Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AA | |
Entity Registrant Name | ALCOA CORP | |
Entity Central Index Key | 0001675149 | |
Entity File Number | 1-37816 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1789115 | |
Entity Address, Address Line One | 201 Isabella Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15212-5858 | |
City Area Code | 412 | |
Local Phone Number | 315-2900 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 178,471,908 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Statement of Consolidated Opera
Statement of Consolidated Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Sales (E) | $ 2,602 | $ 2,851 | $ 7,956 | $ 9,788 |
Cost of goods sold (exclusive of expenses below) | 2,469 | 2,668 | 7,388 | 7,616 |
Selling, general administrative, and other expenses | 56 | 44 | 162 | 140 |
Research and development expenses | 9 | 7 | 25 | 23 |
Provision for depreciation, depletion, and amortization | 163 | 149 | 469 | 470 |
Restructuring and other charges, net (D) | 22 | 652 | 195 | 702 |
Interest expense | 26 | 25 | 79 | 80 |
Other expenses (income), net (R) | 85 | 35 | 145 | (185) |
Total costs and expenses | 2,830 | 3,580 | 8,463 | 8,846 |
(Loss) income before income taxes | (228) | (729) | (507) | 942 |
(Benefit from) provision for income taxes | (35) | 40 | 39 | 484 |
Net (loss) income | (193) | (769) | (546) | 458 |
Less: Net (loss) income attributable to noncontrolling interest | (25) | (23) | (45) | 186 |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | $ (168) | $ (746) | $ (501) | $ 272 |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (F): | ||||
Basic | $ (0.94) | $ (4.17) | $ (2.81) | $ 1.5 |
Diluted | $ (0.94) | $ (4.17) | $ (2.81) | $ 1.47 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | $ (168) | $ (746) | $ (501) | $ 272 |
Net income, Noncontrolling interest | (25) | (23) | (45) | 186 |
Net (loss) income | (193) | (769) | (546) | 458 |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Alcoa Corporation | 5 | 656 | 19 | 730 |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Noncontrolling interest | (1) | 6 | (3) | 7 |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 4 | 662 | 16 | 737 |
Foreign currency translation adjustments, Alcoa Corporation | (67) | (173) | (40) | (217) |
Foreign currency translation adjustments, Noncontrolling interest | (47) | (81) | (21) | (115) |
Foreign currency translation adjustments | (114) | (254) | (61) | (332) |
Net change in unrecognized gains/losses on cash flow hedges, Alcoa Corporation | (91) | 128 | 13 | 435 |
Net change in unrecognized gains/losses on cash flow hedges, Noncontrolling interest | 2 | |||
Net change in unrecognized gains/losses on cash flow hedges | (91) | 128 | 13 | 437 |
Total Other comprehensive (loss) income, net of tax, Alcoa Corporation | (153) | 611 | (8) | 948 |
Total Other comprehensive (loss) income, net of tax, Noncontrolling interest | (48) | (75) | (24) | (106) |
Total Other comprehensive (loss) income, net of tax | (201) | 536 | (32) | 842 |
Comprehensive (loss) income , Alcoa Corporation | (321) | (135) | (509) | 1,220 |
Comprehensive (loss) income , Noncontrolling interest | (73) | (98) | (69) | 80 |
Comprehensive (loss) income | $ (394) | $ (233) | $ (578) | $ 1,300 |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents (N) | $ 926 | $ 1,363 |
Receivables from customers (I) | 691 | 778 |
Other receivables | 105 | 131 |
Inventories (J) | 2,190 | 2,427 |
Fair value of derivative instruments (N) | 33 | 134 |
Prepaid expenses and other current assets | 420 | 417 |
Total current assets | 4,365 | 5,250 |
Properties, plants, and equipment | 19,836 | 19,605 |
Less: accumulated depreciation, depletion, and amortization | 13,304 | 13,112 |
Properties, plants, and equipment, net | 6,532 | 6,493 |
Investments (H) | 1,004 | 1,122 |
Deferred income taxes | 395 | 296 |
Fair value of derivative instruments (N) | 3 | 2 |
Other noncurrent assets | 1,618 | 1,593 |
Total assets | 13,917 | 14,756 |
Current liabilities: | ||
Accounts payable, trade | 1,472 | 1,757 |
Accrued compensation and retirement costs | 337 | 335 |
Taxes, including income taxes | 110 | 230 |
Fair value of derivative instruments (N) | 204 | 200 |
Other current liabilities | 500 | 481 |
Long-term debt due within one year (L & N) | 1 | 1 |
Total current liabilities | 2,624 | 3,004 |
Long-term debt, less amount due within one year (L & N) | 1,809 | 1,806 |
Accrued pension benefits (M) | 225 | 213 |
Accrued other postretirement benefits (M) | 440 | 480 |
Asset retirement obligations (P) | 830 | 711 |
Environmental remediation (Q) | 225 | 226 |
Fair value of derivative instruments (N) | 927 | 1,026 |
Noncurrent income taxes | 207 | 215 |
Other noncurrent liabilities and deferred credits | 538 | 486 |
Total liabilities | 7,825 | 8,167 |
CONTINGENCIES AND COMMITMENTS (Q) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock | 2 | 2 |
Additional capital | 9,179 | 9,183 |
Accumulated deficit | (1,125) | (570) |
Accumulated other comprehensive loss (G) | (3,547) | (3,539) |
Total Alcoa Corporation shareholders’ equity | 4,509 | 5,076 |
Noncontrolling interest | 1,583 | 1,513 |
Total equity | 6,092 | 6,589 |
Total liabilities and equity | $ 13,917 | $ 14,756 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FROM OPERATIONS | ||
Net (loss) income | $ (546) | $ 458 |
Adjustments to reconcile net (loss) income to cash from operations: | ||
Depreciation, depletion, and amortization | 469 | 470 |
Deferred income taxes | (156) | 93 |
Equity loss (income), net of dividends | 161 | (35) |
Restructuring and other charges, net (D) | 195 | 702 |
Net loss from investing activities - asset sales (R) | 18 | 7 |
Net periodic pension benefit cost (M) | 4 | 39 |
