INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS

Investments in and Advances to Non-Consolidated Affiliates

The following table summarizes the ownership structure and our ownership percentage of the non-consolidated affiliate in which we have an investment as of March 31, 2017 and 2016, and which we account for using the equity method. We do not control our non-consolidated affiliate, but have the ability to exercise significant influence over the operating and financial policies. We have no material investments that we account for using the cost method.



Affiliate Name	Ownership Structure	Ownership Percentage
Aluminium Norf GmbH (Alunorf)	Corporation	50%

The following table summarizes the assets, liabilities and equity of our equity method affiliate in the aggregate as of March 31, 2017 and 2016 (in millions).



	March 31,
	2017		2016
Assets:
Current assets	$	143	$	148
Non-current assets	355		394
Total assets	$	498	$	542
Liabilities:
Current liabilities	$	53	$	55
Non-current liabilities	283		337
Total liabilities	336		392
Equity:
Total equity	162		150
Total liabilities and equity	$	498	$	542

As of March 31, 2017, the investment in Alunorf exceeded our proportionate share of the net assets of Alunorf by $370 million. The difference is primarily related to the unamortized fair value adjustments that are included in our investment balance as a result of the acquisition of Novelis by Hindalco in 2007.

The following table summarizes the results of operations of our equity method affiliates in the aggregate for the years ending March 31, 2017, 2016 and 2015; and the nature and amounts of significant transactions that we had with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates.



	Year Ended March 31,
	2017			2016			2015
Net sales	$	447		$	464		$	524
Costs and expenses related to net sales	463			463			527
(Benefit) provision for taxes on income	(5		)	2			—
Net loss	$	(11	)	$	(1	)	$	(3	)
Purchase of tolling services from Alunorf	$	224		$	232		$	261

Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with Alunorf, which we classify as related party transactions and balances. The following table describes the period-end account balances that we had with Norf, shown as related party balances in the accompanying consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates.



	March 31,
	2017		2016
Accounts receivable-related parties	$	60	$	59
Other long-term assets-related parties	$	15	$	16
Accounts payable-related parties	$	51	$	48

We earned less than $1 million of interest income on a loan due from Alunorf during each of the years presented in "Other long-term assets-related parties" in the table above. We believe collection of the full receivable from Alunorf is probable; thus no allowance for loan loss was provided for this loan as of March 31, 2017 and 2016.

We have guaranteed the indebtedness for a credit facility and loan on behalf of Alunorf. The guarantee is limited to 50% of the outstanding debt, not to exceed 6 million euros. As of March 31, 2017, there were no amounts outstanding under our guarantee with Alunorf. We have also guaranteed the payment of early retirement benefits on behalf of Alunorf. As of March 31, 2017, this guarantee totaled $2 million.

Transactions with Hindalco and AV Metals Inc.

We occasionally have related party transactions with our indirect parent company, Hindalco. During the years ended March 31, 2017, 2016 and 2015 we recorded “Net sales” of less than $1 million, less than $1 million and $1 million, respectively, between Novelis and our indirect parent related primarily to sales of equipment and other services. As of March 31, 2017 and 2016 there were less than $1 million of "Accounts receivable, net - related parties" outstanding related to transactions with Hindalco.

During the year ended March 31, 2017, Novelis purchased $3 million in raw materials from Hindalco that were fully paid for during the quarter ended December 31, 2016. During the year ended March 31, 2016, Novelis purchased $5 million in raw materials from Hindalco that were fully paid for during the quarter ended December 31, 2015. We also loaned $3 million to a subsidiary of our parent, which was repaid during the quarter ended March 31, 2017.

In March 2014, we declared a return of capital to our direct shareholder, AV Metals Inc., in the amount of $250 million, which we subsequently paid on April 30, 2014.