock Units | ||
Disclosure of movement of potential shares [line items] | ||
Potential Shares, Beginning balance (in shares) | 1,312,524 | 944,500 |
Potential Shares, Granted (in shares) | 899,926 | 595,687 |
Potential Shares, Over-performance (in shares) | 0 | 0 |
Potential Shares, Vested (in shares) | (106,000) | (155,000) |
Potential Shares, Forfeited (in shares) | (39,947) | (72,663) |
Potential Shares, Ending balance (in shares) | 2,066,503 | 1,312,524 |
Weighted- Average Grant-Date Fair Value per Share, Beginning balance | € | € 8.47 | € 7.76 |
Weighted- Average Grant-Date Fair Value per Share, Granted | € | 7.10 | 10.23 |
Weighted- Average Grant-Date Fair Value per Share, Over-performance | € | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Vested | € | 4.55 | 10.83 |
Weighted- Average Grant-Date Fair Value per Share, Forfeited | € | 8.31 | 8.57 |
Weighted- Average Grant-Date Fair Value per Share, Ending balance | € | € 8.08 | € 8.47 |
Equity Award Plans | ||
Disclosure of movement of potential shares [line items] | ||
Potential Shares, Beginning balance (in shares) | 57,913 | 95,340 |
Potential Shares, Granted (in shares) | 73,799 | 30,709 |
Potential Shares, Over-performance (in shares) | 0 | 0 |
Potential Shares, Vested (in shares) | (42,559) | (68,136) |
Potential Shares, Forfeited (in shares) | (9,627) | 0 |
Potential Shares, Ending balance (in shares) | 79,526 | 57,913 |
Weighted- Average Grant-Date Fair Value per Share, Beginning balance | € | € 8.31 | € 5.20 |
Weighted- Average Grant-Date Fair Value per Share, Granted | € | 8.39 | 10.27 |
Weighted- Average Grant-Date Fair Value per Share, Over-performance | € | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Vested | € | 7.60 | 4.85 |
Weighted- Average Grant-Date Fair Value per Share, Forfeited | € | 8.71 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Ending balance | € | € 8.71 | € 8.31 |
SUBSIDIARIES AND OPERATING SE_3
SUBSIDIARIES AND OPERATING SEGMENTS (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Cross Operating Segment | Constellium Singen GmbH (AS&I and P&ARP) | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
Cross Operating Segment | Constellium Valais S.A. (AS&I and A&T) | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Automotive USA, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Engley (Changchun) Automotive Structures Co Ltd. | |
Disclosure of subsidiaries [line items] | |
Country | China |
% Group Interest | 54.00% |
Consolidation Method | Full |
AS&I | Constellium Extrusions Decin S.r.o. | |
Disclosure of subsidiaries [line items] | |
Country | Czech Republic |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Extrusions Deutschland GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Extrusions Landau GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Extrusions Burg GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Extrusions France S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Extrusions Levice S.r.o. | |
Disclosure of subsidiaries [line items] | |
Country | Slovakia |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Automotive Mexico, S. DE R.L. DE C.V. | |
Disclosure of subsidiaries [line items] | |
Country | Mexico |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Automotive Mexico Trading, S. DE R.L. DE C.V. | |
Disclosure of subsidiaries [line items] | |
Country | Mexico |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Astrex Inc | |
Disclosure of subsidiaries [line items] | |
Country | Canada |
% Group Interest | 50.00% |
Consolidation Method | Full |
AS&I | Constellium Automotive Zilina S.r.o. | |
Disclosure of subsidiaries [line items] | |
Country | Slovakia |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Automotive Nanjing Co Ltd | |
Disclosure of subsidiaries [line items] | |
Country | China |
% Group Interest | 100.00% |
Consolidation Method | Full |
AS&I | Constellium Automotive Spain SL | |
Disclosure of subsidiaries [line items] | |
Country | Spain |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium Issoire S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium Montreuil Juigné S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium China Limited | |
Disclosure of subsidiaries [line items] | |
Country | China |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium Japan KK | |
Disclosure of subsidiaries [line items] | |
Country | Japan |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium Rolled Products Ravenswood, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium Southeast Asia PTE LTD | |
Disclosure of subsidiaries [line items] | |
Country | Singapore |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | Constellium Ussel S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
