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Segment, Major Customer and Major Supplier Information
 3 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
15. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION
15. SEGMENT, GEOGRAPHICAL AREA, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION
Segment Information
Due in part to the regional nature of the supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia, and South America. All of our segments manufacture aluminum sheet and light gauge products. We also manufacture aluminum plate products in Europe and Asia.
The following is a description of our operating segments.
North America. Headquartered in Atlanta, Georgia, this segment operates 15 plants, including six with recycling operations, in two countries.
Europe. Headquartered in Küsnacht, Switzerland, this segment operates 10 plants, including five with recycling operations, in four countries.
Asia. Headquartered in Seoul, South Korea, this segment operates four plants, including two with recycling operations, in two countries.
South America. Headquartered in São Paulo, Brazil, this segment operates two plants, including one with recycling operations, in one country.
Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 – Business and Summary of Significant Accounting Policies within our 2024 Form 10-K.
We measure the profitability and financial performance of our operating segments based on Adjusted EBITDA. Adjusted EBITDA provides a measure of our underlying segment results that is in line with our approach to risk management. We define Adjusted EBITDA as earnings before (a) depreciation and amortization; (b) interest expense and amortization of debt issuance costs; (c) interest income; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in Adjusted EBITDA; (e) impairment of goodwill; (f) (gain) loss on extinguishment of debt, net; (g) noncontrolling interests' share; (h) adjustments to reconcile our proportional share of Adjusted EBITDA from non-consolidated affiliates to income as determined on the equity method of accounting; (i) restructuring and impairment expenses (reversals), net; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) income tax provision (benefit); (o) cumulative effect of accounting change, net of tax; (p) metal price lag; (q) business acquisition and other related costs; (r) purchase price accounting adjustments; (s) income (loss) from discontinued operations, net of tax; and (t) loss on sale of discontinued operations, net of tax.
The tables that follow show selected segment financial information. "Eliminations and Other" includes eliminations and functions that are managed directly from our corporate office that have not been allocated to our operating segments as well as the adjustments for proportional consolidation and eliminations of intersegment net sales. The financial information for our segments includes the results of our affiliates on a proportionately consolidated basis, which is consistent with the way we manage our business segments. In order to reconcile the financial information for the segments shown in the tables below to the relevant U.S. GAAP based measures, we must adjust proportional consolidation of each line item. The "Eliminations and Other" in net sales – third party includes the net sales attributable to our joint venture party, Tri-Arrows, for our Logan affiliate because we consolidate 100% of the Logan joint venture for U.S. GAAP, but we manage our Logan affiliate on a proportionately consolidated basis. See Note 3 – Consolidation and Note 4 – Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis.
Selected Segment Financial Information
in millions
June 30, 2024North AmericaEuropeAsiaSouth AmericaEliminations and OtherTotal
Investment in and advances to non-consolidated affiliates
$— $533 $370 $— $— $903 
Total assets5,672 3,948 2,190 2,049 1,000 14,859 
in millions
March 31, 2024North AmericaEuropeAsiaSouth AmericaEliminations and OtherTotal
Investment in and advances to non-consolidated affiliates
$— $536 $369 $— $— $905 
Total assets5,411 4,049 2,206 2,050 912 14,628 
in millions
Selected Operating Results
Three Months Ended June 30, 2024
North AmericaEuropeAsiaSouth AmericaEliminations and OtherTotal
Net sales – third party$1,730 $1,168 $599 $580 $110 $4,187 
Net sales – intersegment— 9 117 33 (159)— 
Net sales$1,730 $1,177 $716 $613 $(49)$4,187 
Depreciation and amortization$58 $41 $23 $22 $(4)$140 
Income tax (benefit) provision6 8 19 25 2 60 
Capital expenditures303 30 11 14 (10)348 
in millions
Selected Operating Results
Three Months Ended June 30, 2023
North AmericaEuropeAsiaSouth AmericaEliminations and OtherTotal
Net sales – third party$1,732 $1,159 $597 $500 $103 $4,091 
Net sales – intersegment— 22 72 29 (123)— 
Net sales$1,732 $1,181 $669 $529 $(20)$4,091 
Depreciation and amortization$53 $41 $22 $20 $(5)$131 
Income tax (benefit) provision(13)13 8 16 30 54 
Capital expenditures275 27 22 15 (6)333 
The table below displays the reconciliation from net income attributable to our common shareholder to Adjusted EBITDA.
 
Three Months Ended
June 30,
in millions20242023
Net income attributable to our common shareholder
$151 $156 
Net loss attributable to noncontrolling interests
(1)— 
Income tax provision
60 54 
Income before income tax provision210 210 
Depreciation and amortization140 131 
Interest expense and amortization of debt issuance costs72 77 
Adjustment to reconcile proportional consolidation(1)
13 14 
Unrealized gains on change in fair value of derivative instruments, net
(7)(4)
Realized losses (gains) on derivative instruments not included in Adjusted EBITDA(2)
2 (3)
Restructuring and impairment expenses, net19 3 
Loss on sale or disposal of assets, net
1 — 
Metal price lag7 (5)
Other, net(3)
43 (2)
Adjusted EBITDA$500 $421 
_________________________
(1)Adjustment to reconcile proportional consolidation relates to depreciation, amortization, and income taxes of our equity method investments. Income taxes related to our equity method investments are reflected in the carrying value of the investment and not in our consolidated income tax provision.
(2)Realized losses (gains) on derivative instruments not included in Adjusted EBITDA represents foreign currency derivatives unrelated to operations.
(3)Other, net for the three months ended June 30, 2024, includes $40 million of non-recurring non-operating charges from exceptional flooding at our Sierre, Switzerland plant caused by unprecedented heavy rainfall. See Note 12 – Other Expenses (Income), Net for additional information about this event.
The following table displays Adjusted EBITDA by reportable segment.
Three Months Ended
June 30,
in millions20242023
North America$183 $166 
Europe90 88 
Asia92 87 
South America132 84 
Eliminations and Other3 (4)
Adjusted EBITDA$500 $421 
Information about Product Sales, Major Customers, and Primary Supplier
Product Sales
The following table displays net sales by product end market.
Three Months Ended
June 30,
in millions20242023
Beverage packaging(1)
$2,033 $1,784 
Automotive980 1,018 
Aerospace and industrial plate160 176 
Specialty1,014 1,113 
Net sales$4,187 $4,091 
_________________________
(1)Prior to the three months ended September 30, 2023, we utilized the term "can" for the beverage packaging end market. This change is solely to align the terminology with that being currently used by the Company and does not impact the amounts presented.
Major Customers
The following table displays customers representing 10% or more of our net sales for any of the periods presented and their respective percentage of net sales.
 
Three Months Ended
June 30,
20242023
Ball16 %11 %
Primary Supplier
Rio Tinto is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from Rio Tinto as a percentage of our total combined metal purchases.
 
Three Months Ended
June 30,
 20242023
Purchases from Rio Tinto as a percentage of total combined metal purchases9 %10 %