Stock-based compensation | 27 | 28 |
Loss (gain) on mark-to-market derivative financial contracts | 31 | (84) |
Other | 67 | 30 |
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments: | ||
Decrease in receivables | 108 | 23 |
Decrease (increase) in inventories | 166 | (580) |
Decrease (increase) in prepaid expenses and other current assets | 53 | (10) |
Decrease in accounts payable, trade | (275) | (10) |
Decrease in accrued expenses | (119) | (122) |
Decrease in taxes, including income taxes | (52) | (103) |
Pension contributions (M) | (20) | (12) |
Increase in noncurrent assets | (179) | (94) |
Decrease in noncurrent liabilities | (59) | (96) |
CASH (USED FOR) PROVIDED FROM OPERATIONS | (107) | 704 |
FINANCING ACTIVITIES | ||
Additions to debt | 80 | |
Payments on debt | (39) | |
Proceeds from the exercise of employee stock options | 1 | 22 |
Repurchase of common stock | (500) | |
Dividends paid on Alcoa common stock | (54) | (55) |
Payments related to tax withholding on stock-based compensation awards | (34) | (19) |
Financial contributions for the divestiture of businesses (C) | (44) | (19) |
Contributions from noncontrolling interest | 164 | 150 |
Distributions to noncontrolling interest | (24) | (319) |
Other | 1 | (3) |
CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES | 51 | (743) |
INVESTING ACTIVITIES | ||
Capital expenditures | (343) | (309) |
Proceeds from the sale of assets | 2 | 5 |
Additions to investments | (51) | (32) |
Sale of investments | 10 | |
Other | 4 | 2 |
CASH USED FOR INVESTING ACTIVITIES | (388) | (324) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (20) | |
Net change in cash and cash equivalents and restricted cash | (444) | (383) |
Cash and cash equivalents and restricted cash at beginning of year | 1,474 | 1,924 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 1,030 | $ 1,541 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Balance at Dec. 31, 2021 | $ 6,284 | $ 2 | $ 9,577 | $ (315) | $ (4,592) | $ 1,612 |
Net (loss) income | 553 | 469 | 84 | |||
Other comprehensive (loss) income (G) | (382) | (482) | 100 | |||
Stock-based compensation | 9 | 9 | ||||
Net effect of tax withholding for compensation plans and exercise of stock options | 2 | 2 | ||||
Repurchase of common stock | (75) | (54) | (21) | |||
Dividends paid on Alcoa common stock | (19) | (19) | ||||
Contributions | 46 | 46 | ||||
Distributions | (162) | (162) | ||||
Other | 1 | 3 | (2) | |||
Balance at Mar. 31, 2022 | 6,257 | 2 | 9,537 | 114 | (5,074) | 1,678 |
Balance at Dec. 31, 2021 | 6,284 | 2 | 9,577 | (315) | (4,592) | 1,612 |
Net (loss) income | 458 | |||||
Other comprehensive (loss) income (G) | 842 | |||||
Balance at Sep. 30, 2022 | 6,892 | 2 | 9,171 | (158) | (3,644) | 1,521 |
Balance at Mar. 31, 2022 | 6,257 | 2 | 9,537 | 114 | (5,074) | 1,678 |
Net (loss) income | 674 | 549 | 125 | |||
Other comprehensive (loss) income (G) | 688 | 819 | (131) | |||
Stock-based compensation | 11 | 11 | ||||
Net effect of tax withholding for compensation plans and exercise of stock options | 1 | 1 | ||||
Repurchase of common stock | (275) | (236) | (39) | |||
Dividends paid on Alcoa common stock | (18) | (18) | ||||
Contributions | 37 | 37 | ||||
Distributions | (83) | (83) | ||||
Balance at Jun. 30, 2022 | 7,292 | 2 | 9,313 | 606 | (4,255) | 1,626 |
Net (loss) income | (769) | (746) | (23) | |||
Other comprehensive (loss) income (G) | 536 | 611 | (75) | |||
Stock-based compensation | 8 | 8 | ||||
Repurchase of common stock | (150) | (150) | ||||
Dividends paid on Alcoa common stock | (18) | (18) | ||||
Contributions | 67 | 67 | ||||
Distributions | (74) | (74) | ||||
Balance at Sep. 30, 2022 | 6,892 | 2 | 9,171 | (158) | (3,644) | 1,521 |
Balance at Dec. 31, 2022 | 6,589 | 2 | 9,183 | (570) | (3,539) | 1,513 |
Net (loss) income | (232) | (231) | (1) | |||
Other comprehensive (loss) income (G) | (101) | (116) | 15 | |||
Stock-based compensation | 10 | 10 | ||||
Net effect of tax withholding for compensation plans and exercise of stock options | (33) | (33) | ||||
Dividends paid on Alcoa common stock | (18) | (18) | ||||
Contributions | 86 | 86 | ||||
Distributions | (6) | (6) | ||||
Other | 1 | 2 | (1) | |||
Balance at Mar. 31, 2023 | 6,296 | 2 | 9,162 | (819) | (3,655) | 1,606 |
Balance at Dec. 31, 2022 | 6,589 | 2 | 9,183 | (570) | (3,539) | 1,513 |
Net (loss) income | (546) | |||||
Other comprehensive (loss) income (G) | (32) | |||||
Balance at Sep. 30, 2023 | 6,092 | 2 | 9,179 | (1,125) | (3,547) | 1,583 |
Balance at Mar. 31, 2023 | 6,296 | 2 | 9,162 | (819) | (3,655) | 1,606 |
Net (loss) income | (121) | (102) | (19) | |||
Other comprehensive (loss) income (G) | 270 | 261 | 9 | |||
Stock-based compensation | 11 | 11 | ||||
Dividends paid on Alcoa common stock | (18) | (18) | ||||
Contributions | 36 | 36 | ||||
Distributions | (16) | (16) | ||||
Balance at Jun. 30, 2023 | 6,458 | 2 | 9,173 | (939) | (3,394) | 1,616 |
Net (loss) income | (193) | (168) | (25) | |||
Other comprehensive (loss) income (G) | (201) | (153) | (48) | |||
Stock-based compensation | 6 | 6 | ||||
Dividends paid on Alcoa common stock | (18) | (18) | ||||
Contributions | 42 | 42 | ||||
Distributions | (2) | (2) | ||||
Balance at Sep. 30, 2023 | $ 6,092 | $ 2 | $ 9,179 | $ (1,125) | $ (3,547) | $ 1,583 |
Statement of Changes in Conso_2
