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 eight plants, including two fully dedicated recycling facilities and one facility with recycling operations, in two countries.

Europe. Headquartered in Kusnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in four countries.

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

South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operation, and operates two plants, including a facility with recycling operations, in Brazil. Our remaining smelting operations facilities ceased operations in December 2014. The majority of our power generation operations were sold during the fourth quarter of fiscal 2015.

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, 2015	North America			Europe		Asia		South America			Eliminations and Other			Total
Net sales - third party	$	3,465		$	3,609	$	2,139	$	1,749		$	185		$	11,147
Net sales - intersegment	18			174		201		101			(494		)	—
Net sales	$	3,483		$	3,783	$	2,340	$	1,850		$	(309	)	$	11,147

Depreciation and amortization	$	137		$	103	$	71	$	63		$	(22	)	$	352
Income tax (benefit) provision	$	(27	)	$	12	$	16	$	(1	)	$	14		$	14
Capital expenditures	$	122		$	257	$	85	$	53		$	1		$	518

March 31, 2015
Investment in and advances to non–consolidated affiliates	$	—		$	447	$	—	$	—		$	—		$	447
Total assets	$	2,744		$	2,952	$	1,663	$	1,588		$	155		$	9,102




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 (benefit) provision	$	(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	$	13	$	30	$	18	$	13	$	9		$	83
Capital expenditures	$	183	$	80	$	251	$	197	$	64		$	775

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,
	2015			2014			2013
North America	$	273		$	229		$	324
Europe	250			265			261
Asia	141			160			174
South America	240			231			202
Intersegment eliminations	(2		)	—			—
Depreciation and amortization	(352		)	(334		)	(292		)
Interest expense and amortization of debt issuance costs	(326		)	(304		)	(298		)
Adjustment to eliminate proportional consolidation	(33		)	(40		)	(41		)
Unrealized (losses) gains on change in fair value of derivative instruments, net	—			(10		)	14
Realized (losses) gains on derivative instruments not included in segment income	(6		)	5			5
Gain on assets held for sale, net	22			6			3
Loss on extinguishment of debt	—			—			(7		)
Restructuring and impairment, net	(37		)	(75		)	(47		)
Loss on sale of fixed assets	(5		)	(9		)	(6		)
Other costs, net	(3		)	(9		)	(6		)
Income before income taxes	162			115			286
Income tax provision	14			11			83
Net income	148			104			203
Net income attributable to noncontrolling interests	—			—			1
Net income attributable to our common shareholder	$	148		$	104		$	202

Geographical Area Information

We had 25 operating facilities in eleven countries as of March 31, 2015. 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,
	2015		2014		2013
Net sales:
United States	$	3,507	$	3,021	$	3,350
Asia and Other Pacific	2,139		1,845		1,745
Brazil	1,750		1,544		1,391
Canada	144		209		230
Germany	2,976		2,449		2,391
United Kingdom	139		135		53
Other Europe	492		564		652
Total Net sales	$	11,147	$	9,767	$	9,812



	March 31,
	2015		2014
Long-lived assets and other intangibles:
United States	$	1,518	$	1,504
Asia and Other Pacific	840		866
Brazil	866		889
Canada	78		82
Germany	251		268
United Kingdom	45		46
Other Europe	528		498
Total long-lived assets	$	4,126	$	4,153

Information about Product Sales, Major Customers and Primary Supplier

The percentage of “Net sales” generated from beverage and food can products were 56%, 55%, and 55% in the years ended March 31, 2015, 2014, and 2013, respectively. The percentage of “Net sales” generated from automotive products increased to 13% in the year ended March 31, 2015, compared to 11% and 8% in the years ended March 31, 2014 and 2013, respectively.

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



	Year Ended March 31,
	2015		2014		2013
Rexam (A)	18	%	17	%	15	%
Ball Corporation (A)	10	%	10	%	10	%
Anheuser-Busch LLC	7	%	8	%	11	%


(A)	In February of 2015, Ball Corporation made an offer to acquire Rexam. This acquisition will be subject to regulatory and shareholder approval.

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,
	2015		2014		2013
Purchases from RTA as a percentage of total combined metal purchases	15	%	17	%	24	%