Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

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,
	2017			2016			2015
Domestic (Canada)	$	(286	)	$	(313	)	$	(267	)
Foreign (all other countries)	491			324			434
Pre-tax income before equity in net loss of non-consolidated affiliates	$	205		$	11		$	167

Schedule of components of income tax provision

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



	Year Ended March 31,
	2017		2016			2015
Current provision:
Domestic (Canada)	$	8	$	5		$	4
Foreign (all other countries)	139		134			98
Total current	147		139			102
Deferred provision (benefit):
Domestic (Canada)	—		—			—
Foreign (all other countries)	4		(93		)	(88		)
Total deferred	4		(93		)	(88		)
Income tax provision	$	151	$	46		$	14

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,
	2017			2016			2015
Pre-tax income before equity in net loss on non-consolidated affiliates	$	205		$	11		$	167
Canadian Statutory tax rate	25		%	25		%	25		%
Provision at the Canadian statutory rate	$	51		$	3		$	42
Increase (decrease) for taxes on income (loss) resulting from:
Exchange translation items	9			16			(22		)
Exchange remeasurement of deferred income taxes	8			(8		)	(31		)
Change in valuation allowances	67			104			95
Tax credits	(14		)	(22		)	(22		)
Income items not subject to tax	(3		)	—			2
State tax benefit, net	1			(10		)	(7		)
Dividends not subject to tax	(23		)	(52		)	(52		)
Enacted tax rate changes	1			5			(1		)
Tax rate differences on foreign earnings	36			4			7
Uncertain tax positions	6			7			10
Prior year adjustments	4			(2		)	2
Income tax settlements	6			—			(6		)
Other — net	2			1			(3		)
Income tax provision	$	151		$	46		$	14
Effective tax rate	73		%	411		%	8		%

Schedule of deferred tax assets and liabilities

Our deferred income tax assets and deferred income tax liabilities are as follows (in millions).



	March 31,
	2017			2016
Deferred income tax assets:
Provisions not currently deductible for tax purposes	$	459		$	396
Tax losses/benefit carryforwards, net	724			741
Depreciation and amortization	45			41
Other assets	4			(1		)
Total deferred income tax assets	1,232			1,177
Less: valuation allowance	(680		)	(613		)
Net deferred income tax assets	$	552		$	564
Deferred income tax liabilities:
Depreciation and amortization	$	442		$	457
Inventory valuation reserves	84			64
Monetary exchange gains, net	14			15
Other liabilities	24			30
Total deferred income tax liabilities	$	564		$	566
Net deferred income tax liabilities	$	12		$	2

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,
	2017			2016			2015
Beginning balance	$	34		$	37		$	39
Additions based on tax positions related to the current period	5			6			7
Additions based on tax positions of prior years	—			3			3
Reductions based on tax positions of prior years	—			(6		)	(1		)
Settlements	(1		)	(10		)	(3		)
Foreign exchange	(2		)	4			(8		)
Ending Balance	$	36		$	34		$	37