Statement of Changes in Consolidated Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock dividends per share | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (168) | $ (746) | $ (501) | $ 272 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | A. Basis of Presentation – The interim Consolidated Financial Statements of Alcoa Corporation and its subsidiaries (Alcoa Corporation, Alcoa, or the Company) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2022 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which includes disclosures required by GAAP. In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Management uses historical experience and all available information to make these estimates. Management regularly evaluates the judgments and assumptions used in its estimates, and results could differ from those estimates upon future events and their effects or new information. Principles of Consolidation. The Consolidated Financial Statements of Alcoa Corporation include the accounts of Alcoa Corporation and companies in which Alcoa Corporation has a controlling interest, including those that comprise the Alcoa World Alumina & Chemicals (AWAC) joint venture (see below). Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa Corporation has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for at cost less any impairment, a measurement alternative in accordance with GAAP. AWAC is an unincorporated global joint venture between Alcoa Corporation and Alumina Limited and consists of several affiliated operating entities, which own, have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Alumina segment (except for the Poços de Caldas mine and refinery, portions of the São Luís refinery, and investment in Mineração Rio do Norte S.A. (MRN) until its sale in April 2022, all in Brazil) and a portion ( 55 %) of the Portland smelter (Australia) within Alcoa Corporation’s Aluminum segment. Alcoa Corporation owns 60 % and Alumina Limited owns 40 % of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited (AofA), Alcoa World Alumina LLC (AWA), Alcoa World Alumina Brasil Ltda. (AWAB), and Alúmina Española, S.A. (Española). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | B. Recently Adopted and Recently Issued Accounting Guidance On January 1, 2023 , the Company adopted Accounting Standard Update No. 2022-04 which requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs, including the key terms of the program, the amount of obligations outstanding at the end of the reporting period, a description of where those obligations are presented in the balance sheet, and effective January 1, 2024, a roll-forward of such amounts during the annual period. The adoption of this guidance resulted in enhanced disclosures regarding these programs (see Note S ) and did no t have a material impact on the Company's Consolidated Financial Statements. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Divestitures | C. Divestitures In conjunction with the sale of its rolling mill located at Warrick Operations (Warrick Rolling Mill) in March 2021, the Company recorded estimated liabilities for site separation commitments. The Company recorded a charge of $ 17 in the nine-month period of 2023 and $ 5 in the nine-month period of 2022 in Other expenses (income), net on the Statement of Consolidated Operations related to these commitments. In the third quarter and nine-month period of 2023, the Company spent $ 19 and $ 44 against the reserve, respectively. In the third quarter and nine-month period of 2022 , the Company spent $ 13 and $ 22 against the reserve, respectively. The remaining balance of $ 19 at September 30, 2023 is expected to be spent over the next 12 months. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges, Net | D. Restructuring and Other Charges, Net In the third quarter and the nine-month period of 2023 , Alcoa Corporation recorded Restructuring and other charges, net, of $ 22 and $ 195 , respectively, which were comprised of: • A charge of $ 101 (nine-month period only) for asset impairments and to establish reserves for environmental, demolition and employee severance costs related to the permanent closure of the Intalco (Washington) aluminum smelter; • A charge of $ 47 (nine-month period only) for increased reserves for certain employee obligations related to the updated viability agreement for the San Ciprián (Spain) aluminum smelter; • A charge of $ 21 (nine-mon th period only) related to the settlement of certain pension benefits (see Note M); • A net charge of $ 15 (both periods) to record additional environmental and asset retirement obligation reserves at previously closed locations (see Note Q); • A charge of $ 7 and $ 10 , respectively, for employee termination and severance costs primarily related to the Kwinana (Australia) refinery productivity program; and, • A charge of $ 1 (nine-month period only) for several other insignificant items. In September 2023, the Company continued to pursue cost reduction measures and initiated productivity programs across its operations in Australia to mitigate the financial impacts of lower grade bauxite and to optimize current operating levels. In connection with this program, the Company recorded Restructuring and other charges, net of $ 6 for employee termination and severance costs for approximately 90 employees at the Kwinana refinery. The restructuring action and associated cash outlays are anticipated to be complete by the end of the first quarter of 2024. In March 2023, Alcoa Corporation announced the closure of the previously curtailed Intalco aluminum smelter. The facility had been fully curtailed since 2020. Charges related to the closure totaled $ 117 in the nine-month period of 2023 and included a charge of $ 16 for the write down of remaining inventories to net realizable value recorded in Cost of goods sold on the Statement of Consolidated Operations and a charge of $ 101 recorded in Restructuring and other charges, net on the Statement of Consolidated Operations. The restructuring charges were comprised of asset impairments of $ 50 , environmental and demolition obligation reserves of $ 50 , and severance and employee