Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

There were no changes to the gross carrying amount or accumulated impairment of goodwill during the years ended March 31, 2017 and 2016. The following table summarizes “Goodwill” (in millions) for the years ended March 31, 2017 and 2016.



	March 31, 2017							March 31, 2016
	Gross Carrying Amount		Accumulated Impairment			Net Carrying Value		Gross Carrying Amount		Accumulated Impairment			Net Carrying Value
North America	$	1,145	$	(860	)	$	285	$	1,145	$	(860	)	$	285
Europe	511		(330		)	181		511		(330		)	181
South America	291		(150		)	141		291		(150		)	141
	$	1,947	$	(1,340	)	$	607	$	1,947	$	(1,340	)	$	607

The components of “Intangible assets, net” are as follows (in millions).



	March 31, 2017								March 31, 2016
	Weighted Average Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Tradenames	20 years	$	142	$	(70	)	$	72	$	142	$	(63	)	$	79
Technology and software	10.4 years	369		(209		)	160		365		(179		)	186
Customer-related intangible assets	20 years	443		(218		)	225		449		(199		)	250
Favorable energy supply contract	9.5 years	—		—			—		124		(116		)	8
	16.3 years	$	954	$	(497	)	$	457	$	1,080	$	(557	)	$	523

In the year ended March 31, 2016, we recorded impairment charges related to certain capitalized software. In the year of March 31, 2017, there were no such impairments recorded. For additional information refer to Note 2 — Restructuring and impairment.

Our favorable energy supply contract is amortized over its estimated useful life using a method that reflects the pattern in which the economic benefits are expected to be consumed. The contract was fully amortized and matured in January 2017. All other intangible assets are amortized using the straight-line method.

Amortization expense related to “Intangible assets, net” is as follows (in millions).



	Year Ended March 31,
	2017			2016			2015
Total amortization expense related to intangible assets	$	69		$	71		$	70
Less: Amortization expense related to intangible assets included in “Cost of goods sold (exclusive of depreciation and amortization)” (A)	(8		)	(12		)	(12		)
Amortization expense related to intangible assets included in “Depreciation and amortization”	$	61		$	59		$	58


(A)	Relates to amortization of favorable energy supply contract.

Estimated total amortization expense related to “Intangible assets, net” for each of the five succeeding fiscal years is as follows (in millions). Actual amounts may differ from these estimates due to such factors as customer turnover, raw material consumption patterns, impairments, additional intangible asset acquisitions and other events.



Fiscal Year Ending March 31,
2018	$	65
2019	65
2020	65
2021	65
2022	46

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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