A&T | AluInfra Services SA | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
% Group Interest | 50.00% |
Consolidation Method | Full |
P&ARP | Constellium Deutschland GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Rolled Products Singen GmbH KG | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Property and Equipment Company, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Neuf Brisach | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Muscle Shoals LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Holding Muscle Shoals LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Muscle Shoals Funding II LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Listerhill Total Maintenance Center LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Metal Procurement LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Constellium Bowling Green LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
P&ARP | Rhenaroll | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 50.00% |
Consolidation Method | Equity |
Holdings & Corporate | C-TEC Constellium Technology Center S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium Finance S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium France III | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium France Holdco S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium International | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium Paris S.A.S | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium Germany Holdco GmbH & Co. KG | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium Germany Verwaltungs GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium UK Limited | |
Disclosure of subsidiaries [line items] | |
Country | United Kingdom |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium U.S. Holdings I, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium Switzerland AG | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium W S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Constellium Treuhand UG | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100.00% |
Consolidation Method | Full |
Holdings & Corporate | Engineered Products International S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100.00% |
Consolidation Method | Full |
PARENT COMPANY - Statement of F
PARENT COMPANY - Statement of Financial Position of Constellium SE (parent company only) (Details) - EUR (€) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | |||||
Cash and cash equivalents | € 184,000,000 | € 164,000,000 | € 269,000,000 | € 347,000,000 | |
Trade receivables and other | 474,000,000 | 587,000,000 | |||
Other financial assets | 22,000,000 | 30,000,000 | |||
Total current assets | 1,350,000,000 | 1,441,000,000 | |||
Non-current assets | |||||
Property, plant and equipment | 2,056,000,000 | € 1,768,000,000 | 1,666,000,000 | 1,517,000,000 | |
Trade receivables and other | 60,000,000 | 64,000,000 | |||
Deferred income tax assets | 185,000,000 | 163,000,000 | |||
Total non-current assets | 2,834,000,000 | 2,460,000,000 | |||
Total Assets | 4,184,000,000 | 3,901,000,000 | |||
Current liabilities | |||||
Trade payables and other | 999,000,000 | 968,000,000 | |||
Income tax payable | 14,000,000 | 8,000,000 | |||
Other financial liabilities | 35,000,000 | 60,000,000 | |||
Total current liabilities | 1,272,000,000 | 1,139,000,000 | |||
Non-current liabilities | |||||
Borrowings | 2,160,000,000 | 2,094,000,000 | |||
Income tax payable | 24,000,000 | 22,000,000 | |||
Total non-current liabilities | 2,997,000,000 | 2,876,000,000 | |||
Total Liabilities | 4,269,000,000 | 4,015,000,000 | |||
Equity | |||||
Share capital | 2,757,348.36 | 3,000,000 | |||
Share premium | 420,000,000 | 420,000,000 | |||
Total Equity | (85,000,000) | (114,000,000) | (319,000,000) | (570,000,000) | |
Total Equity and Liabilities | 4,184,000,000 | 3,901,000,000 | |||
Parent | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | € 0 | € 0 | |
Trade receivables and other | 200,000,000 | 109,000,000 | |||
Other financial assets | 37,000,000 | 38,000,000 | |||
Total current assets | 237,000,000 | 147,000,000 | |||
Non-current assets | |||||
Property, plant and equipment | 0 | 0 | |||
Financial assets | 2,002,000,000 | 2,106,000,000 | |||
Investments in subsidiaries | 159,000,000 | 144,000,000 | |||
Trade receivables and other | 27,000,000 | 0 | |||
Deferred income tax assets | 1,000,000 | 2,000,000 | |||
Total non-current assets | 2,189,000,000 | 2,252,000,000 | |||
Total Assets | 2,426,000,000 | 2,399,000,000 | |||
Current liabilities | |||||
Trade payables and other | 6,000,000 | 5,000,000 | |||
Income tax payable | 45,000,000 | 21,000,000 | |||
Other financial liabilities | 33,000,000 | 33,000,000 | |||
Total current liabilities | 84,000,000 | 59,000,000 | |||