termination costs from the separation of approximately 12 employees of $ 1 . Cash outlays related to the permanent closure of the site are expected to be approximately $ 85 in 2024 and 2025. The Company spent $ 1 in the third quarter and nine-month period of 2023 against the reserve. On February 3, 2023, the Company reached an updated viability agreement with the workers’ representatives to commence the restart process of the San Ciprián aluminum smelter in phases beginning in January 2024. Under the terms of the updated viability agreement, the Company is responsible for certain employee obligations during 2024 and 2025. As a result, the Company recorded charges of $ 47 in the nine-month period of 2023 in Restructuring and other charges, net on the Statement of Consolidated Operations. Cash outlays related to these obligations are expected in 2024 and 2025. Alcoa Corporation recorded a net charge of $ 652 in the third quarter of 2022 and a net charge of $ 702 in the nine-month period of 2022 in Restructuring and other charges, net, which were comprised of: • A net charge of $ 626 (both periods) related to the settlement of certain pension benefits; • A charge of $ 29 (both periods) related to the closure of the previously curtailed magnesium smelter facility in Addy (Washington); • A reversal of $ 83 (nine-month period only) for the release of a valuation allowance on Brazil value added taxes (VAT) (see Note R); • A net reversal of $ 6 (nine-month period only) for changes in estimated take-or-pay contract costs at the closed Wenatchee (Washington) smelter and the curtailed Intalco smelter; • A net reversal of $ 3 and $ 1 , respectively, for site remediation at previously closed sites (see Note Q); • A charge of $ 79 (nine-month period only) for the agreement reached with the workers of the divested Avilés and La Coruña (Spain) facilities to settle various legal disputes related to the 2019 divestiture (see Note Q); • A charge of $ 58 (nine-month period only) for an asset impairment related to the sale of the Company’s interest in MRN (see Note H). In July 2022, Alcoa made the decision to permanently close the previously curtailed magnesium smelter in Addy. The facility has been fully curtailed since 2001. The Company recorded a charge of $ 29 to establish reserves for environmental and demolition obligations in Restructuring and other charges, net on the Statement of Consolidated Operations in the third quarter of 2022. Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Third quarter ended Nine months ended 2023 2022 2023 2022 Alumina (1) $ 6 $ ( 3 ) $ 8 $ ( 28 ) Aluminum ( 3 ) — 162 73 Segment total 3 ( 3 ) 170 45 Corporate 19 655 25 657 Total Restructuring and other charges, net $ 22 $ 652 $ 195 $ 702 (1) Beginning in January 2023, the Company changed its operating segments, by combining the Bauxite and Alumina segments, and reported its financial results in the following two segments: (i) Alumina and (ii) Aluminum (see Note E ). Activity and reserve balances for restructuring charges were as follows: Severance Other Total Balance at December 31, 2021 $ 3 $ 90 $ 93 Restructuring and other charges, net 1 73 74 Cash payments ( 2 ) ( 37 ) ( 39 ) Reversals and other ( 1 ) ( 10 ) ( 11 ) Balance at December 31, 2022 1 116 117 Restructuring and other charges, net 10 49 59 Cash payments ( 4 ) ( 108 ) ( 112 ) Reversals and other — 2 2 Balance at September 30, 2023 $ 7 $ 59 $ 66 The activity and reserve balances include only Restructuring and other charges, net that impact the reserves for Severance and employee termination costs and Other costs. Restructuring and other charges, net that affected other liability accounts such as Investments (see Note H), Accrued pension benefits (see Note M), Asset retirement obligations (see Note P), and Environmental remediation (see Note Q) are excluded from the above activity and balances. Reversals and other includes reversals of previously recorded liabilities and foreign currency translation impacts. The noncurrent portion of the reserve was $ 21 and $ 3 at September 30, 2023 and December 31, 2022 , respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | E. Segment Information – Alcoa Corporation is a producer of bauxite, alumina, and aluminum products. Beginning in January 2023, the financial information provided to the chief operating decision maker (CODM) for the activities of the bauxite mines and the alumina refineries was combined, and accordingly the Company changed its operating segments. Beginning with the first quarter of 2023, the Company reported its financial results in the following two segments: (i) Alumina and (ii) Aluminum. Segment information for all prior periods presented has been updated to reflect the new segment structure. Segment performance under Alcoa Corporation’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) for each segment. The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; and Research and development expenses. Alcoa Corporation’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The CODM function regularly reviews the financial information, including Adjusted EBITDA, of these two operating segments to assess performance and allocate resources. The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Alumina Aluminum Total Third quarter ended September 30, 2023 Sales: Third-party sales $ 957 $ 1,644 $ 2,601 Intersegment sales 381 4 385 Total sales $ 1,338 $ 1,648 $ 2,986 Segment Adjusted EBITDA $ 53 $ 79 $ 132 Supplemental information: Depreciation, depletion, and amortization $ 89 $ 69 $ 158 Equity loss $ ( 9 ) $ ( 15 ) $ ( 24 ) Third quarter ended September 30, 2022 Sales: Third-party sales $ 891 $ 1,976 $ 2,867 Intersegment sales 412 10 422 Total sales $ 1,303 $ 