COVER
COVER | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-35931 |
Entity Registrant Name | Constellium SE |
Entity Incorporation, State or Country Code | I0 |
Entity Address, Address Line One | Washington Plaza, |
Entity Address, Address Line Two | 40-44 rue Washington |
Entity Address, Postal Zip Code | 75008 |
Entity Address, City or Town | Paris |
Entity Address, Country | FR |
Title of 12(b) Security | Ordinary Shares |
Trading Symbol | CSTM |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 144,301,592 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001563411 |
Other Address | |
Document Information [Line Items] | |
Entity Address, Address Line One | 300 East Lombard Street |
Entity Address, Address Line Two | Suite 1710 |
Entity Address, Postal Zip Code | 21202 |
Entity Address, City or Town | Baltimore |
Entity Address, State or Province | MD |
Entity Address, Country | US |
Chief Securities Counsel | |
Document Information [Line Items] | |
Entity Address, Address Line One | 300 East Lombard Street |
Entity Address, Address Line Two | Suite 1710 |
Entity Address, Postal Zip Code | 21202 |
Entity Address, City or Town | Baltimore |
Entity Address, State or Province | MD |
Entity Address, Country | US |
Local Phone Number | 420-7861 |
City Area Code | 443 |
Contact Personnel Name | Rina E. Teran |
Contact Personnel Email Address | E-mail: rina.teran@constellium.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
PCAOB ID | 1347 |
Auditor Name | PricewaterhouseCoopers Audit |
Auditor Location | Neuilly-sur-Seine, France |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Revenue | € 8,120 | € 6,152 | € 4,883 |
Cost of sales | (7,448) | (5,488) | (4,393) |
Gross profit | 672 | 664 | 490 |
Selling and administrative expenses | (282) | (258) | (237) |
Research and development expenses | (48) | (39) | (39) |
Other gains and losses - net | (8) | 117 | (89) |
Income from operations | 334 | 484 | 125 |
Finance costs - net | (131) | (167) | (159) |
Income / (loss) before tax | 203 | 317 | (34) |
Income tax benefit / (expense) | 105 | (55) | 17 |
Net income / (loss) | 308 | 262 | (17) |
Net income / (loss) attributable to: | |||
Equity holders of Constellium | 301 | 257 | (21) |
Non-controlling interests | 7 | 5 | 4 |
Net income / (loss) | € 308 | € 262 | € (17) |
Earnings per share attributable to the equity holders of Constellium (in Euros) | |||
Basic (in EUR per share) | € 2.10 | € 1.82 | € (0.15) |
Diluted (in EUR per share) | € 2.06 | € 1.75 | € (0.15) |
Weighted average number of shares | |||
Basic (in shares) | 143,625,764 | 140,995,106 | 138,739,635 |
Diluted (in shares) | 146,605,716 | 147,169,971 | 138,739,635 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |||
Net income / (loss) | € 308 | € 262 | € (17) |
Items that will not be reclassified subsequently to the consolidated income statement | |||
Remeasurement on post-employment benefit obligations | 157 | 114 | (20) |
Income tax on remeasurement on post-employment benefit obligations | (35) | (16) | 5 |
Items that may be reclassified subsequently to the consolidated income statement | |||
Cash flow hedges | (8) | (17) | 26 |
Income tax on cash flow hedges | 2 | 4 | (7) |
Currency translation differences | 21 | 34 | (18) |
Other comprehensive income / (loss) | 137 | 119 | (14) |
Total comprehensive income / (loss) | 445 | 381 | (31) |
Attributable to: | |||
Equity holders of Constellium | 439 | 374 | (34) |
Non-controlling interests | 6 | 7 | 3 |
Total comprehensive income / (loss) | € 445 | € 381 | € (31) |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | € 166,000,000 | € 147,000,000 |
Trade receivables and other | 539,000,000 | 683,000,000 |
Inventories | 1,320,000,000 | 1,050,000,000 |
Other financial assets | 31,000,000 | 58,000,000 |
Total current assets | 2,056,000,000 | 1,938,000,000 |
Non-current assets | ||
Property, plant and equipment | 2,017,000,000 | 1,948,000,000 |
Goodwill | 478,000,000 | 451,000,000 |
Intangible assets | 54,000,000 | 58,000,000 |
Deferred tax assets | 271,000,000 | 162,000,000 |
Trade receivables and other | 43,000,000 | 55,000,000 |
Other financial assets | 8,000,000 | 12,000,000 |
Total non-current assets | 2,871,000,000 | 2,686,000,000 |
Assets of disposal group classified as held for sale | 14,000,000 | 0 |
Total Assets | 4,941,000,000 | 4,624,000,000 |
Current liabilities | ||
Trade payables and other | 1,467,000,000 | 1,377,000,000 |
Borrowings | 148,000,000 | 258,000,000 |
Other financial liabilities | 41,000,000 | 25,000,000 |
Income tax payable | 16,000,000 | 34,000,000 |
Provisions | 21,000,000 | 20,000,000 |
Total current liabilities | 1,693,000,000 | 1,714,000,000 |
Non-current liabilities | ||
Trade payables and other | 43,000,000 | 32,000,000 |
Borrowings | 1,908,000,000 | 1,871,000,000 |
Other financial liabilities | 14,000,000 | 6,000,000 |
Pension and other post-employment benefit obligations | 403,000,000 | 599,000,000 |
Provisions | 90,000,000 | 97,000,000 |
Deferred tax liabilities | 28,000,000 | 14,000,000 |
Total non-current liabilities | 2,486,000,000 | 2,619,000,000 |
Liabilities of disposal group classified as held for sale | 10,000,000 | 0 |
Total Liabilities | 4,189,000,000 | 4,333,000,000 |
Equity | ||
Share capital | 2,886,031.84 | 3,000,000 |
Share premium | 420,000,000 | 420,000,000 |
Retained earnings / (deficit) and other reserves | 308,000,000 | (149,000,000) |
Equity attributable to equity holders of Constellium | 731,000,000 | 274,000,000 |
Non-controlling interests | 21,000,000 | 17,000,000 |
Total Equity | 752,000,000 | 291,000,000 |
Total Equity and Liabilities | € 4,941,000,000 | € 4,624,000,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - EUR (€) € in Millions | Total | Share capital | Share premium | Re- measurement | Cash flow hedges | Foreign currency translation reserve | Other reserves | Retained (deficit) / earnings | Total | Non-controlling interests |
Beginning balance at Dec. 31, 2019 | € (85) | € 3 | € 420 | € (177) | € (10) | € 4 | € 53 | € (389) | € (96) | € 11 |
Net income / (loss) | (17) | (21) | (21) | 4 | ||||||
Other comprehensive income / (loss) | (14) | (15) | 19 | (17) | (13) | (1) | ||||
Total comprehensive income / (loss) | (31) | (15) | 19 | (17) | (21) | (34) | 3 | |||
Share-based compensation | 15 | 15 | 15 | |||||||
Transactions with non-controlling interests | 0 | 0 | ||||||||
Ending balance at Dec. 31, 2020 | (101) | 3 | 420 | (192) | 9 | (13) | 68 | (410) | (115) | 14 |
Net income / (loss) | 262 | 257 | 257 | 5 | ||||||
Other comprehensive income / (loss) | 119 | 98 | (13) | 32 | 117 | 2 | ||||
Total comprehensive income / (loss) | 381 | 98 | (13) | 32 | 257 | 374 | 7 | |||
Share-based compensation | 15 | 15 | 15 | |||||||
Transactions with non-controlling interests | (4) | (4) | ||||||||
Ending balance at Dec. 31, 2021 | 291 | 3 | 420 | (94) | (4) | 19 | 83 | (153) | 274 | 17 |
Net income / (loss) | 308 | 301 | 301 | 7 | ||||||
Other comprehensive income / (loss) | 137 | 122 | (6) | 22 | 138 | (1) | ||||
Total comprehensive income / (loss) | 445 | 122 | (6) | 22 | 301 | 439 | 6 | |||
Share-based compensation | 18 | 18 | 18 | |||||||
Transactions with non-controlling interests | (2) | (2) | ||||||||
Ending balance at Dec. 31, 2022 | € 752 | € 3 | € 420 | € 28 | € (10) | € 41 | € 101 | € 148 | € 731 | € 21 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of cash flows [abstract] | |||
Net income / (loss) | € 308 | € 262 | € (17) |
Adjustments | |||
Depreciation and amortization | 287 | 267 | 259 |
Impairment of assets | 0 | 0 | 43 |
Pension and other post-employment benefits service costs | (22) | 64 | 34 |
Finance costs - net | 131 | 167 | 159 |
Income tax (benefit) / expense | (105) | 55 | (17) |
Unrealized losses / (gains) on derivatives - net and from remeasurement of monetary assets and liabilities - net | 47 | (36) | (18) |
Losses on disposal | 4 | 3 | 4 |
Other - net | 17 | 11 | 19 |
Change in working capital | |||
Inventories | (241) | (435) | 63 |
Trade receivables | 155 | (227) | 36 |
Trade payables | 41 | 396 | (38) |
Other | 13 | 5 | (10) |
Change in provisions | (10) | (7) | 1 |
Pension and other post-employment benefits paid | (44) | (43) | (53) |
Interest paid | (113) | (128) | (140) |
Income tax (paid) / refunded | (17) | 3 | 9 |
Net cash flows from operating activities | 451 | 357 | 334 |
Purchases of property, plant and equipment | (273) | (232) | (182) |
Property, plant and equipment grants received | 4 | 10 | 5 |
Proceeds from disposals, net of cash | 0 | 1 | 1 |
Other investing activities | (1) | 0 | 0 |
Net cash flows used in investing activities | (270) | (221) | (176) |
Proceeds from issuance of long-term borrowings | 0 | 712 | 472 |
Repayments of long-term borrowings | (192) | (1,052) | (209) |
Net change in revolving credit facilities and short-term borrowings | 72 | (5) | (110) |
Lease repayments | (37) | (32) | (35) |
Payment of financing costs and redemption fees | (1) | (30) | (9) |
Transactions with non-controlling interests | (2) | (2) | 0 |
Other financing activities | (3) | (26) | (8) |
Net cash flows (used in) / from financing activities | (163) | (435) | 101 |
Net increase / (decrease) in cash and cash equivalents | 18 | (299) | 259 |
Cash and cash equivalents - beginning of period | 147 | 439 | 184 |
Reclassification as assets of disposal group classified as held for sale | (1) | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 7 | (4) |
Cash and cash equivalents - end of year | € 166 | € 147 | € 439 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
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 29 manufacturing facilities located in North America, Europe and China, 3 R&D centers and 3 administrative centers. The Group has approximately 12,500 employees. Constellium SE, a French Societas Europaea (SE), is the parent company of the Group. The business address (head office) of Constellium SE is located at 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, 2022 | |
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 on March 9, 2023 by the Board of Directors. 2.2 New and amended standards and interpretations Several amendments to IFRS standards and interpretations applied for the first time in 2022, but had no impact on the Consolidated Financial Statements of the Group. • Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use • Amendments to IFRS 3: Reference to the Conceptual Framework • Amendments to IAS 37: Onerous Contracts – Costs of Fulfilling a Contract • Annual Improvements to IFRS Standards 2018-2020 ◦ IFRS 9 Financial Instruments: Fees in the ‘10 per cent’ test for derecognition of financial liabilities 2.3 New standards and interpretations not yet mandatorily applicable The Group has not early adopted the following new standards, amendments and interpretations which have been issued, but are not yet effective. The Group plans to adopt these new standards, amendments and interpretations on their required effective dates and does not expect any material impact as a result of their adoption. • Amendments to IAS 1: Classification of Liabilities as Current or Non-current • Amendment to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies • Amendment to IAS 8: Definition of Accounting Estimates • Amendment to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction 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 12 - Cash and Cash Equivalents, NOTE 20 - Borrowings and NOTE 22 - Financial Risk Management. The Group’s forecasts and projections, taking account of reasonably possible changes in operating 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. This assessment was confirmed by the Board of Directors on March 9, 2023 . 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. The Chief Executive Officer, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief operating decision-maker. 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. 2.6 Principles governing the preparation of the Consolidated Financial Statements Presentation of financial statements The Consolidated Financial Statements are presented in millions of Euros, except as otherwise stated. Certain reclassifications may have been made to prior year amounts to conform to the current year presentation. Basis of consolidation These Consolidated Financial Statements include all the assets, liabilities, equity, revenues, expenses and cash flows of the Group's subsidiaries. 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 entity, 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 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 joint control are accounted for either as joint ventures under the equity method or as joint arrangements in relation to its interest in the joint operation. Investments over which the Group has significant influence are accounted for under the equity method. 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 and 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. Acquisition-related costs are expensed as incurred and are included in Other gains and losses - net in the Consolidated Income Statement. Non-current Assets (and disposal groups) Held for Sale and 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 held for sale or has been sold, 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 reflected in separate line items in the Consolidated Statement of Financial Position of the period during which the decision to sell is made. The results of discontinued operations are shown separately in the Consolidated Income Statement. 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 their functional currency, which is the currency of the primary economic environment in which they operate. 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 ("OCI") as qualifying cash flow hedges or qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in 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 and 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 OCI. The following table summarizes the main exchange rates used for the preparation of the Consolidated Financial Statements: Average rates Closing rates Foreign exchange rate for 1 Euro Year ended December 31, At December 31, 2022 2021 2020 2022 2021 2020 U.S. Dollars USD 1.0507 1.1821 1.1405 1.0666 1.1326 1.2271 Swiss Francs CHF 1.0038 1.0808 1.0704 0.9847 1.0331 1.0802 Czech Koruna CZK 24.5633 25.6366 26.4337 24.1160 24.8580 26.2420 Revenue from contracts with customers Revenue is recognized in an amount that reflects the consideration to which the Group 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 multi-year frame agreements. Revenue from product sales, measured at the fair value of the consideration received or receivable, is recognized at a 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 that control has transferred. Contract liabilities consist of expected volume discounts, rebates, incentives, refunds, penalties and price concessions. Contract liabilities are presented in Trade payables and other. The Group applies the practical expedient for disclosures on performance obligations that are part of contracts that have an original duration of one year or less. The Group elected the practical expedient on significant financing components when the period of transfer of the product and the payment is one year or less. 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 and losses - net Other gains and losses - net includes: (i) realized and unrealized gains and losses for commodity derivatives and foreign exchange derivatives contracted for commercial purposes to which hedge accounting is not applied (ii) unrealized exchange gains and losses from the remeasurement of monetary assets and liabilities, (iii) the ineffective portion of changes in the fair value of derivatives designated for hedge accounting and (iv) impairment charges on assets. Other gains and losses - net also includes other unusual, infrequent or non-recurring items. Such items are disclosed by virtue of their size, nature or incidence. In determining whether an event or transaction is unusual, infrequent or non-recurring, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. Interest income and expense Interest expense on short and long-term financing is recorded at the relevant rates on the various borrowing agreements using the effective interest rate method. 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. 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. 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 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 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. In determining whether the Group has transferred substantially all the risks and rewards of ownership, it considers credit risk, late-payment risk, dilution risk, foreign exchange risk and tax risk. Arrangements in which the Group derecognizes receivables result in changes in trade receivables, which are reflected as cash flows from operating activities. 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 Group does not derecognize the receivables, the cash received from the factor is classified as a financing cash inflow, the settlement of the receivables as an operating cash inflow and the repayment to the factor as a financing cash outflow. Inventories Inventories are valued at the lower of cost and net realizable value, primarily on a weighted-average cost basis. Weighted-average cost for raw materials, stores, work in progress and finished goods is calculated using the costs experienced in the current period based on normal operating capacity and includes the purchase price of materials, freight, duties and customs, and the costs of production, which includes labor, materials and other costs that are directly attributable to the production process and production overheads. Financial Instruments i. Classification and measurement • Financial assets At initial recognition, 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. 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. The business model 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 objective 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. 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. Upon derecognition, the cumulative fair value change recognized in OCI is reclassified to profit or loss. 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. 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 those designated as hedging instruments that qualify for hedge accounting in accordance with IAS 39 - Financial Instruments which are classified as assets at fair value through OCI. 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 are 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 is 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. Derivative financial instruments Derivatives The Group uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Fair value is the price expected to be received in selling an asset or paid in transferring 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 derivative instruments aggregated by counterparties and takes this into account when estimating the fair value of its derivatives. Credit Value Adjustments are calculated for asset derivatives based on the 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 the historical probability of default, provided by leading rating agencies. 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 qualifies for hedge accounting treatment. 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 and losses - net or Finance costs, net depending on the nature of the underlying exposure. For derivatives that qualify for hedge accounting, changes in the fair value are recognized in OCI. Hedge accounting The Group did not adopt the disposition of IFRS 9 - Financial Instruments on hedging and will therefore continue to apply the provisions of IAS 39 - Financial Instruments . For derivative instruments that are designated for hedge accounting, at the inception of the hedging transaction, the group documents the relationship between hedging instruments and hedged items, the risk management objective and the 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 OCI and accumulated in equity. The gain or loss relating to the ineffective portion is recognized immediately in the Consolidated Income Statement in Other gains and 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. 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 interest, directly attributable to the acquisition or construction of 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 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 their cost 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. Government Grants Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions are complied with. Government grants relating to the purchase of property, plant and equipment reduce the carrying amount of the asset. They are credited to profit or loss on a straight-line basis over the expected useful lives of the related assets. Government grants relating to costs offset the corresponding expense and are deferred and recognized in profit or loss over the period necessary to match them with the costs that they are intended to compensate. 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. 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 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 and value in use, as 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 Other gains and losses - net in the Consolidated Income Statement. Impairment of goodwill Groups of cash-generating units to which goodwill is allocated are tested for impairment annually, or more frequently when there is an indication that allocated goodwill may be impaired. The net carrying value of a group of cash-generating units is compared to their recoverable amounts, which is the higher of the value in use and the fair value less costs 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 the 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 Other gains and losses - net in the Consolidated Income Statement. An impairment loss recognized for goodwill cannot be reversed in subsequent years. Cash-generating units The reporting units, which generally correspond to industrial sites, are the lowest level of independent cash flows and have been identified as cash-generating units. Taxation 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 France, the United States, Germany and numerous other jurisdictions. Certain of Constellium’s businesses may be included in tax returns in some jurisdictions. 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. Deferred income tax assets are also recognized for operating loss carryforwards and tax credit carryforwards. 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. 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. Trade payables Trade payables are initially recorded at fair value and are subsequently measured at amortized cost. Trade payables are classified as current liabilities if payment is due in one year or less. 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 liabil |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
REVENUE | NOTE 3 - REVENUE Year ended December 31, (in millions of Euros) 2022 2021 2020 Packaging rolled products 3,326 2,673 1,960 Automotive rolled products 1,154 854 663 Specialty and other thin-rolled products 175 161 102 Aerospace rolled products 728 389 560 Transportation, industry, defense and other rolled products 916 713 442 Automotive extruded products 949 735 665 Other extruded products 872 627 491 Total Revenue by product line 8,120 6,152 4,883 Year ended December 31, (in millions of Euros) 2022 2021 2020 Germany 2,036 1,481 1,014 France 691 466 362 United Kingdom 221 179 192 Switzerland 87 63 52 Spain 302 252 185 Czech Republic 237 172 119 Other Europe 1,110 809 619 Total Europe 4,684 3,422 2,543 United States 2,823 2,335 1,941 Asia and Other Pacific 252 171 211 All Other 361 224 188 Total Revenue by destination of shipment 8,120 6,152 4,883 Revenue is recognized at a point in time, except for certain products with no alternative use for which we have a right to payment, which represent less than 1% of total revenue. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
OPERATING SEGMENT INFORMATION | NOTE 4 - OPERATING SEGMENT INFORMATION Packaging and Automotive Rolled Products (P&ARP) P&ARP supplies thin-gauge rolled aluminium products to the packaging market with canstock and closure stock for the beverage and food industry, foil stock for the flexible packaging market and to the automotive market with a number of technically sophisticated applications, such as automotive body sheet and heat exchanger materials. P&ARP operates four facilities in three countries and had approximately 4,100 employees at December 31, 2022. Aerospace and Transportation (A&T) A&T supplies thick-gauge rolled aluminium products and very limited volumes of extruded products to the aerospace market, as well as thick-gauge rolled products for transportation, industry and defense end-uses. A&T operates six facilities in three countries and had approximately 3,500 employees at December 31, 2022. Automotive Structures and Industry (AS&I) AS&I supplies hard and soft aluminium alloy extruded profiles for a range of high demand industry applications in the automotive, engineering, rail and other transportation end markets, and technologically advanced structural components to the automotive industry. AS&I operates nineteen facilities in ten countries and had approximately 4,500 employees at December 31, 2022. Holdings & Corporate (H&C) Holdings & Corporate includes the costs of our corporate support functions and our technology centers. Intersegment elimination Intersegment transactions are conducted on an arm’s length basis and reflect market prices. 4.1 Segment Revenue Year ended December 31, 2022 2021 2020 (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 4,664 (9) 4,655 3,698 (10) 3,688 2,734 (9) 2,725 A&T 1,700 (55) 1,645 1,142 (40) 1,102 1,025 (23) 1,002 AS&I 1,861 (41) 1,820 1,383 (21) 1,362 1,167 (11) 1,156 Total 8,225 (105) 8,120 6,223 (71) 6,152 4,926 (43) 4,883 4.2 Segment Adjusted EBITDA and reconciliation of Adjusted EBITDA to Net Income Constellium’s chief operating decision-maker measures the profitability and financial performance of its operating segments based on Adjusted EBITDA. Adjusted EBITDA is defined as income / (loss) from continuing operations before income taxes, results from joint ventures, net finance costs, other expenses and depreciation, 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. Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 P&ARP 326 344 291 A&T 217 111 106 AS&I 149 142 88 H&C (19) (16) (20) Adjusted EBITDA 673 581 465 Metal price lag (A) (29) 187 (8) Start-up and development costs (B) — — (5) Share based compensation costs 30 (18) (15) (15) Gains / (losses) on pension plan amendments (C) 23 47 (32) (2) Depreciation and amortization 15, 16 (287) (267) (259) Impairment of assets 15, 16 — — (43) Restructuring costs 8 (1) (3) (13) Unrealized (losses) / gains on derivatives (46) 35 16 Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net 8 (1) 1 1 Losses on disposal 8 (4) (3) (4) Other (D) — — (8) Income from operations 334 484 125 Finance costs - net 10 (131) (167) (159) Income / (loss) before tax 203 317 (34) Income tax benefit / (expense) 11 105 (55) 17 Net income / (loss) 308 262 (17) (A) Metal price lag represents the financial impact of the timing difference between when aluminium prices included within Constellium's Revenue 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) Start-up and development costs, for the year ended December 31, 2020, was related to new projects in our AS&I operating segment. (C) In the year ended December 31, 2022 the group recognized a net gain of €47 million from past service cost as a result from a new 3-year collective bargaining agreement between Constellium Rolled Products Ravenswood and the United Steelworkers Local Union 5668 entered in October 2022. The agreement resulted in changes in OPEB and pension benefits that were accounted for as a plan amendment in the year ended December 31, 2022. (see Note 23.6 Ravenswood plan amendment). In the year ended December 31, 2021, the group recognized a loss of €31 million from past service cost following an adverse decision of the Fourth Circuit Court in the dispute between Constellium Rolled Products Ravenswood, LLC and the United Steelworkers Local Union 5668 over the transfer of certain participants in the Constellium Rolled Products Ravenswood Retiree Medical and Life Insurance Plan to a third-party health network. (see Note 23.7 Ravenswood OPEB dispute). (D) Other, for the year ended December 31, 2020, included €2 million of procurement penalties and termination fees incurred because of the Group ’ s inability to fulfill certain commitments due to the COVID-19 pandemic and a €6 million loss resulting from the discontinuation of hedge accounting for certain forecasted sales that were determined to be no longer expected to occur in light of the COVID-19 pandemic effects. 4.3 Segment capital expenditures Year ended December 31, (in millions of Euros) 2022 2021 2020 P&ARP (127) (94) (73) A&T (78) (70) (45) AS&I (62) (62) (61) H&C (6) (6) (3) Capital expenditures (273) (232) (182) 4.4 Segment assets At December 31, (in millions of Euros) 2022 2021 P&ARP 2,187 2,108 A&T 1,081 948 AS&I 727 738 H&C 456 451 Segment assets 4,451 4,245 Deferred income tax assets 271 162 Cash and cash equivalents 166 147 Other financial assets 39 70 Assets of disposal group classified as held for sale 14 — Total Assets 4,941 4,624 4.5 Information about major customers |
INFORMATION BY GEOGRAPHIC AREA
INFORMATION BY GEOGRAPHIC AREA | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of geographical areas [abstract] | |
INFORMATION BY GEOGRAPHIC AREA | NOTE 5 - INFORMATION BY GEOGRAPHIC AREA Property, plant and equipment are reported based on the physical location of the assets: At December 31, (in millions of Euros) 2022 2021 United States 832 811 France 699 653 Germany 269 266 Czech Republic 97 99 Other 120 119 Total 2,017 1,948 |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of attribution of expenses by nature to their function [abstract] | |
EXPENSES BY NATURE | NOTE 6 - EXPENSES BY NATURE Year ended December 31, (in millions of Euros) 2022 2021 2020 Raw materials and consumables used (5,545) (3,885) (2,832) Employee benefit expenses (1,110) (967) (902) Energy costs (274) (149) (141) Sub-contractors (125) (102) (89) Freight out costs (163) (143) (122) Professional fees (81) (63) (73) Lease expenses (15) (12) (11) Depreciation and amortization (287) (267) (259) Other operating expenses (178) (197) (240) Other gains and losses - net (8) 117 (89) Total operating expenses (7,786) (5,668) (4,758) |
EMPLOYEE BENEFIT EXPENSES
EMPLOYEE BENEFIT EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Classes of employee benefits expense [abstract] | |
