Property, Plant and Equipment

12 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

“Property, plant and equipment, net” consists of the following (in millions).

	March 31,
	2015			2014
Land and property rights	$	180		$	174
Buildings	1,183			1,029
Machinery and equipment	3,947			3,606
	5,310			4,809
Accumulated depreciation and amortization	(2,132		)	(1,977		)
	3,178			2,832
Construction in progress	364			681
Property, plant and equipment, net	$	3,542		$	3,513

As of March 31, 2015 and 2014, there were $756 million and $752 million, respectively, of fully depreciated assets included in our consolidated balance sheets.

For the years ended March 31, 2015, 2014 and 2013, we capitalized $20 million, $33 million and $36 million of interest related to construction of property, plant and equipment and intangibles under development, respectively. Depreciation expense related to property, plant, and equipment, net is shown in the table below (in millions).

	Year Ended March 31,
	2015		2014		2013
Depreciation expense related to property, plant and equipment, net	$	294	$	279	$	242

Asset impairments

Impairment charges are recorded in "Restructuring and impairment, net." See Note 2 — Restructuring and impairment for additional information.

Leases

We lease certain land, buildings and equipment under non-cancelable operating leases expiring at various dates, and we lease assets in Sierre, Switzerland, including a fifteen-year capital lease through December 2019 from RTA. During fiscal 2013, 2014 and 2015 we entered into various capital lease arrangements to upgrade and expand our information technology infrastructure. Operating leases generally have five to ten-year terms, with one or more renewal options, with terms to be negotiated at the time of renewal. Various facility leases include provisions for rent escalation to recognize increased operating costs or require us to pay certain maintenance and utility costs.

The following table summarizes rent expense included in our consolidated statements of operations (in millions):

	Year Ended March 31,
	2015		2014		2013
Rent expense	$	22	$	21	$	21

Future minimum lease payments as of March 31, 2015, for our operating and capital leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions).

Year Ending March 31,	Operating Leases		Capital Lease Obligations
2016	$	27	$	11
2017	21		11
2018	19		8
2019	18		7
2020	16		5
Thereafter	54		—
Total minimum lease payments	$	155	$	42
Less: interest portion on capital lease			6
Principal obligation on capital leases			$	36

Assets and related accumulated amortization under capital lease obligations as of March 31, 2015 and 2014 are as follows (in millions).

	March 31,
	2015			2014
Assets under capital lease obligations:
Buildings	$	11		$	12
Machinery and equipment	76			81
	87			93
Accumulated amortization	(65		)	(65		)
	$	22		$	28