1,986 $ 3,289 Segment Adjusted EBITDA $ 78 $ 152 $ 230 Supplemental information: Depreciation, depletion, and amortization $ 74 $ 70 $ 144 Equity loss $ ( 18 ) $ ( 5 ) $ ( 23 ) Alumina Aluminum Total Nine months ended September 30, 2023 Sales: Third-party sales $ 2,708 $ 5,242 $ 7,950 Intersegment sales 1,199 11 1,210 Total sales $ 3,907 $ 5,253 $ 9,160 Segment Adjusted EBITDA $ 189 $ 373 $ 562 Supplemental information: Depreciation, depletion, and amortization $ 246 $ 207 $ 453 Equity loss $ ( 37 ) $ ( 88 ) $ ( 125 ) Nine months ended September 30, 2022 Sales: Third-party sales $ 2,900 $ 6,903 $ 9,803 Intersegment sales 1,308 25 1,333 Total sales $ 4,208 $ 6,928 $ 11,136 Segment Adjusted EBITDA $ 738 $ 1,461 $ 2,199 Supplemental information: Depreciation, depletion, and amortization $ 243 $ 210 $ 453 Equity (loss) income $ ( 22 ) $ 74 $ 52 The following table reconciles total Segment Adjusted EBITDA to Consolidated net (loss) income attributable to Alcoa Corporation: Third quarter ended Nine months ended 2023 2022 2023 2022 Total Segment Adjusted EBITDA $ 132 $ 230 $ 562 $ 2,199 Unallocated amounts: Transformation (1) ( 29 ) ( 19 ) ( 54 ) ( 44 ) Intersegment eliminations ( 4 ) 23 19 133 Corporate expenses (2) ( 33 ) ( 27 ) ( 87 ) ( 91 ) Provision for depreciation, depletion, and amortization ( 163 ) ( 149 ) ( 469 ) ( 470 ) Restructuring and other charges, net (D) ( 22 ) ( 652 ) ( 195 ) ( 702 ) Interest expense ( 26 ) ( 25 ) ( 79 ) ( 80 ) Other (expenses) income, net (R) ( 85 ) ( 35 ) ( 145 ) 185 Other (3) 2 ( 75 ) ( 59 ) ( 188 ) Consolidated (loss) income before income taxes ( 228 ) ( 729 ) ( 507 ) 942 Benefit from (provision for) income taxes 35 ( 40 ) ( 39 ) ( 484 ) Net loss (income) attributable to noncontrolling interest 25 23 45 ( 186 ) Consolidated net (loss) income attributable to Alcoa Corporation $ ( 168 ) $ ( 746 ) $ ( 501 ) $ 272 (1) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. (2) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. (3) Other includes certain items that are not included in the Adjusted EBITDA of the reportable segments. The following table details Alcoa Corporation’s Sales by product division: Third quarter ended Nine months ended 2023 2022 2023 2022 Aluminum $ 1,666 $ 1,990 $ 5,336 $ 7,033 Alumina 840 821 2,328 2,735 Energy 32 74 86 155 Bauxite 107 52 343 107 Other (1) ( 43 ) ( 86 ) ( 137 ) ( 242 ) $ 2,602 $ 2,851 $ 7,956 $ 9,788 (1) Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | F. Earnings Per Share – Basic earnings per share (EPS) amounts are computed by dividing earnings by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The share information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): Third quarter ended Nine months ended 2023 2022 2023 2022 Net (loss) income attributable to Alcoa Corporation $ ( 168 ) $ ( 746 ) $ ( 501 ) $ 272 Average shares outstanding – basic 178 179 178 182 Effect of dilutive securities: Stock options — — — — Stock units — — — 4 Average shares outstanding – diluted 178 179 178 186 In the third quarter and nine-month period of 2023, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Had Alcoa generated net income in the third quarter or nine-month period of 2023 , three million common share equivalents (both periods) related to three million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the periods. In the third quarter of 2022, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Had Alcoa generated net income in the third quarter of 2022 , three million common share equivalents related to three million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the periods. For the nine-month period of 2022 , all options to purchase shares of common stock were included in the computation of diluted EPS. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | G. Accumulated Other Comprehensive Loss The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest Third quarter ended Third quarter ended 2023 2022 2023 2022 Pension and other postretirement benefits (M) Balance at beginning of period $ 76 $ ( 808 ) $ ( 7 ) $ ( 12 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service — 17 ( 1 ) 8 Tax expense (2) — ( 7 ) — ( 3 ) Total Other comprehensive income — 10 ( 1 ) 5 Amortization of net actuarial loss and prior (1) 5 645 — 1 Tax benefit (2) — 1 — — Total amount reclassified from Accumulated (7) 5 646 — 1 Total Other comprehensive income 5 656 ( 1 ) 6 Balance at end of period $ 81 $ ( 152 ) $ ( 8 ) $ ( 6 ) Foreign currency translation Balance at beginning of period $ ( 2,658 ) $ ( 2,658 ) $ ( 1,014 ) $ ( 971 ) Other comprehensive loss ( 67 ) ( 173 ) ( 47 ) ( 81 ) Balance at end of period $ ( 2,725 ) $ ( 2,831 ) $ ( 1,061 ) $ ( 1,052 ) Cash flow hedges (N) Balance at beginning of period $ ( 812 ) $ ( 789 ) $ 1 $ 1 Other comprehensive income (loss): Net change from periodic revaluations ( 120 ) 110 — — Tax benefit (expense) (2) 16 ( 6 ) — — Total Other comprehensive (loss) income ( 104 ) 104 — — Net amount reclassified to earnings: Aluminum contracts (3) 42 35 — — Interest rate contracts (5) ( 3 ) 2 — — Foreign exchange contracts (6) ( 10 ) — — — Sub-total 29 37 — — Tax expense (2) ( 16 ) ( 13 ) — — Total amount reclassified from Accumulated (7) 13 24 — — Total Other comprehensive (loss) income ( 91 ) 128 — — Balance at end of period $ ( 903 ) $ ( 661 ) $ 1 $ 1 Total Accumulated other comprehensive loss $ ( 3,547 ) $ ( 3,644 ) $ ( 1,068 ) $ ( 1,057 ) Alcoa Corporation Noncontrolling interest Nine months ended Nine months ended 2023 2022 2023 2022 Pension and other postretirement benefits (M) Balance at beginning of period $ 62 $ ( 882 ) $ ( 5 ) $ ( 13 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service ( 18 ) 40 ( 3 ) 9 Tax benefit (expense) (2) 8 ( 12 ) — ( 3 ) Total Other comprehensive (loss) income ( 10 ) 28 ( 3 ) 6 Amortization of net actuarial loss and prior (1) 35 702 — 1 Tax expense (2) ( 6 ) — — — Total amount reclassified from Accumulated (7) 29 702 — 1 Total Other comprehensive income (loss) 19 730 ( 3 ) 7 Balance at end of period $ 81 $ ( 152 ) $ ( 8 ) $ ( 6 ) Foreign currency translation Balance at beginning of period $ ( 2,685 ) $ ( 2,614 ) $ ( 1,040 ) $ ( 937 ) Other comprehensive loss ( 40 ) ( 217 ) ( 21 ) ( 115 ) Balance at end of period $ ( 2,725 ) $ ( 2,831 ) $ ( 1,061 ) $ ( 1,052 ) Cash flow hedges (N) Balance at beginning of period $ ( 916 ) $ ( 1,096 ) $ 1 $ ( 1 ) Other comprehensive income (loss): Net change from periodic revaluations ( 66 ) 231 — 2 Tax benefit (expense) (2) 16 ( 17 ) — — Total Other comprehensive (loss) income ( 50 ) 214 — 2 Net amount reclassified to earnings: Aluminum contracts (3) 136 277 — — Financial contracts (4) ( 20 ) — — — Interest rate contracts (5) ( 5 ) 6 — — Foreign exchange contracts (6) ( 18 ) ( 3 ) — — Sub-total 93 280 — — Tax expense (2) ( 30 ) ( 59 ) — — Total amount reclassified from Accumulated (7) 63 221 — — Total Other comprehensive income 13 435 — 2 Balance at end of period $ ( 903 ) $ ( 661 ) $ 1 $ 1 Total Accumulated other comprehensive loss $ ( 3,547 ) $ ( 3,644 ) $ ( 1,068 ) $ ( 1,057 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). (2) These amounts were reported in (Benefit from) provision for income taxes on the accompanying Statement of Consolidated Operations. (3) These amounts were reported in Sales on the accompanying Statement of Consolidated Operations. (4) These amounts were reported in Cost of goods sold on the accompanying Statement of Consolidated Operations. (5) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations. (6) In the third quarter and nine-month period of 2023 , $ 4 was reported in Cost of goods sold (nine-month period only) and $( 10 ) and $( 22 ) were reported in Sales, respectively, on the accompanying Statement of Consolidated Operations. In the third quarter and nine-month period of 2022 , $ 2 and $ 4 were reported in Cost of goods sold, respectively, and $( 2 ) and $( 7 ) were reported in Sales, respectively, on the accompanying Statement of Consolidated Operations. (7) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | H. Investments – A summary of unaudited financial information for Alcoa Corporation’s equity investments is as follows (amounts represent 100% of investee financial information): Third quarter ended September 30, 2023 Saudi Arabia Mining Energy Other Sales $ 725 $ 157 $ 61 $ 117 Cost of goods sold 645 121 28 105 Net (loss) income ( 39 ) 6 31 ( 21 ) Equity in net (loss) income of affiliated companies, ( 10 ) 3 12 ( 11 ) Other ( 15 ) — ( 2 ) ( 6 ) Alcoa Corporation’s equity in net (loss) income of ( 25 ) 3 10 ( 17 ) Third quarter ended September 30, 2022 Sales $ 773 $ 167 $ 66 $ 121 Cost of goods sold 692 101 38 110 Net (loss) income ( 94 ) 14 28 ( 19 ) Equity in net (loss) income of affiliated companies, ( 24 ) 7 11 ( 9 ) Other ( 1 ) — ( 3 ) 1 Alcoa Corporation’s equity in net (loss) income of ( 25 ) 7 8 ( 8 ) Nine months ended September 30, 2023 Sales $ 2,025 $ 516 $ 178 $ 354 Cost of goods sold 1,947 325 87 324 Net (loss) income ( 390 ) 44 77 ( 70 ) Equity in net (loss) income of affiliated companies, ( 98 ) 20 30 ( 34 ) Other ( 30 ) 1 ( 1 ) ( 6 ) Alcoa Corporation’s equity in net (loss) income of ( 128 ) 21 29 ( 40 ) Nine months ended September 30, 2022 Sales $ 2,686 $ 589 $ 193 $ 363 Cost of goods sold 2,020 370 91 332 Net income (loss) 217 95 80 ( 77 ) Equity in net income (loss) of affiliated companies, 54 33 32 ( 37 ) Other ( 5 ) ( 2 ) ( 4 ) 16 Alcoa Corporation’s equity in net income (loss) of 49 31 28 ( 21 ) The results for the Saudi Arabia joint venture for the nine-month period of 2023 include an adjustment to the estimate for the settlement of a dispute with an industrial utility for periods in 2021 and 2022. Alcoa’s share of this adjustment is $ 41 which is included in Other expenses (income), net on the Statement of Consolidated Operations for the nine-month period of 2023 . Alcoa’s total share of this dispute of $ 62 includes $ 21 that was recorded in the fourth quarter of 2022. The Company’s basis in the ELYSIS TM Limited Partnership (ELYSIS) as of September 30, 2023 and 2022 , included in Other in the table above, has been reduced to zero for its share of losses incurred to date. As a result, the Company has $ 62 in unrecognized losses as of September 30, 2023 that will be recognized upon additional contributions into the partnership. In February 2022, the Company signed an agreement to sell its share of its investment in MRN in Brazil for $ 10 to South32 Minerals S.A. Related to this transaction, the Company recorded an asset impairment of $ 58 in the first quarter of 2022 in Restructuring and other charges, net on the Statement of Consolidated Operations. In April 2022, Alcoa completed the sale of its investment in MRN. An additional $ 30 in cash could be paid to the Company in the future if certain post-closing conditions related to future MRN mine development are satisfied. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Receivables | I. Receivables On January 31, 2023, a wholly-owned special purpose entity (SPE) of the Company entered into a one-year agreement with a financial institution to sell up to $ 150 of certain customer receivables without recourse on a revolving basis. During the third quarter of 2023, the Company amended its agreement to decrease the amount of certain receivables that can be transferred from $ 150 to $ 130 . Company subsidiaries sell customer receivables to the SPE, which then transfers the receivables to the financial institution. The Company does not maintain effective control over the transferred receivables, and therefore accounts for the transfers as sales of receivables. Alcoa Corporation guarantees the performance obligations of the Company subsidiaries and unsold customer receivables are pledged as collateral to the financial institution to secure the sold receivables. At September 30, 2023 , the SPE held unsold customer receivables of $ 91 pledged as collateral against the sold receivables. The Company continues to service the customer receivables that were transferred to the financial institution. As Alcoa collects customer payments, the SPE transfers additional receivables to the financial institution rather than remitting cash. In the third quarter of 2023 , the Company sold gross customer receivables of $ 146 , and reinvested collections of $ 94 from previously sold receivables, resulting in net cash proceeds from the financial institution of $ 52 . In the nine-month period of 2023 , the Company sold gross customer receivables of $ 320 , and reinvested collections of $ 221 from previously sold receivables, resulting in net cash proceeds from the financial institution of $ 99 . Cash collections from previously sold receivables yet to be reinvested of $ 79 were included in Accounts payable, trade on the accompanying Consolidated Balance Sheet as of September 30, 2023 . Cash received from sold receivables under the agreement are presented within operating activities in the Statement of Consolidated Cash Flows. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | J. Inventories September 30, 2023 December 31, 2022 Finished goods $ 404 $ 385 Work-in-process 323 350 Bauxite and alumina 577 584 Purchased raw materials 680 923 Operating supplies 206 185 $ 2,190 $ 2,427 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | K. Goodwill As a result of the January 2023 segment change, the Company reviewed the recoverability of the carrying value of goodwill of its Alumina reporting unit in the first quarter of 2023. The estimated fair value of the Alumina reporting unit substantially exceeded the reporting unit’s carrying value, resulting in no impairment. Goodwill, which is included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, was as follows: September 30, 2023 December 31, 2022 Alumina $ 4 $ 4 Aluminum — — Corporate (1) 142 141 $ 146 $ 145 (1) The carrying value of Corporate’s goodwill is net of accumulated impairment losses of $ 742 as of both September 30, 2023 and December 31, 2022. As of September 30, 2023 , the $ 142 of goodwill reflected in Corporate is allocated to Alcoa Corporation’s Alumina reportable segment for purposes of impairment testing. This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the reportable segment. Changes in the carrying amount of goodwill were attributable to foreign currency translation as of September 30, 2023 and December 31, 2022 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | L. Debt Short-term borrowings Inventory Repurchase Agreements During the nine-month period of 2023, the Company entered into multiple inventory repurchase agreements whereby the Company sold aluminum to a third party and agreed to subsequently repurchase substantially similar inventory. The Company did not record sales upon each shipment of inventory and the net cash received of $ 42 related to these agreements was recorded in Short-term borrowings within Other current liabilities on the Consolidated Balance Sheet as of September 30, 2023. During the third quarter and nine-month period of 2023 , the Company recorded borrowings of $ 55 and $ 80 , respectively, and repurchased $ 23 and $ 38 , respectively, of inventory related to these agreements. As of September 30, 2023 , inventory sold of $ 42 was pledged as collateral and was reflected in Prepaid expenses and other current assets on the Consolidated Balance Sheet. The cash received and subsequently paid under the inventory repurchase agreements is included in Cash provided from (used for) financing activities on the Statement of Consolidated Cash Flows for the nine-month period of 2023. Credit Facilities Revolving Credit Facility The Company has an unsecured $ 1,250 revolving credit and letter of credit facility in place for working capital and/or other general corporate purposes (the Revolving Credit Facility). The Revolving Credit Facility, established on September 16, 2016, and amended and restated in 2022, is scheduled to mature in June 2027 . Subject to the terms and conditions under the Revolving Credit Facility, the Company or Alcoa Nederland Holding B.V. (ANHBV), a wholly-owned subsidiary of Alcoa Corporation, may borrow funds or issue letters of credit. See Part II Item 8 of Alcoa Corporation’s Annual Report on Form 10-K in Note M to the Consolidated Financial Statements for the year ended December 31, 2022 for more information on the Revolving Credit Facility. As of September 30, 2023 , the Company was in compliance with all covenants. The Company may access the entire amount of commitments under the Revolving Credit Facility. There were no borrowings outstanding at September 30, 2023 and December 31, 2022 , and no amounts were borrowed during the third quarter and nine-month period of 2023 and 2022 under the Revolving Credit Facility. Japanese Yen Revolving Credit Facility In April 2023, the Company entered into a one-year unsecured revolving credit facility for $ 250 (available to be drawn in Japanese yen). Subject to the terms and conditions under the facility, the Company or ANHBV may borrow funds. The facility includes covenants that are substantially the same as those included in the Revolving Credit Facility. If Alcoa Corporation or ANHBV, as applicable, fails to have a