RESTRUCTURING AND IMPAIRMENT

“Restructuring and impairment, net” for the year ended March 31, 2015 was $37 million, which included impairment charges unrelated to restructuring actions of $2 million on certain non-core fixed assets in North America. "Restructuring and impairment, net” for the year ended March 31, 2014 was $75 million, included impairment charges unrelated to restructuring actions of $17 million on certain non-core assets in Brazil, $5 million on certain capitalized software assets, and $2 million on other long-lived assets. “Restructuring and impairment, net” for the year ended March 31, 2013 was $47 million, which included impairment charges unrelated to restructuring actions of $2 million on long-lived assets in South Korea and Brazil.

The following table summarizes our restructuring liability activity and other impairment charges (in millions).



	Total restructuring liabilities			Other restructuring charges (A)		Total restructuring charges		Other impairments (B)		Total Restructuring and impairments, net
Balance as of March 31, 2012	$	28
Fiscal 2013 Activity:
Expenses	40			$	5	$	45	$	2	$	47
Cash payments	(34		)
Foreign currency translation and other	(1		)
Balance as of March 31, 2013	33
Fiscal 2014 Activity:
Expenses	48			3		51		24		75
Cash payments	(34		)
Balance as of March 31, 2014	47
Fiscal 2015 Activity:
Expenses	30			$	5	$	35	$	2	$	37
Cash payments	(32		)
Foreign currency translation and other	(13		)
Balance as of March 31, 2015	$	32


(A)	Other restructuring charges include period expenses that were not recorded through the restructuring liability and impairments related to a restructuring activity.


(B)	Other impairment charges not related to a restructuring activity.

As of March 31, 2015, $16 million of restructuring liabilities was classified as short-term and was included in "Accrued expenses and other current liabilities" and $16 million was classified as long-term and was included in "Other long-term liabilities" on our consolidated balance sheets. During the year ended March 31, 2015, we made payments of $1 million for outstanding lease termination costs related to the relocation of our corporate headquarters from Cleveland, Ohio to Atlanta, Georgia. The regional restructuring activities are described in more detail on the subsequent pages.

North America

The following table summarizes our restructuring activity for the North America segment by plan (in millions).



		Year ended March 31,
		2015			2014			2013			Prior to April 1, 2012
Restructuring charges - North America
Saguenay Plant Closure:
	Severance	$	—		$	—		$	5		$	—
	Fixed asset impairment (A)	—			—			—			28
	Other exit related costs	1			1			—			—
	Period expenses (A)	—			1			3			—

Relocation of R&D operations to Kennesaw, Georgia
	Severance	—			1			8			3
	Relocation costs	—			1			—			—
	Period expenses (A)	—			1			—			—

Evermore joint venture exit
	Contract termination penalty fee	—			—			2			—
	Fixed asset impairment (A)	—			—			1			—
Total restructuring charges - North America		$	1		$	5		$	19		$	31

Restructuring payments - North America
	Severance	$	(2	)	$	(4	)	$	(10	)
	Other	(1		)	(2		)	(3		)
Total restructuring payments - North America		$	(3	)	$	(6	)	$	(13	)

(A) These charges were not recorded through the restructuring liability.

In fiscal 2012, we closed our Saguenay Works facility in Canada and relocated our North America research and development operations to a new global research and technology facility in Kennesaw, Georgia. In fiscal 2013, we withdrew from the UBC recycling joint venture with Alcoa Inc., known as Evermore, and established a new organization for the procurement of scrap in North America, which allows us to more seamlessly operate a global recycling network and strategy.

As of March 31, 2015, the outstanding restructuring liability for the North America segment was $1 million, which relates to severance charges.

Europe

The following table summarizes our restructuring activity for the Europe segment by plan (in millions).



		Year ended March 31,
		2015			2014			2013			Prior to April 1, 2012
Restructuring charges - Europe
Business optimization
	Severance	$	3		$	26		$	10		$	6
	Pension settlement loss (A)	—			1			—			—

Rogerstone plant closure
	Severance	—			—			—			18
	Fixed asset impairments	—			—			—			22
	Other exit costs	—			—			1			3

Total restructuring charges - Europe		$	3		$	27		$	11		$	49

Restructuring payments - Europe
	Severance	$	(12	)	$	(18	)	$	(17	)
	Other	—			(1		)	(2		)
Total restructuring payments - Europe		$	(12	)	$	(19	)	$	(19	)

(A) These charges were not recorded through the restructuring liability.

The business optimization actions include the shutdown of facilities, staff rationalization and other activities, to optimize our business in Europe. Additionally, in fiscal 2010, we also closed our aluminum sheet mill in Rogerstone, South Wales, U.K. to reduce labor and overhead costs through capacity and staff reductions in Europe. Other restructuring charges refers to additional restructuring activities, including severance at various plants and other exit costs.

As of March 31, 2015, the outstanding restructuring liability for the Europe segment was $6 million, which relates to severance charges.

South America

The following table summarizes our restructuring activity for the South America segment by plan (in millions).



		Year ended March 31,
		2015			2014			2013			Prior to April 1, 2012
Restructuring charges - South America
Ouro Preto smelter closures
	Severance	$	14		$	2		$	3		$	—
	Asset impairments (A)	5			—			1			—
	Environmental charges	6			16			—			—
	Contract termination and other exit related costs	5			1			5			—

Aratu plant closure
	Severance	—			—			—			7
	Asset impairments (A)	—			—			—			7
	Contract termination and other exit related costs	1			—			6			—
Total restructuring charges - South America		$	31		$	19		$	15		$	14

Restructuring payments - South America
	Severance	$	(12	)	$	(4	)	$	(1	)
	Other	(4		)	(4		)	(1		)
Total restructuring payments - South America		$	(16	)	$	(8	)	$	(2	)

(A) These charges were not recorded through the restructuring liability.

As of March 31, 2015, the outstanding restructuring liability for the South America segment was $25 million and relates to $18 million of environmental charges, $5 million of other exit related costs, $1 million of certain labor related charges and $1 million of contract termination charges.

We ceased operations at the smelter in Ouro Preto, Brazil, in December 2014. This decision was made in an effort to further align our global sustainability strategy, as we work towards our goal of having higher recycled content in our products. Certain charges associated with this closure are reflected within the "Ouro Preto smelter closures" section above, along with our closure of a pot line in Ouro Preto, Brazil, in fiscal 2013. In fiscal 2011, we closed our primary aluminum smelter in Aratu, Brazil.

For additional information on environmental charges see Note 20 – Commitments and Contingencies.