Accounts Receivable

12 Months Ended

Mar. 31, 2014

Receivables [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

“Accounts receivable, net” consists of the following (in millions).

	March 31,
	2014			2013
Trade accounts receivable	$	1,303		$	1,359
Other accounts receivable	83			91
Accounts receivable — third parties	1,386			1,450
Allowance for doubtful accounts — third parties	(4		)	(3		)
Accounts receivable, net — third parties	$	1,382		$	1,447
Other accounts receivable — related parties	$	54		$	38

Allowance for Doubtful Accounts

As of March 31, 2014 and 2013, our allowance for doubtful accounts represented approximately 0.3% and 0.2%, respectively, of gross accounts receivable.

Activity in the allowance for doubtful accounts is as follows (in millions).

	Balance at Beginning of Period		Additions Charged to Expense		Accounts Recovered/ (Written- Off)			Foreign Exchange and Other			Balance at End of  Period
Year Ended March 31, 2012	$	7	$	1	$	(2	)	$	(1	)	$	5
Year Ended March 31, 2013	$	5	$	2	$	(4	)	$	—		$	3
Year Ended March 31, 2014	$	3	$	2	$	(1	)	$	—		$	4

Forfaiting and Factoring of Trade Receivables

Forfaiting of Trade Receivables

Novelis Korea Limited forfaits trade receivables in the ordinary course of business. These trade receivables are typically outstanding for 60 to 150 days. Forfaiting is a non-recourse method to manage credit and interest rate risks. Under this method, customers contract to pay a financial institution. The institution assumes the risk of non-payment and remits the invoice value (net of a fee) to us after presentation of a proof of delivery of goods to the customer. We do not retain a financial or legal interest in these receivables, and they are not included in our consolidated balance sheets.

Factoring of Trade Receivables

Novelis Brazil and Novelis Italy factor, without recourse, certain trade receivables that are unencumbered by pledge restrictions. The financial institution pays us any invoices it has approved for payment (net of a fee). We do not retain financial or legal interest in these receivables. Invoices in which the full balance is factored are not included in our consolidated balance sheets.

Summary Disclosures of Financial Amounts

The following tables summarize amounts relating to our forfaiting and factoring activities (in millions).

	Year Ended March 31,
	2014		2013		2012
Receivables forfaited	$	614	$	352	$	235
Receivables factored	$	467	$	112	$	61
Forfaiting expense	$	2	$	1	$	1
Factoring expense	$	3	$	1	$	1

	March 31,
	2014		2013
Forfaited receivables outstanding	$	137	$	98
Factored receivables outstanding	$	108	$	25