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GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation
The Consolidated Financial Statements of Constellium SE and its subsidiaries have been prepared in accordance with the
United States Generally Accepted Accounting Principles ("U.S. GAAP").
The Consolidated Financial Statements are presented in millions of U.S. dollar, except as otherwise stated.
Judgments in applying accounting policies and key sources of estimation uncertainty Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the Group’s consolidated financial statements in accordance with U.S. GAAP requires management to
make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent liabilities. The principal areas of judgment relate to (1)
impairment of assets; (2) actuarial assumptions related to pension and other postretirement benefit plans; (3) tax uncertainties
and valuation allowances; and (4) assessment of loss contingencies, including environmental and litigation liabilities. These
judgments, estimates and assumptions are based on management’s best knowledge of the relevant facts and circumstances,
giving consideration to previous experience. Future events and their effects cannot be predicted with certainty, and accordingly,
our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our consolidated
financial statements may change as new events occur, more experience is acquired, additional information is obtained, and our
operating environment changes. The Group continuously reviews its significant assumptions and estimates in light of the
uncertainty associated with the global geopolitical and macroeconomic conditions and their potential direct and indirect impacts
on its business and its financial statements. There can be no guarantee that our assumptions will materialize or that actual results
will not differ materially from estimates.
Principles of consolidation Principles of consolidation
The Consolidated Financial Statements include the assets, liabilities, equity, revenues, expenses and cash flows of
Constellium SE and its controlled subsidiaries. All intercompany transactions and balances are eliminated.
Equity investments in which the Group exercises significant influence but does not control are accounted for under the
equity method.
Segment reporting Segment reporting
Operating segments are based upon the product lines, markets and industries served, and are reported in a manner
consistent with the internal reporting provided to the chief operating decision-maker. The Chief Executive Officer, who is
responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief
operating decision-maker.
The Company operates in three reportable segments: Aerospace & Transportation (A&T), Packaging & Automotive
Rolled Products (P&ARP), and Automotive Structures & Industry (AS&I). The segments are managed separately because they
offer different products and services. Refer to Note 3 - Operating segment information for further information.
The accounting principles used to prepare the Group’s operating segment information are the same as those used to
prepare the Group’s Consolidated Financial Statements.
Foreign currency transactions and foreign operations Foreign currency transactions and foreign operations
The assets and liabilities of operations, whose functional currency is other than the U.S. dollar, are translated to U.S.
dollar at the period end exchange rates, and revenues and expenses are translated at average exchange rates for the period.
Differences arising from this translation are included in the currency translation adjustment component of accumulated other
comprehensive loss and non-controlling interests, both of which are on our Consolidated Balance Sheets. If there is a completed
sale or liquidation of our ownership in a foreign operation, the relevant currency translation adjustment is recognized in our
consolidated statement of operations.
For all operations, the monetary items denominated in currencies other than the functional currency are remeasured at
period-end exchange rates, and transaction gains and losses are included in other gains and losses - net, net in our consolidated
statements of operations. Non-monetary items are remeasured at historical rates.
Revenue from contracts with customers Revenue from contracts with customers
The Group recognizes revenue when it satisfies a performance obligation(s) in accordance with the provisions of a
customer order or contract. This is achieved when control of the product has been transferred to the customer, which is
generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery
of the product. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of
transportation. Accordingly, the sale of Constellium’s products to its customers represent single performance obligations for
which revenue is recognized at a point in time. In certain limited circumstances, the Group may be required to recognize
revenue over time for products that have no alternative use and for which the Group has an enforceable right to payment for
production completed to date. Revenue is based on the consideration the Company expects to receive in exchange for its
products. Returns and other adjustments have not been material. Based on the foregoing, no significant judgment is required to
determine when control of a product has been transferred to a customer.
The Group considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a
result, customer payments of shipping and handling costs are recorded as a component of revenue.
The Group applies the practical expedient for disclosures on performance obligations that are part of contracts that have
an original duration of one year or less.
The Group elected the practical expedient on significant financing components when the period of transfer of the product
and the payment is one year or less.
Research and development costs Research and development costsResearch and development costs are expensed as incurred.
Other gains and losses - net Other gains and losses - net
Other gains and losses - net includes: (i) realized and unrealized gains and losses for commodity derivatives and foreign
exchange derivatives contracted for commercial purposes to which hedge accounting is not applied, (ii) unrealized exchange
gains and losses from the remeasurement of monetary assets and liabilities, (iii) the ineffective portion of changes in the fair
value of derivatives designated for hedge accounting, (iv) impairment charges on assets, (v) non-operating expenses on
factoring arrangements and (vi) non-operating expenses on pension and other post-employment benefits.
