
	March 31, 2025
	Assets				Liabilities				Net Fair Value
in millions	Current		Noncurrent(1)		Current		Noncurrent(1)		Assets/(Liabilities)
Derivatives designated as hedging instruments:
Cash flow hedges
Metal contracts	$	89	$	4	$	(5)	$	—	$	88
Currency exchange contracts	6		—		(27)		(1)		(22)
Energy contracts	6		—		(1)		—		5
Interest rate swap contracts	—		—		—		(5)		(5)
Net investment hedges
Currency exchange contracts	5		—		—		—		5
Total derivatives designated as hedging instruments	$	106	$	4	$	(33)	$	(6)	$	71
Derivatives not designated as hedging instruments:
Metal contracts	$	58	$	1	$	(56)	$	(1)	$	2
Currency exchange contracts	12		—		(17)		—		(5)
Energy contracts	—		—		—		—		—
Total derivatives not designated as hedging instruments	$	70	$	1	$	(73)	$	(1)	$	(3)
Total derivative fair value	$	176	$	5	$	(106)	$	(7)	$	68


	March 31, 2024
	Assets				Liabilities				Net Fair Value
	Current		Noncurrent(1)		Current		Noncurrent(1)		Assets/(Liabilities)
Derivatives designated as hedging instruments:
Cash flow hedges
Metal contracts	$	3	$	—	$	(56)	$	(2)	$	(55)
Currency exchange contracts	4		1		(13)		—		(8)
Energy contracts	1		—		(4)		—		(3)
Interest rate swap contracts	—		—		—		(2)		(2)
Total derivatives designated as hedging instruments	$	8	$	1	$	(73)	$	(4)	$	(68)
Derivatives not designated as hedging instruments:
Metal contracts	$	30	$	—	$	(53)	$	(1)	$	(24)
Currency exchange contracts	6		—		(17)		—		(11)
Energy contracts	1		—		(1)		—		—
Total derivatives not designated as hedging instruments	$	37	$	—	$	(71)	$	(1)	$	(35)
Total derivative fair value	$	45	$	1	$	(144)	$	(5)	$	(103)

We use derivative instruments to preserve our conversion margins and manage the timing differences associated with metal price lag. We use over-the-counter derivatives indexed to the LME (referred to as our "aluminum derivative forward contracts") to reduce our exposure to fluctuating metal prices associated with the period of time between the pricing of our purchases of inventory and the pricing of the sale of that inventory to our customers, which is known as "metal price lag." We also purchase forward LME aluminum contracts simultaneously with our sales contracts with customers that contain fixed metal prices. These LME aluminum forward contracts directly hedge the economic risk of future metal price fluctuations to better match the selling price of the metal with the purchase price of the metal. The volatility in local market premiums also results in metal price lag.

Price risk arises due to fluctuating aluminum prices between the time the sales order is committed and the time the order is shipped. We identify and designate certain LME aluminum forward purchase contracts as cash flow hedges of the metal price risk associated with our future metal purchases that vary based on changes in the price of aluminum. The average duration of those contracts is less than one year.

Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond three years in length. The average duration of those contracts is less than one year.

In addition to aluminum, we entered into LME copper and zinc forward contracts, as well as local market premiums forward contracts. As of March 31, 2025 and March 31, 2024, the fair value of these contracts represented a liability of $8 million and a liability of $6 million, respectively. These contracts are undesignated, with an average duration of less than one year.

We use foreign exchange forward contracts and cross-currency swaps to manage our exposure to changes in exchange rates. These exposures arise from recorded assets and liabilities, firm commitments, and forecasted cash flows denominated in currencies other than the functional currency of certain operations.

We use foreign currency contracts to hedge expected future foreign currency transactions, which include capital expenditures. These contracts cover the same periods as known or expected exposures. We had total notional amounts of $1.1 billion and $1.0 billion in outstanding foreign currency forwards designated as cash flow hedges as of March 31, 2025 and 2024, respectively.

During the current fiscal year, we entered into forward contracts to hedge our investments in our European operations. The effective portion of changes in the fair value of the derivative is included in Other comprehensive income (loss) under Currency translation adjustments. The excluded portion of gain or loss on derivatives is included in other (income) expenses, net. We had a total notional amount of $261 million in outstanding foreign currency forwards designated as net investment hedges as of March 31, 2025.

As of March 31, 2025, and 2024, we had outstanding foreign currency exchange contracts with a total notional amount of $1.5 billion to primarily hedge balance sheet remeasurement risk, which were not designated as hedges. Contracts representing the majority of this notional amount will mature by the first quarter of fiscal 2026 and offset the remeasurement impact.

We use interest rate swaps to partially manage our exposure to changes in the SOFR interest rate, which impacts our variable-rate debt. As of March 31, 2025, and March 31, 2024, we had interest rate swaps in place to convert $400 million of our variable rate exposure to a weighted average fixed rate of 4.4%. These interest rate swaps, designated as cash flow hedges, are effective from September 2023 through March 31, 2027.