Non-current liabilities | |||||
Borrowings | 1,954,000,000 | 2,022,000,000 | |||
Income tax payable | 19,000,000 | 0 | |||
Total non-current liabilities | 1,973,000,000 | 2,022,000,000 | |||
Total Liabilities | 2,057,000,000 | 2,081,000,000 | |||
Equity | |||||
Share capital | 3,000,000 | 3,000,000 | |||
Share premium | 429,000,000 | 429,000,000 | |||
Accumulated retained earnings | (153,000,000) | (239,000,000) | |||
Other reserves | 53,000,000 | 38,000,000 | |||
Net income | 37,000,000 | 87,000,000 | |||
Total Equity | 369,000,000 | 318,000,000 | |||
Total Equity and Liabilities | € 2,426,000,000 | € 2,399,000,000 |
PARENT COMPANY - Statement of C
PARENT COMPANY - Statement of Comprehensive Income / (Loss) of Constellium SE (parent company only) (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of condensed financial information of parent company [line items] | |||
Revenue | € 5,907 | € 5,686 | € 5,237 |
Gross profit | 602 | 538 | 555 |
Selling and administrative expenses | (276) | (247) | (247) |
Employee benefit expenses | (1,038) | (927) | (907) |
Income from operations | 255 | 404 | 338 |
Finance costs - net | (175) | (149) | (260) |
Income before income tax | 82 | 222 | 49 |
Income tax expense | (18) | (32) | (80) |
Net income / (loss) | 64 | 190 | (31) |
Other comprehensive (loss) / income | (49) | 7 | 15 |
Total comprehensive income / (loss) | 15 | 197 | (16) |
Parent | |||
Disclosure of condensed financial information of parent company [line items] | |||
Revenue | 3 | 3 | 1 |
Gross profit | 3 | 3 | 1 |
Selling and administrative expenses | (19) | (15) | (5) |
Employee benefit expenses | (3) | (3) | (1) |
Loss from recurring operations | (19) | (15) | (5) |
Other income | 0 | 0 | 0 |
Other expense | (3) | (3) | 0 |
Income from operations | (22) | (18) | (5) |
Finance costs - net | 41 | 80 | (65) |
Income before income tax | 19 | 62 | (70) |
Income tax expense | 18 | 25 | 0 |
Net income / (loss) | 37 | 87 | (70) |
Other comprehensive (loss) / income | 0 | 0 | 0 |
Total comprehensive income / (loss) | € 37 | € 87 | € (70) |
PARENT COMPANY - Statement of_2
PARENT COMPANY - Statement of Cash Flows of Constellium SE (parent company only) (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of condensed financial information of parent company [line items] | |||
Net income / (loss) | € 64 | € 190 | € (31) |
Adjustments | |||
Finance costs - net | 175 | 149 | 260 |
Income tax | 18 | 32 | 80 |
Interest paid | (158) | (129) | (185) |
Change in trade working capital | |||
Trade receivables and other | 104 | (145) | (91) |
Income tax paid | (6) | (23) | (18) |
Trade payables and other | (31) | (27) | 124 |
Net cash flows from operating activities | 447 | 66 | 160 |
Net cash flows used in investing activities | (353) | (91) | (292) |
Proceeds from issuance of Senior Notes | 0 | 0 | 1,440 |
Repayment of Senior Notes | (100) | 0 | (1,559) |
Other | 5 | 1 | 23 |
Net cash flows (used in) / from financing activities | (76) | (82) | 61 |
Net increase / (decrease) in cash and cash equivalents | 18 | (107) | (71) |
Cash and cash equivalents - beginning of year | 164 | 269 | 347 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 2 | (7) |
Cash and cash equivalents - end of year | 184 | 164 | 269 |
Parent | |||
Disclosure of condensed financial information of parent company [line items] | |||
Net income / (loss) | 37 | 87 | (70) |
Adjustments | |||
Finance costs - net | (41) | (80) | 65 |
Dividend received | 0 | 0 | 0 |
Income tax | (18) | (25) | 0 |
Interest paid | (115) | (102) | (148) |
Interest received | 143 | 134 | 149 |
Change in trade working capital | |||
Trade receivables and other | 27 | 0 | (1) |
Income tax paid | 50 | 0 | 0 |
Trade payables and other | 2 | 0 | 2 |
Net cash flows from operating activities | 85 | 14 | (3) |
Investments in subsidiaries | 0 | (1) | (11) |
Current account with subsidiaries and related parties | (135) | (13) | 180 |
Loans granted to subsidiaries and related parties | 0 | 0 | (1,640) |
Repayment of loans granted to subsidiaries and related parties | 150 | 0 | 823 |
Exit fees received from subsidiaries | 0 | 0 | 9 |
Net cash flows used in investing activities | 15 | (14) | (639) |
Net proceeds received from issuance of shares | 0 | 0 | 259 |
Proceeds from issuance of Senior Notes | 0 | 0 | 1,440 |
Payment of deferred financing costs | 0 | 0 | (29) |
Repayment of Senior Notes | (100) | 0 | (949) |
Payment of exit fees | 0 | 0 | (61) |
Realized foreign exchange gains / (losses) | 0 | 0 | (17) |
Other | 0 | 0 | (1) |
Net cash flows (used in) / from financing activities | (100) | 0 | 642 |
Net increase / (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents - beginning of year | 0 | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents - end of year | € 0 | € 0 | € 0 |