EMPLOYEE BENEFIT EXPENSES | NOTE 7 - EMPLOYEE BENEFIT EXPENSES Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Wages and salaries (1,067) (920) (855) Pension costs - defined benefit plans 23 (22) (24) (23) Other post-employment benefits 23 (3) (8) (9) Share-based compensation 30 (18) (15) (15) Total employee benefit expenses (1,110) (967) (902) NOTE 23 - PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS The Group has 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. 23.1 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. Benefit plans in the U.S., Switzerland and France are funded through long-term employee benefit funds. Other post-employment benefits (OPEB) The Group provides healthcare 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. 23.2 Description of risks 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 that aims to reduce the volatility of returns and achieve a matching of the underlying liabilities to minimize the long-term costs. This is achieved by investing in a diversified selection of asset classes. 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 assets 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, 2022, impacts of the change on the defined benefit obligation of a 50 basis points increase / decrease in the discount rates are calculated by using a proxy based on the duration of each scheme: (in millions of Euros) 50 bp increase in 50 bp decrease in France (6) 7 Germany (5) 5 Switzerland (16) 17 United States (19) 23 Total sensitivity on Defined Benefit Obligations (46) 52 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. 23.3 Actuarial assumptions Pension and other post-employment benefit obligations were updated based on the discount rates applicable at December 31, 2022. At December 31, 2022 2021 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 1.75% — 2.05% 1.50% — 0.15% U.S. Hourly pension 3.00% — 5.00% - 5.05% 2.20% — 2.80% - 2.95% Salaried pension —% — 5.05% —% — 2.85% OPEB (A) 4.00% — 5.00% - 5.05% 3.80% — 2.85% - 2.95% Other benefits 3.80% — 4.95% - 5.00% 3.80% — 2.60% - 2.85% France 2.20% 2.00% 1.80% - 3.80% 2.00% Retirements — — 3.80% — — 1.00% Other benefits — — 3.80% — — 0.90% Germany 2.50% 2.00% 3.75% 2.50% 1.80% 1.05% (A) The other main financial assumptions used for the OPEB healthcare plans, which are predominantly in the U.S. were: • Medical trend rate: i) pre-65: 6.75% starting in 2022 decreasing gradually to 4.50% in 2031 and stable onwards and ii) post-65: 6.00% starting in 2022 decreasing gradually to 4.50% in 2031 and stable onwards, • Claims costs based on Company experience. For both pension and healthcare plans, the post-employment mortality assumptions allow for future improvements in life expectancy. 23.4 Amounts recognized in the Consolidated Statement of Financial Position At December 31, 2022 2021 (in millions of Euros) Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Present value of funded obligation 614 — 614 766 — 766 Fair value of plan assets (461) — (461) (544) — (544) Deficit of funded plans 153 — 153 222 — 222 Present value of unfunded obligation 96 154 250 128 249 377 Net liability / (asset) arising from defined benefit obligation 249 154 403 350 249 599 23.5 Movement in net defined benefit obligations Year ended December 31, 2022 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2022 894 249 1,143 (544) 599 Included in the Consolidated Income Statement Current service cost 20 8 28 — 28 Interest cost / (income) 13 7 20 (9) 11 Past service cost 2 (49) (47) — (47) Immediate recognition of gains arising over the year — (5) (5) — (5) Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income Remeasurements due to: —actual return less interest on plan assets — — — 107 107 —changes in financial assumptions (211) (43) (254) — (254) —changes in demographic assumptions — (1) (1) — (1) —experience losses (3) (9) (12) — (12) Effects of changes in foreign exchange rates 34 16 50 (30) 20 Included in the Consolidated Statement of Cash Flows Benefits paid (42) (21) (63) 57 (6) Contributions by the Group — — — (38) (38) Contributions by the plan participants 4 2 6 (6) — Reclassification as liabilities of disposal group classified as held for sale (1) — (1) — (1) At December 31, 2022 710 154 864 (461) 403 Year ended December 31, 2021 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2021 906 216 1,122 (458) 664 Included the Consolidated Income Statement Current service cost 22 8 30 — 30 Interest cost / (income) 10 5 15 (6) 9 Past service cost 1 31 32 — 32 Immediate recognition of gains arising over the year — — — — — Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income Remeasurements due to: —actual return less interest on plan assets — — — (56) (56) —changes in financial assumptions (29) (9) (38) — (38) —changes in demographic assumptions (13) — (13) — (13) —experience losses (9) (2) (11) — (11) Effects of changes in foreign exchange rates 38 17 55 (32) 23 Included in the Consolidated Statement of Cash Flows Benefits paid (36) (18) (54) 32 (22) Contributions by the Group — — — (21) (21) Contributions by the plan participants 4 1 5 (5) — At December 31, 2021 894 249 1,143 (544) 599 Movements in net defined benefit obligations reported in Other Comprehensive Income in the years ended December 31, 2022 and 2021, primarily reflected the impact of changes in discount rates (see note 23.3), the difference between actual returns and interest on plan assets and the impact of changes in foreign exchanges rates. 23.6 Ravenswood plan amendment In October 2022, Constellium Rolled Products Ravenswood and United Steelworkers Local Union 5668 entered into a new three-year collective bargaining agreement. The agreement included changes in OPEB and pension benefits that are accounted for as a plan amendment in the year ended December 31, 2022. The changes resulted in a reduction of the OPEB obligation recorded as a gain from negative past service cost for €49 million and an increase of the pension obligation recorded as an additional past service costs for €2 million. 23.7 Ravenswood OPEB dispute In 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 providing similar benefits at a lower cost. The United Steelworkers Local Union 5668 (the “Union”) contested this change in benefits and filed a lawsuit against Constellium Rolled Products Ravenswood, LLC ("Ravenswood") in a federal district court in West Virginia (the “District Court”) seeking to enjoin the Plan changes and to compel arbitration. The District Court issued an order in December 2018, enjoining Ravenswood from implementing the Plan 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 in the District Court to vacate this decision, which was denied in June 2020. In July 2020, Ravenswood appealed that denial to the Fourth Circuit Court of Appeals. In November 2021, the Fourth Circuit Court issued an opinion in favor of the Union, and the Group elected not to further pursue legal action on this matter. The Group recognized a gain of €36 million from negative past service cost in the year ended December 31, 2018, reflecting its decision to amend the plan benefits and its determination at the time that it was probable that it would ultimately prevail in the dispute with the Union. This gain was partially reversed in the years ended December 31, 2019 and 2020, to reflect delays in the estimated implementation timetable as a result of the dispute with the Union. The Group recognized a loss of €31 million from past service cost in the year ended December 31, 2021, following the Fourth Circuit Court's ruling in favor of the Union . 23.8 Net defined benefit obligations by country At December 31, 2022 2021 (in millions of Euros) Defined benefit obligations Plan assets Net defined benefit liability Defined benefit obligations Plan assets Net defined benefit liability France 117 (6) 111 158 (5) 153 Germany 100 (1) 99 134 (2) 132 Switzerland 249 (236) 13 306 (268) 38 United States 398 (218) 180 545 (269) 276 Total 864 (461) 403 1,143 (544) 599 23.9 Plan asset categories At December 31, 2022 2021 (in millions of Euros) Quoted in an active market Not quoted in an active market Total Quoted in an active market Not quoted in an active market Total Cash & cash equivalents 4 — 4 4 — 4 Equities 87 36 123 115 61 176 Bonds 146 80 226 149 110 259 Property 14 60 74 16 55 71 Other — 34 34 — 34 34 Total fair value of plan assets 251 210 461 284 260 544 23.10 Cash flows Expected contributions to pension and other benefit plans amount to €23 million and €16 million, respectively, for the year ending December 31, 2023. 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, 2023 56 2024 56 2025 57 2026 57 2027 60 2028 to 2032 328 The weighted-average maturity of the defined benefit obligations was 11.2 and 14.2, respectively, for the years ended December 31, 2022 and 2021. |
OTHER GAINS AND LOSSES_NET
OTHER GAINS AND LOSSES—NET | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
OTHER GAINS AND LOSSES—NET | NOTE 8 - OTHER GAINS AND LOSSES - NET Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Realized (losses) / gains on derivatives (A) (6) 113 (35) Losses reclassified from OCI as a result of hedge accounting discontinuation (B) — — (6) Unrealized (losses) / gains on derivatives at fair value through profit and loss - net (A) (47) 39 16 Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net (1) 1 1 Impairment of assets (C) 15, 16 — — (43) Restructuring costs (D) 24 (1) (3) (13) Gains / (losses) on pension plan amendments (E) 23 47 (32) (2) Losses on disposal (4) (3) (4) Other 4 2 (3) Total other gains and losses - net (8) 117 (89) (A) Realized and unrealized gains and losses are related to derivatives entered into with the purpose of mitigating exposure to volatility in foreign currencies and commodity prices and that do not qualify for hedge accounting. (B) In the year ended December 31, 2020, we determined that a portion of the hedged forecasted sales for 2020 and 2021, to which hedge accounting was applied, were no longer expected to occur. As a result, the fair value of the related derivatives accumulated in equity was reclassified in the Consolidated Income Statement and resulted in a €6 million loss. (C) In the year ended December 31, 2020, an impairment charge of €43 million was recognized for certain A&T cash-generating units due to the downturn in the aerospace industry resulting from the COVID-19 pandemic and for certain AS&I cash-generating units as a result of the review of their long-term business perspectives. (D) For the years ended December 31, 2021 and 2020, restructuring costs amounted to €3 million and €13 million, respectively, and related to headcount reductions in Europe and in the U.S. (E) In the year ended December 31, 2022 the group recognized a net gain of €47 million from past service cost as a result from a new 3-year collective bargaining agreement between Constellium Rolled Products Ravenswood and the United Steelworkers Local Union 5668 entered in October 2022. The agreement resulted in changes in OPEB and pension benefits that were accounted for as a plan amendment in the year ended December 31, 2022 (see Note 23.6 Ravenswood plan amendment). |
CURRENCY GAINS _ (LOSSES)
CURRENCY GAINS / (LOSSES) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
CURRENCY GAINS / (LOSSES) | NOTE 9 - CURRENCY GAINS / (LOSSES) Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Included in Revenue 22 (8) (4) (6) Included in Cost of sales 2 1 (2) Included in Other gains and losses - net 5 16 (19) Total (1) 13 (27) Realized exchange losses on foreign currency derivatives - net 22 (8) (1) (11) Losses reclassified from OCI as a result of hedge accounting discontinuation 22 — — (6) Unrealized gains / (losses) on foreign currency derivatives - net 22 6 13 (8) Exchange gains / (losses) from the remeasurement of monetary assets and liabilities - net 1 1 (2) Total (1) 13 (27) See NOTE 21 - Financial Instruments and NOTE 22 - Financial Risk Management for further information regarding the Company’s foreign currency derivatives and hedging activities. Foreign currency translation reserve At December 31, (in millions of Euros) 2022 2021 Foreign currency translation reserve at January 1, 19 (13) Effect of currency translation differences 22 32 Foreign currency translation reserve at December 31, 41 19 |
FINANCE COSTS_NET
FINANCE COSTS—NET | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
FINANCE COSTS—NET | NOTE 10 - FINANCE COSTS - NET Year ended December 31, (in millions of Euros) 2022 2021 2020 Interest expense on borrowings (A) (91) (103) (122) Interest expense on leases (10) (14) (10) Interest cost on pension and other benefits (11) (9) (11) Expenses on factoring arrangements (15) (9) (10) Net loss on settlement of debt (B) — (27) — Realized and unrealized gains / (losses) on debt derivatives at fair value (C) 1 10 (32) Realized and unrealized exchange (losses) / gains on financing activities - net (C) (1) (10) 37 Other finance expenses (5) (6) (12) Capitalized borrowing costs (D) 1 1 1 Finance expenses (131) (167) (159) Finance costs - net (131) (167) (159) (A) For the year ended December 31, 2022, interest expense on borrowings included €79 million of interest and €4 million of amortization of arrangement fees related to Constellium SE Senior Notes. For the year ended December 31, 2021, it included €92 million of interest and €4 million of amortization of arrangement fees related to Constellium SE Senior Notes. (B) In Feb ruary 2021, Constellium SE tendered and redeemed its $650 million 6.625% Senior Notes due 2025. The net loss on the settlement of debt included redemption fees of €9 million and the write-off of the outstanding deferred arrangement fees at the date of redemption of €8 million. In June 2021, Constellium SE redeemed its $400 million 5.750% Senior Notes due 2024. The net loss on the settlement of debt included redemption fees of €3 million and the write-off of the outstanding deferred arrangement fees at the date of redemption of €3 million. In November 2021, Constellium SE redeemed $200 million of the $500 million outstanding aggregate principal amount of the 5.875% Senior Notes due 2026. The net loss on the settlement of debt included redemption fees of €3 million and the write-off of the deferred arrangement fees attributable to the portion redeemed at the date of redemption of €1 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. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
INCOME TAX | NOTE 11 - INCOME TAX Year ended December 31, (in millions of Euros) 2022 2021 2020 Current tax expense (22) (26) (14) Deferred tax benefit / (expense) 127 (29) 31 Income tax benefit / (expense) 105 (55) 17 The Group’s effective tax rate reconciliation is as follows: Year ended December 31, (in millions of Euros) 2022 2021 2020 Income / (loss) before tax 203 317 (34) Statutory tax rate applicable to the parent company 25.8% 28.4% 32.0% Income tax (expense) / benefit calculated at statutory tax rate (52) (90) 11 Effect of foreign tax rate (A) 3 15 2 Changes in recognized and unrecognized deferred tax assets (B) 154 24 15 Other — (4) (11) Income tax benefit / (expense) 105 (55) 17 Effective income tax rate (52)% 17% 49% (A) For the years ended December 31, 2022, 2021 and 2020, the Effect of foreign tax rate resulted from the geographical mix of our pre-tax results. (B) For the year ended December 31, 2022, the changes in recognized and unrecognized deferred tax assets mainly related to the recognition of previously unrecognized deferred tax assets at one of our main operating entities in the United States for €154 million (see NOTE 17 - Deferred Income Taxes). For the year ended December 31, 2021, the changes mainly related to the recognition of deferred tax assets on temporary differences at one of our main operating entities in the United States. For the year ended December 31, 2020, the changes mainly related to recognized deferred tax assets on prior-year losses carried forward at one of our main operating entities in the United States, following some clarification on U.S. interest limitation rules and the CARES Act. NOTE 17 - DEFERRED INCOME TAXES Recognized Deferred Tax Assets At December 31, (in millions of Euros) 2022 2021 Deferred income tax assets 271 162 Deferred income tax liabilities (28) (14) Net deferred income tax assets 243 148 At January 1, 2022 Reclassified as held for sale Recognized in FX At December 31, 2022 (in millions of Euros) Profit or loss OCI Long-term assets (124) (2) 31 — (7) (102) Inventories 3 — (4) — (1) (2) Pensions 119 — (10) (35) 4 78 Derivative valuation (6) — 8 2 — 4 Tax losses carried forward 117 — 67 — 6 190 Other (A) 39 — 35 — 1 75 Net deferred income tax assets 148 (2) 127 (33) 3 243 (A) At December 31, 2022, Other primarily related to temporary differences arising from provisions and interest expense which will become tax-deductible in future periods. At January 1, 2021 Recognized in FX At December 31, (in millions of Euros) Profit or loss OCI Long-term assets (106) (10) — (8) (124) Inventories 5 (2) — — 3 Pensions 126 5 (17) 5 119 Derivative valuation (5) (5) 4 — (6) Tax losses carried forward 116 (7) — 8 117 Other (A) 47 (10) — 2 39 Net deferred income tax assets 183 (29) (13) 7 148 (A) At December 31, 2021, Other primarily related to temporary differences arising from provisions and interest expense which will become tax-deductible in future periods. Unrecognized Deferred Tax Assets Based on the expected taxable income of the entities, the Group believed that it was more likely than not that a total of €199 million and €805 million at December 31, 2022 and 2021, respectively, of unused tax losses and deductible temporary differences, would not be used. Consequently, the corresponding net deferred tax assets were not recognized. The related tax impact of €48 million and €191 million at December 31, 2022 and 2021, respectively, was attributable to the following: At December 31, (in millions of Euros) 2022 2021 Expiring within 5 years (5) (3) Expiring after 5 years and limited (5) (55) Unlimited (21) (27) Tax losses (31) (85) Long-term assets (2) (65) Pensions (3) (7) Other (12) (34) Deductible temporary differences (17) (106) Total (48) (191) Recognition of Deferred Tax Assets Some deferred tax assets in respect of temporary differences and unused tax losses 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 on net deferred tax asset recovery at December 31, 2022, with specific focus on tax jurisdictions with unused tax losses carried forward. At December 31, 2021, most of the the tax loss carryforwards as well as the deductible temporary differences on long-term assets and other differences resided at one of our main operating entities in the United States. An assessment was performed on the recoverability of the deferred tax assets associated with the deductible temporary differences and tax losses. Management concluded that it was more likely than not that the entity would not be able to use the tax benefits associated with the deductible temporary differences and tax losses. Consequently, the related deferred tax assets were not recognized. In the year ended December 31, 2022, management determined that it is more likely than not that future earnings will be sufficient to realize these previously unrecognized deferred tax assets. In making this determination management considered all available positive and negative evidence including historical results as well as forecasted profitability supported by revised projections from the Group’s latest long-term plan. Accordingly, the Group recognized a deferred tax asset and a corresponding income tax benefit of €154 million in the year ended December 31, 2022. Management considered that the tax losses related to the other tax jurisdictions that generated the deferred tax assets were not expected to be recurring and did not challenge the profitable long-term structure of its business model. In addition, tax planning opportunities are available to increase the taxable profit and the use the long-term limited and unlimited tax losses. Management concluded that it was more likely than not that the net deferred tax asset balance of €243 million and €148 million at December 31, 2022 and 2021, respectively, would be recoverable. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 12 - CASH AND CASH EQUIVALENTS Cash at bank and on hand at December 31, 2022 amounted to €166 million and included €24 million held by subsidiaries that operate in countries where capital control restrictions prevent these balances from being immediately available for general use by the other entities within the Group. At December 31, 2021, the amount subject to these restrictions was €29 million. |
TRADE RECEIVABLES AND OTHER
TRADE RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
TRADE RECEIVABLES AND OTHER | NOTE 13 - TRADE RECEIVABLES AND OTHER At December 31, 2022 2021 (in millions of Euros) Non-current Current Non-current Current Trade receivables - gross — 467 — 607 Impairment — (2) — (4) Total trade receivables - net — 465 — 603 Income tax receivables 14 16 24 20 Other tax receivables — 38 — 40 Contract assets 15 2 19 2 Prepaid expenses 1 8 1 9 Other 13 10 11 9 Total other receivables 43 74 55 80 Total trade receivables and other 43 539 55 683 13.1 Contract assets Contract assets included €4 million and €6 million of unbilled tooling costs at December 31, 2022 and 2021, respectively. 13.2 Aging At December 31, (in millions of Euros) 2022 2021 Not past due 453 596 1 – 30 days past due 10 6 31 – 60 days past due 2 1 Total trade receivables - net 465 603 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. 13.3 Currency concentration At December 31, (in millions of Euros) 2022 2021 Euro 225 277 U.S. Dollar 213 305 Swiss franc 8 4 Other currencies 19 17 Total trade receivables - net 465 603 13.4 Factoring arrangements The Group factors trade receivables under committed factoring agreements in the United States, France, Germany, Switzerland and the Czech Republic: • In the United States, Constellium Muscle Shoals LLC is party to a factoring agreement with a capacity of $200 million and a maturity date in September 2023 and Constellium Automotive USA LLC is party to a factoring agreement with a maximum capacity of $25 million and a maturity date in December 2023. • The factoring agreement in place for our entities in France has a maximum capacity of €250 million (including a €20 million recourse line) and a maturity date in January 2026. • Factoring agreements in place for our entities in Germany, Switzerland and the Czech Republic have a combined maximum capacity of €200 million and maturity dates in December 2027. 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. These factoring agreements 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. In addition, 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 and for the years ended December 31, 2022 and 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 , as the Group retains substantially all the associated risks and rewards. At December 31, 2022, the total carrying amount of the original assets factored was €574 million of which €368 million were derecognized. At December 31, 2021, the total carrying amount of the original assets factored was €639 million of which €345 million were derecognized. The amounts due to the factors in respect to trade receivables sold were €6 million and zero at December 31, 2022 and 2021, respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
INVENTORIES | NOTE 14 - INVENTORIES At December 31, (in millions of Euros) 2022 2021 Finished goods 315 225 Work in progress 638 551 Raw materials 308 226 Stores and supplies 112 95 Inventories write down (53) (47) Total inventories 1,320 1,050 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 15 - PROPERTY, PLANT AND EQUIPMENT (in millions of Euros) Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at January 1, 2022 21 374 1,411 127 15 1,948 Additions — 14 90 188 5 297 Disposals — — (4) — (1) (5) Depreciation expense (1) (32) (230) (2) (12) (277) Transfer and other changes 2 18 76 (103) 7 — Effect of changes in foreign exchange rates 1 7 44 1 1 54 Net balance at December 31, 2022 23 381 1,387 211 15 2,017 Cost 42 637 2,957 224 63 3,923 Less accumulated depreciation and impairment (19) (256) (1,570) (13) (48) (1,906) Net balance at December 31, 2022 23 381 1,387 211 15 2,017 (in millions of Euros) Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at January 1, 2021 20 379 1,361 132 14 1,906 Additions — 6 52 169 6 233 Disposals — (1) (2) — (1) (4) Depreciation expense (1) (27) (210) (3) (12) (253) Transfer and other changes 1 5 153 (174) 8 (7) Effect of changes in foreign exchange rates 1 12 57 3 — 73 Net balance at December 31, 2021 21 374 1,411 127 15 1,948 Cost 38 590 2,750 142 57 3,577 Less accumulated depreciation and impairment (17) (216) (1,339) (15) (42) (1,629) Net balance at December 31, 2021 21 374 1,411 127 15 1,948 Right-of-use assets Right-of-use assets have been included in the same line item as that in which a corresponding owned asset would be presented. (in millions of Euros) Buildings Machinery and Equipment Other Total Net balance at January 1, 2022 108 65 1 174 Additions 11 7 — 18 Disposals — (1) — (1) Depreciation expense (12) (20) (1) (33) Effect of changes in foreign exchange rates — 3 — 3 Net balance at December 31, 2022 107 54 — 161 Cost 161 146 1 308 Less accumulated depreciation and impairment (54) (92) (1) (147) Net balance at December 31, 2022 107 54 — 161 (in millions of Euros) Buildings Machinery and Equipment Other Total Net balance at January 1, 2021 112 72 2 186 Additions 5 7 — 12 Depreciation expense (11) (16) (1) (28) Transfer and other changes — (1) — (1) Effect of changes in foreign exchange rates 2 3 — 5 Net balance at December 31, 2021 108 65 1 174 Cost 150 144 3 297 Less accumulated depreciation and impairment (42) (79) (2) (123) Net balance at December 31, 2021 108 65 1 174 The total expense relating to short-term leases, low value asset leases and variable lease payments that are still recognized as operating expenses was €15 million, €12 million and €11 million for the years ended December 31, 2022, 2021 and 2020 respectively. Depreciation expense Total depreciation expense relating to property, plant and equipment and intangible assets are presented in the Consolidated Income Statement as follows: Year ended December 31, (in millions of Euros) 2022 2021 2020 Cost of sales (270) (245) (240) Selling and administrative expenses (12) (17) (14) Research and development expenses (5) (5) (5) Total depreciation expense (287) (267) (259) The amount of contractual commitments for the acquisition of property, plant and equipment is disclosed in NOTE 28 - Commitments. Impairment tests for property, plant and equipment and intangibles assets Impairment tests at December 31, 2022 and 2021 No triggering events were identified at December 31, 2022 and 2021 for our Cash Generating Units (“CGUs”). Impairment tests at December 31, 2020 At December 31, 2020, the downturn in the aerospace industry resulting from the COVID-19 pandemic was identified as an indicator of impairment for all the CGUs in the A&T segment. As a result, these CGUs were tested for impairment and their value in use was calculated using discounted cash flows based on a financial forecast for the period 2021-2025 prepared by management and reflecting its best estimates at the time. Based on this analysis, the conclusion to fully impair these two CGUs for €16 million (€9 million for the Montreuil-Juigné plant and €7 million for the Ussel plant) was reached in the year ended December 31, 2020. The Group also tested the sensitivity of two other A&T CGUs to changes in cash flows, in discount rates, and in perpetuity growth rates, and determined that no impairment was appropriate. At December 31, 2020, management also reviewed the CGUs in the AS&I segment and identified an indicator of impairment for two Automotive Structures plants - Nanjing, China and White, Georgia, U.S. The two CGUs were tested for impairment and their values in use were calculated using discounted cash flows and a discount rate of 9%. Based on this analysis, the conclusion to fully impair the Nanjing plant for €12 million was reached in the year ended December 31, 2020. The White Georgia plant was partially impaired for €13 million, leading to a carrying value of €11 million at December 31, 2020. There were no other impairment indicators identified for our other CGUs at December 31, 2020. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill [abstract] | |
INTANGIBLE ASSETS AND GOODWILL | NOTE 16 - INTANGIBLE ASSETS AND GOODWILL (in millions of Euros) Technology Computer Software Customer relationships Work in Progress Other Total Intangible Assets Goodwill Net balance at January 1, 2022 18 21 13 2 4 58 451 Additions — — — 3 — 3 — Amortization expense (2) (7) (1) — — (10) — Transfer — 2 — (2) — — — Effect of changes in foreign exchange rates 2 — 1 — — 3 27 Net balance at December 31, 2022 18 16 13 3 4 54 478 Cost 92 94 42 4 4 236 478 Less accumulated depreciation and impairment (74) (78) (29) (1) — (182) — Net balance at December 31, 2022 18 16 13 3 4 54 478 (in millions of Euros) Technology Computer Software Customer relationships Work in Progress Other Total Intangible Assets Goodwill Net balance at January 1, 2021 18 15 13 13 2 61 417 Additions — — — 4 — 4 — Amortization expense (1) (12) (1) — — (14) — Transfer — 17 — (15) 2 4 — Effect of changes in foreign exchange rates 1 1 1 — — 3 34 Net balance at December 31, 2021 18 21 13 2 4 58 451 Cost 86 91 40 3 4 224 451 Less accumulated depreciation and impairment (68) (70) (27) (1) — (166) — Net balance at December 31, 2021 18 21 13 2 4 58 451 Impairment tests for goodwill Goodwill in the amount of €478 million was allocated to our operating segments: €471 million to P&ARP, €5 million to A&T and €2 million to AS&I. At December 31, 2022, the recoverable amount of our operating segments was determined based on value in use calculations, using discounted cash-flows. 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 have led to a potential impairment charge. For the P&ARP operating segment, the analysis was based on forecasted cash flows that grow to management’s estimate of a normalized level by 2027 and then at a long term growth rate of 1.5% thereafter. The discount rate applied to the cash-flow projections was 9%. Based on this analysis, the carrying value of €1.6 billion remained below the recoverable value which was in excess of €2 billion at December 31, 2022 and therefore there was no goodwill impairment at the P&ARP operating segment. With cash-flows 40% lower from 2023 to 2027 including the terminal year cash flow, the recoverable value still exceeded the carrying value. |
DEFERRED INCOME TAXES
DEFERRED INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
DEFERRED INCOME TAXES | NOTE 11 - INCOME TAX Year ended December 31, (in millions of Euros) 2022 2021 2020 Current tax expense (22) (26) (14) Deferred tax benefit / (expense) 127 (29) 31 Income tax benefit / (expense) 105 (55) 17 The Group’s effective tax rate reconciliation is as follows: Year ended December 31, (in millions of Euros) 2022 2021 2020 Income / (loss) before tax 203 317 (34) Statutory tax rate applicable to the parent company 25.8% 28.4% 32.0% Income tax (expense) / benefit calculated at statutory tax rate (52) (90) 11 Effect of foreign tax rate (A) 3 15 2 Changes in recognized and unrecognized deferred tax assets (B) 154 24 15 Other — (4) (11) Income tax benefit / (expense) 105 (55) 17 Effective income tax rate (52)% 17% 49% (A) For the years ended December 31, 2022, 2021 and 2020, the Effect of foreign tax rate resulted from the geographical mix of our pre-tax results. (B) For the year ended December 31, 2022, the changes in recognized and unrecognized deferred tax assets mainly related to the recognition of previously unrecognized deferred tax assets at one of our main operating entities in the United States for €154 million (see NOTE 17 - Deferred Income Taxes). For the year ended December 31, 2021, the changes mainly related to the recognition of deferred tax assets on temporary differences at one of our main operating entities in the United States. For the year ended December 31, 2020, the changes mainly related to recognized deferred tax assets on prior-year losses carried forward at one of our main operating entities in the United States, following some clarification on U.S. interest limitation rules and the CARES Act. NOTE 17 - DEFERRED INCOME TAXES Recognized Deferred Tax Assets At December 31, (in millions of Euros) 2022 2021 Deferred income tax assets 271 162 Deferred income tax liabilities (28) (14) Net deferred income tax assets 243 148 At January 1, 2022 Reclassified as held for sale Recognized in FX At December 31, 2022 (in millions of Euros) Profit or loss OCI Long-term assets (124) (2) 31 — (7) (102) Inventories 3 — (4) — (1) (2) Pensions 119 — (10) (35) 4 78 Derivative valuation (6) — 8 2 — 4 Tax losses carried forward 117 — 67 — 6 190 Other (A) 39 — 35 — 1 75 Net deferred income tax assets 148 (2) 127 (33) 3 243 (A) At December 31, 2022, Other primarily related to temporary differences arising from provisions and interest expense which will become tax-deductible in future periods. At January 1, 2021 Recognized in FX At December 31, (in millions of Euros) Profit or loss OCI Long-term assets (106) (10) — (8) (124) Inventories 5 (2) — — 3 Pensions 126 5 (17) 5 119 Derivative valuation (5) (5) 4 — (6) Tax losses carried forward 116 (7) — 8 117 Other (A) 47 (10) — 2 39 Net deferred income tax assets 183 (29) (13) 7 148 (A) At December 31, 2021, Other primarily related to temporary differences arising from provisions and interest expense which will become tax-deductible in future periods. Unrecognized Deferred Tax Assets Based on the expected taxable income of the entities, the Group believed that it was more likely than not that a total of €199 million and €805 million at December 31, 2022 and 2021, respectively, of unused tax losses and deductible temporary differences, would not be used. Consequently, the corresponding net deferred tax assets were not recognized. The related tax impact of €48 million and €191 million at December 31, 2022 and 2021, respectively, was attributable to the following: At December 31, (in millions of Euros) 2022 2021 Expiring within 5 years (5) (3) Expiring after 5 years and limited (5) (55) Unlimited (21) (27) Tax losses (31) (85) Long-term assets (2) (65) Pensions (3) (7) Other (12) (34) Deductible temporary differences (17) (106) Total (48) (191) Recognition of Deferred Tax Assets Some deferred tax assets in respect of temporary differences and unused tax losses 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 on net deferred tax asset recovery at December 31, 2022, with specific focus on tax jurisdictions with unused tax losses carried forward. At December 31, 2021, most of the the tax loss carryforwards as well as the deductible temporary differences on long-term assets and other differences resided at one of our main operating entities in the United States. An assessment was performed on the recoverability of the deferred tax assets associated with the deductible temporary differences and tax losses. Management concluded that it was more likely than not that the entity would not be able to use the tax benefits associated with the deductible temporary differences and tax losses. Consequently, the related deferred tax assets were not recognized. In the year ended December 31, 2022, management determined that it is more likely than not that future earnings will be sufficient to realize these previously unrecognized deferred tax assets. In making this determination management considered all available positive and negative evidence including historical results as well as forecasted profitability supported by revised projections from the Group’s latest long-term plan. Accordingly, the Group recognized a deferred tax asset and a corresponding income tax benefit of €154 million in the year ended December 31, 2022. Management considered that the tax losses related to the other tax jurisdictions that generated the deferred tax assets were not expected to be recurring and did not challenge the profitable long-term structure of its business model. In addition, tax planning opportunities are available to increase the taxable profit and the use the long-term limited and unlimited tax losses. Management concluded that it was more likely than not that the net deferred tax asset balance of €243 million and €148 million at December 31, 2022 and 2021, respectively, would be recoverable. |
DISPOSAL GROUP CLASSIFIED AS HE
DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2022 | |
Non-Current Assets Held For Sale And Discontinued Operations [Abstract] | |
DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE | NOTE 18 - DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE In the quarter ended December 31, 2022, the Group determined that Constellium Ussel, one of the entities in the Aerospace and Transportation operating segment, met the criteria to be classified as a disposal group held for sale. As a result, the related assets and liabilities were presented as held for sale at December 31, 2022. The sale of this entity was completed in February 2023 (see NOTE 32 - Subsequent Events). No impairment loss was recognized on the reclassification as held for sale. At December 31, (in millions of Euros) 2022 Assets of disposal group classified as held for sale Cash and cash equivalents 1 Trade receivables and other 6 Inventories 5 Deferred tax assets 2 Total assets of disposal group classified as held for sale 14 Liabilities of disposal group classified as held for sale Trade payables and other 8 Pensions and other post-employment benefit obligations 2 Total liabilities of disposal group classified as held for sale 10 |
TRADE PAYABLES AND OTHER
TRADE PAYABLES AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other payables [abstract] | |
TRADE PAYABLES AND OTHER | NOTE 19 - TRADE PAYABLES AND OTHER At December 31, 2022 2021 (in millions of Euros) Non-current Current Non-current Current Trade payables — 1,155 — 1,065 Fixed assets payables — 36 — 22 Employees' entitlements — 195 — 185 Taxes payable other than income tax — 17 — 16 Contract liabilities and other liabilities to customers 20 55 4 77 Other payables 23 9 28 12 Total other 43 312 32 312 Total trade payables and other 43 1,467 32 1,377 Contract liabilities and other liabilities to customers At December 31, 2022 2021 (in millions of Euros) Non-current Current Non-current Current Deferred tooling revenue 19 — 3 — Advance payment from customers — 6 — 7 Unrecognized variable consideration (A) 1 49 1 67 Other — — — 3 Total contract liabilities and other liabilities to customers 20 55 4 77 (A) Unrecognized variable consideration consists of expected volume rebates, discounts, incentives, refunds penalties and price concessions. Revenue of €58 million that related to contract liabilities at at January 1, 2022 was recognized in the year ended December 31, 2022. Revenue of €60 million generated in the year ended December 31, 2022 was deferred. Revenue of €33 million that related to contract liabilities at January 1, 2021 was recognized in the year ended December 31, 2021. Revenue of €36 million generated in the year ended December 31, 2021 was deferred. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
BORROWINGS | NOTE 20 - BORROWINGS 20.1 Analysis by nature At December 31, 2022 2021 (in millions of Euros) Nominal Value in Currency Nominal rate Nominal Value in Euros (Arrange-ment fees) Accrued interests Carrying value Carrying Secured Pan-U.S. ABL $ 85 Floating 80 — 1 81 — Secured PGE French Facility € 180 Floating — — — — 180 Senior Unsecured Notes (C) Issued November 2017 and due 2026 $ 300 5.875 % 281 (2) 6 285 268 Issued November 2017 and due 2026 € 400 4.250 % 400 (3) 6 403 402 Issued June 2020 and due 2028 $ 325 5.625 % 305 (5) 1 301 284 Issued February 2021 and due 2029 (D) $ 500 3.750 % 469 (6) 4 467 438 Issued June 2021 and due 2029 (D) € 300 3.125 % 300 (4) 4 300 300 Unsecured Swiss Facility CHF 15 1.175 % — — — — 14 Lease liabilities 167 — 1 168 183 Other loans (E) 51 — — 51 60 Total Borrowings 2,053 (20) 23 2,056 2,129 Of which non-current 1,908 1,871 Of which current 148 258 (A) In June 2022, the Pan-U.S. ABL was amended to, among other things, increase the commitment to $500 million, provide an incremental revolving credit facility accordion of up to $100 million, and replace the LIBOR reference rate by the SOFR reference rate. (B) The initial maturity date of the PGE was May 2021 with an option for Constellium to extend for up to 5 years. In May 2021, the maturity date was extended to May 2022. In May 2022, the PGE was repaid accordingly. (C) The Senior Unsecured Notes were issued by Constellium SE and are guaranteed by certain subsidiaries. (D) For the $500 million Sustainability-Linked Senior Notes issued in February 2021 and the €300 million Sustainability-Linked Senior Notes issued in June 2021, Constellium has established two sustainability performance targets (greenhouse gas emissions intensity and recycled metal input). If Constellium does not satisfy the first target for the year ended December 31, 2025, the interest rates for both Notes will be increased by 0.125% starting April 15, 2026 and July 15, 2026 respectively. If Constellium does not satisfy the second target for the year ended December 31, 2026, the interest rates will be increased by 0.125% starting April 15, 2027 and July 15, 2027, respectively (in addition to any increase arising from failure to meet the first target). At December 31, 2022, the Group expects to satisfy these targets. (E) At December 31, 2022 Other loans included €36 million of financial liabilities relating to the sale and leaseback of assets that were considered to be financing arrangements in substance. 20.2 Undrawn credit facilities and overdraft arrangements At December 31, 2022, the Group had a €100 million Secured Inventory facility in place. This committed asset-based credit facility matures in April 2023 and was undrawn at December 31, 2022 . The Group also uses a €50 million Money Market facility, as well as overdraft agreements with its commercial banks for cash management purposes. These arrangements are uncommitted and were undrawn at December 31, 2022 . 20.3 Securities against borrowings and covenants Assets pledged as security Constellium has pledged assets and financial instruments as collateral against certain of its borrowings. Pan-U.S. ABL Obligations under this facility are, subject to certain permitted liens, secured by substantially all assets of Ravenswood, Muscle Shoals, and Bowling Green. French Inventory Facility Obligations under the Secured Inventory Facility of Constellium Issoire S.A.S. and Constellium Neuf-Brisach S.A.S. (the “French Inventory Facility”) are secured by possessory and non-possessory pledges of the eligible inventory of Constellium Issoire S.A.S. and Constellium Neuf-Brisach S.A.S. Lease liabilities Lease liabilities are generally secured as the rights to the leased assets recognized in the financial statements revert to the lessor in the event of default. Covenants The Group was in compliance with all applicable debt covenants at and for the years ended December 31, 2022 and 2021. 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 restrictions on dividends 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 This facility contains a fixed charge coverage 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. 20.4 Movements in borrowings (in millions of Euros) 2022 2021 At January 1, 2,129 2,391 Cash flows Proceeds from issuance of long-term borrowings (A) — 712 Repayments of long-term borrowings (B) (192) (1,052) Net change in revolving credit facilities and short-term borrowings (C) 72 (5) Lease repayments (37) (32) Payment of deferred financing costs — (13) Non-cash changes Movement in accrued interest (1) (11) Changes in leases and other loans 18 18 Deferred arrangement fees 3 16 Effects of changes in foreign exchange rates 64 105 At December 31, 2,056 2,129 (A) In February 2021, Constellium SE issued $500 million 3.750% Sustainability-Linked Senior Notes (€412 million converted at the issuance date exchange rate). In June 2021, Constellium SE issued €300 million 3.125% Sustainability-Linked Senior Notes. (B) For the twelve months ended December 31, 2022, repayments of long-term borrowings included the repayment of the PGE. In February 2021, Constellium SE tendered and redeemed the $650 million 6.625% Senior Notes due 2025 (€536 million converted at the redemption date exchange rate). In June 2021, Constellium SE redeemed the $400 million 5.750% Senior Notes due 2024 (€328 million converted at the redemption date exchange rate). In November 2021, Constellium SE partially redeemed $200 million ( €177 million converted at the repayment date exchange rate) of the $500 million outstanding aggregate principal amount of the 5.875% Senior Notes due 2026. (C) For the twelve months ended December 31, 2022, the net change in revolving credit facilities and short-term borrowings included the net proceeds from the Pan-U.S. ABL and the repayment of the Swiss facility. 20.5 Currency concentration At December 31, (in millions of Euros) 2022 2021 U.S. Dollar 1,188 1,055 Euro 861 1,048 Other currencies 7 26 Total borrowings 2,056 2,129 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | NOTE 21 - FINANCIAL INSTRUMENTS 21.1 Financial assets and liabilities by categories At December 31, 2022 2021 (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 12 166 — — 166 147 — — 147 Trade receivables 13 — — 465 465 — — 603 603 Other financial assets — 37 2 39 — 70 — 70 Total 166 37 467 670 147 70 603 820 At December 31, 2022 2021 (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 asset payables 19 1,191 — — 1,191 1,087 — — 1,087 Borrowings 20 2,056 — — 2,056 2,129 — — 2,129 Other financial liabilities — 40 15 55 — 26 5 31 Total 3,247 40 15 3,302 3,216 26 5 3,247 21.2 Fair values The carrying value of the Group’s borrowings at maturity is the redemption value. The fair value of Constellium SE Senior Notes issued in November 2017, June 2020, February 2021 and June 2021 account for 97%, 92%, 82% and 80% respectively of the nominal value and amount to €657 million, €282 million, €385 million and €239 million, respectively, at December 31, 2022. All derivatives are presented at fair value in the Consolidated Statement of Financial Position. The fair values of trade receivables, other financial assets and liabilities approximate their carrying values, as a result of their liquidity or short maturity. At December 31, 2022 2021 (in millions of Euros) Non-current Current Total Non-current Current Total Aluminium and premium derivatives 2 7 9 9 38 47 Energy derivatives 3 2 5 1 1 2 Other commodity derivatives — 2 2 — 4 4 Currency commercial derivatives 3 20 23 2 14 16 Currency net debt derivatives — — — — 1 1 Other financial assets - derivatives 8 31 39 12 58 70 Aluminium and premium derivatives — 19 19 — 14 14 Energy derivatives 3 7 10 — — — Other commodity derivatives — 1 1 — — — Currency commercial derivatives 11 14 25 6 11 17 Other financial liabilities - derivatives 14 41 55 6 25 31 In the year ended December 31, 2021, forward purchases of $565 million versus the Euro using cross currency basis swaps were not renewed when they reached their maturity or were bought out before their initial maturity in connection with the refinancing of the Senior Notes. This transaction generated a cash outflow of €32 million which is presented in Other financing activities within the Consolidated Statement of Cash Flows in the year ended December 31, 2021. 21.3 Valuation hierarchy The following table provides an analysis of financial instruments measured at fair value, grouped into levels based on the degree to which the fair value is observable: • Level 1 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 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 and natural gas derivatives. The present value of future cash flows based on the forward or on the spot exchange rates at the balance sheet date is used to value foreign exchange derivatives. • Level 3 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, 2022 2021 (in millions of Euros) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Other financial assets - derivatives 6 33 — 39 41 29 — 70 Other financial liabilities - derivatives 17 38 — 55 13 18 — 31 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, 2022 and 2021. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of financial risk management [Abstract] | |
FINANCIAL RISK MANAGEMENT | NOTE 22 - FINANCIAL RISK MANAGEMENT The Group’s financial risk management strategy focuses on minimizing the cash flow impacts of volatility in foreign currency exchange rates and metal prices, while maintaining the financial flexibility the Group requires in order to successfully execute its 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, commodity price and interest rate risks; (ii) credit risk and (iii) liquidity risk. 22.1 Foreign exchange risk Foreign exchange risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. 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 has the following foreign exchange risk: i) transaction exposures, which include commercial transactions related to forecasted sales and purchases and on-balance sheet receivables/payables resulting from such transactions and financing transactions related to external and internal net debt, and ii) translation exposures, which relate to net investments in foreign entities that are converted in Euros in the Consolidated Financial Statements. i. 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 forward derivatives for Constellium’s most significant foreign exchange exposures at December 31, 2022. Sold currencies Maturity Year Less than 1 year Over 1 year USD 2023-2025 409 186 CHF 2023-2026 82 29 CZK 2023 3 — Other currencies 2023 10 — Purchased currencies Maturity Year Less than 1 year Over 1 year USD 2023-2026 109 25 CHF 2023-2025 134 16 CZK 2023-2024 78 20 Other currencies 2023 1 — The Group has agreed to supply a major customer with fabricated metal products from a Euro functional currency entity and invoices in U.S. Dollars. The Group has entered into significant foreign exchange derivatives that matched related highly probable future conversion sales. The Group designates these derivatives for hedge accounting, with a total nominal amount of $248 million and $274 million at December 31, 2022 and December 31, 2021 respectively, with maturities ranging from 2023 to 2025. The table below details the effect of foreign currency derivatives in the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income: Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Derivatives that do not qualify for hedge accounting Included in Other gains and losses - net Realized gains / (losses) on foreign currency derivatives - net 9 — 1 (4) Unrealized gains / (losses) on foreign currency derivatives - net (A) 9 6 15 (9) Derivatives that qualify for hedge accounting Included in Other comprehensive income Unrealized (losses) / gains on foreign currency derivatives - net (16) (21) 20 Gains reclassified from cash flow hedge reserve to the Consolidated Income Statement 8 4 6 Included in Revenue (B) Realized losses on foreign currency derivatives - net 9 (8) (2) (7) Unrealized (losses) / gains on foreign currency derivatives - net 9 — (2) 1 Derivatives discontinued from hedge accounting Included in Other gains and losses - net Losses reclassified from OCI as a result of hedge accounting discontinuation (C) 9 — — (6) (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. (B) Changes in fair value of derivatives that qualify for hedge accounting are included in Revenue when the related customer invoices are issued. (C) In the year ended December 31, 2020, we determined that a portion of the hedged forecasted sales for 2020 and 2021, to which hedge accounting was applied, was no longer expected to occur. As a result, the fair value of the related derivatives accumulated in equity was reclassified in the Consolidated Income Statement and resulted a €6 million loss. ii. 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 intercompany foreign currency loans and deposits or through foreign currency derivatives. At December 31, 2022, the net hedged position related to long-term and short-term loans and deposits in U.S. dollars included a forward sale of $115 million versus the Euro using simple foreign exchange forward contracts. Year ended December 31, (in millions of Euros) 2022 2021 2020 Derivatives Included in Finance costs - net Realized gains / (losses) on foreign currency derivatives - net 2 (36) 7 Unrealized (losses) / gains on foreign currency derivatives - net (1) 46 (39) Total 1 10 (32) In accordance with the Group policy, total realized and unrealized gains or losses on foreign currency derivatives are expected to offset the net foreign exchange result related to financing activities, both included in Finance costs - net. 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 income 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 income before tax Effect on pretax equity Trade receivables 3 — Trade payables (1) — Derivatives on commercial transactions (A) (25) (24) Net commercial transaction exposure (23) (24) Cash in Bank and intercompany loans 105 — Borrowings (117) — Derivatives on financing transactions 12 — Net financing transaction exposure — — Total (23) (24) (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 of €24 million relates to derivatives hedging the future sales spread from 2023 to 2025 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. iii. Translation exposures Foreign exchange impacts related to the translation of net investments in foreign subsidiaries from functional currency to Euro, and of the related revenue and expenses, are not hedged as the Group operates in these various countries on permanent basis except as described below. Foreign exchange sensitivity on translation exposures 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 income and equity (before tax effect) of a 10% strengthening of the U.S. Dollar versus the Euro (on average rate for income before tax and closing rate for pretax equity) for U.S. Dollar functional currency entities. (in millions of Euros) Effect on income before tax Effect on pretax equity 10% strengthening U.S. Dollar/Euro 23 182 The amounts shown in the table above may not be indicative of future results since the balances of financial assets and liabilities may change. 22.2 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 regional premiums and in the price of zinc, natural gas, silver and copper and other alloying metals 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. Temporary increases in inventory, to the extent material, are sold forward to the expected sales date to ensure the price paid for the metal will be redeemed when it is sold. The Group also purchases fixed price copper, aluminium premium, silver and zinc derivatives to offset the commodity exposure where sales contracts have embedded fixed price agreements for these commodities. In addition, the Group purchases natural gas fixed price derivatives to lock in energy costs where a fixed price purchase contract is not possible. At December 31, 2022, the nominal amount of commodity derivatives is as follows: (in millions of Euros) Maturity Less than 1 year Over 1 year Aluminium 2023-2024 290 5 Premium 2023-2025 18 5 Copper 2023 12 — Silver 2023-2024 18 — Natural gas 2023-2026 31 29 Zinc 2023 8 — The value of the contracts will fluctuate due to changes in market prices but our hedging strategy helps protect the Group’s margin on future conversion and fabrication activities. At December 31, 2022, these contracts were directly entered into with external counterparties. The Group does not apply hedge accounting on commodity derivatives and therefore mark-to-market movements are recognized in Other gains and losses - net. Year ended December 31, (in millions of Euros) 2022 2021 2020 Derivatives Included in Other gains and losses - net Realized (losses) / gains on commodity derivatives - net (6) 112 (31) Unrealized (losses) / gains on commodity derivatives - net (53) 24 25 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, 2022 (before tax), with all other variables held constant, was estimated to be a €28 million gain. The balances of these financial instruments may change in future years, and therefore these amounts may not be indicative of future results. 22.3 Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of 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 earning interest at variable interest rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. At December 31, 2022, the Group’s borrowings were mainly at fixed rates. Interest rate sensitivity: risks associated with variable-rate financial instruments The impact on income before income tax of a 50 basis point increase or decrease in the LIBOR, EURIBOR or SOFR interest rates as applicable, based on the variable rate financial instruments held by the Group at December 31, 2022 and 2021, with all other variables held constant, was estimated to be approximately €3 million for the year ended December 31, 2022, and approximately €1 million for the year ended December 31, 2021. However, the balances of such financial instruments may not remain constant in future years, and therefore these amounts may not be indicative of future results. 22.4 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, 2022 is the carrying value of each class of financial asset as described in NOTE 21 - Financial Instruments. The Group does not generally hold any collateral as security. i. 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 tabulated below shows our exposure to the counterparty by rating type (Parent company ratings from Moody’s Investor Services): At December 31, 2022 2021 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 51 3 54 Rated A 6 112 13 98 Rated Baa 1 3 3 33 Total 9 166 19 185 (A) Financial counterparties for which the Group’s exposure is below €0.25 million have been excluded from the analysis. ii. 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 76% 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 13 - Trade Receivables and Other for the aging of trade receivables. 22.5 Liquidity risk management The Group’s capital structure includes shareholder’s equity, borrowings and various third-party financing 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 maintain an optimal capital structure in order to minimize the weighted cost of capital, and to maximize returns for its owners. All activities around cash funding, borrowings and financial instruments are centralized within Constellium’s Treasury department. The liquidity requirements of the overall Company are funded by cash and drawings 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, 2022, the borrowing base for the Pan-U.S. ABL and the French Inventory Facility were €469 million and €100 million, respectively. After deduction of amounts drawn and letters of credit, the Group had €480 million outstanding availability under these revolving credit facilities. At December 31, 2022, liquidity was €709 million, comprised of €166 million of cash and cash equivalents and €543 million of available undrawn facilities, including the €480 million described above. At December 31, 2021, liquidity was €773 million, comprised of €147 million of cash and cash equivalents and €626 million of available undrawn facilities. Margin calls The Group’s financial institution counterparties may require margin calls should the mark-to-market of our derivatives hedging foreign exchange and commodity price risks exceed a pre-agreed contractual limit. In order to protect from 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. In addition, the Group (i) ensures that financial counterparts hedging transactional exposure are also hedging foreign currency loan and deposit exposures and (ii) holds a significant liquidity buffer in cash or in availability under its various borrowing facilities. At December 31, 2022 and 2021, there was no margin requirement paid as collateral to counterparties related to foreign exchange hedges nor related to aluminium or any other commodity hedges. Undiscounted contractual financial assets and liabilities The tables below show undiscounted contractual financial assets and financial liabilities values by relevant maturity groupings based on the remaining periods from December 31, 2022 and 2021, respectively, to the contractual maturity date. At December 31, 2022 2021 (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 cash flows from derivative assets related to currencies and commodities 31 9 — 60 12 — Trade receivables 465 — — 603 — — Total 496 9 — 663 12 — At December 31, 2022 2021 (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 5 698 1,087 195 710 1,046 Leases 35 98 86 37 99 85 Interest (A) 78 260 54 79 285 96 Net cash flows from derivative liabilities related to currencies and commodities 42 19 — 26 12 — Trade payables and fixed asset payables 19 1,191 — — 1,087 — — Total 1,351 1,075 1,227 1,424 1,106 1,227 (A) Interest disclosed is an undiscounted forecasted interest amount that excludes interest on leases. |
PENSIONS AND OTHER POST-EMPLOYM
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of employee benefits [Abstract] | |
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS | NOTE 7 - EMPLOYEE BENEFIT EXPENSES Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Wages and salaries (1,067) (920) (855) Pension costs - defined benefit plans 23 (22) (24) (23) Other post-employment benefits 23 (3) (8) (9) Share-based compensation 30 (18) (15) (15) Total employee benefit expenses (1,110) (967) (902) NOTE 23 - PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS The Group has 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. 23.1 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. Benefit plans in the U.S., Switzerland and France are funded through long-term employee benefit funds. Other post-employment benefits (OPEB) The Group provides healthcare 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. 23.2 Description of risks 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 that aims to reduce the volatility of returns and achieve a matching of the underlying liabilities to minimize the long-term costs. This is achieved by investing in a diversified selection of asset classes. 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 assets 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, 2022, impacts of the change on the defined benefit obligation of a 50 basis points increase / decrease in the discount rates are calculated by using a proxy based on the duration of each scheme: (in millions of Euros) 50 bp increase in 50 bp decrease in France (6) 7 Germany (5) 5 Switzerland (16) 17 United States (19) 23 Total sensitivity on Defined Benefit Obligations (46) 52 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. 23.3 Actuarial assumptions Pension and other post-employment benefit obligations were updated based on the discount rates applicable at December 31, 2022. At December 31, 2022 2021 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 1.75% — 2.05% 1.50% — 0.15% U.S. Hourly pension 3.00% — 5.00% - 5.05% 2.20% — 2.80% - 2.95% Salaried pension —% — 5.05% —% — 2.85% OPEB (A) 4.00% — 5.00% - 5.05% 3.80% — 2.85% - 2.95% Other benefits 3.80% — 4.95% - 5.00% 3.80% — 2.60% - 2.85% France 2.20% 2.00% 1.80% - 3.80% 2.00% Retirements — — 3.80% — — 1.00% Other benefits — — 3.80% — — 0.90% Germany 2.50% 2.00% 3.75% 2.50% 1.80% 1.05% (A) The other main financial assumptions used for the OPEB healthcare plans, which are predominantly in the U.S. were: • Medical trend rate: i) pre-65: 6.75% starting in 2022 decreasing gradually to 4.50% in 2031 and stable onwards and ii) post-65: 6.00% starting in 2022 decreasing gradually to 4.50% in 2031 and stable onwards, • Claims costs based on Company experience. For both pension and healthcare plans, the post-employment mortality assumptions allow for future improvements in life expectancy. 23.4 Amounts recognized in the Consolidated Statement of Financial Position At December 31, 2022 2021 (in millions of Euros) Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Present value of funded obligation 614 — 614 766 — 766 Fair value of plan assets (461) — (461) (544) — (544) Deficit of funded plans 153 — 153 222 — 222 Present value of unfunded obligation 96 154 250 128 249 377 Net liability / (asset) arising from defined benefit obligation 249 154 403 350 249 599 23.5 Movement in net defined benefit obligations Year ended December 31, 2022 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2022 894 249 1,143 (544) 599 Included in the Consolidated Income Statement Current service cost 20 8 28 — 28 Interest cost / (income) 13 7 20 (9) 11 Past service cost 2 (49) (47) — (47) Immediate recognition of gains arising over the year — (5) (5) — (5) Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income Remeasurements due to: —actual return less interest on plan assets — — — 107 107 —changes in financial assumptions (211) (43) (254) — (254) —changes in demographic assumptions — (1) (1) — (1) —experience losses (3) (9) (12) — (12) Effects of changes in foreign exchange rates 34 16 50 (30) 20 Included in the Consolidated Statement of Cash Flows Benefits paid (42) (21) (63) 57 (6) Contributions by the Group — — — (38) (38) Contributions by the plan participants 4 2 6 (6) — Reclassification as liabilities of disposal group classified as held for sale (1) — (1) — (1) At December 31, 2022 710 154 864 (461) 403 Year ended December 31, 2021 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2021 906 216 1,122 (458) 664 Included the Consolidated Income Statement Current service cost 22 8 30 — 30 Interest cost / (income) 10 5 15 (6) 9 Past service cost 1 31 32 — 32 Immediate recognition of gains arising over the year — — — — — Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income Remeasurements due to: —actual return less interest on plan assets — — — (56) (56) —changes in financial assumptions (29) (9) (38) — (38) —changes in demographic assumptions (13) — (13) — (13) —experience losses (9) (2) (11) — (11) Effects of changes in foreign exchange rates 38 17 55 (32) 23 Included in the Consolidated Statement of Cash Flows Benefits paid (36) (18) (54) 32 (22) Contributions by the Group — — — (21) (21) Contributions by the plan participants 4 1 5 (5) — At December 31, 2021 894 249 1,143 (544) 599 Movements in net defined benefit obligations reported in Other Comprehensive Income in the years ended December 31, 2022 and 2021, primarily reflected the impact of changes in discount rates (see note 23.3), the difference between actual returns and interest on plan assets and the impact of changes in foreign exchanges rates. 23.6 Ravenswood plan amendment In October 2022, Constellium Rolled Products Ravenswood and United Steelworkers Local Union 5668 entered into a new three-year collective bargaining agreement. The agreement included changes in OPEB and pension benefits that are accounted for as a plan amendment in the year ended December 31, 2022. The changes resulted in a reduction of the OPEB obligation recorded as a gain from negative past service cost for €49 million and an increase of the pension obligation recorded as an additional past service costs for €2 million. 23.7 Ravenswood OPEB dispute In 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 providing similar benefits at a lower cost. The United Steelworkers Local Union 5668 (the “Union”) contested this change in benefits and filed a lawsuit against Constellium Rolled Products Ravenswood, LLC ("Ravenswood") in a federal district court in West Virginia (the “District Court”) seeking to enjoin the Plan changes and to compel arbitration. The District Court issued an order in December 2018, enjoining Ravenswood from implementing the Plan 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 in the District Court to vacate this decision, which was denied in June 2020. In July 2020, Ravenswood appealed that denial to the Fourth Circuit Court of Appeals. In November 2021, the Fourth Circuit Court issued an opinion in favor of the Union, and the Group elected not to further pursue legal action on this matter. The Group recognized a gain of €36 million from negative past service cost in the year ended December 31, 2018, reflecting its decision to amend the plan benefits and its determination at the time that it was probable that it would ultimately prevail in the dispute with the Union. This gain was partially reversed in the years ended December 31, 2019 and 2020, to reflect delays in the estimated implementation timetable as a result of the dispute with the Union. The Group recognized a loss of €31 million from past service cost in the year ended December 31, 2021, following the Fourth Circuit Court's ruling in favor of the Union . 23.8 Net defined benefit obligations by country At December 31, 2022 2021 (in millions of Euros) Defined benefit obligations Plan assets Net defined benefit liability Defined benefit obligations Plan assets Net defined benefit liability France 117 (6) 111 158 (5) 153 Germany 100 (1) 99 134 (2) 132 Switzerland 249 (236) 13 306 (268) 38 United States 398 (218) 180 545 (269) 276 Total 864 (461) 403 1,143 (544) 599 23.9 Plan asset categories At December 31, 2022 2021 (in millions of Euros) Quoted in an active market Not quoted in an active market Total Quoted in an active market Not quoted in an active market Total Cash & cash equivalents 4 — 4 4 — 4 Equities 87 36 123 115 61 176 Bonds 146 80 226 149 110 259 Property 14 60 74 16 55 71 Other — 34 34 — 34 34 Total fair value of plan assets 251 210 461 284 260 544 23.10 Cash flows Expected contributions to pension and other benefit plans amount to €23 million and €16 million, respectively, for the year ending December 31, 2023. 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, 2023 56 2024 56 2025 57 2026 57 2027 60 2028 to 2032 328 The weighted-average maturity of the defined benefit obligations was 11.2 and 14.2, respectively, for the years ended December 31, 2022 and 2021. |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other provisions [abstract] | |
