Property, Plant and Equipment

12 Months Ended

Mar. 31, 2017

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,
	2017			2016
Land and property rights	$	173		$	179
Buildings	1,309			1,325
Machinery and equipment	4,312			4,265
	5,794			5,769
Accumulated depreciation and amortization	(2,575		)	(2,398		)
	3,219			3,371
Construction in progress	138			135
Property, plant and equipment, net	$	3,357		$	3,506

As of March 31, 2017 and 2016, there were $1 billion of fully depreciated assets included in our consolidated balance sheets.

For the years ended March 31, 2017, 2016 and 2015, we capitalized $2 million, $14 million and $20 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,
	2017		2016		2015
Depreciation expense related to property, plant and equipment, net	$	299	$	294	$	294

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 Constellium. 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. During fiscal 2014 through 2016 we entered into various capital lease arrangements to upgrade and expand our information technology infrastructure.

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

	Year Ended March 31,
	2017		2016		2015
Rent expense	$	24	$	22	$	22

Future minimum lease payments as of March 31, 2017, 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
2018	$	30	$	9
2019	21		7
2020	18		5
2021	15		—
2022	11		—
Thereafter	33		—
Total minimum lease payments	$	128	$	21
Less: interest portion on capital lease			2
Principal obligation on capital leases			$	19

Assets and related accumulated amortization under capital lease obligations as of March 31, 2017 and 2016 are as follows (in millions).

	March 31,
	2017			2016
Assets under capital lease obligations:
Buildings	$	11		$	11
Machinery and equipment	73			77
CWIP	2			—
	86			88
Accumulated amortization	(70		)	(70		)
	$	16		$	18