Income Taxes (Tables)

12 Months Ended

Mar. 31, 2014

Schedule of Components of Income before Income Taxes, Domestic and Foreign

The domestic (Canada) and foreign components of our "Income before income taxes" (and after removing our "Equity in net loss of non-consolidated affiliates") are as follows (in millions).



	Year Ended March 31,
	2014			2013			2012
Domestic (Canada)	$	(294	)	$	(263	)	$	(283	)
Foreign (all other countries)	421			565			425
Pre-tax income before equity in net loss of non-consolidated affiliates	$	127		$	302		$	142

Schedule of Components of Income Tax Provision

The components of the "Income tax provision" are as follows (in millions).



	Year Ended March 31,
	2014			2013			2012
Current provision (benefit):
Domestic (Canada)	$	12		$	11		$	3
Foreign (all other countries)	128			103			69
Total current	140			114			72
Deferred provision (benefit):
Domestic (Canada)	—			—			—
Foreign (all other countries)	(129		)	(31		)	(33		)
Total deferred	(129		)	(31		)	(33		)
Income tax provision	$	11		$	83		$	39

Reconciliation of Canadian statutory tax rates to effective tax rates

The reconciliation of the Canadian statutory tax rates to our effective tax rates are shown below (in millions, except percentages).



	Year Ended March 31,
	2014			2013			2012
Pre-tax income before equity in net loss on non-consolidated affiliates	$	127		$	302		$	142
Canadian Statutory tax rate	25		%	26		%	27		%
Provision at the Canadian statutory rate	$	32		$	79		$	38
Increase (decrease) for taxes on income (loss) resulting from:
Exchange translation items	—			(2		)	(9		)
Exchange remeasurement of deferred income taxes	(20		)	(19		)	(26		)
Change in valuation allowances	94			84			117
Tax credits and other allowances	(38		)	(8		)	(6		)
Income items not subject to tax	(6		)	—			(5		)
State tax expense (benefit), net	(7		)	3			4
Dividends not subject to tax	(52		)	(53		)	(52		)
Enacted tax rate changes	3			1			3
Tax rate differences on foreign earnings	(4		)	9			(4		)
Uncertain tax positions	8			2			(23		)
Prior year adjustments	(1		)	(5		)	4
Other, net	2			(8		)	(2		)
Income tax provision	$	11		$	83		$	39
Effective tax rate	9		%	27		%	27		%

Schedule of Deferred Tax Assets and Liabilities

Our deferred income tax assets and deferred income tax liabilities are as follows (in millions).



	March 31,
	2014			2013
Deferred income tax assets:
Provisions not currently deductible for tax purposes	$	315		$	323
Tax losses/benefit carryforwards, net	493			338
Depreciation and amortization	46			50
Other assets	8			13
Total deferred income tax assets	862			724
Less: valuation allowance	(426		)	(317		)
Net deferred income tax assets	$	436		$	407
Deferred income tax liabilities:
Depreciation and amortization	$	529		$	583
Inventory valuation reserves	87			91
Monetary exchange gains, net	46			58
Other liabilities	34			20
Total deferred income tax liabilities	$	696		$	752
Net deferred income tax liabilities	$	260		$	345

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):



	Year Ended March 31,
	2014		2013			2012
Beginning balance	$	30	$	28		$	45
Additions based on tax positions related to the current period	7		5			5
Additions based on tax positions of prior years	1		3			—
Reductions based on tax positions of prior years	—		—			(14		)
Settlements	—		(5		)	(5		)
Foreign exchange	1		(1		)	(3		)
Ending Balance	$	39	$	30		$	28