PROVISIONS | NOTE 24 - PROVISIONS (in millions of Euros) Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2022 88 2 27 117 Allowance 3 — 3 6 Amounts used (3) (2) (2) (7) Unused amounts reversed — — (4) (4) Unwinding of discounts and change in discount rates (5) — — (5) Effects of changes in foreign exchange rates 3 — 1 4 At December 31, 2022 86 — 25 111 Of which current 12 — 9 21 Of which non-current 74 — 16 90 Total provisions 86 — 25 111 (in millions of Euros) Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2021 88 6 27 121 Allowance 4 3 4 11 Amounts used (1) (6) (2) (9) Unused amounts reversed (2) (1) (6) (9) Unwinding of discounts and change in discount rates (1) — — (1) Effects of changes in foreign exchange rates 4 — — 4 Transfer (4) — 4 — At December 31, 2021 88 2 27 117 Current 7 1 12 20 Non-Current 81 1 15 97 Total Provisions 88 2 27 117 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. These provisions are expected to be settled over the next 40 years depending on the nature of the disturbance and the technical remediation plans. Legal claims and other costs At December 31, (in millions of Euros) 2022 2021 Litigation 15 16 Disease claims (A) 10 9 Other — 2 Total provisions for legal claims and other costs 25 27 (A) 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 developing 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, 2022, six cases in which gross negligence is alleged (“faute inexcusable”) are outstanding (five at December 31, 2021), the average amount per claim being around €0.4 million. The average settlement amount per claim over the past five years was less than €0.5 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. |
NON-CASH INVESTING AND FINANCIN
NON-CASH INVESTING AND FINANCING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of cash flow statement [Abstract] | |
NON-CASH INVESTING AND FINANCING TRANSACTIONS | NOTE 25 - NON-CASH INVESTING AND FINANCING TRANSACTIONS Property, plant and equipment acquired through leases or financed by third parties amounted to €18 million, €18 million and €66 million for the years ended December 31, 2022, 2021 and 2020, 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 €15 million for the years ended December 31, 2022 and 2021, and €14 million for the year ended December 31, 2020, respectively. They are excluded from the Statement of Cash flows as non-cash financing activities. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
SHARE CAPITAL | NOTE 26 - SHARE CAPITAL Share capital amounted to €2,886,031.84 at December 31, 2022, divided into 144,301,592 ordinary shares, each with a nominal value of two cents and fully paid-up. All shares are of the same class and have the right to one vote. (in millions of Euros) Number of shares Share capital Share premium At January 1, 2022 141,677,366 3 420 New shares issued (A) 2,624,226 — — At December 31, 2022 144,301,592 3 420 (A) In the year ended December 31, 2022, Constellium SE issued and delivered 2,624,226 ordinary shares to certain employees and directors related to share-based compensation plans. |
COVID-19-RELATED GOVERNMENT ASS
COVID-19-RELATED GOVERNMENT ASSISTANCE | 12 Months Ended |
Dec. 31, 2022 | |
Government Grants [Abstract] | |
COVID-19-RELATED GOVERNMENT ASSISTANCE | NOTE 27 - COVID-19-RELATED GOVERNMENT ASSISTANCE In the year ended December 31, 2020, the Group received government assistance in various forms, including government-guaranteed credit facilities in France, Germany, and Switzerland (see NOTE 20 - Borrowings), as well as subsidies to compensate for the cost of employees furloughed as a result of the COVID-19 pandemic in various jurisdictions. These subsidies were recognized where there was reasonable assurance that they would be received and the Company was able to meet all of the associated conditions. For the year ended December 31, 2020, COVID-19-related subsidies in the amount of €22 million were accounted for as a deduction of employee benefit expenses. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosures of commitments [Abstract] | |
COMMITMENTS | NOTE 28 - COMMITMENTS Non-cancellable lease commitments Non-cancellable lease commitments relating to the future aggregate minimum lease payments under non-cancellable leases still recognized as expense are presented below: At December 31, (in millions of Euros) 2022 2021 Less than 1 year 3 3 1 to 5 years 9 3 More than 5 years — 2 Total non-cancellable minimum lease payments 12 8 Tangible and intangible asset commitments Contractual commitments for the acquisition of Property, Plant and Equipment are presented below: At December 31, (in millions of Euros) 2022 2021 Property, plant and equipment 166 65 Total tangible and intangible asset commitments 166 65 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES | NOTE 29 - RELATED PARTIES Subsidiaries and affiliates A list of the principal companies controlled by the Group or over which the Group has significant influence is presented in NOTE 31 - Subsidiaries and Affiliates. Transactions between consolidated companies are eliminated when preparing the Consolidated Financial Statements. Shareholders One of our French entities entered into a fully committed term loan facility with a syndicate of banks (the “PGE French Facility”) on May 13, 2020 for an aggregate amount of up to €180 million, of which 80% is guaranteed by the French State. Bpifrance Financement, an affiliate of one of the shareholders of Constellium SE, Bpifrance Participations S.A., provided €30 million of the PGE French Facility. The initial maturity date of the PGE was May 2021 with an option for Constellium to extend for up to 5 years. In May 2021, the maturity date was extended to May 2022. In May 2022, the PGE was repaid accordingly. Key management remuneration The Group’s key management comprises the Board members and the Executive committee members effectively present in 2022. Executive officers who are members of the Executive committee are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, and typically 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 and other in-kind benefits; • Directors’ fees include annual retainers fees, committee membership fees, chair fees and cash paid in lieu of RSU grant for 2022; • 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: Year ended December 31, (in millions of Euros) 2022 2021 2020 Short-term employee benefits 12 8 9 Directors' fees 2 1 1 Share-based compensation 10 9 10 Post-employments benefits — — — Termination benefits — — — Employer social contribution 2 1 1 Total 26 19 21 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment arrangements [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 30 - SHARE-BASED COMPENSATION Description of the plans Performance-Based Restricted Stock Units Award Agreements (equity-settled) The Company has periodically granted Performance Stock Units (PSUs) to selected employees and to the CEO. These units 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 or at the service of the Company through the end of the vesting period; and • A performance condition, contingent on the 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 July 2017 achieved a TSR performance of 186.8%. These PSUs vested in July 2020 and 1,458,985 shares were granted to beneficiaries. The PSUs granted in May 2018 achieved a TSR performance of 182.9%. These PSUs vested in May 2021 and 1,161,718 shares were granted to beneficiaries. The PSUs granted in April 2019 achieved a TSR performance of 200.0%. These PSUs vested in April 2022 and 1,849,268 shares were granted to beneficiaries. In March 2022, the Company granted Performance Stock Units (PSUs) to selected employees and to the CEO . The following table lists the inputs to the valuation model used for the PSUs granted in 2022 and 2021 : March 2022 PSUs May 2021 PSUs Fair value at grant date (in euros) 23.70 21.84 Share price at grant date (in euros) 17.11 13.90 Dividend yield — — Expected volatility (A) 70% 71% Risk-free interest rate (US government bond yield) 1.88% 0.31% Model used Monte Carlo Monte Carlo (A) Volatilities for the Company and companies included in indices were estimated based on observed historical volatilities over a period equal to the PSU vesting period. Restricted Stock Units Award Agreements (equity-settled) During the year ended December 31, 2022, the Company granted Restricted Stock Units (RSUs) to a certain number of employees and to the CEO subject to the beneficiaries remaining continuously employed within or at the service of the Group from the grant date through the end of the vesting period. The vesting period is three years. The fair value of the RSUs awarded is €17.11, being the euro equivalent of the quoted market price at grant date. Equity Awards Plans (equity-settled) In 2019, our non-executive 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 was the the euro equivalent of the quoted market price at grant date. In 2022, 2021 and 2020, no RSU awards were granted to our non-executive Company Board members. 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 share-based compensation for the year ended December 31, 2022, 2021 and 2020 amounted to €18 million, €15 million and €15 million, respectively. Movement of 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, 2021 2,594,327 € 10.17 2,231,911 € 6.88 32,912 € 8.39 Granted 614,555 € 21.84 534,499 € 13.90 — € — Over-performance 526,551 € 15.31 — € — — € — Vested (1,161,718) € 15.31 (520,064) € 10.27 (32,912) € 8.39 Forfeited (47,188) € 10.29 (97,347) € 7.17 — € — At December 31, 2021 2,526,527 € 11.71 2,148,999 € 7.79 — € — Granted (A) 603,023 € 23.70 556,360 € 17.11 — € — Over-performance (B) 924,634 € 10.44 — € — — € — Vested (1,849,268) € 10.44 (774,958) € 7.10 — € — Forfeited (C) (19,082) € 11.65 (54,955) € 9.04 — € — At December 31, 2022 2,185,834 € 15.56 1,875,446 € 10.80 — € — (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, 19,082 were forfeited following the departure of certain beneficiaries and none were forfeited in relation to the non-fulfilment of performance conditions. Antidilutive potential ordinary shares For the year ended December 31, 2020, there were 6,402,289 p otential ordinary shares that could have had a dilutive impact but were considered antidilutive due to negative earnings. |
SUBSIDIARIES AND AFFILIATES
SUBSIDIARIES AND AFFILIATES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
SUBSIDIARIES AND AFFILIATES | NOTE 31 - SUBSIDIARIES AND AFFILIATES The following Group’s affiliates are legal entities included in the Consolidated Financial Statements of the Group at December 31, 2022. All entities are consolidated except for Rhenaroll which is accounted for under the equity method. Entity Country % Group Interest Cross Operating Segment Constellium Singen GmbH (AS&I and P&ARP) Germany 100% Constellium Valais S.A. (AS&I and A&T) Switzerland 100% AS&I Constellium Automotive USA, LLC U.S. 100% Constellium Engley (Changchun) Automotive Structures Co Ltd. China 54% Constellium Extrusions Decin S.r.o. Czech Republic 100% Constellium Extrusions Deutschland GmbH Germany 100% Constellium Extrusions Landau GmbH Germany 100% Constellium Extrusions Burg GmbH Germany 100% Constellium Extrusions France S.A.S. France 100% Constellium Extrusions Levice S.r.o. Slovakia 100% Constellium Automotive Mexico, S. DE R.L. DE C.V. Mexico 100% Constellium Automotive Mexico Trading, S. DE R.L. DE C.V. Mexico 100% Astrex Inc Canada 50% Constellium Automotive Zilina S.r.o. Slovakia 100% Constellium Automotive (Nanjing) Co. Ltd. China 100% Constellium Automotive Spain SL Spain 100% Constellium UK Limited United Kingdom 100% A&T Constellium Issoire S.A.S. France 100% Constellium Montreuil Juigné S.A.S. France 100% Constellium China Co. Ltd. China 100% Constellium Japan KK Japan 100% Constellium Rolled Products Ravenswood, LLC U.S. 100% Constellium Ussel S.A.S. France 100% AluInfra Services SA (A) Switzerland 50% P&ARP Constellium Deutschland GmbH Germany 100% Constellium Rolled Products Singen GmbH & Co. KG Germany 100% Constellium Neuf Brisach S.A.S. France 100% Constellium Muscle Shoals LLC U.S. 100% Constellium Holdings Muscle Shoals LLC U.S. 100% Constellium Muscle Shoals Funding II LLC U.S. 100% Constellium Muscle Shoals Funding III LLC U.S. 100% Constellium Metal Procurement LLC U.S. 100% Constellium Bowling Green LLC U.S. 100% Rhenaroll SA France 50% Holdings & Corporate C-TEC Constellium Technology Center S.A.S. France 100% Constellium Finance S.A.S. France 100% Constellium France III S.A.S. France 100% Constellium France Holdco S.A.S. France 100% Constellium International S.A.S. France 100% Constellium Paris S.A.S. France 100% Constellium Germany Holdco GmbH & Co. KG Germany 100% Constellium Germany Verwaltungs GmbH Germany 100% Constellium US Holdings I, LLC U.S. 100% Constellium US Intermediate Holdings LLC U.S. 100% Constellium Switzerland AG Switzerland 100% Constellium Treuhand UG (haftunsgbeschränkt) Germany 100% Engineered Products International S.A.S. France 100% (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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | NOTE 32 - SUBSEQUENT EVENTS On February 2, 2023, the Group completed the sale of Constellium Ussel in exchange for cash consideration of €1.6 million. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 on March 9, 2023 by the Board of Directors. |
New and amended standards and interpretations | New and amended standards and interpretations Several amendments to IFRS standards and interpretations applied for the first time in 2022, but had no impact on the Consolidated Financial Statements of the Group. • Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use • Amendments to IFRS 3: Reference to the Conceptual Framework • Amendments to IAS 37: Onerous Contracts – Costs of Fulfilling a Contract • Annual Improvements to IFRS Standards 2018-2020 ◦ IFRS 9 Financial Instruments: Fees in the ‘10 per cent’ test for derecognition of financial liabilities |
New standards and interpretations not yet mandatorily applicable | New standards and interpretations not yet mandatorily applicable The Group has not early adopted the following new standards, amendments and interpretations which have been issued, but are not yet effective. The Group plans to adopt these new standards, amendments and interpretations on their required effective dates and does not expect any material impact as a result of their adoption. • Amendments to IAS 1: Classification of Liabilities as Current or Non-current • Amendment to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies • Amendment to IAS 8: Definition of Accounting Estimates • Amendment to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
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 12 - Cash and Cash Equivalents, NOTE 20 - Borrowings and NOTE 22 - Financial Risk Management. The Group’s forecasts and projections, taking account of reasonably possible changes in operating 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. This assessment was confirmed by the Board of Directors on March 9, 2023 . |
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. The Chief Executive Officer, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief operating decision-maker. 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. |
Presentation of financial statements | Presentation of financial statements The Consolidated Financial Statements are presented in millions of Euros, except as otherwise stated. Certain reclassifications may have been made to prior year amounts to conform to the current year presentation. |
Basis of consolidation | Basis of consolidation These Consolidated Financial Statements include all the assets, liabilities, equity, revenues, expenses and cash flows of the Group's subsidiaries. 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 entity, 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 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 joint control are accounted for either as joint ventures under the equity method or as joint arrangements in relation to its interest in the joint operation. Investments over which the Group has significant influence are accounted for under the equity method. 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 and 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. Acquisition-related costs are expensed as incurred and are included in Other gains and losses - net in the Consolidated Income Statement. |
Non-current Assets (and disposal groups) Held for Sale and Discontinued Operations | Non-current Assets (and disposal groups) Held for Sale and 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 held for sale or has been sold, 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 reflected in separate line items in the Consolidated Statement of Financial Position of the period during which the decision to sell is made. The results of discontinued operations are shown separately in the Consolidated Income Statement. |
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 their functional currency, which is the currency of the primary economic environment in which they operate. 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 ("OCI") as qualifying cash flow hedges or qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in 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 and 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 OCI. |
Revenue from contracts with customers | Revenue from contracts with customers Revenue is recognized in an amount that reflects the consideration to which the Group 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 multi-year frame agreements. Revenue from product sales, measured at the fair value of the consideration received or receivable, is recognized at a 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 that control has transferred. Contract liabilities consist of expected volume discounts, rebates, incentives, refunds, penalties and price concessions. Contract liabilities are presented in Trade payables and other. The Group applies the practical expedient for disclosures on performance obligations that are part of contracts that have an original duration of one year or less. The Group elected the practical expedient on significant financing components when the period of transfer of the product and the payment is one year or less. |
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 and losses - net | Other gains and losses - net Other gains and losses - net includes: (i) realized and unrealized gains and losses for commodity derivatives and foreign exchange derivatives contracted for commercial purposes to which hedge accounting is not applied (ii) unrealized exchange gains and losses from the remeasurement of monetary assets and liabilities, (iii) the ineffective portion of changes in the fair value of derivatives designated for hedge accounting and (iv) impairment charges on assets. |
Interest income and expense | Interest income and expense Interest expense on short and long-term financing is recorded at the relevant rates on the various borrowing agreements using the effective interest rate method. 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. |
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. |
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 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 |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value, primarily on a weighted-average cost basis. Weighted-average cost for raw materials, stores, work in progress and finished goods is calculated using the costs experienced in the current period based on normal operating capacity and includes the purchase price of materials, freight, duties and customs, and the costs of production, which includes labor, materials and other costs that are directly attributable to the production process and production overheads. |
Financial Instruments | Financial Instruments i. Classification and measurement • Financial assets At initial recognition, 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. 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. The business model 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 objective 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. 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. Upon derecognition, the cumulative fair value change recognized in OCI is reclassified to profit or loss. 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. 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 those designated as hedging instruments that qualify for hedge accounting in accordance with IAS 39 - Financial Instruments which are classified as assets at fair value through OCI. 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 are 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 is 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 | Derivative financial instruments Derivatives The Group uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Fair value is the price expected to be received in selling an asset or paid in transferring 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 derivative instruments aggregated by counterparties and takes this into account when estimating the fair value of its derivatives. Credit Value Adjustments are calculated for asset derivatives based on the 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 the historical probability of default, provided by leading rating agencies. 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 qualifies for hedge accounting treatment. 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 and losses - net or Finance costs, net depending on the nature of the underlying exposure. For derivatives that qualify for hedge accounting, changes in the fair value are recognized in OCI. Hedge accounting The Group did not adopt the disposition of IFRS 9 - Financial Instruments on hedging and will therefore continue to apply the provisions of IAS 39 - Financial Instruments . For derivative instruments that are designated for hedge accounting, at the inception of the hedging transaction, the group documents the relationship between hedging instruments and hedged items, the risk management objective and the 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 OCI and accumulated in equity. The gain or loss relating to the ineffective portion is recognized immediately in the Consolidated Income Statement in Other gains and 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. |
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 interest, directly attributable to the acquisition or construction of 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 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 their cost 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. |
Government Grants | Government Grants Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions are complied with. |
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. |
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 property, plant and equipment and intangible assets | Impairment 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 and value in use, as 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 Other gains and losses - net in the Consolidated Income Statement. |
Impairment of goodwill | Impairment of goodwill Groups of cash-generating units to which goodwill is allocated are tested for impairment annually, or more frequently when there is an indication that allocated goodwill may be impaired. The net carrying value of a group of cash-generating units is compared to their recoverable amounts, which is the higher of the value in use and the fair value less costs 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 the 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 Other gains and losses - net in the Consolidated Income Statement. An impairment loss recognized for goodwill cannot be reversed in subsequent years. |
Cash-generating units | Cash-generating units The reporting units, which generally correspond to industrial sites, are the lowest level of independent cash flows and have been identified as cash-generating units. |
Taxation | Taxation 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 France, the United States, Germany and numerous other jurisdictions. Certain of Constellium’s businesses may be included in tax returns in some jurisdictions. 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. Deferred income tax assets are also recognized for operating loss carryforwards and tax credit carryforwards. 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. 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. |
Trade payables | Trade payables Trade payables are initially recorded at fair value and are subsequently measured at amortized cost. Trade payables are classified as current liabilities if payment is due in one year or less. |
Leases | 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. Right-of-use assets are recorded in the asset category to which they relate in Property, plant and equipment. Unless the Group is reasonably certain to obtain ownership of the leased assets at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of their 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. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension or termination option. Extension options or periods after termination options are only included in the lease term if the lease is reasonably certain to be extended or not terminated. 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. Lease liabilities are presented within Borrowings. 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 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 Group also applies the practical expedients for lease and non-lease components as a single component for vehicles. |
Provisions | Provisions Provisions are recorded at the best estimate of expenditures required to settle liabilities of uncertain timing or amount when management determines that i) a legal or constructive obligation exists as a result of past events, ii) it is probable that an outflow of resources will be required to settle the obligation and iii) such amounts can be reasonably estimated. Provisions are measured at the present value of the expected expenditures 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 or the expected timing of expenditure could change. As a result, there could be significant adjustments to provisions, which could result in additional charges or recoveries. 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 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 in Property, plant and equipment. These costs are 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 recorded in the Consolidated Income Statement as a finance 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. Changes in the environmental remediation provisions are recorded in Cost of sales. Restructuring costs Provisions for restructuring are recorded when Constellium’s management is demonstrably committed to the restructuring plan and the liabilities can be reasonably estimated. The Group recognizes liabilities that primarily include one-time termination benefits, 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 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 weighs 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 recorded in Cost of sales or Other gains and 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 recorded in Cost of sales in the Consolidated Income Statement. 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. |
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 Income / (loss) from operations. 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 less the fair value of plan assets. The defined benefit obligations are assessed using the projected unit credit method. The most significant assumption is the discount rate. The amount recorded in the Consolidated Income Statement in respect of these plans is included within Income / (loss) from operations except for net interest costs, which are included in Finance costs - net. The effects of changes in actuarial assumptions and experience adjustments are presented in the Consolidated Statement of Comprehensive Income. 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 are recognized immediately in the Consolidated Income Statement. |
Share capital | Share capital Ordinary shares are classified as equity. 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. |
Share-based payment arrangements | Share-based payment arrangements Equity-settled share-based payments to employees and Board members 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 period, the Group revises its estimate of the number of equity instruments expected to vest. |
Judgments in applying accounting policies and key sources of estimation uncertainty | Judgments in applying accounting policies and key sources of estimation uncertainty The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. These judgments, estimates and assumptions 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. The Group continuously reviews its significant assumptions and estimates in light of the uncertainty associated with the global geopolitical and macroeconomic conditions, including the ongoing armed conflict in Ukraine and the COVID-19 pandemic and their potential direct and indirect impacts on its business and its financial statements, as detailed in NOTE 4 - Operating Segment Information, NOTE 15 - Property, Plant and Equipment, NOTE 20 - Borrowings, NOTE 22 - Financial Risk Management, NOTE 24 - Provisions and NOTE 27 - COVID-19-related Government assistance. However, there remains significant uncertainty with respect to the duration and severity of these crises and their potential impacts on the global economy and our business, and there can be no guarantee that our assumptions will materialize or that actual results will not differ materially from estimates. 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. The Group assesses where climate risks could have a significant impact, such as the introduction of emission-reduction legislation that may increase manufacturing costs. The Group constantly monitors the latest government legislation in relation to climate-related matters. At the current time, no legislation has been passed that will impact the Group. The Group will adjust the assumptions used in value-in-use calculations and sensitivity to changes in assumptions should a change be required. 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 made and judgments applied are set out in NOTE 15 - Property, Plant and Equipment and in NOTE 16 - Intangible Assets and Goodwill. 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. Significant judgment is also 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. Details of the key assumptions made and judgments applied are set out in NOTE 17 - Deferred Income Taxes. Provisions Provisions have been recorded for: (i) close down and restoration costs; (ii) environmental remediation and monitoring costs; (iii) restructuring plans; (iv) legal and other potential claims including provisions for tax risks other than income tax, product warranty and guarantees. These provisions are recorded 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 Consolidated Income Statement in the year in which the revision is made. Details of the key assumptions made and judgments applied are described in NOTE 24 - Provisions. 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, and the criteria considered to determine when a plan amendment has occurred. Any material changes in these assumptions could result in a significant change in Pensions and other post-employment benefit obligations and in employee benefit expenses recognized in the Consolidated Income Statement or actuarial gains and losses recognized in OCI. Details of the key assumptions made and judgments applied are set out in NOTE 23 - Pensions and Other Post-Employment Benefit Obligations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of summary of significant accounting policies [abstract] | |
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: Average rates Closing rates Foreign exchange rate for 1 Euro Year ended December 31, At December 31, 2022 2021 2020 2022 2021 2020 U.S. Dollars USD 1.0507 1.1821 1.1405 1.0666 1.1326 1.2271 Swiss Francs CHF 1.0038 1.0808 1.0704 0.9847 1.0331 1.0802 Czech Koruna CZK 24.5633 25.6366 26.4337 24.1160 24.8580 26.2420 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
Schedule of Disaggregation Revenue | Year ended December 31, (in millions of Euros) 2022 2021 2020 Packaging rolled products 3,326 2,673 1,960 Automotive rolled products 1,154 854 663 Specialty and other thin-rolled products 175 161 102 Aerospace rolled products 728 389 560 Transportation, industry, defense and other rolled products 916 713 442 Automotive extruded products 949 735 665 Other extruded products 872 627 491 Total Revenue by product line 8,120 6,152 4,883 Year ended December 31, (in millions of Euros) 2022 2021 2020 Germany 2,036 1,481 1,014 France 691 466 362 United Kingdom 221 179 192 Switzerland 87 63 52 Spain 302 252 185 Czech Republic 237 172 119 Other Europe 1,110 809 619 Total Europe 4,684 3,422 2,543 United States 2,823 2,335 1,941 Asia and Other Pacific 252 171 211 All Other 361 224 188 Total Revenue by destination of shipment 8,120 6,152 4,883 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Schedule of Segment Revenue | Year ended December 31, 2022 2021 2020 (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 4,664 (9) 4,655 3,698 (10) 3,688 2,734 (9) 2,725 A&T 1,700 (55) 1,645 1,142 (40) 1,102 1,025 (23) 1,002 AS&I 1,861 (41) 1,820 1,383 (21) 1,362 1,167 (11) 1,156 Total 8,225 (105) 8,120 6,223 (71) 6,152 4,926 (43) 4,883 |
Schedule of Segment Capital Expenditures | Year ended December 31, (in millions of Euros) 2022 2021 2020 P&ARP (127) (94) (73) A&T (78) (70) (45) AS&I (62) (62) (61) H&C (6) (6) (3) Capital expenditures (273) (232) (182) |
Schedule of Segment Assets | At December 31, (in millions of Euros) 2022 2021 P&ARP 2,187 2,108 A&T 1,081 948 AS&I 727 738 H&C 456 451 Segment assets 4,451 4,245 Deferred income tax assets 271 162 Cash and cash equivalents 166 147 Other financial assets 39 70 Assets of disposal group classified as held for sale 14 — Total Assets 4,941 4,624 |