We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 5 million MMBtu designated as cash flow hedges as of March 31, 2025, and the fair value was an asset of $5 million. There was a notional of 7 million MMBtu of natural gas forward purchase contracts designated as cash flow hedges as of March 31, 2024, and the fair value was a liability of $3 million. As of March 31, 2025 and 2024, we had notionals of less than 1 million MMBtu of forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of March 31, 2025, and 2024 was an asset and a liability, respectively, of less than $1 million. The average duration of these contracts is less than one year in length.

We use diesel fuel forward purchase contracts to manage our exposure to fluctuating fuel prices in North America and Europe. We had a notional of 7 million gallons designated as cash flow hedges as of March 31, 2025, and the fair value was a liability of less than $1 million. There was a notional of 6 million gallons designated as cash flow hedges as of March 31, 2024, and the fair value was a liability of less than $1 million. As of March 31, 2025, and 2024 we had notional of less than 1 million MT of forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of March 31, 2025 and 2024, was an asset of less than $1 million. The average duration of all diesel fuel forward purchase contracts is less than one year in length.

The following table summarizes the (gains) losses associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in other expenses (income), net. (Gains) losses recognized in other line items in the consolidated statement of operations are separately disclosed within this footnote.


in millions	Fiscal 2025		Fiscal 2024		Fiscal 2023
Derivative instruments not designated as hedges
Metal contracts	$	40	$	(42)	$	63
Currency exchange contracts	30		8		58
Energy contracts(1)	3		(2)		(3)
Loss (gain) recognized in other expenses (income), net	$	73	$	(36)	$	118

Derivative instruments designated as hedges
Gain recognized in other expenses (income), net(2)	$	(3)	$	(1)	$	(4)
Total loss (gain) recognized in other expenses (income), net	$	70	$	(37)	$	114

Losses recognized on balance sheet remeasurement currency exchange contracts, net	$	30	$	7	$	54
Realized losses (gains), net	97		(80)		83
Unrealized (gains) losses on other derivative instruments, net	(57)		36		(23)
Total loss (gain) recognized in other expenses (income), net	$	70	$	(37)	$	114

The following table summarizes the impact on accumulated other comprehensive loss and earnings of derivative instruments designated as cash flow hedges. Within the next twelve months, we expect to reclassify $57 million of gains from accumulated other comprehensive loss to earnings, before taxes. As of March 31, 2025, the amount excluded from effectiveness testing recognized in earnings based on changes in fair value was $4 million.


	Amount of Gain (Loss) Recognized in Other comprehensive income (loss) (Effective Portion)						Amount of Gain (Loss) Recognized in Other expenses (income), net (Ineffective and Excluded Portion)
in millions	Fiscal 2025		Fiscal 2024		Fiscal 2023		Fiscal 2025		Fiscal 2024		Fiscal 2023
Cash flow hedging derivatives
Metal contracts	$	(48)	$	119	$	951	$	—	$	—	$	—
Currency exchange contracts	(77)		(12)		(55)		—		1		4
Energy contracts	4		(8)		(2)		—		—		—
Interest rate swap contracts	(1)		—		—		—		—		—
Total cash flow hedging derivatives	(122)		99		894		—		1		4
Net investment derivatives
Currency exchange contracts	1		—		—		4		—		—
Total	$	(121)	$	99	$	894	$	4	$	1	$	4


	Amount of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Income/(Expense) (Effective Portion)						Location of Gain (Loss) Reclassified from Accumulated other comprehensive loss into Earnings
in millions	Fiscal 2025		Fiscal 2024		Fiscal 2023
Cash flow hedging derivatives

Energy contracts(1)	$	(8)	$	(5)	$	32	Cost of goods sold (exclusive of depreciation and amortization)
Metal contracts	(1)		5		—		Cost of goods sold (exclusive of depreciation and amortization)
Metal contracts	(185)		181		332		Net sales
Currency exchange contracts	(9)		17		18		Cost of goods sold (exclusive of depreciation and amortization)
Currency exchange contracts	—		—		1		Selling, general and administrative expenses
Currency exchange contracts	(21)		(19)		(57)		Net sales
Currency exchange contracts	(3)		(3)		(5)		Depreciation and amortization
Interest rate swap contracts	2		2		—		Interest expense and amortization of debt issuance costs
Total	(225)		178		321		Income from continuing operations before income tax provision
	58		(47)		(76)		Income tax provision
	$	(167)	$	131	$	245	Net income from continuing operations

The entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is included in other comprehensive (loss) income and reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the transaction becomes probable of not occurring. There was no amount excluded from the assessment of effectiveness recognized in earnings for the periods ended March 31, 2025, and 2024.