Other gains and losses - net also includes other unusual, infrequent or non-recurring items. Such items are disclosed by
virtue of their size, nature or incidence. In determining whether an event or transaction is unusual, infrequent or non-recurring,
management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence.
Interest income and expense Interest income and expense
Interest expense on short and long-term financing is recorded at the relevant rates on the various borrowing agreements
using the effective interest rate method.
Borrowing costs, including interest, incurred for the construction of any qualifying asset are capitalized during the period
of time required to complete and prepare the asset for its intended use.
Cash and cash equivalents Cash and cash equivalents
Cash and cash equivalents are comprised of cash in bank accounts and on hand, short-term deposits held on call with
banks and other short-term highly liquid investments with original maturities of three months or less that are readily convertible
into known amounts of cash and are subject to insignificant risk of changes in value.
Trade account receivables Trade account receivables
Recognition and measurement
Trade account receivables are recognized at amortized cost. The Group applies the current expected credit loss model,
where a lifetime expected credit loss is recorded upon initial recognition. Write-downs are recorded to profit and loss when the
Group deems all or a portion of a financial asset to be uncollectible.  Reversals of such losses are not permitted.
Factoring arrangements
In factoring arrangements under which the Group has surrendered all control over the receivables, the receivables are
derecognized from the Consolidated Balance Sheets. The Group determines whether the following conditions are met for
derecognition: (1) the transferred receivables have been isolated from the Group (including creditors in the event of
bankruptcy), (2) the Group has no continuing involvement with the transferred receivables (3) the Group does not maintain
effective control over the transferred receivables. If these three conditions are met, the transferred receivables qualify as a sale
of financial assets and are derecognized from the Consolidated Balance Sheets. Arrangements in which the Group derecognizes
receivables result in changes in trade receivables, which are reflected as cash flows from operating activities on the
Consolidated Statement of Cash Flows. When trade account receivables are sold with limited recourse and do not meet the
conditions for derecognition, receivables are not derecognized. Where the Group does not derecognize the receivables, the cash
received from the factor is classified as a financing cash inflow, the settlement of the receivables as an operating cash inflow
and the repayment to the factor as a financing cash outflow on the Consolidated Statement of Cash Flows.
The proceeds from the sale of certain of these receivables comprise a combination of cash and a deferred purchase price
receivable. The deferred purchase price receivable is ultimately realized by the Group following the collection by the financial
institutions of the underlying receivables sold. The Group has no retained interests in the transferred receivables, other than our
right to the deferred purchase price and immaterial collection and administrative service fees. The deferred purchase price
receivable is recorded at fair value within Fair value of derivatives instruments and other financial assets in the Consolidated
Balance Sheets. The fair values of these deferred purchase price receivables approximate their carrying values, as a result of
their liquidity or short maturity.
Inventories Inventories
Inventories are valued at the lower of cost and net realizable value, primarily on a weighted-average cost basis.
Weighted-average cost for raw materials, stores, work in progress and finished goods is calculated using the costs
experienced in the current period based on normal operating capacity and includes the purchase price of materials, freight,
duties and customs, and the costs of production, which includes labor, materials and other costs that are directly attributable to
the production process and production overheads.
Derivatives and hedging Derivatives and hedging
Derivatives
The Group uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward
commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-
measured to their fair value at the end of each reporting period.
The accounting for subsequent changes in fair value depends on whether the derivative qualifies for hedge accounting
treatment. For derivative instruments that do not qualify for hedge accounting, changes in the fair value are recognized
immediately in profit or loss and are included in Other gains and losses - net or Finance costs - net depending on the nature of
the underlying exposure. For derivatives that qualify for hedge accounting, changes in the fair value are recognized in Other
Comprehensive Income ("OCI").
Hedge accounting
For derivative instruments that are designated for hedge accounting, the Group documents at the inception of the hedging
transaction the relationship between hedging instruments and hedged items as well as the risk management objective and the
strategy for undertaking the hedge transaction. The Group also documents its assessment, both at hedge inception and on an
ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly
effective in offsetting changes in cash flows of hedged items.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognized in OCI and accumulated in equity. The gain or loss relating to the ineffective portion is recognized immediately in
the Consolidated Income Statement in Other gains and losses - net.