INFORMATION BY GEOGRAPHIC AREA
INFORMATION BY GEOGRAPHIC AREA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: At December 31, (in millions of Euros) 2022 2021 United States 832 811 France 699 653 Germany 269 266 Czech Republic 97 99 Other 120 119 Total 2,017 1,948 |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of attribution of expenses by nature to their function [abstract] | |
Schedule of Total Operating Expenses by Nature | Year ended December 31, (in millions of Euros) 2022 2021 2020 Raw materials and consumables used (5,545) (3,885) (2,832) Employee benefit expenses (1,110) (967) (902) Energy costs (274) (149) (141) Sub-contractors (125) (102) (89) Freight out costs (163) (143) (122) Professional fees (81) (63) (73) Lease expenses (15) (12) (11) Depreciation and amortization (287) (267) (259) Other operating expenses (178) (197) (240) Other gains and losses - net (8) 117 (89) Total operating expenses (7,786) (5,668) (4,758) |
EMPLOYEE BENEFIT EXPENSES (Tabl
EMPLOYEE BENEFIT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of employee benefits expense [abstract] | |
Schedule of Total Employee Benefit Expenses | Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Wages and salaries (1,067) (920) (855) Pension costs - defined benefit plans 23 (22) (24) (23) Other post-employment benefits 23 (3) (8) (9) Share-based compensation 30 (18) (15) (15) Total employee benefit expenses (1,110) (967) (902) |
OTHER GAINS AND LOSSES_NET (Tab
OTHER GAINS AND LOSSES—NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of Other Gains and Losses—Net | Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Realized (losses) / gains on derivatives (A) (6) 113 (35) Losses reclassified from OCI as a result of hedge accounting discontinuation (B) — — (6) Unrealized (losses) / gains on derivatives at fair value through profit and loss - net (A) (47) 39 16 Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net (1) 1 1 Impairment of assets (C) 15, 16 — — (43) Restructuring costs (D) 24 (1) (3) (13) Gains / (losses) on pension plan amendments (E) 23 47 (32) (2) Losses on disposal (4) (3) (4) Other 4 2 (3) Total other gains and losses - net (8) 117 (89) (A) Realized and unrealized gains and losses are related to derivatives entered into with the purpose of mitigating exposure to volatility in foreign currencies and commodity prices and that do not qualify for hedge accounting. (B) In the year ended December 31, 2020, we determined that a portion of the hedged forecasted sales for 2020 and 2021, to which hedge accounting was applied, were no longer expected to occur. As a result, the fair value of the related derivatives accumulated in equity was reclassified in the Consolidated Income Statement and resulted in a €6 million loss. (C) In the year ended December 31, 2020, an impairment charge of €43 million was recognized for certain A&T cash-generating units due to the downturn in the aerospace industry resulting from the COVID-19 pandemic and for certain AS&I cash-generating units as a result of the review of their long-term business perspectives. (D) For the years ended December 31, 2021 and 2020, restructuring costs amounted to €3 million and €13 million, respectively, and related to headcount reductions in Europe and in the U.S. (E) In the year ended December 31, 2022 the group recognized a net gain of €47 million from past service cost as a result from a new 3-year collective bargaining agreement between Constellium Rolled Products Ravenswood and the United Steelworkers Local Union 5668 entered in October 2022. The agreement resulted in changes in OPEB and pension benefits that were accounted for as a plan amendment in the year ended December 31, 2022 (see Note 23.6 Ravenswood plan amendment). |
CURRENCY GAINS _ (LOSSES) (Tabl
CURRENCY GAINS / (LOSSES) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of Currency Gains and Losses Included in Income from Operations | Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Included in Revenue 22 (8) (4) (6) Included in Cost of sales 2 1 (2) Included in Other gains and losses - net 5 16 (19) Total (1) 13 (27) Realized exchange losses on foreign currency derivatives - net 22 (8) (1) (11) Losses reclassified from OCI as a result of hedge accounting discontinuation 22 — — (6) Unrealized gains / (losses) on foreign currency derivatives - net 22 6 13 (8) Exchange gains / (losses) from the remeasurement of monetary assets and liabilities - net 1 1 (2) Total (1) 13 (27) |
Schedule of Foreign Currency Translation Reserve | At December 31, (in millions of Euros) 2022 2021 Foreign currency translation reserve at January 1, 19 (13) Effect of currency translation differences 22 32 Foreign currency translation reserve at December 31, 41 19 |
FINANCE COSTS_NET (Tables)
FINANCE COSTS—NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of Finance Costs—Net | Year ended December 31, (in millions of Euros) 2022 2021 2020 Interest expense on borrowings (A) (91) (103) (122) Interest expense on leases (10) (14) (10) Interest cost on pension and other benefits (11) (9) (11) Expenses on factoring arrangements (15) (9) (10) Net loss on settlement of debt (B) — (27) — Realized and unrealized gains / (losses) on debt derivatives at fair value (C) 1 10 (32) Realized and unrealized exchange (losses) / gains on financing activities - net (C) (1) (10) 37 Other finance expenses (5) (6) (12) Capitalized borrowing costs (D) 1 1 1 Finance expenses (131) (167) (159) Finance costs - net (131) (167) (159) (A) For the year ended December 31, 2022, interest expense on borrowings included €79 million of interest and €4 million of amortization of arrangement fees related to Constellium SE Senior Notes. For the year ended December 31, 2021, it included €92 million of interest and €4 million of amortization of arrangement fees related to Constellium SE Senior Notes. (B) In Feb ruary 2021, Constellium SE tendered and redeemed its $650 million 6.625% Senior Notes due 2025. The net loss on the settlement of debt included redemption fees of €9 million and the write-off of the outstanding deferred arrangement fees at the date of redemption of €8 million. In June 2021, Constellium SE redeemed its $400 million 5.750% Senior Notes due 2024. The net loss on the settlement of debt included redemption fees of €3 million and the write-off of the outstanding deferred arrangement fees at the date of redemption of €3 million. In November 2021, Constellium SE redeemed $200 million of the $500 million outstanding aggregate principal amount of the 5.875% Senior Notes due 2026. The net loss on the settlement of debt included redemption fees of €3 million and the write-off of the deferred arrangement fees attributable to the portion redeemed at the date of redemption of €1 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. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of Current and Deferred Components of Income Tax | Year ended December 31, (in millions of Euros) 2022 2021 2020 Current tax expense (22) (26) (14) Deferred tax benefit / (expense) 127 (29) 31 Income tax benefit / (expense) 105 (55) 17 |
Schedule of Income Tax Reconciliation Using Composite Statutory Income Tax Rate Applicable by Tax Jurisdiction | The Group’s effective tax rate reconciliation is as follows: Year ended December 31, (in millions of Euros) 2022 2021 2020 Income / (loss) before tax 203 317 (34) Statutory tax rate applicable to the parent company 25.8% 28.4% 32.0% Income tax (expense) / benefit calculated at statutory tax rate (52) (90) 11 Effect of foreign tax rate (A) 3 15 2 Changes in recognized and unrecognized deferred tax assets (B) 154 24 15 Other — (4) (11) Income tax benefit / (expense) 105 (55) 17 Effective income tax rate (52)% 17% 49% (A) For the years ended December 31, 2022, 2021 and 2020, the Effect of foreign tax rate resulted from the geographical mix of our pre-tax results. |
TRADE RECEIVABLES AND OTHER (Ta
TRADE RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Schedule of Trade Receivables and Other | At December 31, 2022 2021 (in millions of Euros) Non-current Current Non-current Current Trade receivables - gross — 467 — 607 Impairment — (2) — (4) Total trade receivables - net — 465 — 603 Income tax receivables 14 16 24 20 Other tax receivables — 38 — 40 Contract assets 15 2 19 2 Prepaid expenses 1 8 1 9 Other 13 10 11 9 Total other receivables 43 74 55 80 Total trade receivables and other 43 539 55 683 |
Schedule of Aging of Total Trade Receivables—Net | At December 31, (in millions of Euros) 2022 2021 Not past due 453 596 1 – 30 days past due 10 6 31 – 60 days past due 2 1 Total trade receivables - net 465 603 |
Schedule of Currency Concentration of Total Trade Receivables | At December 31, (in millions of Euros) 2022 2021 Euro 225 277 U.S. Dollar 213 305 Swiss franc 8 4 Other currencies 19 17 Total trade receivables - net 465 603 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Inventories | At December 31, (in millions of Euros) 2022 2021 Finished goods 315 225 Work in progress 638 551 Raw materials 308 226 Stores and supplies 112 95 Inventories write down (53) (47) Total inventories 1,320 1,050 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | (in millions of Euros) Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at January 1, 2022 21 374 1,411 127 15 1,948 Additions — 14 90 188 5 297 Disposals — — (4) — (1) (5) Depreciation expense (1) (32) (230) (2) (12) (277) Transfer and other changes 2 18 76 (103) 7 — Effect of changes in foreign exchange rates 1 7 44 1 1 54 Net balance at December 31, 2022 23 381 1,387 211 15 2,017 Cost 42 637 2,957 224 63 3,923 Less accumulated depreciation and impairment (19) (256) (1,570) (13) (48) (1,906) Net balance at December 31, 2022 23 381 1,387 211 15 2,017 (in millions of Euros) Land and Property Rights Buildings Machinery and Equipment Construction Work in Progress Other Total Net balance at January 1, 2021 20 379 1,361 132 14 1,906 Additions — 6 52 169 6 233 Disposals — (1) (2) — (1) (4) Depreciation expense (1) (27) (210) (3) (12) (253) Transfer and other changes 1 5 153 (174) 8 (7) Effect of changes in foreign exchange rates 1 12 57 3 — 73 Net balance at December 31, 2021 21 374 1,411 127 15 1,948 Cost 38 590 2,750 142 57 3,577 Less accumulated depreciation and impairment (17) (216) (1,339) (15) (42) (1,629) Net balance at December 31, 2021 21 374 1,411 127 15 1,948 |
Schedule of Right of Use Assets | Right-of-use assets have been included in the same line item as that in which a corresponding owned asset would be presented. (in millions of Euros) Buildings Machinery and Equipment Other Total Net balance at January 1, 2022 108 65 1 174 Additions 11 7 — 18 Disposals — (1) — (1) Depreciation expense (12) (20) (1) (33) Effect of changes in foreign exchange rates — 3 — 3 Net balance at December 31, 2022 107 54 — 161 Cost 161 146 1 308 Less accumulated depreciation and impairment (54) (92) (1) (147) Net balance at December 31, 2022 107 54 — 161 (in millions of Euros) Buildings Machinery and Equipment Other Total Net balance at January 1, 2021 112 72 2 186 Additions 5 7 — 12 Depreciation expense (11) (16) (1) (28) Transfer and other changes — (1) — (1) Effect of changes in foreign exchange rates 2 3 — 5 Net balance at December 31, 2021 108 65 1 174 Cost 150 144 3 297 Less accumulated depreciation and impairment (42) (79) (2) (123) Net balance at December 31, 2021 108 65 1 174 |
Schedule of Depreciation Expense and Impairment Losses Relating to Property, Plant and Equipment | Total depreciation expense relating to property, plant and equipment and intangible assets are presented in the Consolidated Income Statement as follows: Year ended December 31, (in millions of Euros) 2022 2021 2020 Cost of sales (270) (245) (240) Selling and administrative expenses (12) (17) (14) Research and development expenses (5) (5) (5) Total depreciation expense (287) (267) (259) |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill [abstract] | |
Schedule of Changes in Intangible Assets and Goodwill | (in millions of Euros) Technology Computer Software Customer relationships Work in Progress Other Total Intangible Assets Goodwill Net balance at January 1, 2022 18 21 13 2 4 58 451 Additions — — — 3 — 3 — Amortization expense (2) (7) (1) — — (10) — Transfer — 2 — (2) — — — Effect of changes in foreign exchange rates 2 — 1 — — 3 27 Net balance at December 31, 2022 18 16 13 3 4 54 478 Cost 92 94 42 4 4 236 478 Less accumulated depreciation and impairment (74) (78) (29) (1) — (182) — Net balance at December 31, 2022 18 16 13 3 4 54 478 (in millions of Euros) Technology Computer Software Customer relationships Work in Progress Other Total Intangible Assets Goodwill Net balance at January 1, 2021 18 15 13 13 2 61 417 Additions — — — 4 — 4 — Amortization expense (1) (12) (1) — — (14) — Transfer — 17 — (15) 2 4 — Effect of changes in foreign exchange rates 1 1 1 — — 3 34 Net balance at December 31, 2021 18 21 13 2 4 58 451 Cost 86 91 40 3 4 224 451 Less accumulated depreciation and impairment (68) (70) (27) (1) — (166) — Net balance at December 31, 2021 18 21 13 2 4 58 451 |
DEFERRED INCOME TAXES (Tables)
DEFERRED INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule or Net Deferred Income Tax Assets | At December 31, (in millions of Euros) 2022 2021 Deferred income tax assets 271 162 Deferred income tax liabilities (28) (14) Net deferred income tax assets 243 148 |
Schedule of Significant Changes in Net Deferred Income Tax Assets / (Liabilities) | At January 1, 2022 Reclassified as held for sale Recognized in FX At December 31, 2022 (in millions of Euros) Profit or loss OCI Long-term assets (124) (2) 31 — (7) (102) Inventories 3 — (4) — (1) (2) Pensions 119 — (10) (35) 4 78 Derivative valuation (6) — 8 2 — 4 Tax losses carried forward 117 — 67 — 6 190 Other (A) 39 — 35 — 1 75 Net deferred income tax assets 148 (2) 127 (33) 3 243 (A) At December 31, 2022, Other primarily related to temporary differences arising from provisions and interest expense which will become tax-deductible in future periods. At January 1, 2021 Recognized in FX At December 31, (in millions of Euros) Profit or loss OCI Long-term assets (106) (10) — (8) (124) Inventories 5 (2) — — 3 Pensions 126 5 (17) 5 119 Derivative valuation (5) (5) 4 — (6) Tax losses carried forward 116 (7) — 8 117 Other (A) 47 (10) — 2 39 Net deferred income tax assets 183 (29) (13) 7 148 (A) At December 31, 2021, Other primarily related to temporary differences arising from provisions and interest expense which will become tax-deductible in future periods. |
Schedule of Unrecognized Deferred Tax Assets | The related tax impact of €48 million and €191 million at December 31, 2022 and 2021, respectively, was attributable to the following: At December 31, (in millions of Euros) 2022 2021 Expiring within 5 years (5) (3) Expiring after 5 years and limited (5) (55) Unlimited (21) (27) Tax losses (31) (85) Long-term assets (2) (65) Pensions (3) (7) Other (12) (34) Deductible temporary differences (17) (106) Total (48) (191) |
DISPOSAL GROUP CLASSIFIED AS _2
DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-Current Assets Held For Sale And Discontinued Operations [Abstract] | |
Disclosure of analysis of single amount of discontinued operations | At December 31, (in millions of Euros) 2022 Assets of disposal group classified as held for sale Cash and cash equivalents 1 Trade receivables and other 6 Inventories 5 Deferred tax assets 2 Total assets of disposal group classified as held for sale 14 Liabilities of disposal group classified as held for sale Trade payables and other 8 Pensions and other post-employment benefit obligations 2 Total liabilities of disposal group classified as held for sale 10 |
TRADE PAYABLES AND OTHER (Table
TRADE PAYABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other payables [abstract] | |
Schedule of Trade Payables and Other | At December 31, 2022 2021 (in millions of Euros) Non-current Current Non-current Current Trade payables — 1,155 — 1,065 Fixed assets payables — 36 — 22 Employees' entitlements — 195 — 185 Taxes payable other than income tax — 17 — 16 Contract liabilities and other liabilities to customers 20 55 4 77 Other payables 23 9 28 12 Total other 43 312 32 312 Total trade payables and other 43 1,467 32 1,377 |
Schedule of Contract Liabilities and Other Liabilities to Customers | At December 31, 2022 2021 (in millions of Euros) Non-current Current Non-current Current Deferred tooling revenue 19 — 3 — Advance payment from customers — 6 — 7 Unrecognized variable consideration (A) 1 49 1 67 Other — — — 3 Total contract liabilities and other liabilities to customers 20 55 4 77 (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, 2022 | |
Borrowings [abstract] | |
Schedule of Borrowings by Nature | At December 31, 2022 2021 (in millions of Euros) Nominal Value in Currency Nominal rate Nominal Value in Euros (Arrange-ment fees) Accrued interests Carrying value Carrying Secured Pan-U.S. ABL $ 85 Floating 80 — 1 81 — Secured PGE French Facility € 180 Floating — — — — 180 Senior Unsecured Notes (C) Issued November 2017 and due 2026 $ 300 5.875 % 281 (2) 6 285 268 Issued November 2017 and due 2026 € 400 4.250 % 400 (3) 6 403 402 Issued June 2020 and due 2028 $ 325 5.625 % 305 (5) 1 301 284 Issued February 2021 and due 2029 (D) $ 500 3.750 % 469 (6) 4 467 438 Issued June 2021 and due 2029 (D) € 300 3.125 % 300 (4) 4 300 300 Unsecured Swiss Facility CHF 15 1.175 % — — — — 14 Lease liabilities 167 — 1 168 183 Other loans (E) 51 — — 51 60 Total Borrowings 2,053 (20) 23 2,056 2,129 Of which non-current 1,908 1,871 Of which current 148 258 (A) In June 2022, the Pan-U.S. ABL was amended to, among other things, increase the commitment to $500 million, provide an incremental revolving credit facility accordion of up to $100 million, and replace the LIBOR reference rate by the SOFR reference rate. (B) The initial maturity date of the PGE was May 2021 with an option for Constellium to extend for up to 5 years. In May 2021, the maturity date was extended to May 2022. In May 2022, the PGE was repaid accordingly. (C) The Senior Unsecured Notes were issued by Constellium SE and are guaranteed by certain subsidiaries. (D) For the $500 million Sustainability-Linked Senior Notes issued in February 2021 and the €300 million Sustainability-Linked Senior Notes issued in June 2021, Constellium has established two sustainability performance targets (greenhouse gas emissions intensity and recycled metal input). If Constellium does not satisfy the first target for the year ended December 31, 2025, the interest rates for both Notes will be increased by 0.125% starting April 15, 2026 and July 15, 2026 respectively. If Constellium does not satisfy the second target for the year ended December 31, 2026, the interest rates will be increased by 0.125% starting April 15, 2027 and July 15, 2027, respectively (in addition to any increase arising from failure to meet the first target). At December 31, 2022, the Group expects to satisfy these targets. |
Schedule of Movement in Borrowings | (in millions of Euros) 2022 2021 At January 1, 2,129 2,391 Cash flows Proceeds from issuance of long-term borrowings (A) — 712 Repayments of long-term borrowings (B) (192) (1,052) Net change in revolving credit facilities and short-term borrowings (C) 72 (5) Lease repayments (37) (32) Payment of deferred financing costs — (13) Non-cash changes Movement in accrued interest (1) (11) Changes in leases and other loans 18 18 Deferred arrangement fees 3 16 Effects of changes in foreign exchange rates 64 105 At December 31, 2,056 2,129 (A) In February 2021, Constellium SE issued $500 million 3.750% Sustainability-Linked Senior Notes (€412 million converted at the issuance date exchange rate). In June 2021, Constellium SE issued €300 million 3.125% Sustainability-Linked Senior Notes. (B) For the twelve months ended December 31, 2022, repayments of long-term borrowings included the repayment of the PGE. In February 2021, Constellium SE tendered and redeemed the $650 million 6.625% Senior Notes due 2025 (€536 million converted at the redemption date exchange rate). In June 2021, Constellium SE redeemed the $400 million 5.750% Senior Notes due 2024 (€328 million converted at the redemption date exchange rate). In November 2021, Constellium SE partially redeemed $200 million ( €177 million converted at the repayment date exchange rate) of the $500 million outstanding aggregate principal amount of the 5.875% Senior Notes due 2026. (C) For the twelve months ended December 31, 2022, the net change in revolving credit facilities and short-term borrowings included the net proceeds from the Pan-U.S. ABL and the repayment of the Swiss facility. |
Schedule of Currency Concentration of Total Borrowings | At December 31, (in millions of Euros) 2022 2021 U.S. Dollar 1,188 1,055 Euro 861 1,048 Other currencies 7 26 Total borrowings 2,056 2,129 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Financial Assets and Liabilities by Categories | At December 31, 2022 2021 (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 12 166 — — 166 147 — — 147 Trade receivables 13 — — 465 465 — — 603 603 Other financial assets — 37 2 39 — 70 — 70 Total 166 37 467 670 147 70 603 820 At December 31, 2022 2021 (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 asset payables 19 1,191 — — 1,191 1,087 — — 1,087 Borrowings 20 2,056 — — 2,056 2,129 — — 2,129 Other financial liabilities — 40 15 55 — 26 5 31 Total 3,247 40 15 3,302 3,216 26 5 3,247 |
Schedule of Other Financial Assets and Other Financial Liabilities Positions | At December 31, 2022 2021 (in millions of Euros) Non-current Current Total Non-current Current Total Aluminium and premium derivatives 2 7 9 9 38 47 Energy derivatives 3 2 5 1 1 2 Other commodity derivatives — 2 2 — 4 4 Currency commercial derivatives 3 20 23 2 14 16 Currency net debt derivatives — — — — 1 1 Other financial assets - derivatives 8 31 39 12 58 70 Aluminium and premium derivatives — 19 19 — 14 14 Energy derivatives 3 7 10 — — — Other commodity derivatives — 1 1 — — — Currency commercial derivatives 11 14 25 6 11 17 Other financial liabilities - derivatives 14 41 55 6 25 31 In the year ended December 31, 2021, forward purchases of $565 million versus the Euro using cross currency basis swaps were not renewed when they reached their maturity or were bought out before their initial maturity in connection with the refinancing of the Senior Notes. This transaction generated a cash outflow of €32 million which is presented in Other financing activities within the Consolidated Statement of Cash Flows in the year ended December 31, 2021. |
Schedule of Derivatives Measured at Fair Value | At December 31, 2022 2021 (in millions of Euros) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Other financial assets - derivatives 6 33 — 39 41 29 — 70 Other financial liabilities - derivatives 17 38 — 55 13 18 — 31 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 | The table below details the effect of foreign currency derivatives in the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income: Year ended December 31, (in millions of Euros) Notes 2022 2021 2020 Derivatives that do not qualify for hedge accounting Included in Other gains and losses - net Realized gains / (losses) on foreign currency derivatives - net 9 — 1 (4) Unrealized gains / (losses) on foreign currency derivatives - net (A) 9 6 15 (9) Derivatives that qualify for hedge accounting Included in Other comprehensive income Unrealized (losses) / gains on foreign currency derivatives - net (16) (21) 20 Gains reclassified from cash flow hedge reserve to the Consolidated Income Statement 8 4 6 Included in Revenue (B) Realized losses on foreign currency derivatives - net 9 (8) (2) (7) Unrealized (losses) / gains on foreign currency derivatives - net 9 — (2) 1 Derivatives discontinued from hedge accounting Included in Other gains and losses - net Losses reclassified from OCI as a result of hedge accounting discontinuation (C) 9 — — (6) (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. (B) Changes in fair value of derivatives that qualify for hedge accounting are included in Revenue when the related customer invoices are issued. (C) In the year ended December 31, 2020, we determined that a portion of the hedged forecasted sales for 2020 and 2021, to which hedge accounting was applied, was no longer expected to occur. As a result, the fair value of the related derivatives accumulated in equity was reclassified in the Consolidated Income Statement and resulted a €6 million loss. |
Schedule of Exposure to Financial Counterparties by Rating Type | The number of financial counterparties tabulated below shows our exposure to the counterparty by rating type (Parent company ratings from Moody’s Investor Services): At December 31, 2022 2021 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 51 3 54 Rated A 6 112 13 98 Rated Baa 1 3 3 33 Total 9 166 19 185 (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, 2022 and 2021, respectively, to the contractual maturity date. At December 31, 2022 2021 (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 cash flows from derivative assets related to currencies and commodities 31 9 — 60 12 — Trade receivables 465 — — 603 — — Total 496 9 — 663 12 — At December 31, 2022 2021 (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 5 698 1,087 195 710 1,046 Leases 35 98 86 37 99 85 Interest (A) 78 260 54 79 285 96 Net cash flows from derivative liabilities related to currencies and commodities 42 19 — 26 12 — Trade payables and fixed asset payables 19 1,191 — — 1,087 — — Total 1,351 1,075 1,227 1,424 1,106 1,227 (A) Interest disclosed is an undiscounted forecasted interest amount that 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 forward derivatives for Constellium’s most significant foreign exchange exposures at December 31, 2022. Sold currencies Maturity Year Less than 1 year Over 1 year USD 2023-2025 409 186 CHF 2023-2026 82 29 CZK 2023 3 — Other currencies 2023 10 — Purchased currencies Maturity Year Less than 1 year Over 1 year USD 2023-2026 109 25 CHF 2023-2025 134 16 CZK 2023-2024 78 20 Other currencies 2023 1 — |
Schedule of Effect of Foreign Currency Derivatives Impacts in Consolidated Income Statement | Year ended December 31, (in millions of Euros) 2022 2021 2020 Derivatives Included in Finance costs - net Realized gains / (losses) on foreign currency derivatives - net 2 (36) 7 Unrealized (losses) / gains on foreign currency derivatives - net (1) 46 (39) Total 1 10 (32) |
Commodity price risk | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of Nominal Value of Derivatives | At December 31, 2022, the nominal amount of commodity derivatives is as follows: (in millions of Euros) Maturity Less than 1 year Over 1 year Aluminium 2023-2024 290 5 Premium 2023-2025 18 5 Copper 2023 12 — Silver 2023-2024 18 — Natural gas 2023-2026 31 29 Zinc 2023 8 — |
Schedule of Effect of Foreign Currency Derivatives Impacts in Consolidated Income Statement | Year ended December 31, (in millions of Euros) 2022 2021 2020 Derivatives Included in Other gains and losses - net Realized (losses) / gains on commodity derivatives - net (6) 112 (31) Unrealized (losses) / gains on commodity derivatives - net (53) 24 25 |
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 table below summarizes the impact on income 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 income before tax Effect on pretax equity Trade receivables 3 — Trade payables (1) — Derivatives on commercial transactions (A) (25) (24) Net commercial transaction exposure (23) (24) Cash in Bank and intercompany loans 105 — Borrowings (117) — Derivatives on financing transactions 12 — Net financing transaction exposure — — Total (23) (24) (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 of €24 million relates to derivatives hedging the future sales spread from 2023 to 2025 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 income and equity (before tax effect) of a 10% strengthening of the U.S. Dollar versus the Euro (on average rate for income before tax and closing rate for pretax equity) for U.S. Dollar functional currency entities. (in millions of Euros) Effect on income before tax Effect on pretax equity 10% strengthening U.S. Dollar/Euro 23 182 |
PENSIONS AND OTHER POST-EMPLO_2
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of defined benefit plans [line items] | |
Schedule of Sensitivity Analysis and Actuarial Assumptions | At December 31, 2022 2021 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 1.75% — 2.05% 1.50% — 0.15% U.S. Hourly pension 3.00% — 5.00% - 5.05% 2.20% — 2.80% - 2.95% Salaried pension —% — 5.05% —% — 2.85% OPEB (A) 4.00% — 5.00% - 5.05% 3.80% — 2.85% - 2.95% Other benefits 3.80% — 4.95% - 5.00% 3.80% — 2.60% - 2.85% France 2.20% 2.00% 1.80% - 3.80% 2.00% Retirements — — 3.80% — — 1.00% Other benefits — — 3.80% — — 0.90% Germany 2.50% 2.00% 3.75% 2.50% 1.80% 1.05% (A) The other main financial assumptions used for the OPEB healthcare plans, which are predominantly in the U.S. were: • Medical trend rate: i) pre-65: 6.75% starting in 2022 decreasing gradually to 4.50% in 2031 and stable onwards and ii) post-65: 6.00% starting in 2022 decreasing gradually to 4.50% in 2031 and stable onwards, • Claims costs based on Company experience. |
Schedule of Amounts Recognized in the Consolidated Statement of Financial Position | At December 31, 2022 2021 (in millions of Euros) Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Present value of funded obligation 614 — 614 766 — 766 Fair value of plan assets (461) — (461) (544) — (544) Deficit of funded plans 153 — 153 222 — 222 Present value of unfunded obligation 96 154 250 128 249 377 Net liability / (asset) arising from defined benefit obligation 249 154 403 350 249 599 |
Schedule of Movement in Net Defined Benefit Obligations | Year ended December 31, 2022 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2022 894 249 1,143 (544) 599 Included in the Consolidated Income Statement Current service cost 20 8 28 — 28 Interest cost / (income) 13 7 20 (9) 11 Past service cost 2 (49) (47) — (47) Immediate recognition of gains arising over the year — (5) (5) — (5) Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income Remeasurements due to: —actual return less interest on plan assets — — — 107 107 —changes in financial assumptions (211) (43) (254) — (254) —changes in demographic assumptions — (1) (1) — (1) —experience losses (3) (9) (12) — (12) Effects of changes in foreign exchange rates 34 16 50 (30) 20 Included in the Consolidated Statement of Cash Flows Benefits paid (42) (21) (63) 57 (6) Contributions by the Group — — — (38) (38) Contributions by the plan participants 4 2 6 (6) — Reclassification as liabilities of disposal group classified as held for sale (1) — (1) — (1) At December 31, 2022 710 154 864 (461) 403 Year ended December 31, 2021 Defined benefit obligations Plan Assets Net defined benefit liability (in millions of Euros) Pension benefits Other benefits Total At January 1, 2021 906 216 1,122 (458) 664 Included the Consolidated Income Statement Current service cost 22 8 30 — 30 Interest cost / (income) 10 5 15 (6) 9 Past service cost 1 31 32 — 32 Immediate recognition of gains arising over the year — — — — — Administration expenses — — — 2 2 Included in the Statement of Comprehensive Income Remeasurements due to: —actual return less interest on plan assets — — — (56) (56) —changes in financial assumptions (29) (9) (38) — (38) —changes in demographic assumptions (13) — (13) — (13) —experience losses (9) (2) (11) — (11) Effects of changes in foreign exchange rates 38 17 55 (32) 23 Included in the Consolidated Statement of Cash Flows Benefits paid (36) (18) (54) 32 (22) Contributions by the Group — — — (21) (21) Contributions by the plan participants 4 1 5 (5) — At December 31, 2021 894 249 1,143 (544) 599 |
Schedule of Net Defined Benefit Obligations by Country | At December 31, 2022 2021 (in millions of Euros) Defined benefit obligations Plan assets Net defined benefit liability Defined benefit obligations Plan assets Net defined benefit liability France 117 (6) 111 158 (5) 153 Germany 100 (1) 99 134 (2) 132 Switzerland 249 (236) 13 306 (268) 38 United States 398 (218) 180 545 (269) 276 Total 864 (461) 403 1,143 (544) 599 |
Schedule of Plan Asset Categories | At December 31, 2022 2021 (in millions of Euros) Quoted in an active market Not quoted in an active market Total Quoted in an active market Not quoted in an active market Total Cash & cash equivalents 4 — 4 4 — 4 Equities 87 36 123 115 61 176 Bonds 146 80 226 149 110 259 Property 14 60 74 16 55 71 Other — 34 34 — 34 34 Total fair value of plan assets 251 210 461 284 260 544 |
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, 2023 56 2024 56 2025 57 2026 57 2027 60 2028 to 2032 328 |
Actuarial assumption of discount rates | |
Disclosure of defined benefit plans [line items] | |
Schedule of Sensitivity Analysis and Actuarial Assumptions | At December 31, 2022, impacts of the change on the defined benefit obligation of a 50 basis points increase / decrease in the discount rates are calculated by using a proxy based on the duration of each scheme: (in millions of Euros) 50 bp increase in 50 bp decrease in France (6) 7 Germany (5) 5 Switzerland (16) 17 United States (19) 23 Total sensitivity on Defined Benefit Obligations (46) 52 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other provisions [abstract] | |
Schedule of Changes in Provisions | (in millions of Euros) Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2022 88 2 27 117 Allowance 3 — 3 6 Amounts used (3) (2) (2) (7) Unused amounts reversed — — (4) (4) Unwinding of discounts and change in discount rates (5) — — (5) Effects of changes in foreign exchange rates 3 — 1 4 At December 31, 2022 86 — 25 111 Of which current 12 — 9 21 Of which non-current 74 — 16 90 Total provisions 86 — 25 111 (in millions of Euros) Close down and environmental remediation costs Restructuring Legal claims Total At January 1, 2021 88 6 27 121 Allowance 4 3 4 11 Amounts used (1) (6) (2) (9) Unused amounts reversed (2) (1) (6) (9) Unwinding of discounts and change in discount rates (1) — — (1) Effects of changes in foreign exchange rates 4 — — 4 Transfer (4) — 4 — At December 31, 2021 88 2 27 117 Current 7 1 12 20 Non-Current 81 1 15 97 Total Provisions 88 2 27 117 |
