Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

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,
	2015			2014			2013
Domestic (Canada)	$	(267	)	$	(294	)	$	(263	)
Foreign (all other countries)	434			421			565
Pre-tax income before equity in net loss of non-consolidated affiliates	$	167		$	127		$	302

Schedule of components of income tax provision

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



	Year Ended March 31,
	2015			2014			2013
Current provision (benefit):
Domestic (Canada)	$	4		$	12		$	11
Foreign (all other countries)	98			128			103
Total current	102			140			114
Deferred provision (benefit):
Domestic (Canada)	—			—			—
Foreign (all other countries)	(88		)	(129		)	(31		)
Total deferred	(88		)	(129		)	(31		)
Income tax provision	$	14		$	11		$	83

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,
	2015			2014			2013
Pre-tax income before equity in net loss on non-consolidated affiliates	$	167		$	127		$	302
Canadian Statutory tax rate	25		%	25		%	26		%
Provision at the Canadian statutory rate	$	42		$	32		$	79
Increase (decrease) for taxes on income (loss) resulting from:
Exchange translation items	(22		)	—			(2		)
Exchange remeasurement of deferred income taxes	(31		)	(20		)	(19		)
Change in valuation allowances	95			94			84
Tax credits and other allowances	(22		)	(38		)	(8		)
Income items not subject to tax	2			(6		)	—
State tax (benefit) expense, net	(7		)	(7		)	3
Dividends not subject to tax	(52		)	(52		)	(53		)
Enacted tax rate changes	(1		)	3			1
Tax rate differences on foreign earnings	7			(4		)	9
Uncertain tax positions	10			8			2
Prior year adjustments	2			(1		)	(5		)
Income tax settlements	(6		)	—			—
Other — net	(3		)	2			(8		)
Income tax provision	$	14		$	11		$	83
Effective tax rate	8		%	9		%	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,
	2015			2014
Deferred income tax assets:
Provisions not currently deductible for tax purposes	$	366		$	315
Tax losses/benefit carryforwards, net	627			493
Depreciation and amortization	38			46
Other assets	4			8
Total deferred income tax assets	1,035			862
Less: valuation allowance	(528		)	(426		)
Net deferred income tax assets	$	507		$	436
Deferred income tax liabilities:
Depreciation and amortization	$	477		$	529
Inventory valuation reserves	102			87
Monetary exchange gains, net	9			46
Other liabilities	26			34
Total deferred income tax liabilities	$	614		$	696
Net deferred income tax liabilities	$	107		$	260

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,
	2015			2014		2013
Beginning balance	$	39		$	30	$	28
Additions based on tax positions related to the current period	7			7		5
Additions based on tax positions of prior years	3			1		3
Reductions based on tax positions of prior years	(1		)	—		—
Settlements	(3		)	—		(5		)
Foreign exchange	(8		)	1		(1		)
Ending Balance	$	37		$	39	$	30