Amounts accumulated in equity are reclassified to the Consolidated Income Statement when the hedged item affects the
Consolidated Income Statement. The gain or loss relating to the effective portion of derivative instruments hedging forecasted
cash flows under customer agreements is recognized in Revenue. When the forecasted transaction that is hedged results in the
recognition of a non-financial asset, the gains and losses previously deferred in equity are reclassified from equity and included
in the initial measurement of the cost of the asset. The deferred amounts would ultimately be recognized in the Consolidated
Income Statement upon the sale, depreciation or impairment of the asset.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecasted
transaction is ultimately recognized in the Consolidated Income Statement. When a forecasted transaction is no longer expected
to occur, the cumulative gain or loss that was recognized in equity is immediately reclassified to the Consolidated Income
Statement.
Fair value measurement Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The Group applies the fair value hierarchy established by GAAP for the
recognition and measurement of certain financial assets and liabilities.
Property, plant and equipment Property, plant and equipment
Recognition and measurement
Property, plant and equipment acquired by the Company are recorded at cost. Borrowing costs, including interest,
directly attributable to the acquisition or construction of property, plant and equipment are included in the cost. Subsequent to
the initial recognition, Property, plant and equipment are measured at cost less accumulated depreciation and impairment, if
any. Costs are capitalized into construction work-in-progress until projects are completed and the assets are available for use.
Upon sale or disposition, the resulting gain or loss are recognized in the Consolidated Income Statement in Other gains
and losses - net.
Depreciation
Land is not depreciated. Property, plant and equipment are depreciated over the estimated useful lives of the related
assets using the straight-line method as follows:
•Buildings: 10 – 50 years;
•Machinery and equipment: 3 – 40 years;
•Vehicles: 5 – 8 years.
Intangible assets Intangible assets
Recognition and measurement
Technology and customer relationships acquired in a business combination are recognized at fair value at the acquisition
date. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and impairment
losses. The useful lives of the Group intangible assets are assessed to be finite.
Amortization
Intangible assets are amortized over the estimated useful lives of the related assets using the straight-line method as
follows:
•Technology: 20 years;
•Customer relationships: 25 years;
•Software: 3 – 5 years.
Goodwill Goodwill
Goodwill arising from a business combination is carried at cost as established at the date of the business combination less
accumulated impairment losses, if any.
Goodwill is allocated at the reporting unit level, which is defined as an operating segment or as a component, one level
below an operating segment. Components need to be aggregated when they have similar characteristics for allocating goodwill.
Gains and losses on the disposal of a reporting unit include the carrying amount of goodwill relating to the reporting unit
sold.
Impairment Impairment
Impairment of property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment if there is any
indication that the carrying amount of the asset or asset group to which it belongs, may not be recoverable.
The Group regularly assesses whether events and circumstances with the potential to trigger impairment have occurred
and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash
flow, to make such assessments.
The Group uses an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated
remaining life of such asset or asset group in measuring whether the asset or asset group is recoverable.
Any impairment loss is recognized in Other gains and losses - net in the Consolidated Income Statement and cannot be
reversed in subsequent periods.
Impairment of goodwill
Reporting units to which goodwill is allocated are tested for impairment at least annually, as of October 1st of each fiscal
year, or more frequently when there is an indication that allocated goodwill may be impaired. A qualitative assessment can be
performed before performing a quantitative impairment test.
If the carrying amount of the reporting unit exceeds its fair value, the difference is recorded as an impairment loss,
limited to the carrying amount of goodwill allocated to the reporting unit.
An impairment loss is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value.
Any impairment loss is recognized in Other gains and losses - net in the Consolidated Income Statement. An impairment
loss recognized for goodwill cannot be reversed in subsequent years.
Reporting units
The reporting units generally correspond to industrial sites.
Taxation Taxation
Income tax (expense) / benefit is calculated on the basis of enacted tax laws at the Consolidated Balance Sheets date in
the countries where the Company and its subsidiaries operate and generate taxable income.
The Group is subject to income taxes in France, the United States, Germany and numerous other jurisdictions. Certain of
Constellium’s businesses may be included in consolidated tax returns within the Group. In certain circumstances, these
businesses may be jointly and severally liable with the entity filing the consolidated tax return, for additional taxes that may be
assessed.
Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to
temporary differences between the Consolidated Financial Statement carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred income tax assets are also recognized for operating loss carryforwards and tax credit
carryforwards.
Deferred income tax assets and liabilities are measured using tax rates that are expected to apply in the year when the
asset is realized or the liability is settled. Deferred income tax assets are recognized in full and reduced by a valuation
allowance if it is more likely than not that some or all of the deferred income tax assets will not be realized.
Trade payables Trade payables
Trade payables are initially recorded at fair value and are subsequently measured at amortized cost. Trade payables are
classified as current liabilities if payment is due in one year or less.
Leases Leases
The Group determines whether a contract contains a lease at inception. The Group leases certain land and buildings, plant
equipment, vehicles, and computer equipment. Leases under which the Group has substantially all the risks and rewards of
ownership are classified as finance leases. Various buildings and equipment are leased from third parties under finance lease
agreements. Under such finance leases, the asset financed is recognized as a right-of-use asset in the asset category to which
they relate in Property, plant and equipment and the financing is recognized as a lease liability, in Borrowings. If a lease does
not meet the finance lease classification criteria in accordance with ASC 842 Leases ("ASC 842"), it is classified as an operating
lease.
Lease right-of-use assets and lease liabilities with an initial term greater than 12 months are recorded on the balance sheet
at the present value of the future minimum lease payments over the lease term calculated at the lease commencement date.
Constellium uses an incremental collateralized borrowing rate based on the information available at the lease commencement
date in determining the present value of future payments, as most of the Group’s leases do not provide an implicit rate. The
right-of-use assets also include any lease prepayments made and are reduced by lease incentives and accrued exit costs. For
operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, interest expense on
the lease liability and amortization expense on the right-of-use asset are recognized separately.
Certain real estate leases include one or more options to renew; the exercise of lease renewal options is at Constellium’s
discretion. The Group includes renewal option periods in the lease term when it is determined that the options are reasonably
certain to be exercised. Certain of Constellium’s real estate lease agreements include rental payments that either have fixed
contractual increases over time or adjust periodically for inflation. Also, certain of the Group’s lease agreements include
variable lease payments. The variable portion of payments is not included in the initial measurement of the right-of-use asset or
lease liability due to the uncertainty of the payment amount and is recorded as lease cost in the period incurred.
The Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option that the Group is reasonably certain to exercise. Lease payments on
short-term leases and low-value asset leases are recognized as expense on a straight-line basis over the lease term.
The Group also applies the practical expedients for lease and non-lease components as a single component for vehicles.
Provisions Provisions
Estimated losses are recorded at the best estimate of expenditures required to settle liabilities of uncertain timing or
amount when management determines that i) it is probable that a liability has been incurred at the date of the financial
statements and ii) such amounts can be reasonably estimated. Estimated losses are measured at management’s best estimate out
of the range of possible outcomes. In the absence of management’s best estimate or if each outcome is equally probable, the
loss is measured at the minimum amount in the range.
The ultimate cost to settle such liabilities is uncertain, and cost estimates can vary in response to many factors. The
settlement of these liabilities could materially differ from recorded amounts or the expected timing of expenditure could
change. As a result, there could be significant adjustments to estimated losses, which could result in additional charges or
recoveries.
Close down and restoration costs
Estimated close down and restoration costs are accounted for in the year when the legal obligation arising from the
related disturbance occurs and the amount required to settle the obligation can be reasonably estimated. These costs are based
on the net present value of estimated future costs. Provisions for close down and restoration costs do not include any additional
obligations expected to arise from future disturbance. The costs are estimated on the basis of a closure plan including feasibility
and engineering studies, are updated annually during the life of the operation to reflect known developments (e.g. revisions to
cost estimates and to the estimated lives of operations) and are subject to formal review at regular intervals each year.
The initial closure estimated loss together with subsequent movements in the accrual for close down and restoration
costs, including those resulting from new disturbance, updated cost estimates, changes to the estimated lives of operations and
revisions to discount rates, are capitalized in Property, plant and equipment. These costs are depreciated over the remaining
useful lives of the related assets. The estimated loss is subsequently adjusted for accretion expense, which is recognized in the
Consolidated Income Statement as an operating cost over the useful life of the asset.
Environmental remediation costs
Environmental remediation costs are accounted for based on the Group’s best estimate of the costs of the Group’s
environmental clean-up obligations. Changes in the environmental remediation estimated loss are recorded in Cost of sales
(excluding depreciation and amortization).