Schedule of Legal Claims and Other Costs | At December 31, (in millions of Euros) 2022 2021 Litigation 15 16 Disease claims (A) 10 9 Other — 2 Total provisions for legal claims and other costs 25 27 (A) 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 developing 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, 2022, six cases in which gross negligence is alleged (“faute inexcusable”) are outstanding (five at December 31, 2021), the average amount per claim being around €0.4 million. The average settlement amount per claim over the past five years was less than €0.5 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, 2022 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | |
Schedule of Share Capital | (in millions of Euros) Number of shares Share capital Share premium At January 1, 2022 141,677,366 3 420 New shares issued (A) 2,624,226 — — At December 31, 2022 144,301,592 3 420 (A) In the year ended December 31, 2022, Constellium SE issued and delivered 2,624,226 ordinary shares to certain employees and directors related to share-based compensation plans. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosures of commitments [Abstract] | |
Schedule of Non-cancellable Lease Commitments Not Capitalized | Non-cancellable lease commitments relating to the future aggregate minimum lease payments under non-cancellable leases still recognized as expense are presented below: At December 31, (in millions of Euros) 2022 2021 Less than 1 year 3 3 1 to 5 years 9 3 More than 5 years — 2 Total non-cancellable minimum lease payments 12 8 |
Schedule of Tangible and Intangible Assets Commitments | Contractual commitments for the acquisition of Property, Plant and Equipment are presented below: At December 31, (in millions of Euros) 2022 2021 Property, plant and equipment 166 65 Total tangible and intangible asset commitments 166 65 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: Year ended December 31, (in millions of Euros) 2022 2021 2020 Short-term employee benefits 12 8 9 Directors' fees 2 1 1 Share-based compensation 10 9 10 Post-employments benefits — — — Termination benefits — — — Employer social contribution 2 1 1 Total 26 19 21 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment arrangements [Abstract] | |
Schedule of Inputs to the Model Used for PSUs Granted | The following table lists the inputs to the valuation model used for the PSUs granted in 2022 and 2021: March 2022 PSUs May 2021 PSUs Fair value at grant date (in euros) 23.70 21.84 Share price at grant date (in euros) 17.11 13.90 Dividend yield — — Expected volatility (A) 70% 71% Risk-free interest rate (US government bond yield) 1.88% 0.31% Model used Monte Carlo Monte Carlo (A) Volatilities for the Company and companies included in indices were estimated based on observed historical volatilities over a period equal to the PSU vesting period. |
Schedule of Number and Movement of 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, 2021 2,594,327 € 10.17 2,231,911 € 6.88 32,912 € 8.39 Granted 614,555 € 21.84 534,499 € 13.90 — € — Over-performance 526,551 € 15.31 — € — — € — Vested (1,161,718) € 15.31 (520,064) € 10.27 (32,912) € 8.39 Forfeited (47,188) € 10.29 (97,347) € 7.17 — € — At December 31, 2021 2,526,527 € 11.71 2,148,999 € 7.79 — € — Granted (A) 603,023 € 23.70 556,360 € 17.11 — € — Over-performance (B) 924,634 € 10.44 — € — — € — Vested (1,849,268) € 10.44 (774,958) € 7.10 — € — Forfeited (C) (19,082) € 11.65 (54,955) € 9.04 — € — At December 31, 2022 2,185,834 € 15.56 1,875,446 € 10.80 — € — (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, 19,082 were forfeited following the departure of certain beneficiaries and none were forfeited in relation to the non-fulfilment of performance conditions. |
SUBSIDIARIES AND AFFILIATES (Ta
SUBSIDIARIES AND AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022. All entities are consolidated except for Rhenaroll which is accounted for under the equity method. Entity Country % Group Interest Cross Operating Segment Constellium Singen GmbH (AS&I and P&ARP) Germany 100% Constellium Valais S.A. (AS&I and A&T) Switzerland 100% AS&I Constellium Automotive USA, LLC U.S. 100% Constellium Engley (Changchun) Automotive Structures Co Ltd. China 54% Constellium Extrusions Decin S.r.o. Czech Republic 100% Constellium Extrusions Deutschland GmbH Germany 100% Constellium Extrusions Landau GmbH Germany 100% Constellium Extrusions Burg GmbH Germany 100% Constellium Extrusions France S.A.S. France 100% Constellium Extrusions Levice S.r.o. Slovakia 100% Constellium Automotive Mexico, S. DE R.L. DE C.V. Mexico 100% Constellium Automotive Mexico Trading, S. DE R.L. DE C.V. Mexico 100% Astrex Inc Canada 50% Constellium Automotive Zilina S.r.o. Slovakia 100% Constellium Automotive (Nanjing) Co. Ltd. China 100% Constellium Automotive Spain SL Spain 100% Constellium UK Limited United Kingdom 100% A&T Constellium Issoire S.A.S. France 100% Constellium Montreuil Juigné S.A.S. France 100% Constellium China Co. Ltd. China 100% Constellium Japan KK Japan 100% Constellium Rolled Products Ravenswood, LLC U.S. 100% Constellium Ussel S.A.S. France 100% AluInfra Services SA (A) Switzerland 50% P&ARP Constellium Deutschland GmbH Germany 100% Constellium Rolled Products Singen GmbH & Co. KG Germany 100% Constellium Neuf Brisach S.A.S. France 100% Constellium Muscle Shoals LLC U.S. 100% Constellium Holdings Muscle Shoals LLC U.S. 100% Constellium Muscle Shoals Funding II LLC U.S. 100% Constellium Muscle Shoals Funding III LLC U.S. 100% Constellium Metal Procurement LLC U.S. 100% Constellium Bowling Green LLC U.S. 100% Rhenaroll SA France 50% Holdings & Corporate C-TEC Constellium Technology Center S.A.S. France 100% Constellium Finance S.A.S. France 100% Constellium France III S.A.S. France 100% Constellium France Holdco S.A.S. France 100% Constellium International S.A.S. France 100% Constellium Paris S.A.S. France 100% Constellium Germany Holdco GmbH & Co. KG Germany 100% Constellium Germany Verwaltungs GmbH Germany 100% Constellium US Holdings I, LLC U.S. 100% Constellium US Intermediate Holdings LLC U.S. 100% Constellium Switzerland AG Switzerland 100% Constellium Treuhand UG (haftunsgbeschränkt) Germany 100% Engineered Products International S.A.S. France 100% (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. |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) | Dec. 31, 2022 employee center site facility |
Disclosure of general information [abstract] | |
Number of production facilities | facility | 29 |
Number of R&D centers | center | 3 |
Number of administrative centers | site | 3 |
Number of employees | employee | 12,500 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disclosure of Foreign Exchange Rates (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Dollars | |||
Disclosure of foreign exchange rates [line items] | |||
Average rates | 1.0507 | 1.1821 | 1.1405 |
Closing rates | 1.0666 | 1.1326 | 1.2271 |
Swiss Francs | |||
Disclosure of foreign exchange rates [line items] | |||
Average rates | 1.0038 | 1.0808 | 1.0704 |
Closing rates | 0.9847 | 1.0331 | 1.0802 |
Czech Koruna | |||
Disclosure of foreign exchange rates [line items] | |||
Average rates | 24.5633 | 25.6366 | 26.4337 |
Closing rates | 24.1160 | 24.8580 | 26.2420 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 EUR (€) | |
Summary of significant accounting policies [line items] | |
Cash flow projection period used in impairment of goodwill | 5 years |
Low-value asset recognition exemption to leased assets | € 5,000 |
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 | 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 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Product Line (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of products and services [line items] | |||
Total Revenue by product line | € 8,120 | € 6,152 | € 4,883 |
Packaging rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | 3,326 | 2,673 | 1,960 |
Automotive rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | 1,154 | 854 | 663 |
Specialty and other thin-rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | 175 | 161 | 102 |
Aerospace rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | 728 | 389 | 560 |
Transportation, industry, defense and other rolled products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | 916 | 713 | 442 |
Automotive extruded products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | 949 | 735 | 665 |
Other extruded products | |||
Disclosure of products and services [line items] | |||
Total Revenue by product line | € 872 | € 627 | € 491 |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Destination of Shipment (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | € 8,120 | € 6,152 | € 4,883 |
Germany | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 2,036 | 1,481 | 1,014 |
France | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 691 | 466 | 362 |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 221 | 179 | 192 |
Switzerland | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 87 | 63 | 52 |
Spain | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 302 | 252 | 185 |
Czech Republic | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 237 | 172 | 119 |
Other Europe | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 1,110 | 809 | 619 |
Total Europe | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 4,684 | 3,422 | 2,543 |
United States | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 2,823 | 2,335 | 1,941 |
Asia and Other Pacific | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | 252 | 171 | 211 |
All Other | |||
Disclosure of geographical areas [line items] | |||
Total Revenue by product line | € 361 | € 224 | € 188 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue recognized over time | |
Disclosure of geographical areas [line items] | |
Percentage of payment option over total revenue | 1% |
OPERATING SEGMENT INFORMATION -
OPERATING SEGMENT INFORMATION - Narrative (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) employee country facility | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Disclosure of operating segments [line items] | |||
Number of employees | employee | 12,500 | ||
Revenue | € 8,120 | € 6,152 | € 4,883 |
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 | employee | 4,100 | ||
Revenue | € 4,655 | 3,688 | 2,725 |
P&ARP | Group's largest customer | |||
Disclosure of operating segments [line items] | |||
Revenue | € 839 | 692 | 492 |
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 | employee | 3,500 | ||
Revenue | € 1,645 | 1,102 | 1,002 |
AS&I | |||
Disclosure of operating segments [line items] | |||
Number of facilities | facility | 19 | ||
Number of countries in which entity operates | country | 10 | ||
Number of employees | employee | 4,500 | ||
Revenue | € 1,820 | € 1,362 | € 1,156 |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION - Segment Revenue (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Revenue | € 8,120 | € 6,152 | € 4,883 |
P&ARP | |||
Disclosure of operating segments [line items] | |||
Revenue | 4,655 | 3,688 | 2,725 |
A&T | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,645 | 1,102 | 1,002 |
AS&I | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,820 | 1,362 | 1,156 |
Segment revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 8,225 | 6,223 | 4,926 |
Segment revenue | P&ARP | |||
Disclosure of operating segments [line items] | |||
Revenue | 4,664 | 3,698 | 2,734 |
Segment revenue | A&T | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,700 | 1,142 | 1,025 |
Segment revenue | AS&I | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,861 | 1,383 | 1,167 |
Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Revenue | (105) | (71) | (43) |
Inter-segment elimination | P&ARP | |||
Disclosure of operating segments [line items] | |||
Revenue | (9) | (10) | (9) |
Inter-segment elimination | A&T | |||
Disclosure of operating segments [line items] | |||
Revenue | (55) | (40) | (23) |
Inter-segment elimination | AS&I | |||
Disclosure of operating segments [line items] | |||
Revenue | € (41) | € (21) | € (11) |
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 | ||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | € 673 | € 581 | € 465 | |
Metal price lag | (29) | 187 | (8) | |
Start-up and development costs | 0 | 0 | (5) | |
Share based compensation costs | (18) | (15) | (15) | |
(Losses) / gains on pension plan amendments | 47 | (32) | (2) | |
Depreciation and amortization | (287) | (267) | (259) | |
Impairment of assets | 0 | 0 | (43) | |
Restructuring costs | (1) | (3) | (13) | |
Unrealized (losses) / gains on derivatives | (46) | 35 | 16 | |
Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net | (1) | 1 | 1 | |
Losses on disposal | (4) | (3) | (4) | |
Other | 0 | 0 | (8) | |
Income from operations | 334 | 484 | 125 | |
Finance costs - net | (131) | (167) | (159) | |
Income / (loss) before tax | 203 | 317 | (34) | |
Income tax benefit / (expense) | 105 | (55) | 17 | |
Net income / (loss) | 308 | 262 | (17) | |
Collective bargaining agreement, period | 3 years | |||
Losses reclassified from OCI as a result of hedge accounting discontinuation | 0 | 0 | 6 | |
OPEB | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
(Losses) / gains on pension plan amendments | 49 | |||
Negative past service cost recorded to cancel gain originally recognized | 31 | |||
COVID-19 | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Procurement penalties and termination fees | 2 | |||
Losses reclassified from OCI as a result of hedge accounting discontinuation | 6 | |||
P&ARP | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | 326 | 344 | 291 | |
A&T | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | 217 | 111 | 106 | |
AS&I | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | 149 | 142 | 88 | |
H&C | ||||
Disclosure of segment adjusted EBITDA and reconciliation of adjusted EBITDA to net income [line items] | ||||
Adjusted EBITDA | € (19) | € (16) | € (20) |
OPERATING SEGMENT INFORMATION_4
OPERATING SEGMENT INFORMATION - Segment Capital Expenditures (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Capital expenditures | € (273) | € (232) | € (182) |
P&ARP | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | (127) | (94) | (73) |
A&T | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | (78) | (70) | (45) |
AS&I | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | (62) | (62) | (61) |
H&C | |||
Disclosure of operating segments [line items] | |||
Capital expenditures | € (6) | € (6) | € (3) |
OPERATING SEGMENT INFORMATION_5
OPERATING SEGMENT INFORMATION - Segment Assets (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of operating segments [line items] | ||||
Total Assets | € 4,941 | € 4,624 | ||
Deferred income tax assets | 271 | 162 | ||
Cash and cash equivalents | 166 | 147 | € 439 | € 184 |
Assets of disposal group classified as held for sale | 14 | 0 | ||
Segment revenue | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 4,451 | 4,245 | ||
Segment revenue | P&ARP | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 2,187 | 2,108 | ||
Segment revenue | A&T | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 1,081 | 948 | ||
Segment revenue | AS&I | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 727 | 738 | ||
Segment revenue | H&C | ||||
Disclosure of operating segments [line items] | ||||
Total Assets | 456 | 451 | ||
Unallocated | ||||
Disclosure of operating segments [line items] | ||||
Deferred income tax assets | 271 | 162 | ||
Cash and cash equivalents | 166 | 147 | ||
Other financial assets | 39 | 70 | ||
Assets of disposal group classified as held for sale | € 14 | € 0 |
INFORMATION BY GEOGRAPHIC ARE_2
INFORMATION BY GEOGRAPHIC AREA (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 2,017 | € 1,948 | € 1,906 |
United States | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 832 | 811 | |
France | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 699 | 653 | |
Germany | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 269 | 266 | |
Czech Republic | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 97 | 99 | |
Other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 120 | € 119 |
EXPENSES BY NATURE (Details)
EXPENSES BY NATURE (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of attribution of expenses by nature to their function [line items] | |||
Employee benefit expenses | € (1,110) | € (967) | € (902) |
Depreciation and amortization | (287) | (267) | (259) |
Other gains and losses - net | (8) | 117 | (89) |
Total operating expenses | (7,786) | (5,668) | (4,758) |
Total Operating Expenses | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Raw materials and consumables used | (5,545) | (3,885) | (2,832) |
Employee benefit expenses | (1,110) | (967) | (902) |
Energy costs | (274) | (149) | (141) |
Sub-contractors | (125) | (102) | (89) |
Freight out costs | (163) | (143) | (122) |
Professional fees | (81) | (63) | (73) |
Lease expenses | (15) | (12) | (11) |
Depreciation and amortization | (287) | (267) | (259) |
Other operating expenses | (178) | (197) | (240) |
Other gains and losses - net | € (8) | € 117 | € (89) |
EMPLOYEE BENEFIT EXPENSES (Deta
EMPLOYEE BENEFIT EXPENSES (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of employee benefits expense [abstract] | |||
Wages and salaries | € (1,067) | € (920) | € (855) |
Pension costs - defined benefit plans | (22) | (24) | (23) |
Other post-employment benefits | (3) | (8) | (9) |
Share-based compensation | (18) | (15) | (15) |
Total employee benefit expenses | € (1,110) | € (967) | € (902) |
OTHER GAINS AND LOSSES_NET (Det
OTHER GAINS AND LOSSES—NET (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||||
Realized gains / (losses) on derivatives | € (6) | € 113 | € (35) | |
Losses reclassified from OCI as a result of hedge accounting discontinuation | 0 | 0 | (6) | |
Realized and unrealized (losses) / gains on debt derivatives at fair value | (47) | 39 | 16 | |
Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities – net | (1) | 1 | 1 | |
Impairment of assets | 0 | 0 | (43) | |
Restructuring costs | (1) | (3) | (13) | |
(Losses) / gains on pension plan amendments | 47 | (32) | (2) | |
Losses on disposal | (4) | (3) | (4) | |
Other | 4 | 2 | (3) | |
Total other gains and losses - net | (8) | 117 | (89) | |
Disclosure of income tax expense [line Items] | ||||
Impairment charge | 0 | 0 | 43 | |
(Losses) / gains on pension plan amendments | 47 | (32) | (2) | |
Collective bargaining agreement, period | 3 years | |||
OPEB | ||||
Analysis of income and expense [abstract] | ||||
(Losses) / gains on pension plan amendments | 49 | |||
Disclosure of income tax expense [line Items] | ||||
Negative past service cost recorded to cancel gain originally recognized | € 31 | |||
(Losses) / gains on pension plan amendments | € 49 | |||
COVID-19 | ||||
Analysis of income and expense [abstract] | ||||
Losses reclassified from OCI as a result of hedge accounting discontinuation | (6) | |||
COVID-19 | A&T and AC&I | ||||
Analysis of income and expense [abstract] | ||||
Impairment of assets | (43) | |||
Disclosure of income tax expense [line Items] | ||||
Impairment charge | € 43 |
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, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 EUR (€) | Dec. 31, 2020 USD ($) | |
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | € (1) | $ (1) | € 13 | $ 13 | € (27) | $ (27) |
Realized gains / (losses) on foreign currency derivatives - net | (8) | (1) | (11) | |||
Losses reclassified from OCI as a result of hedge accounting discontinuation | 0 | 0 | (6) | |||
Unrealized gains / (losses) on foreign currency derivatives - net | 6 | 13 | (8) | |||
Exchange gains / (losses) from the remeasurement of monetary assets and liabilities - net | 1 | 1 | (2) | |||
Included in Revenue | ||||||
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | (8) | (4) | (6) | |||
Included in Cost of sales | ||||||
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | 2 | 1 | (2) | |||
Included in Other gains and losses - net | ||||||
Analysis of income and expense [line items] | ||||||
Total currency gains / (losses) - net | € 5 | € 16 | € (19) |
CURRENCY GAINS _ (LOSSES) - For
CURRENCY GAINS / (LOSSES) - Foreign Currency Translation Reserve (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in foreign currency translation reserve [abstract] | ||
Foreign currency translation reserve at January 1, | € 19 | € (13) |
Effect of currency translation differences | 22 | 32 |
Foreign currency translation reserve at December 31, | € 41 | € 19 |
FINANCE COSTS_NET (Details)
FINANCE COSTS—NET (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2021 EUR (€) | Nov. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Jun. 30, 2021 USD ($) | Feb. 28, 2021 EUR (€) | Feb. 28, 2021 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2022 USD ($) | |
Analysis of income and expense [line items] | ||||||||||
Interest expense on borrowings | € (91,000,000) | € (103,000,000) | € (122,000,000) | |||||||
Interest expense on leases | (10,000,000) | (14,000,000) | (10,000,000) | |||||||
Interest cost on pension and other benefits | (11,000,000) | (9,000,000) | (11,000,000) | |||||||
Expenses on factoring arrangements | (15,000,000) | (9,000,000) | (10,000,000) | |||||||
Net loss on settlement of debt | 0 | (27,000,000) | 0 | |||||||
Realized and unrealized (losses) / gains on debt derivatives at fair value | 1,000,000 | 10,000,000 | (32,000,000) | |||||||
Realized and unrealized exchange (losses) / gains on financing activities - net | (1,000,000) | (10,000,000) | 37,000,000 | |||||||
Other finance expenses | (5,000,000) | (6,000,000) | (12,000,000) | |||||||
Capitalized borrowing costs | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Finance expenses | (131,000,000) | (167,000,000) | (159,000,000) | |||||||
Finance costs - net | (131,000,000) | (167,000,000) | (159,000,000) | |||||||
Redemption of senior notes | 192,000,000 | € 1,052,000,000 | € 209,000,000 | |||||||
Nominal value | € 2,053,000,000 | |||||||||
Capitalization rate | 5% | 5% | 6% | |||||||
Constellium SE Senior Notes | ||||||||||
Analysis of income and expense [line items] | ||||||||||
Interest expense on debt instruments issued | € 79,000,000 | € 92,000,000 | ||||||||
Borrowing costs recognised as expense | € 4,000,000 | € 4,000,000 | ||||||||
Senior Unsecured Notes Issued February 2017 and due 2025 | ||||||||||
Analysis of income and expense [line items] | ||||||||||
Redemption of senior notes | € 536,000,000 | $ 650,000,000 | ||||||||
Nominal rate | 6.625% | 6.625% | ||||||||
Borrowing redemption fees | € 9,000,000 | |||||||||
Write off borrowing costs | € 8,000,000 | |||||||||
Senior Unsecured Notes Issued May 2014 and due 2024 | ||||||||||
Analysis of income and expense [line items] | ||||||||||
Redemption of senior notes | € 328,000,000 | $ 400,000,000 | ||||||||
Nominal rate | 5.75% | 5.75% | ||||||||
Borrowing redemption fees | € 3,000,000 | |||||||||
Write off borrowing costs | € 3,000,000 | |||||||||
Senior Unsecured Notes Issued November 2017 and due 2026 | ||||||||||
Analysis of income and expense [line items] | ||||||||||
Redemption of senior notes | € 177,000,000 | $ 200,000,000 | ||||||||
Nominal rate | 5.875% | 5.875% | 5.875% | |||||||
Borrowing redemption fees | € 3,000,000 | |||||||||
Write off borrowing costs | € 1,000,000 | |||||||||
Nominal value | $ 500,000,000 | € 281,000,000 | $ 300,000,000 |
INCOME TAX - Current and Deferr
INCOME TAX - Current and Deferred Components of Income Tax (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Current tax expense | € (22) | € (26) | € (14) |
Deferred tax benefit / (expense) | 127 | (29) | 31 |
Income tax benefit / (expense) | € 105 | € (55) | € 17 |
INCOME TAX - Income Tax Reconci
INCOME TAX - Income Tax Reconciliation Using Composite Statutory Income Tax Rate Applicable by Tax Jurisdiction (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Income / (loss) before tax | € 203 | € 317 | € (34) |
Statutory tax rate applicable to the parent company | 25.80% | 28.40% | 32% |
Income tax (expense) / benefit calculated at statutory tax rate | € (52) | € (90) | € 11 |
Effect of foreign tax rate | 3 | 15 | 2 |
Changes in recognized and unrecognized deferred tax assets | 154 | 24 | 15 |
Other | 0 | (4) | (11) |
Income tax benefit / (expense) | € 105 | € (55) | € 17 |
Effective income tax rate | (52.00%) | 17% | 49% |
Deferred tax assets | € 271 | € 162 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of cash and cash equivalents [line Items] | ||||
Cash in bank and on hand | € 166 | € 147 | € 439 | € 184 |
Cash subject to restrictions | € 29 | |||
Subsidiaries in capital control restrictions countries | ||||
Disclosure of cash and cash equivalents [line Items] | ||||
Cash subject to restrictions | € 24 |
TRADE RECEIVABLES AND OTHER - S
TRADE RECEIVABLES AND OTHER - Schedule of Trade Receivables and Other (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current | ||
Trade receivables | € 0 | € 0 |
Income tax receivables | 14 | 24 |
Other tax receivables | 0 | 0 |
Contract assets | 15 | 19 |
Prepaid expenses | 1 | 1 |
Other | 13 | 11 |
Total other receivables | 43 | 55 |
Total trade receivables and other | 43 | 55 |
Current | ||
Trade receivables | 465 | 603 |
Income tax receivables | 16 | 20 |
Other tax receivables | 38 | 40 |
Contract assets | 2 | 2 |
Prepaid expenses | 8 | 9 |
Other | 10 | 9 |
Total other receivables | 74 | 80 |
Total trade receivables and other | 539 | 683 |
Total factored assets | 574 | 639 |
Cost | ||
Non-current | ||
Trade receivables | 0 | 0 |
Current | ||
Trade receivables | 467 | 607 |
Impairment | ||
Non-current | ||
Trade receivables | 0 | 0 |
Current | ||
Trade receivables | € (2) | € (4) |
TRADE RECEIVABLES AND OTHER - N
TRADE RECEIVABLES AND OTHER - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | |
Disclosure of trade and other receivables [line items] | |||
Contract assets | € 15,000,000 | € 19,000,000 | |
Total factored assets | 574,000,000 | 639,000,000 | |
Factored assets derecognized | 368,000,000 | 345,000,000 | |
Debt due factor | 6,000,000 | 0 | |
Unbilled Tooling Costs | |||
Disclosure of trade and other receivables [line items] | |||
Contract assets | 4,000,000 | € 6,000,000 | |
United States | Factoring of receivables | Muscle Shoals factoring facility | |||
Disclosure of trade and other receivables [line items] | |||
Factoring maximum capacity | $ | $ 200,000,000 | ||
United States | Factoring of receivables | Constellium automotive | |||
Disclosure of trade and other receivables [line items] | |||
Factoring maximum capacity | $ | $ 25,000,000 | ||
France | Factoring of receivables | |||
Disclosure of trade and other receivables [line items] | |||
Factoring maximum capacity | 250,000,000 | ||
France | Factoring Receivable, Recourse Line | |||
Disclosure of trade and other receivables [line items] | |||
Factoring maximum capacity | 20,000,000 | ||
Germany, Switzerland and Czech Republic | Factoring of receivables | |||
Disclosure of trade and other receivables [line items] | |||
Factoring maximum capacity | € 200,000,000 |
TRADE RECEIVABLES AND OTHER - A
TRADE RECEIVABLES AND OTHER - Aging of Total Trade Receivables - Net (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade receivables [line items] | ||
Trade receivables | € 465 | € 603 |
Not past due | ||
Trade receivables [line items] | ||
Trade receivables | 453 | 596 |
1 – 30 days past due | ||
Trade receivables [line items] | ||
Trade receivables | 10 | 6 |
31 – 60 days past due | ||
Trade receivables [line items] | ||
Trade receivables | € 2 | € 1 |
TRADE RECEIVABLES AND OTHER - C
TRADE RECEIVABLES AND OTHER - Currency Concentration of Total Trade Receivables (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade receivables [line items] | ||
Trade receivables | € 465 | € 603 |
Euro | ||
Trade receivables [line items] | ||
Trade receivables | 225 | 277 |
U.S. Dollars | ||
Trade receivables [line items] | ||
Trade receivables | 213 | 305 |
Swiss Francs | ||
Trade receivables [line items] | ||
Trade receivables | 8 | 4 |
Other currencies | ||
Trade receivables [line items] | ||
Trade receivables | € 19 | € 17 |
INVENTORIES (Details)
INVENTORIES (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Finished goods | € 315 | € 225 |
Work in progress | 638 | 551 |
Raw materials | 308 | 226 |
Stores and supplies | 112 | 95 |
Inventories write down | (53) | (47) |
Total inventories | € 1,320 | € 1,050 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | € 1,948 | € 1,906 |
Additions | 297 | 233 |
Disposals | (5) | (4) |
Depreciation expense | (277) | (253) |
Transfer and other changes | 0 | (7) |
Effect of changes in foreign exchange rates | 54 | 73 |
Ending balance | 2,017 | 1,948 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 3,577 | |
Ending balance | 3,923 | 3,577 |
Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (1,629) | |
Ending balance | (1,906) | (1,629) |
Land and Property Rights | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 21 | 20 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Depreciation expense | (1) | (1) |
Transfer and other changes | 2 | 1 |
Effect of changes in foreign exchange rates | 1 | 1 |
Ending balance | 23 | 21 |
Land and Property Rights | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 38 | |
Ending balance | 42 | 38 |
Land and Property Rights | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (17) | |
Ending balance | (19) | (17) |
Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 374 | 379 |
Additions | 14 | 6 |
Disposals | 0 | (1) |
Depreciation expense | (32) | (27) |
Transfer and other changes | 18 | 5 |
Effect of changes in foreign exchange rates | 7 | 12 |
Ending balance | 381 | 374 |
Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 590 | |
Ending balance | 637 | 590 |
Buildings | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (216) | |
Ending balance | (256) | (216) |
Machinery and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,411 | 1,361 |
Additions | 90 | 52 |
Disposals | (4) | (2) |
Depreciation expense | (230) | (210) |
Transfer and other changes | 76 | 153 |
Effect of changes in foreign exchange rates | 44 | 57 |
Ending balance | 1,387 | 1,411 |
Machinery and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 2,750 | |
Ending balance | 2,957 | 2,750 |
Machinery and Equipment | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (1,339) | |
Ending balance | (1,570) | (1,339) |
Construction Work in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 127 | 132 |
Additions | 188 | 169 |
Disposals | 0 | 0 |
Depreciation expense | (2) | (3) |
Transfer and other changes | (103) | (174) |
Effect of changes in foreign exchange rates | 1 | 3 |
Ending balance | 211 | 127 |
Construction Work in Progress | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 142 | |
Ending balance | 224 | 142 |
Construction Work in Progress | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (15) | |
Ending balance | (13) | (15) |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 15 | 14 |
Additions | 5 | 6 |
Disposals | (1) | (1) |
Depreciation expense | (12) | (12) |
Transfer and other changes | 7 | 8 |
Effect of changes in foreign exchange rates | 1 | 0 |
Ending balance | 15 | 15 |
Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 57 | |
Ending balance | 63 | 57 |
Other | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (42) | |
Ending balance | € (48) | € (42) |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Right of Use Assets (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | € 1,948 | € 1,906 |
Additions | 297 | 233 |
Disposals | (5) | (4) |
Depreciation expense | (277) | (253) |
Transfer and other changes | 0 | (7) |
Effect of changes in foreign exchange rates | 54 | 73 |
Ending balance | 2,017 | 1,948 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 3,577 | |
Ending balance | 3,923 | 3,577 |
Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (1,629) | |
Ending balance | (1,906) | (1,629) |
Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 374 | 379 |
Additions | 14 | 6 |
Disposals | 0 | (1) |
Depreciation expense | (32) | (27) |
Transfer and other changes | 18 | 5 |
Effect of changes in foreign exchange rates | 7 | 12 |
Ending balance | 381 | 374 |
Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 590 | |
Ending balance | 637 | 590 |
Buildings | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (216) | |
Ending balance | (256) | (216) |
Machinery and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,411 | 1,361 |
Additions | 90 | 52 |
Disposals | (4) | (2) |
Depreciation expense | (230) | (210) |
Transfer and other changes | 76 | 153 |
Effect of changes in foreign exchange rates | 44 | 57 |
Ending balance | 1,387 | 1,411 |
Machinery and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 2,750 | |
Ending balance | 2,957 | 2,750 |
Machinery and Equipment | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (1,339) | |
Ending balance | (1,570) | (1,339) |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 15 | 14 |
Additions | 5 | 6 |
Disposals | (1) | (1) |
Depreciation expense | (12) | (12) |
Transfer and other changes | 7 | 8 |
Effect of changes in foreign exchange rates | 1 | 0 |
Ending balance | 15 | 15 |
Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 57 | |
Ending balance | 63 | 57 |
Other | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (42) | |
Ending balance | (48) | (42) |
Right-of-use assets | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 174 | 186 |
