Segment, Geographical Area, Major Customer and Major Supplier Information

12 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION

SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION

Segment Information

Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America; Europe; Asia and South America. All of our segments manufacture aluminum sheet and light gauge products.

The following is a description of our operating segments:

North America. Headquartered in Atlanta, Georgia, this segment operates ten plants, including two fully dedicated recycling facilities and one facility with recycling operations, in two countries.

Europe. Headquartered in Zurich, Switzerland, this segment operates nine plants, including one fully dedicated recycling facility and two plants with recycling operations, in four countries.

Asia. Headquartered in Seoul, South Korea, this segment operates three plants, including two facilities with recycling operations in two countries.

South America. Headquartered in Sao Paulo, Brazil, this segment comprises smelting operations, power generation and operates three plants, including a facility with recycling operations, in Brazil.

Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies.

We measure the profitability and financial performance of our operating segments based on “Segment income.” “Segment income” provides a measure of our underlying segment results that is in line with our approach to risk management. We define “Segment income” as earnings before (a) “depreciation and amortization”; (b) “interest expense and amortization of debt issuance costs”; (c) “interest income”; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) gain or loss on extinguishment of debt; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of “Segment income” from non-consolidated affiliates to income as determined on the equity method of accounting; (i) “restructuring and impairment, net”; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) provision or benefit for taxes on income (loss) and (o) cumulative effect of accounting change, net of tax.

The tables below show selected segment financial information (in millions). The “Eliminations and Other” column in the table below includes eliminations and functions that are managed directly from our corporate office that have not been allocated to our operating segments, as well as the adjustments for proportional consolidation, and eliminations of intersegment “Net sales.” The financial information for our segments includes the results of our affiliates on a proportionately consolidated basis, which is consistent with the way we manage our business segments. In order to reconcile the financial information for the segments shown in the tables below to the relevant U.S. GAAP-based measures, we must adjust proportional consolidation of each line item. The “Eliminations and Other” in “Net sales – third party” includes the net sales attributable to our joint venture party, Tri-Arrows, for our Logan affiliate because we consolidate 100% of the Logan joint venture for U.S. GAAP, but we manage our Logan affiliate on a proportionately consolidated basis. See Note 8- Consolidation and Note 9 - Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis.

Selected Segment Financial Information

Selected Operating Results Year Ended March 31, 2014	North America			Europe		Asia		South America		Eliminations and Other			Total
Net sales - third party	$	3,042		$	3,145	$	1,849	$	1,543	$	188		$	9,767
Net sales - intersegment	8			135		27		45		(215		)	—
Net sales	$	3,050		$	3,280	$	1,876	$	1,588	$	(27	)	$	9,767
Depreciation and amortization	$	126		$	103	$	68	$	69	$	(32	)	$	334
Income tax provision (benefit)	(34		)	6		16		6		17			11
Capital expenditures	147			241		198		117		14			717
March 31, 2014
Investment in and advances to non–consolidated affiliates	$	—		$	612	$	—	$	—	$	—		$	612
Assets held for sale - Investment in and advances to non-consolidated affiliates	—			—		—		39		—			39
Total assets	2,998			3,046		1,440		1,583		47			9,114

Selected Operating Results Year Ended March 31, 2013	North America		Europe		Asia		South America		Eliminations and Other			Total
Net sales - third party	$	3,397	$	3,096	$	1,746	$	1,391	$	182		$	9,812
Net sales - intersegment	8		85		16		—		(109		)	—
Net sales	$	3,405	$	3,181	$	1,762	$	1,391	$	73		$	9,812
Depreciation and amortization	$	118	$	103	$	53	$	51	$	(33	)	$	292
Income tax provision (benefit)	13		30		18		13		9			83
Capital expenditures	183		80		251		197		64			775
March 31, 2013
Investment in and advances to non–consolidated affiliates	$	1	$	586	$	—	$	40	$	—		$	627
Total assets	2,763		2,673		1,264		1,663		159			8,522

Selected Operating Results Year Ended March 31, 2012	North America		Europe		Asia		South America			Eliminations and Other			Total
Net sales - third party	$	3,966	$	3,806	$	1,830	$	1,278		$	183		$	11,063
Net sales - intersegment	1		34		—		—			(35		)	—
Net sales	$	3,967	$	3,840	$	1,830	$	1,278		$	148		$	11,063
Depreciation and amortization	$	136	$	129	$	55	$	55		$	(46	)	$	329
Income tax provision (benefit)	21		2		23		(10		)	3			39
Capital expenditures	108		73		151		177			7			516

The following table shows the reconciliation from income from reportable segments to “Net income attributable to our common shareholder” (in millions).

	Year Ended March 31,
	2014			2013			2012
North America	$	229		$	324		$	407
Europe	265			261			284
Asia	160			174			181
South America	231			202			181
Depreciation and amortization	(334		)	(292		)	(329		)
Interest expense and amortization of debt issuance costs	(304		)	(298		)	(305		)
Adjustment to eliminate proportional consolidation	(40		)	(41		)	(49		)
Unrealized (losses) gains on change in fair value of derivative instruments, net	(10		)	14			(62		)
Realized gains (losses) on derivative instruments not included in segment income	5			5			1
Loss on extinguishment of debt	—			(7		)	—
Restructuring and impairment, net	(75		)	(47		)	(64		)
Gain (loss) on assets held for sale	6			3			(111		)
Other costs, net	(18		)	(12		)	(5		)
Income before income taxes	115			286			129
Income tax provision	11			83			39
Net income	104			203			90
Net income attributable to noncontrolling interests	—			1			27
Net income attributable to our common shareholder	$	104		$	202		$	63

Geographical Area Information

We had 25 operating facilities in nine countries as of March 31, 2014. The tables below present “Net sales” and “Long-lived assets and other intangible assets” by geographical area (in millions). “Net sales” are attributed to geographical areas based on the origin of the sale. “Long-lived assets and other intangible assets” are attributed to geographical areas based on asset location and exclude investments in and advances to our non-consolidated affiliates and goodwill.

	Year Ended March 31,
	2014		2013		2012
Net sales:
United States	$	3,021	$	3,350	$	3,914
Asia and Other Pacific	1,845		1,745		1,830
Brazil	1,544		1,391		1,278
Canada	209		230		234
Germany	2,449		2,391		2,755
United Kingdom	135		53		77
Other Europe	564		652		975
Total Net sales	$	9,767	$	9,812	$	11,063

	March 31,
	2014		2013
Long-lived assets and other intangibles:
United States	$	1,504	$	1,415
Asia and Other Pacific	866		718
Brazil	889		896
Canada	82		83
Germany	268		254
United Kingdom	46		33
Other Europe	498		354
Total long-lived assets	$	4,153	$	3,753

Information about Major Customers and Primary Supplier

The table below shows our net sales to Rexam Plc (Rexam), Anheuser-Busch LLC (Anheuser-Busch), and Affiliates of Ball Corporation, our three largest customers, as a percentage of total “Net sales.”

	Year Ended March 31,
	2014		2013		2012
Rexam	17	%	15	%	14	%
Affiliates of Ball Corporation	10	%	10	%	10	%
Anheuser-Busch LLC	8	%	11	%	10	%

Rio Tinto Alcan (RTA) is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from RTA as a percentage of our total combined metal purchases.

	Year Ended March 31,
	2014		2013		2012
Purchases from RTA as a percentage of total combined metal purchases	17	%	24	%	27	%