Restructuring costs
Estimated losses for restructuring are recorded when Constellium’s management is demonstrably committed to the
restructuring plan and the liabilities can be reasonably estimated. The Group recognizes liabilities that primarily include one-
time termination benefits, severance, and contract termination costs, primarily related to equipment and facility lease
obligations. These amounts are based on the remaining amounts due under various contractual agreements and are periodically
adjusted for changes in circumstances that would reduce or increase these obligations.
Legal claims and other costs
Estimated losses for legal claims are made when it is probable that liabilities will be incurred and when such liabilities
can be reasonably estimated. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a
matter is deemed to be probable and the loss is reasonably estimable. Legal matters are reviewed on a regular basis to determine
if there have been changes in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a
potential loss.
Pension, other post-employment plans and other long-term employee benefits Pension, other post-employment plans and other long-term employee benefits
For defined contribution plans, the contribution paid in respect of service rendered over the service year is recognized in
the Consolidated Income Statement. This expense is included in Cost of sales (excluding depreciation and amortization),
Selling and administrative expenses and Research and development expenses.
For defined benefit plans, the retirement benefit obligation recognized in the Consolidated Balance Sheets represents the
present value of the defined benefit obligation less the fair value of plan assets. The defined benefit obligations are assessed
using the projected unit credit method. The amount recorded in the Consolidated Income Statement in respect of these plans is
included within Cost of sales (excluding depreciation and amortization), Selling and administrative expenses and Research and
development expenses for its service cost component and in Finance costs - net and for its net interest cost component. Other
non-operating pension and other post-employment benefit losses or gains are included in Other gains and losses - net. The
effects of changes in actuarial assumptions and experience adjustments are initially recorded in the Consolidated Statement of
Comprehensive Income and subsequently amortized over future periods into the Consolidated Income Statement in Other gains
and losses - net.
Other post-employment benefit plans mainly relate to health and life insurance benefits to retired employees and in some
cases to their beneficiaries and covered dependents. Eligibility for coverage is dependent upon certain age and service criteria.
These benefit plans are unfunded and are accounted for as defined benefit obligations, as described above.
Other long-term employee benefits mainly include jubilees and other long-term disability benefits. For these plans,
actuarial gains and losses are recognized immediately in the Consolidated Income Statement.
Share-based payment arrangements Share-based payment arrangements
Equity-settled share-based payments to employees and corporate officers are measured at the fair value of the equity
instruments at the grant date. Market performance conditions are reflected within the grant date fair value. Service and non-
market performance conditions are not taken into account when determining the grant date fair value of awards, but the
likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that
will ultimately vest.
The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the
Group’s estimate of equity instruments that are expected to eventually vest based on the service and non-market vesting
conditions, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimates of the
number of equity instruments that are expected to vest based on the non-market vesting and service conditions. The impact of
the revision to original estimates, if any, is recognized in profit or loss, with a corresponding adjustment to equity.
Government Grants Government Grants
Government grants are recognized where there is reasonable assurance that the grant will be received and all attached
conditions are complied with.
Government grants relating to the purchase of property, plant and equipment reduce the carrying amount of the asset.
They are credited to profit or loss on a straight-line basis over the expected useful lives of the related assets. Government grants
relating to costs offset the corresponding expense and are deferred and recognized in profit or loss over the period necessary to
match them with the costs that they are intended to compensate.
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Improvements to Income
Tax Disclosures. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as
well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax
disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The
new standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. This accounting
standard is effective in the first quarter of the Company's fiscal year ended December 31, 2025. We are currently evaluating the
impact of adoption on our financial disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense
Disaggregation Disclosures, requiring public business entities to disclose, on an annual and interim basis, disaggregated
information about certain income statement line items in a tabular format in the notes to the financial statements. The standard
is intended to benefit investors by providing more detailed expense information notably on employee compensation,
depreciation and amortization and purchase of inventory, which is critical to understanding an entity’s performance, assessing
its prospects for future cash flows and comparing its performance both over time and with that of other entities. The new
standard is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning
after December 15, 2027. Early adoption is permitted. The guidance may be applied prospectively or retrospectively. We are
currently evaluating the impact of adoption on our financial disclosures.
The Group has not early adopted the aforementioned new standards, amendments and interpretations which have been
issued, but are not yet effective.
The Group plans to adopt these new standards, amendments and interpretations on their required effective dates and does
not expect any material impact as a result of their adoption.