Additions | 18 | 12 |
Disposals | (1) | |
Depreciation expense | (33) | (28) |
Transfer and other changes | (1) | |
Effect of changes in foreign exchange rates | 3 | 5 |
Ending balance | 161 | 174 |
Right-of-use assets | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 297 | |
Ending balance | 308 | 297 |
Right-of-use assets | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (123) | |
Ending balance | (147) | (123) |
Right-of-use assets | Buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 108 | 112 |
Additions | 11 | 5 |
Disposals | 0 | |
Depreciation expense | (12) | (11) |
Transfer and other changes | 0 | |
Effect of changes in foreign exchange rates | 0 | 2 |
Ending balance | 107 | 108 |
Right-of-use assets | Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 150 | |
Ending balance | 161 | 150 |
Right-of-use assets | Buildings | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (42) | |
Ending balance | (54) | (42) |
Right-of-use assets | Machinery and Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 65 | 72 |
Additions | 7 | 7 |
Disposals | (1) | |
Depreciation expense | (20) | (16) |
Transfer and other changes | (1) | |
Effect of changes in foreign exchange rates | 3 | 3 |
Ending balance | 54 | 65 |
Right-of-use assets | Machinery and Equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 144 | |
Ending balance | 146 | 144 |
Right-of-use assets | Machinery and Equipment | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (79) | |
Ending balance | (92) | (79) |
Right-of-use assets | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1 | 2 |
Additions | 0 | 0 |
Disposals | 0 | |
Depreciation expense | (1) | (1) |
Transfer and other changes | 0 | |
Effect of changes in foreign exchange rates | 0 | 0 |
Ending balance | 0 | 1 |
Right-of-use assets | Other | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 3 | |
Ending balance | 1 | 3 |
Right-of-use assets | Other | Less accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (2) | |
Ending balance | € (1) | € (2) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Depreciation Expense (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | € (287) | € (267) | € (259) |
Cost of sales | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | (270) | (245) | (240) |
Selling and administrative expenses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | (12) | (17) | (14) |
Research and development expenses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense and impairment losses | € (5) | € (5) | € (5) |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) cash_generating_unit | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Expense related to short-term leases, low value asset leases and variable lease still recognized as operating expenses | € 15 | € 12 | € 11 |
Property, plant and equipment | € 2,017 | € 1,948 | € 1,906 |
A&T | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of cash generating units impaired | cash_generating_unit | 2 | ||
Impairment charges related to cash-generating units | € 16 | ||
A&T | Montreuil Juigné | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment charges related to cash-generating units | 9 | ||
A&T | Ussel | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment charges related to cash-generating units | € 7 | ||
AS&I | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of cash generating units impaired | cash_generating_unit | 2 | ||
Discount rate to estimate normative cash flows | 9% | ||
AS&I | Nanjing Plant | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment charges related to cash-generating units | € 12 | ||
AS&I | White Georgia | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment charges related to cash-generating units | 13 | ||
Property, plant and equipment | € 11 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | € 58 | € 61 |
Additions | 3 | 4 |
Amortization expense | (10) | (14) |
Transfer | 0 | 4 |
Effect of changes in foreign exchange rates | 3 | 3 |
Intangible assets (excluding goodwill), ending balance | 54 | 58 |
Changes in goodwill [abstract] | ||
Goodwill, beginning balance | 451 | 417 |
Effect of changes in foreign exchange rates | 27 | 34 |
Goodwill, ending balance | 478 | 451 |
Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 224 | |
Intangible assets (excluding goodwill), ending balance | 236 | 224 |
Changes in goodwill [abstract] | ||
Goodwill, beginning balance | 451 | |
Goodwill, ending balance | 478 | 451 |
Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (166) | |
Intangible assets (excluding goodwill), ending balance | (182) | (166) |
Technology | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 18 | 18 |
Additions | 0 | 0 |
Amortization expense | (2) | (1) |
Transfer | 0 | 0 |
Effect of changes in foreign exchange rates | 2 | 1 |
Intangible assets (excluding goodwill), ending balance | 18 | 18 |
Technology | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 86 | |
Intangible assets (excluding goodwill), ending balance | 92 | 86 |
Technology | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (68) | |
Intangible assets (excluding goodwill), ending balance | (74) | (68) |
Computer Software | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 21 | 15 |
Additions | 0 | 0 |
Amortization expense | (7) | (12) |
Transfer | 2 | 17 |
Effect of changes in foreign exchange rates | 0 | 1 |
Intangible assets (excluding goodwill), ending balance | 16 | 21 |
Computer Software | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 91 | |
Intangible assets (excluding goodwill), ending balance | 94 | 91 |
Computer Software | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (70) | |
Intangible assets (excluding goodwill), ending balance | (78) | (70) |
Customer relationships | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 13 | 13 |
Additions | 0 | 0 |
Amortization expense | (1) | (1) |
Transfer | 0 | 0 |
Effect of changes in foreign exchange rates | 1 | 1 |
Intangible assets (excluding goodwill), ending balance | 13 | 13 |
Customer relationships | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 40 | |
Intangible assets (excluding goodwill), ending balance | 42 | 40 |
Customer relationships | Less accumulated depreciation and impairment | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | (27) | |
Intangible assets (excluding goodwill), ending balance | (29) | (27) |
Work in Progress | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 2 | 13 |
Additions | 3 | 4 |
Amortization expense | 0 | 0 |
Transfer | (2) | (15) |
Effect of changes in foreign exchange rates | 0 | 0 |
Intangible assets (excluding goodwill), ending balance | 3 | 2 |
Work in Progress | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 3 | |
Intangible assets (excluding goodwill), ending balance | 4 | 3 |
Work in Progress | 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 | (1) | (1) |
Other | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 4 | 2 |
Additions | 0 | 0 |
Amortization expense | 0 | 0 |
Transfer | 0 | 2 |
Effect of changes in foreign exchange rates | 0 | 0 |
Intangible assets (excluding goodwill), ending balance | 4 | 4 |
Other | Cost | ||
Changes in intangible assets other than goodwill [abstract] | ||
Intangible assets (excluding goodwill), beginning balance | 4 | |
Intangible assets (excluding goodwill), ending balance | 4 | 4 |
Other | 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 | € 0 | € 0 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 478,000,000 | € 451,000,000 | € 417,000,000 |
P&ARP | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 471,000,000 | ||
Carrying value | 1,600,000,000 | ||
Recoverable value | 2,000,000,000 | ||
Goodwill impairment | € 0 | ||
Cash flow rates | 40% | ||
P&ARP | Bottom of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Discount rate to estimate normative cash flows | 9% | ||
P&ARP | Top of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Long term growth rate used to estimate normative cash flow | 1.50% | ||
A&T | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 5,000,000 | ||
AS&I | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 2,000,000 | ||
Discount rate to estimate normative cash flows | 9% |
DEFERRED INCOME TAXES - Net Def
DEFERRED INCOME TAXES - Net Deferred Income Tax Assets (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes [Abstract] | ||
Deferred income tax assets | € 271 | € 162 |
Deferred income tax liabilities | (28) | (14) |
Net deferred income tax assets | € 243 | € 148 |
DEFERRED INCOME TAXES - Changes
DEFERRED INCOME TAXES - Changes in Net Deferred Income Tax Assets / (Liabilities) (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | € 148 | € 183 |
Reclassified as held for sale | (2) | |
Recognized in Profit or loss | 127 | (29) |
Recognized in OCI | (33) | (13) |
FX | 3 | 7 |
At December 31 | 243 | 148 |
Long-term assets | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | (124) | (106) |
Reclassified as held for sale | (2) | |
Recognized in Profit or loss | 31 | (10) |
Recognized in OCI | 0 | 0 |
FX | (7) | (8) |
At December 31 | (102) | (124) |
Inventories | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 3 | 5 |
Reclassified as held for sale | 0 | |
Recognized in Profit or loss | (4) | (2) |
Recognized in OCI | 0 | 0 |
FX | (1) | 0 |
At December 31 | (2) | 3 |
Pensions | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 119 | 126 |
Reclassified as held for sale | 0 | |
Recognized in Profit or loss | (10) | 5 |
Recognized in OCI | (35) | (17) |
FX | 4 | 5 |
At December 31 | 78 | 119 |
Derivative valuation | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | (6) | (5) |
Reclassified as held for sale | 0 | |
Recognized in Profit or loss | 8 | (5) |
Recognized in OCI | 2 | 4 |
FX | 0 | 0 |
At December 31 | 4 | (6) |
Tax losses carried forward | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 117 | 116 |
Reclassified as held for sale | 0 | |
Recognized in Profit or loss | 67 | (7) |
Recognized in OCI | 0 | 0 |
FX | 6 | 8 |
At December 31 | 190 | 117 |
Other | ||
Significant components of deferred tax assets and liabilities [line items] | ||
At January 1 | 39 | 47 |
Reclassified as held for sale | 0 | |
Recognized in Profit or loss | 35 | (10) |
Recognized in OCI | 0 | 0 |
FX | 1 | 2 |
At December 31 | € 75 | € 39 |
DEFERRED INCOME TAXES - Narrati
DEFERRED INCOME TAXES - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Deductible temporary differences and unused tax losses for which no deferred tax asset recognized | € 199 | € 805 | |
Deferred tax assets | 271 | 162 | |
Net deferred tax asset balance | 243 | 148 | € 183 |
Adjustments for deferred tax expense | € 154 | € 24 | € 15 |
DEFERRED INCOME TAXES - Compone
DEFERRED INCOME TAXES - Components of Unrecognized Deferred Tax Assets (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | € (48) | € (191) |
Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (31) | (85) |
Long-term assets | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (2) | (65) |
Pensions | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (3) | (7) |
Other | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (12) | (34) |
Deductible temporary differences | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (17) | (106) |
Between 1- 5 years | Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (5) | (3) |
Expiring after 5 years and limited | Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | (5) | (55) |
Unlimited | Tax losses | ||
Significant components of deferred tax assets and liabilities [line items] | ||
Related tax impact | € (21) | € (27) |
DISPOSAL GROUP CLASSIFIED AS _3
DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Analysis Of Single Amount Of Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | € 166 | € 147 | € 439 | € 184 |
Trade receivables and other | 539 | 683 | ||
Inventories | 1,320 | 1,050 | ||
Deferred tax assets | 271 | 162 | ||
Non-current assets or disposal groups classified as held for sale | 14 | 0 | ||
Trade payables and other | 1,467 | 1,377 | ||
Pension and other post-employment benefit obligations | 403 | 599 | ||
Liabilities of disposal group classified as held for sale | 10 | € 0 | ||
Disposal groups classified as held for sale [member] | ||||
Disclosure Of Analysis Of Single Amount Of Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | 1 | |||
Trade receivables and other | 6 | |||
Inventories | 5 | |||
Deferred tax assets | 2 | |||
Non-current assets or disposal groups classified as held for sale | 14 | |||
Trade payables and other | 8 | |||
Pension and other post-employment benefit obligations | 2 | |||
Liabilities of disposal group classified as held for sale | € 10 |
TRADE PAYABLES AND OTHER - Sche
TRADE PAYABLES AND OTHER - Schedule of Trade Payables and Other (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 20 | 4 |
Other payables | 23 | 28 |
Total other | 43 | 32 |
Total trade payables and other | 43 | 32 |
Current | ||
Trade payables | 1,155 | 1,065 |
Fixed assets payables | 36 | 22 |
Employees' entitlements | 195 | 185 |
Taxes payable other than income tax | 17 | 16 |
Contract liabilities and other liabilities to customers | 55 | 77 |
Other payables | 9 | 12 |
Total other | 312 | 312 |
Total trade payables and other | € 1,467 | € 1,377 |
TRADE PAYABLES AND OTHER - Cont
TRADE PAYABLES AND OTHER - Contract Liabilities and Other Liabilities to Customers (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | € 20 | € 4 |
Current | 55 | 77 |
Deferred tooling revenue | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 19 | 3 |
Current | 0 | 0 |
Advance payment from customers | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 0 | 0 |
Current | 6 | 7 |
Unrecognized variable consideration | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 1 | 1 |
Current | 49 | 67 |
Other | ||
Disclosure of disaggregation of contract liabilities with customers [line items] | ||
Non-current | 0 | 0 |
Current | € 0 | € 3 |
TRADE PAYABLES AND OTHER - Narr
TRADE PAYABLES AND OTHER - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Trade and other payables [abstract] | ||
Revenue recognized related to contract liabilities | € 58 | € 33 |
Deferred revenue related to contract liabilities | € 60 | € 36 |
BORROWINGS - Borrowings by Natu
BORROWINGS - Borrowings by Nature (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | May 31, 2021 | Feb. 28, 2021 EUR (€) target | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CHF (SFr) | Jun. 30, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Feb. 28, 2021 USD ($) target | Dec. 31, 2020 EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | € 2,053,000,000 | ||||||||||
Gross lease liabilities | 167,000,000 | ||||||||||
Arrangement fees | (20,000,000) | ||||||||||
Accrued interests | 23,000,000 | ||||||||||
Accrued interest lease liabilities | 1,000,000 | ||||||||||
Borrowings | 2,056,000,000 | € 2,129,000,000 | € 2,391,000,000 | ||||||||
Leases | 168,000,000 | 183,000,000 | |||||||||
Non-current borrowings | 1,908,000,000 | 1,871,000,000 | |||||||||
Current borrowings | 148,000,000 | 258,000,000 | |||||||||
Secured Pan-U.S. ABL (due 2026) | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | 80,000,000 | $ 85,000,000 | |||||||||
Arrangement fees | 0 | ||||||||||
Accrued interests | 1,000,000 | ||||||||||
Borrowings | 81,000,000 | 0 | |||||||||
Maximum borrowing capacity | € 500,000,000 | ||||||||||
Accordion feature, higher borrowing capacity option | € 100,000,000 | ||||||||||
Secured French PGE French Facility (due 2022) | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | 0 | 180,000,000 | |||||||||
Arrangement fees | 0 | ||||||||||
Accrued interests | 0 | ||||||||||
Borrowings | 0 | 180,000,000 | |||||||||
Extension period | 5 years | ||||||||||
Senior Unsecured Notes Issued November 2017 and due 2026 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | $ 500,000,000 | € 281,000,000 | 300,000,000 | ||||||||
Nominal rate | 5.875% | 5.875% | |||||||||
Arrangement fees | € (2,000,000) | ||||||||||
Accrued interests | 6,000,000 | ||||||||||
Borrowings | 285,000,000 | 268,000,000 | |||||||||
Senior Unsecured Note Issued November 2017 and due 2026 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | € 400,000,000 | ||||||||||
Nominal rate | 4.25% | ||||||||||
Arrangement fees | € (3,000,000) | ||||||||||
Accrued interests | 6,000,000 | ||||||||||
Borrowings | 403,000,000 | 402,000,000 | |||||||||
Senior Unsecured Notes Issued June 2020 and due 2028 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | € 305,000,000 | 325,000,000 | |||||||||
Nominal rate | 5.625% | ||||||||||
Arrangement fees | € (5,000,000) | ||||||||||
Accrued interests | 1,000,000 | ||||||||||
Borrowings | 301,000,000 | 284,000,000 | |||||||||
Senior Unsecured Notes Issued February 2021 and due 2029 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | € 412,000,000 | € 469,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||
Nominal rate | 3.75% | 3.75% | |||||||||
Arrangement fees | € (6,000,000) | ||||||||||
Accrued interests | 4,000,000 | ||||||||||
Borrowings | 467,000,000 | 438,000,000 | |||||||||
Number of sustainability performance targets | target | 2 | 2 | |||||||||
Senior Unsecured Notes Issued February 2021 and due 2029 | Starting in April and July 2026 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Increase in borrowing nominal rate | 0.125% | ||||||||||
Senior Unsecured Notes Issued February 2021 and due 2029 | Starting in April and July 2027 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Increase in borrowing nominal rate | 0.125% | ||||||||||
Senior Unsecured Notes Issued June 2021 and due 2029 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | $ 300,000,000 | € 300,000,000 | |||||||||
Nominal rate | 3.125% | 3.125% | |||||||||
Arrangement fees | € (4,000,000) | ||||||||||
Accrued interests | 4,000,000 | ||||||||||
Borrowings | 300,000,000 | 300,000,000 | |||||||||
Unsecured Swiss Facility | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | € 0 | SFr 15,000,000 | |||||||||
Nominal rate | 1.175% | ||||||||||
Arrangement fees | € 0 | ||||||||||
Accrued interests | 0 | ||||||||||
Borrowings | 0 | 14,000,000 | |||||||||
Other loans | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Nominal value | 51,000,000 | ||||||||||
Arrangement fees | 0 | ||||||||||
Accrued interests | 0 | ||||||||||
Borrowings | 51,000,000 | € 60,000,000 | |||||||||
Financing Arrangements | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | € 36,000,000 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | ||
Undrawn facilities | € 543 | € 626 |
Secured Inventory Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Undrawn facilities | 100 | |
Money Market Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Undrawn facilities | € 50 | |
Secured Pan-U.S. ABL (due 2026) | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt covenant, percentage of aggregate revolving loan commitments | 10% |
BORROWINGS - Movement in Borrow
BORROWINGS - Movement in Borrowings (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2021 EUR (€) | Nov. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Jun. 30, 2021 USD ($) | Feb. 28, 2021 EUR (€) | Feb. 28, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2022 USD ($) | Feb. 28, 2021 USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Beginning Balance | € 2,391,000,000 | € 2,129,000,000 | € 2,391,000,000 | |||||||||
Cash flows | ||||||||||||
Proceeds from issuance of long-term borrowings | € 712,000,000 | 0 | 712,000,000 | € 472,000,000 | ||||||||
Repayments of long-term borrowings | (192,000,000) | (1,052,000,000) | (209,000,000) | |||||||||
Net change in revolving credit facilities and short-term borrowings | 72,000,000 | (5,000,000) | (110,000,000) | |||||||||
Lease repayments | (37,000,000) | (32,000,000) | ||||||||||
Payment of deferred financing costs | 0 | (13,000,000) | ||||||||||
Non-cash changes | ||||||||||||
Movement in accrued interest | (1,000,000) | (11,000,000) | ||||||||||
Changes in leases and other loans | 18,000,000 | 18,000,000 | ||||||||||
Deferred arrangement fees | 3,000,000 | 16,000,000 | ||||||||||
Effects of changes in foreign exchange rates | 64,000,000 | 105,000,000 | ||||||||||
Ending Balance | 2,056,000,000 | 2,129,000,000 | € 2,391,000,000 | |||||||||
Debt issued | 2,053,000,000 | |||||||||||
Senior Unsecured Notes Issued February 2021 and due 2029 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Beginning Balance | 438,000,000 | |||||||||||
Non-cash changes | ||||||||||||
Ending Balance | 467,000,000 | 438,000,000 | ||||||||||
Debt issued | € 412,000,000 | € 469,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||
Nominal rate | 3.75% | 3.75% | 3.75% | |||||||||
Constellium SE Senior Sustainability-Linked Notes Issued June 2021 Due June 2029 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Beginning Balance | € 300,000,000 | |||||||||||
Non-cash changes | ||||||||||||
Ending Balance | 300,000,000 | 300,000,000 | ||||||||||
Debt issued | $ 300,000,000 | € 300,000,000 | ||||||||||
Nominal rate | 3.125% | 3.125% | 3.125% | |||||||||
Senior Unsecured Notes Issued February 2017 and due 2025 | ||||||||||||
Cash flows | ||||||||||||
Repayments of long-term borrowings | € (536,000,000) | $ (650,000,000) | ||||||||||
Non-cash changes | ||||||||||||
Nominal rate | 6.625% | 6.625% | ||||||||||
Senior Unsecured Notes Issued May 2014 and due 2024 | ||||||||||||
Cash flows | ||||||||||||
Repayments of long-term borrowings | € (328,000,000) | $ (400,000,000) | ||||||||||
Non-cash changes | ||||||||||||
Nominal rate | 5.75% | 5.75% | ||||||||||
Senior Unsecured Notes Issued November 2017 and due 2026 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Beginning Balance | € 268,000,000 | |||||||||||
Cash flows | ||||||||||||
Repayments of long-term borrowings | € (177,000,000) | $ (200,000,000) | ||||||||||
Non-cash changes | ||||||||||||
Ending Balance | 285,000,000 | € 268,000,000 | ||||||||||
Debt issued | $ 500,000,000 | € 281,000,000 | $ 300,000,000 | |||||||||
Nominal rate | 5.875% | 5.875% | 5.875% |
BORROWINGS - Currency Concentra
BORROWINGS - Currency Concentration of Total Borrowings (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | € 2,056 | € 2,129 | € 2,391 |
U.S. Dollar | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,188 | 1,055 | |
Euro | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 861 | 1,048 | |
Other currencies | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | € 7 | € 26 |
FINANCIAL INSTRUMENTS - Financi
FINANCIAL INSTRUMENTS - Financial Assets and Liabilities by Categories (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | € 670 | € 820 |
Financial liabilities | 3,302 | 3,247 |
Trade payables and fixed asset payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 1,191 | 1,087 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 2,056 | 2,129 |
Other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 55 | 31 |
At amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 3,247 | 3,216 |
At amortized cost | Trade payables and fixed asset payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 1,191 | 1,087 |
At amortized cost | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 2,056 | 2,129 |
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 | 40 | 26 |
At fair value through profit and loss | Trade payables and fixed asset 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 | 40 | 26 |
At fair value through OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 15 | 5 |
At fair value through OCI | Trade payables and fixed asset 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 | 15 | 5 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 166 | 147 |
Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 465 | 603 |
Other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 39 | 70 |
At amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 166 | 147 |
At amortized cost | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 166 | 147 |
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 | 0 |
At fair value through profit and loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 37 | 70 |
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 | 37 | 70 |
At fair value through OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 467 | 603 |
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 | 465 | 603 |
At fair value through OCI | Other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | € 2 | € 0 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - Fair value - Level 1 € in Millions | Dec. 31, 2022 EUR (€) |
Constellium SE Senior Notes Due 2024 | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 97% |
Senior notes issued | € 657 |
Senior Unsecured Notes Issued February 2017 and due 2025 | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 92% |
Senior notes issued | € 282 |
Constellium SE Senior Notes Due 2026 | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 82% |
Senior notes issued | € 385 |
Constellium SE Senir Notes Due 2028 | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of fair value senior notes issued | 80% |
Senior notes issued | € 239 |
FINANCIAL INSTRUMENTS - Other F
FINANCIAL INSTRUMENTS - Other Financial Assets and Other Financial Liabilities Positions (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives assets | € 8 | € 12 | |
Current derivatives assets | 31 | 58 | |
Derivative financial assets | 39 | 70 | |
Non-current derivatives liabilities | 14 | 6 | |
Current derivative liabilities | 41 | 25 | |
Derivatives liabilities | 55 | 31 | |
Other financing activities | (3) | (26) | € (8) |
Aluminium and premium derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives liabilities | 0 | 0 | |
Current derivative liabilities | 19 | 14 | |
Derivatives liabilities | 19 | 14 | |
Energy derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives liabilities | 3 | 0 | |
Current derivative liabilities | 7 | 0 | |
Derivatives liabilities | 10 | 0 | |
Other commodity derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives liabilities | 0 | 0 | |
Current derivative liabilities | 1 | 0 | |
Derivatives liabilities | 1 | 0 | |
Currency commercial derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives liabilities | 11 | 6 | |
Current derivative liabilities | 14 | 11 | |
Derivatives liabilities | 25 | 17 | |
Currency net debt derivatives | Forward purchase contracts versus EURO | |||
Disclosure of detailed information about financial instruments [line items] | |||
Nominal amount | 565 | ||
Other financing activities | (32) | ||
Aluminium and premium derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives assets | 2 | 9 | |
Current derivatives assets | 7 | 38 | |
Derivative financial assets | 9 | 47 | |
Energy derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives assets | 3 | 1 | |
Current derivatives assets | 2 | 1 | |
Derivative financial assets | 5 | 2 | |
Other commodity derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives assets | 0 | 0 | |
Current derivatives assets | 2 | 4 | |
Derivative financial assets | 2 | 4 | |
Currency commercial derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives assets | 3 | 2 | |
Current derivatives assets | 20 | 14 | |
Derivative financial assets | 23 | 16 | |
Currency net debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current derivatives assets | 0 | 0 | |
Current derivatives assets | 0 | 1 | |
Derivative financial assets | € 0 | € 1 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives Measured at Fair Value (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | € 39 | € 70 |
Other financial liabilities - derivatives | 55 | 31 |
Level 1 | ||
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | 6 | 41 |
Other financial liabilities - derivatives | 17 | 13 |
Level 2 | ||
Disclosure of financial instruments measured at fair value [line items] | ||
Other financial assets - derivatives | 33 | 29 |
Other financial liabilities - derivatives | 38 | 18 |
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, 2022 EUR_ |
Less than 1 year | Sold currencies USD | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 409 |
Less than 1 year | Sold currencies CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 82 |
Less than 1 year | Sold currencies CZK | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 3 |
Less than 1 year | Sold currencies - 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 | Purchased currencies USD | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 109 |
Less than 1 year | Purchased currencies CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 134 |
Less than 1 year | Purchased currencies EUR | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 78 |
Less than 1 year | Purchased currencies - Other currencies | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 1 |
Over 1 year | Sold currencies USD | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 186 |
Over 1 year | Sold currencies CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 29 |
Over 1 year | Sold currencies 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 | Sold currencies - 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 | Purchased currencies USD | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 25 |
Over 1 year | Purchased currencies CHF | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 16 |
Over 1 year | Purchased currencies EUR | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal value | 20 |
Over 1 year | Purchased currencies - 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 - Nar
FINANCIAL RISK MANAGEMENT - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 EUR (€) | Dec. 31, 2019 EUR (€) | |
Disclosure of liquidity risk [line items] | |||||||
Percentage of trade account receivables insured | 76% | 76% | |||||
Revolving credit facilities outstanding availability | € 480 | ||||||
Liquidity value | 709 | € 773 | |||||
Cash and cash equivalents | 166 | 147 | € 439 | € 184 | |||
Undrawn facilities | 543 | 626 | |||||
Derivative classified as cash flow hedge | |||||||
Disclosure of liquidity risk [line items] | |||||||
Nominal amount hedging instrument | $ | $ 248 | $ 274 | |||||
Forward purchase contracts versus EURO | Foreign exchange forward contracts | |||||||
Disclosure of liquidity risk [line items] | |||||||
Net position hedges related to loans and deposits | $ | $ 115 | ||||||
U.S. Revolving Facility | |||||||
Disclosure of liquidity risk [line items] | |||||||
Borrowing base | $ | $ 469 | ||||||
French Inventory Based Facility | |||||||
Disclosure of liquidity risk [line items] | |||||||
Borrowing base | 100 | ||||||
Currency risk | |||||||
Disclosure of liquidity risk [line items] | |||||||
Margin requirement paid as collateral to counterparties | 0 | ||||||
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 | ||||||
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 | € 3 | € 1 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | € (8) | € (1) | € (11) |
Unrealized (losses) / gains on foreign currency derivatives - net | 6 | 13 | (8) |
Losses reclassified from OCI as a result of hedge accounting discontinuation | 0 | 0 | 6 |
Derivatives that do not qualify for hedge accounting | At fair value through profit and loss | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | 0 | 1 | (4) |
Unrealized (losses) / gains on foreign currency derivatives - net | 6 | 15 | (9) |
Derivatives that qualify for hedge accounting | At fair value through profit and loss | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | (8) | (2) | (7) |
Unrealized (losses) / gains on foreign currency derivatives - net | 0 | (2) | 1 |
Losses reclassified from OCI as result of hedge accounting discontinuation | 0 | 0 | (6) |
Losses reclassified from OCI as a result of hedge accounting discontinuation | 6 | ||
Derivatives that qualify for hedge accounting | At fair value through OCI | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Unrealized (losses) / gains on foreign currency derivatives - net | (16) | (21) | 20 |
Gains reclassified from cash flow hedge reserve to the Consolidated Income Statement | € 8 | € 4 | € 6 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | € (8) | € (1) | € (11) |
Unrealized (losses) / gains on foreign currency derivatives - net | 6 | 13 | (8) |
Total | 1 | 10 | (32) |
Currency risk | At fair value through profit and loss | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized gains / (losses) on foreign currency derivatives - net | 2 | (36) | 7 |
Unrealized (losses) / gains on foreign currency derivatives - net | (1) | 46 | (39) |
Total | € 1 | € 10 | € (32) |
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) - 10% strengthening U.S. Dollar/Euro € in Millions | 12 Months Ended |
Dec. 31, 2022 EUR (€) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | € (23) |
Effect on pretax equity | (24) |
Net commercial transaction exposure | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | (23) |
Effect on pretax equity | (24) |
Net financing transaction exposure | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | 0 |
Effect on pretax equity | 0 |
Trade receivables | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | 3 |
Effect on pretax equity | 0 |
Trade payables | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | (1) |
Effect on pretax equity | 0 |
Derivatives on commercial transactions | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | (25) |
Effect on pretax equity | (24) |
Cash in Bank and intercompany loans | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | 105 |
Effect on pretax equity | 0 |
Borrowings | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | (117) |
Effect on pretax equity | 0 |
Derivatives on financing transactions | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | 12 |
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, 2022 EUR (€) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Effect on income before tax | € 23 |
Effect on pretax equity | € 182 |
FINANCIAL RISK MANAGEMENT - N_2
FINANCIAL RISK MANAGEMENT - Nominal Value of Commodity Derivatives (Details) - Commodity price risk € in Millions | Dec. 31, 2022 EUR (€) |
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 | € 290 |
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 | 18 |
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 | 12 |
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 | 18 |
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 | 31 |
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 | 8 |
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 | 5 |
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 | 5 |
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 | 0 |
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 | Natural gas | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |
Nominal amount | 29 |
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 | € 0 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Realized (losses) / gains on commodity derivatives - net | € (6) | € 112 | € (31) |
Unrealized (losses) / gains on commodity derivatives - net | € (53) | € 24 | € 25 |
FINANCIAL RISK MANAGEMENT - Exp
FINANCIAL RISK MANAGEMENT - Exposure to Financial Counterparties by Rating Type (Details) € in Thousands | Dec. 31, 2022 EUR (€) counterparty | Dec. 31, 2021 EUR (€) counterparty |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | counterparty | 9 | 19 |
Exposure | € 166,000 | € 185,000 |
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 | 3 |
Exposure | € 51,000 | € 54,000 |
Rated A | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | counterparty | 6 | 13 |
Exposure | € 112,000 | € 98,000 |
Rated Baa | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of financial counterparties | counterparty | 1 | 3 |
Exposure | € 3,000 | € 33,000 |
FINANCIAL RISK MANAGEMENT - Und
FINANCIAL RISK MANAGEMENT - Undiscounted Contractual Financial Assets and Financial Liabilities Values by Relevant Maturity Groupings (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Leases | € 168 | € 183 |
Less than 1 year | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 496 | 663 |
Financial liabilities | 1,351 | 1,424 |
Leases | 35 | 37 |
Less than 1 year | Borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 5 | 195 |
Less than 1 year | Interest | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 78 | 79 |
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 | 42 | 26 |
Less than 1 year | Trade payables and fixed asset payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 1,191 | 1,087 |
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 | 31 | 60 |
Less than 1 year | Trade receivables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 465 | 603 |
Between 1- 5 years | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 9 | 12 |
Financial liabilities | 1,075 | 1,106 |
Leases | 98 | 99 |
Between 1- 5 years | Borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 698 | 710 |
Between 1- 5 years | Interest | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 260 | 285 |
Between 1- 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 | 19 | 12 |
Between 1- 5 years | Trade payables and fixed asset payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
Between 1- 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 |
Between 1- 5 years | Trade receivables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 0 | 0 |
Over 5 years | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 0 | 0 |
Financial liabilities | 1,227 | 1,227 |
Leases | 86 | 85 |
Over 5 years | Borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 1,087 | 1,046 |
Over 5 years | Interest | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 54 | 96 |
Over 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 |
Over 5 years | Trade payables and fixed asset payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 0 | 0 |
Over 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 |
Over 5 years | Trade receivables | ||
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 - Narrative (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||||
Collective bargaining agreement, period | 3 years | ||||
Increase (reduction) in pension obligation | € (47) | € 32 | |||
Gains on pension plan amendments | € 47 | € (32) | € (2) | ||
Weighted-average maturity of defined benefit obligations | 11 years 2 months 12 days | 14 years 2 months 12 days | |||
Defined benefit obligations | |||||
Disclosure of defined benefit plans [line items] | |||||
Increase (reduction) in pension obligation | € (47) | € 32 | |||
Other Benefits | |||||
Disclosure of defined benefit plans [line items] | |||||
Gains on pension plan amendments | € 36 | ||||
Expected contributions to pension and other benefits for next year | 16 | ||||
Other Benefits | Defined benefit obligations | |||||
Disclosure of defined benefit plans [line items] | |||||
Increase (reduction) in pension obligation | (49) | 31 | |||
OPEB | |||||
Disclosure of defined benefit plans [line items] | |||||
Gains on pension plan amendments | 49 | ||||
Loss recognized on disputes about plan changes | 31 | ||||
Pension Benefits | |||||
Disclosure of defined benefit plans [line items] | |||||
Expected contributions to pension and other benefits for next year | 23 | ||||
Pension Benefits | Defined benefit obligations | |||||
Disclosure of defined benefit plans [line items] | |||||
Increase (reduction) in pension obligation | € 2 | € 1 |
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, 2022 EUR (€) |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase in actuarial assumption | 0.50% |
50 bp increase in discount rates | € (46) |
50 bp decrease in discount rates | 52 |
France | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
50 bp increase in discount rates | (6) |
50 bp decrease in discount rates | 7 |
Germany | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
50 bp increase in discount rates | (5) |
50 bp decrease in discount rates | 5 |
Switzerland | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
50 bp increase in discount rates | (16) |
50 bp decrease in discount rates | 17 |
United States | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
50 bp increase in discount rates | (19) |
50 bp decrease in discount rates | € 23 |
PENSIONS AND OTHER POST-EMPLO_5
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Actuarial Assumptions (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
OPEB | Pre 65 | 2021 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 6.75% | |
OPEB | Pre 65 | 2029 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 4.50% | |
OPEB | Post 65 | 2021 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical trend rate | 6% | |
OPEB | Post 65 | 2029 | ||
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 | 1.75% | 1.50% |
Rate of increase in pensions | 0% | 0% |
Discount rate | 2.05% | 0.15% |
U.S. | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | ||
Rate of increase in pensions | ||
Discount rate | ||
U.S. | Hourly pension | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 3% | 2.20% |
Rate of increase in pensions | 0% | 0% |
U.S. | Hourly pension | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 5% | 2.80% |
U.S. | Hourly pension | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 5.05% | 2.95% |
U.S. | Salaried pension | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 0% | 0% |
Rate of increase in pensions | 0% | 0% |
Discount rate | 5.05% | 2.85% |
U.S. | OPEB | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 4% | 3.80% |
Rate of increase in pensions | 0% | 0% |
U.S. | OPEB | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 5% | 2.85% |
U.S. | OPEB | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 5.05% | 2.95% |
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% | 0% |
U.S. | Other benefits | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 4.95% | 2.60% |
U.S. | Other benefits | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 5% | 2.85% |
France | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in pensions | 2% | 2% |
Discount rate | ||
France | Bottom of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 2.20% | 1.80% |
France | Top of range | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 3.80% | |
France | Retirements | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 0% | 0% |
Rate of increase in pensions | 0% | 0% |
Discount rate | 3.80% | 1% |
France | Other benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 0% | 0% |
Rate of increase in pensions | 0% | 0% |
Discount rate | 3.80% | 0.90% |
Germany | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Rate of increase in salaries | 2.50% | 2.50% |
Rate of increase in pensions | 2% | 1.80% |
Discount rate | 3.75% | 1.05% |
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, 2022 | Dec. 31, 2021 |
Disclosure of net defined benefit liability (asset) [line items] | ||
Present value of funded obligation | € 614 | € 766 |
Fair value of plan assets | (461) | (544) |
Deficit of funded plans | 153 | 222 |
Present value of unfunded obligation | 250 | 377 |
Net liability / (asset) arising from defined benefit obligation | 403 | 599 |
Pension Benefits | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Present value of funded obligation | 614 | 766 |
Fair value of plan assets | (461) | (544) |
Deficit of funded plans | 153 | 222 |
Present value of unfunded obligation | 96 | 128 |
Net liability / (asset) arising from defined benefit obligation | 249 | 350 |
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 | 154 | 249 |
Net liability / (asset) arising from defined benefit obligation | € 154 | € 249 |
PENSIONS AND OTHER POST-EMPLO_7
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Movement in Net Defined Benefit Obligations (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | € 599 | $ 599 | € 664 |
Current service cost | 28 | 30 | |
Interest cost / (income) | 11 | 9 | |
Past service cost | (47) | 32 | |
Immediate recognition of gains arising over the year | (5) | 0 | |
Administration expenses | 2 | 2 | |
Remeasurements due to: | |||
—actual return less interest on plan assets | 107 | (56) | |
—changes in financial assumptions | (254) | (38) | |
—changes in demographic assumptions | (1) | (13) | |
—experience losses | (12) | (11) | |
Effects of changes in foreign exchange rates | 20 | 23 | |
Benefits paid | (6) | (22) | |
Contributions by the Group | (38) | (21) | |
Contributions by the plan participants | 0 | 0 | |
Reclassification as liabilities of disposal group classified as held for sale | (1) | ||
Closing balance | 403 | 599 | |
Defined benefit obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 1,143 | 1,122 | |
Current service cost | 28 | 30 | |
Interest cost / (income) | 20 | 15 | |
Past service cost | (47) | 32 | |
Immediate recognition of gains arising over the year | (5) | 0 | |
Administration expenses | 0 | 0 | |
Remeasurements due to: | |||
—actual return less interest on plan assets | 0 | 0 | |
—changes in financial assumptions | (254) | (38) | |
—changes in demographic assumptions | (1) | (13) | |
—experience losses | (12) | (11) | |
Effects of changes in foreign exchange rates | 50 | 55 | |
Benefits paid | (63) | (54) | |
Contributions by the Group | 0 | 0 | |
Contributions by the plan participants | 6 | 5 | |
Reclassification as liabilities of disposal group classified as held for sale | (1) | ||
Closing balance | 864 | 1,143 | |
Defined benefit obligations | Pension Benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 894 | 906 | |
Current service cost | 20 | 22 | |
Interest cost / (income) | 13 | 10 | |
Past service cost | 2 | 1 | |
Immediate recognition of gains arising over the year | 0 | 0 | |
Administration expenses | 0 | 0 | |
Remeasurements due to: | |||
—actual return less interest on plan assets | 0 | 0 | |
—changes in financial assumptions | (211) | (29) | |
—changes in demographic assumptions | 0 | (13) | |
—experience losses | (3) | (9) | |
Effects of changes in foreign exchange rates | 34 | 38 | |
Benefits paid | (42) | (36) | |
Contributions by the Group | 0 | 0 | |
Contributions by the plan participants | 4 | 4 | |
Reclassification as liabilities of disposal group classified as held for sale | (1) | ||
Closing balance | 710 | 894 | |
Defined benefit obligations | Other Benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | 249 | 216 | |
Current service cost | 8 | 8 | |
Interest cost / (income) | 7 | 5 | |
Past service cost | (49) | 31 | |
Immediate recognition of gains arising over the year | (5) | 0 | |
Administration expenses | 0 | 0 | |
Remeasurements due to: | |||
—actual return less interest on plan assets | 0 | 0 | |
—changes in financial assumptions | (43) | (9) | |
—changes in demographic assumptions | (1) | 0 | |
—experience losses | (9) | (2) | |
Effects of changes in foreign exchange rates | 16 | 17 | |
Benefits paid | (21) | (18) | |
Contributions by the Group | 0 | 0 | |
Contributions by the plan participants | 2 | 1 | |
Reclassification as liabilities of disposal group classified as held for sale | 0 | ||
Closing balance | 154 | 249 | |
Plan Assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning balance | (544) | (458) | |
Current service cost | 0 | 0 | |
Interest cost / (income) | (9) | (6) | |
Past service cost | 0 | 0 | |
Immediate recognition of gains arising over the year | 0 | 0 | |
Administration expenses | 2 | 2 | |
Remeasurements due to: | |||
—actual return less interest on plan assets | 107 | (56) | |
—changes in financial assumptions | 0 | 0 | |
—changes in demographic assumptions | 0 | 0 | |
—experience losses | 0 | 0 | |
Effects of changes in foreign exchange rates | (30) | (32) | |
Benefits paid | 57 | 32 | |
Contributions by the Group | (38) | (21) | |
Contributions by the plan participants | (6) | (5) | |
Reclassification as liabilities of disposal group classified as held for sale | 0 | ||
Closing balance | € (461) | € (544) |
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, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 EUR (€) |
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | € 864 | € 1,143 | ||
Plan assets | (461) | (544) | ||
Net defined benefit liability | 403 | 599 | $ 599 | € 664 |
France | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 117 | 158 | ||
Plan assets | (6) | (5) | ||
Net defined benefit liability | 111 | 153 | ||
Germany | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 100 | 134 | ||
Plan assets | (1) | (2) | ||
Net defined benefit liability | 99 | 132 | ||
Switzerland | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 249 | 306 | ||
Plan assets | (236) | (268) | ||
Net defined benefit liability | 13 | 38 | ||
United States | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations | 398 | 545 | ||
Plan assets | (218) | (269) | ||
Net defined benefit liability | € 180 | € 276 |
PENSIONS AND OTHER POST-EMPLO_9
PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS - Plan Asset Categories (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of changes in financial position [line items] | ||
Cash & cash equivalents | € 4 | € 4 |
Equities | 123 | 176 |
Bonds | 226 | 259 |
Property | 74 | 71 |
Other | 34 | 34 |
Total fair value of plan assets | 461 | 544 |
Quoted in an active market | ||
Disclosure of changes in financial position [line items] | ||
Cash & cash equivalents | 4 | 4 |
Equities | 87 | 115 |
Bonds | 146 | 149 |
Property | 14 | 16 |
Other | 0 | 0 |
Total fair value of plan assets | 251 | 284 |
Not quoted in an active market | ||
Disclosure of changes in financial position [line items] | ||
Cash & cash equivalents | 0 | 0 |
Equities | 36 | 61 |
Bonds | 80 | 110 |
Property | 60 | 55 |
Other | 34 | 34 |
Total fair value of plan assets | € 210 | € 260 |
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, 2022 EUR (€) | |
Disclosure of employee benefits [Abstract] | |
2023 | € 56 |
2024 | 56 |
2025 | 57 |
2026 | 57 |
2027 | 60 |
2028 to 2032 | € 328 |
PROVISIONS - Changes in Provisi
PROVISIONS - Changes in Provisions (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in other provisions [abstract] | ||
Beginning balance | € 117 | € 121 |
Allowance | 6 | 11 |
Amounts used | (7) | (9) |
Unused amounts reversed | (4) | (9) |
Unwinding of discounts and change in discount rates | (5) | (1) |
Effects of changes in foreign exchange rates | 4 | 4 |
Transfer | 0 | |
Ending balance | 111 | 117 |
Current | 21 | 20 |
Non-Current | 90 | 97 |
Total Provisions | 111 | 117 |
Close down and environmental remediation costs | ||
Changes in other provisions [abstract] | ||
Beginning balance | 88 | 88 |
Allowance | 3 | 4 |
Amounts used | (3) | (1) |
Unused amounts reversed | 0 | (2) |
Unwinding of discounts and change in discount rates | (5) | (1) |
Effects of changes in foreign exchange rates | 3 | 4 |
Transfer | (4) | |
Ending balance | 86 | 88 |
Current | 12 | 7 |
Non-Current | 74 | 81 |
Total Provisions | 86 | 88 |
Restructuring costs | ||
Changes in other provisions [abstract] | ||
Beginning balance | 2 | 6 |
Allowance | 0 | 3 |
Amounts used | (2) | (6) |
Unused amounts reversed | 0 | (1) |
Unwinding of discounts and change in discount rates | 0 | 0 |
Effects of changes in foreign exchange rates | 0 | 0 |
Transfer | 0 | |
Ending balance | 0 | 2 |
Current | 0 | 1 |
Non-Current | 0 | 1 |
Total Provisions | 0 | 2 |
Legal claims and other costs | ||
Changes in other provisions [abstract] | ||
Beginning balance | 27 | 27 |
Allowance | 3 | 4 |
Amounts used | (2) | (2) |
Unused amounts reversed | (4) | (6) |
Unwinding of discounts and change in discount rates | 0 | 0 |
Effects of changes in foreign exchange rates | 1 | 0 |
Transfer | 4 | |
Ending balance | 25 | 27 |
Current | 9 | 12 |
Non-Current | 16 | 15 |
Total Provisions | € 25 | € 27 |
PROVISIONS - Narrative (Details
PROVISIONS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other provisions [abstract] | |
Expected provisions settlement period | 40 years |
PROVISIONS - Legal Claims and O
PROVISIONS - Legal Claims and Other Costs (Details) - Legal claims and other costs € in Millions | 12 Months Ended | |
Dec. 31, 2022 EUR (€) claim | Dec. 31, 2021 EUR (€) claim | |
Disclosure of other provisions [line items] | ||
Litigation | € 15 | € 16 |
Disease claims | 10 | 9 |
Other | 0 | 2 |
Total provisions for legal claims and other costs | € 25 | € 27 |
Disease claims | ||
Disclosure of other provisions [line items] | ||
Number of cases outstanding for disease claims | claim | 6 | 5 |
Disease claims | Bottom of range | ||
Disclosure of other provisions [line items] | ||
Latency period for acquiring diseases | 25 years | |
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) | € 0.4 | € 0.4 |
Average settlement amount per disease claim (less than) | € 0.5 |
NON-CASH INVESTING AND FINANC_2
NON-CASH INVESTING AND FINANCING TRANSACTIONS (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of cash flow statement [Abstract] | |||
Property, plant and equipment acquired by finance lease | € 18 | € 18 | € 66 |
Fair value of vested PSUs and RSUs | € 15 | € 15 | € 14 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) | Dec. 31, 2022 EUR (€) vote € / shares shares | Dec. 31, 2021 EUR (€) shares |
Disclosure of classes of share capital [line items] | ||
Share capital | € | € 2,886,031.84 | € 3,000,000 |
Nominal value of ordinary fully-paid shares (in EUR per share) | € / shares | € 0.02 | |
Number of vote rights per share | vote | 1 | |
Ordinary shares | ||
Disclosure of classes of share capital [line items] | ||
Number of ordinary shares (in shares) | shares | 144,301,592 | 141,677,366 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) € in Millions | 12 Months Ended |
Dec. 31, 2022 EUR (€) shares | |
Disclosure of classes of share capital [line items] | |
Beginning balance | € 291 |
Ending balance | 752 |
Share capital | |
Disclosure of classes of share capital [line items] | |
Beginning balance | 3 |
New shares issued | 0 |
Ending balance | 3 |
Share premium | |
Disclosure of classes of share capital [line items] | |
Beginning balance | 420 |
New shares issued | 0 |
Ending balance | € 420 |
Ordinary shares | |
Disclosure of classes of share capital [line items] | |
Beginning balance (in shares) | shares | 141,677,366 |
Ending balance (in shares) | shares | 144,301,592 |
Ordinary shares | Employees | |
Disclosure of classes of share capital [line items] | |
New shares issued (in shares) | shares | 2,624,226 |
COVID-19-RELATED GOVERNMENT A_2
COVID-19-RELATED GOVERNMENT ASSISTANCE (Details) € in Millions | 12 Months Ended |
Dec. 31, 2020 EUR (€) | |
COVID-19 | |
Government Assistance [Line Items] | |
Proceeds from government grants deducted from employee benefit expenses | € 22 |
COMMITMENTS - Non-cancellable L
COMMITMENTS - Non-cancellable Lease Commitments Not Capitalized (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of non-cancellable operating leases commitments [line items] | ||
Total non-cancellable minimum lease payments | € 12 | € 8 |
Less than 1 year | ||
Disclosure of non-cancellable operating leases commitments [line items] | ||
Total non-cancellable minimum lease payments | 3 | 3 |
1 to 5 years | ||
Disclosure of non-cancellable operating leases commitments [line items] | ||
Total non-cancellable minimum lease payments | 9 | 3 |
Over 5 years | ||
Disclosure of non-cancellable operating leases commitments [line items] | ||
Total non-cancellable minimum lease payments | € 0 | € 2 |
COMMITMENTS - Tangible and Inta
COMMITMENTS - Tangible and Intangible Asset Commitments (Details) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of capital expenditures commitments [line items] | ||
Total tangible and intangible asset commitments | € 166 | € 65 |
Property, plant and equipment | ||
Disclosure of capital expenditures commitments [line items] | ||
Total tangible and intangible asset commitments | € 166 | € 65 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) - EUR (€) € in Millions | 1 Months Ended | ||||
May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 13, 2020 | |
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | € 2,056 | € 2,129 | € 2,391 | ||
Secured French PGE French Facility (due 2022) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | € 0 | € 180 | |||
Extension period | 5 years | ||||
Secured French PGE French Facility (due 2022) | French Government | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | € 180 | ||||
Percentage of borrowings guaranteed | 80% | ||||
Secured French PGE French Facility (due 2022) | French Government | BPI France | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | € 30 |
RELATED PARTIES - Key Managemen
RELATED PARTIES - Key Management Personnel Compensation (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits | € 12 | € 8 | € 9 |
Directors' fees | 2 | 1 | 1 |
Share-based compensation | 10 | 9 | 10 |
Post-employments benefits | 0 | 0 | 0 |
Termination benefits | 0 | 0 | 0 |
Employer social contribution | 2 | 1 | 1 |
Total | € 26 | € 19 | € 21 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) € / shares in Units, € in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2022 shares | Jul. 31, 2020 shares | May 31, 2020 shares | Apr. 30, 2019 | May 31, 2018 | Jul. 31, 2017 | Dec. 31, 2022 EUR (€) shares € / shares | Dec. 31, 2021 EUR (€) shares € / shares | Dec. 31, 2020 EUR (€) shares | Dec. 31, 2019 shares | |
Share Based Payment Plans [line items] | ||||||||||
Expense from share-based payment transactions with employees | € | € 18 | € 15 | € 15 | |||||||
Antidilutive securities (in shares) | 6,402,289 | |||||||||
PSUs | ||||||||||
Share Based Payment Plans [line items] | ||||||||||
Share based compensation, vesting period | 3 years | |||||||||
Total shareholder return (TSR) percentage achieved | 200% | 182.90% | 186.80% | |||||||
Potential additional shares granted (in shares) | 1,849,268 | 1,458,985 | 1,161,718 | |||||||
Share price at grant date (in EUR per share) | € / shares | € 17.11 | € 13.90 | ||||||||
PSUs | Bottom of range | ||||||||||
Share Based Payment Plans [line items] | ||||||||||
Percentage of vesting multiplier | 0% | |||||||||
PSUs | Top of range | ||||||||||
Share Based Payment Plans [line items] | ||||||||||
Percentage of vesting multiplier | 200% | |||||||||
RSUs | ||||||||||
Share Based Payment Plans [line items] | ||||||||||
Potential additional shares granted (in shares) | 556,360 | 534,499 | ||||||||
RSUs | Certain Employees And Chief Financial Officer | ||||||||||
Share Based Payment Plans [line items] | ||||||||||
Vesting period on the grant date | 3 years | |||||||||
Share price at grant date (in EUR per share) | € / shares | € 17.11 | |||||||||
RSUs | Board Members | ||||||||||
Share Based Payment Plans [line items] | ||||||||||
Potential additional shares granted (in shares) | 0 | 0 | 0 | 2 |
SHARE-BASED COMPENSATION - Inpu
SHARE-BASED COMPENSATION - Inputs to the Model Used for PSUs Granted (Details) - PSUs - € / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Input of Model Used for Performance-Based RSU [Line Items] | ||
Fair value at grant date (in euros) (in EUR per share) | € 23.70 | € 21.84 |
Share price at grant date (in EUR per share) | € 17.11 | € 13.90 |
Dividend yield | 0% | 0% |
Expected volatility | 70% | 71% |
Risk-free interest rate (US government bond yield) | 1.88% | 0.31% |
SHARE-BASED COMPENSATION - Numb
SHARE-BASED COMPENSATION - Number and Movement of Potential Shares (Details) | 12 Months Ended | |
Dec. 31, 2022 EUR (€) shares | Dec. 31, 2021 EUR (€) shares | |
Performance-Based RSU | ||
Disclosure of movement of potential shares [line items] | ||
Potential Shares, Beginning balance (in shares) | 2,526,527 | 2,594,327 |
Potential Shares, Granted (in shares) | 603,023 | 614,555 |
Potential Shares, Over-performance (in shares) | 924,634 | 526,551 |
Potential Shares, Vested (in shares) | (1,849,268) | (1,161,718) |
Potential Shares, Forfeited (in shares) | (19,082) | (47,188) |
Potential Shares, Ending balance (in shares) | 2,185,834 | 2,526,527 |
Weighted- Average Grant-Date Fair Value per Share, Beginning balance | € | € 11.71 | € 10.17 |
Weighted- Average Grant-Date Fair Value per Share, Granted | € | 23.70 | 21.84 |
Weighted- Average Grant-Date Fair Value per Share, Over-performance | € | 10.44 | 15.31 |
Weighted- Average Grant-Date Fair Value per Share, Vested | € | 10.44 | 15.31 |
Weighted- Average Grant-Date Fair Value per Share, Forfeited | € | 11.65 | 10.29 |
Weighted- Average Grant-Date Fair Value per Share, Ending balance | € | € 15.56 | € 11.71 |
Percentage of vesting multiplier | 100% | |
Performance based shares forfeited upon departure of certain beneficiaries (in shares) | 19,082 | |
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) | 2,148,999 | 2,231,911 |
Potential Shares, Granted (in shares) | 556,360 | 534,499 |
Potential Shares, Over-performance (in shares) | 0 | 0 |
Potential Shares, Vested (in shares) | (774,958) | (520,064) |
Potential Shares, Forfeited (in shares) | (54,955) | (97,347) |
Potential Shares, Ending balance (in shares) | 1,875,446 | 2,148,999 |
Weighted- Average Grant-Date Fair Value per Share, Beginning balance | € | € 7.79 | € 6.88 |
Weighted- Average Grant-Date Fair Value per Share, Granted | € | 17.11 | 13.90 |
Weighted- Average Grant-Date Fair Value per Share, Over-performance | € | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Vested | € | 7.10 | 10.27 |
Weighted- Average Grant-Date Fair Value per Share, Forfeited | € | 9.04 | 7.17 |
Weighted- Average Grant-Date Fair Value per Share, Ending balance | € | € 10.80 | € 7.79 |
Equity Award Plans | ||
Disclosure of movement of potential shares [line items] | ||
Potential Shares, Beginning balance (in shares) | 0 | 32,912 |
Potential Shares, Granted (in shares) | 0 | 0 |
Potential Shares, Over-performance (in shares) | 0 | 0 |
Potential Shares, Vested (in shares) | 0 | (32,912) |
Potential Shares, Forfeited (in shares) | 0 | 0 |
Potential Shares, Ending balance (in shares) | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Beginning balance | € | € 0 | € 8.39 |
Weighted- Average Grant-Date Fair Value per Share, Granted | € | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Over-performance | € | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Vested | € | 0 | 8.39 |
Weighted- Average Grant-Date Fair Value per Share, Forfeited | € | 0 | 0 |
Weighted- Average Grant-Date Fair Value per Share, Ending balance | € | € 0 | € 0 |
SUBSIDIARIES AND AFFILIATES (De
SUBSIDIARIES AND AFFILIATES (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Cross Operating Segment | Constellium Singen GmbH (AS&I and P&ARP) | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
Cross Operating Segment | Constellium Valais S.A. (AS&I and A&T) | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
% Group Interest | 100% |
AS&I | Constellium Automotive USA, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
AS&I | Constellium Engley (Changchun) Automotive Structures Co Ltd. | |
Disclosure of subsidiaries [line items] | |
Country | China |
% Group Interest | 54% |
AS&I | Constellium Extrusions Decin S.r.o. | |
Disclosure of subsidiaries [line items] | |
Country | Czech Republic |
% Group Interest | 100% |
AS&I | Constellium Extrusions Deutschland GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
AS&I | Constellium Extrusions Landau GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
AS&I | Constellium Extrusions Burg GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
AS&I | Constellium Extrusions France S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
AS&I | Constellium Extrusions Levice S.r.o. | |
Disclosure of subsidiaries [line items] | |
Country | Slovakia |
% Group Interest | 100% |
AS&I | Constellium Automotive Mexico, S. DE R.L. DE C.V. | |
Disclosure of subsidiaries [line items] | |
Country | Mexico |
% Group Interest | 100% |
AS&I | Constellium Automotive Mexico Trading, S. DE R.L. DE C.V. | |
Disclosure of subsidiaries [line items] | |
Country | Mexico |
% Group Interest | 100% |
AS&I | Astrex Inc | |
Disclosure of subsidiaries [line items] | |
Country | Canada |
% Group Interest | 50% |
AS&I | Constellium Automotive Zilina S.r.o. | |
Disclosure of subsidiaries [line items] | |
Country | Slovakia |
% Group Interest | 100% |
AS&I | Constellium Automotive (Nanjing) Co. Ltd. | |
Disclosure of subsidiaries [line items] | |
Country | China |
% Group Interest | 100% |
AS&I | Constellium Automotive Spain SL | |
Disclosure of subsidiaries [line items] | |
Country | Spain |
% Group Interest | 100% |
AS&I | Constellium UK Limited | |
Disclosure of subsidiaries [line items] | |
Country | United Kingdom |
% Group Interest | 100% |
A&T | Constellium Issoire S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
A&T | Constellium Montreuil Juigné S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
A&T | Constellium China Co. Ltd. | |
Disclosure of subsidiaries [line items] | |
Country | China |
% Group Interest | 100% |
A&T | Constellium Japan KK | |
Disclosure of subsidiaries [line items] | |
Country | Japan |
% Group Interest | 100% |
A&T | Constellium Rolled Products Ravenswood, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
A&T | Constellium Ussel S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
A&T | AluInfra Services SA | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
% Group Interest | 50% |
P&ARP | Constellium Deutschland GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
P&ARP | Constellium Rolled Products Singen GmbH & Co. KG | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
P&ARP | Constellium Neuf Brisach S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
P&ARP | Constellium Muscle Shoals LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
P&ARP | Constellium Holdings Muscle Shoals LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
P&ARP | Constellium Muscle Shoals Funding II LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
P&ARP | Constellium Muscle Shoals Funding III LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
P&ARP | Constellium Metal Procurement LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
P&ARP | Constellium Bowling Green LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
P&ARP | Rhenaroll SA | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 50% |
Holdings & Corporate | C-TEC Constellium Technology Center S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
Holdings & Corporate | Constellium Finance S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
Holdings & Corporate | Constellium France III S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
Holdings & Corporate | Constellium France Holdco S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
Holdings & Corporate | Constellium International S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
Holdings & Corporate | Constellium Paris S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
Holdings & Corporate | Constellium Germany Holdco GmbH & Co. KG | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
Holdings & Corporate | Constellium Germany Verwaltungs GmbH | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
Holdings & Corporate | Constellium US Holdings I, LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
Holdings & Corporate | Constellium US Intermediate Holdings LLC | |
Disclosure of subsidiaries [line items] | |
Country | U.S. |
% Group Interest | 100% |
Holdings & Corporate | Constellium Switzerland AG | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
% Group Interest | 100% |
Holdings & Corporate | Constellium Treuhand UG (haftunsgbeschränkt) | |
Disclosure of subsidiaries [line items] | |
Country | Germany |
% Group Interest | 100% |
Holdings & Corporate | Engineered Products International S.A.S. | |
Disclosure of subsidiaries [line items] | |
Country | France |
% Group Interest | 100% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) € in Millions | Feb. 02, 2023 EUR (€) |
Disposal of major subsidiary [member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
Cash consideration received on sale of business | € 1.6 |