rating of at least Ba1 from Moody’s Investor Service (Moody’s) and BB+ from Standard and Poor’s Global Ratings (S&P), then no lending party to this facility would have any commitment or obligation to lend. As of September 30, 2023 , the Company was in compliance with all covenants. The Company may access the entire amount of commitments under the facility. There were no borrowings outstanding at September 30, 2023 and no amounts were borrowed during the third quarter and nine-month period of 2023 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | M. Pension and Other Postretirement Benefits The components of net periodic benefit cost were as follows: Third quarter ended Nine months ended Pension benefits 2023 2022 2023 2022 Service cost $ 2 $ 3 $ 7 $ 10 Interest cost (1) 27 24 87 78 Expected return on plan assets (1) ( 35 ) ( 35 ) ( 111 ) ( 123 ) Recognized net actuarial loss (1) 7 19 21 74 Settlements (2) — 626 21 626 Net periodic benefit cost $ 1 $ 637 $ 25 $ 665 Third quarter ended Nine months ended Other postretirement benefits 2023 2022 2023 2022 Service cost $ — $ 1 $ 2 $ 3 Interest cost (1) 7 4 20 12 Recognized net actuarial loss (1) 1 5 3 14 Amortization of prior service benefit (1) ( 3 ) ( 4 ) ( 10 ) ( 11 ) Net periodic benefit cost $ 5 $ 6 $ 15 $ 18 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note R ). (2) These amounts were reported in Restructuring and other charges, net on the accompanying Statements of Consolidated Operations (see Note D ) and Cash Flows. Plan Actions. In 2023, management initiated the following actions to certain pension and other postretirement plans: Action #1 – In the second quarter of 2023 , plan amendment accounting and related plan remeasurements were triggered within the Surinamese pension and other postretirement plans as a result of participants electing to prospectively convert their Surinamese dollar pension and Company-provided retiree medical to a United States dollar pension with no Company-provided retiree medical. As a result, Alcoa recorded a $ 15 increase to Accrued pension benefits and a $ 9 decrease to Accrued other postretirement benefits in the second quarter. Action #2 – In the second quarter of 2023, settlement accounting and related plan remeasurements were triggered within certain Canadian pension plans as a result of the Company's purchase of group annuity contracts to transfer the obligation to pay the remaining retirement benefits of approximately 530 retirees and beneficiaries from its Canadian defined benefit pension plans. The transfer of approximately $ 235 in both plan obligations and plan assets was completed in April 2023. As a result, Alcoa recorded a $ 22 increase to Accrued pension benefits and a $ 5 decrease to Other noncurrent assets and recognized a non-cash settlement loss of $ 21 ($ 16 after-tax) in Restructuring and other charges, net in the second quarter. Action #3 – In the third quarter of 2023, settlement accounting and a related plan remeasurement was triggered within Alcoa’s Australian pension plan as a result of participants electing lump sum payments. As a result, Alcoa recorded a $ 2 decrease to Other noncurrent assets in the third quarter. Action # Number of Weighted Plan Weighted Increase to Decrease to Decrease to accrued other Settlement (1) 1 ~ 370 5.58 % March 31, 2023 5.20 % $ 15 $ — $ ( 9 ) $ — 2 ~ 530 5.20 % April 30, 2023 4.80 % $ 22 $ ( 5 ) $ — $ 21 3 ~ 50 5.08 % September 30, 2023 5.03 % $ — $ ( 2 ) $ — $ — (1) These amounts represent the net actuarial loss and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note D ) on the accompanying Statement of Consolidated Operations. Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in each applicable country's benefits laws and tax laws, including the Employee Retirement Income Security Act of 1974 (ERISA) for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate. Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years. In the first, second and third quarters of 2023, management made such elections related to the Company’s U.S. plans and intends to do so for the remainder of 2023. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2023 is estimated to be approximately $ 24 , of which approximately $ 11 was contributed to non-U.S. plans during the third quarter of 2023. In the nine-month period of 2023 , $ 20 was contributed to non-U.S. plans. In the third quarter of 2022 , $ 3 was contributed to non-U.S. plans. In the nine-month period of 2022 , $ 12 was contributed to non-U.S. plans. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Other Financial Instruments | N. Derivatives and Other Financial Instruments Fair Value Fair value is defined as 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 fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Derivatives Alcoa Corporation is exposed to certain risks relating to its ongoing business operations, including the risks of changing commodity prices, foreign currency exchange rates and interest rates. Alcoa Corporation’s commodity and derivative activities include aluminum, energy, foreign exchange, and interest rate contracts which are held for purposes other than trading. They are used to mitigate uncertainty and volatility, and to cover underlying exposures. While Alcoa does not generally enter into derivative contracts to mitigate the risk associated with changes in aluminum price, the Company may do so in isolated cases to address discrete commercial or operational conditions. Alcoa is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities. Alcoa Corporation’s aluminum and foreign exchange contracts are predominantly classified as Level 1 under the fair value hierarchy. All of the Level 1 contracts are designated as either fair value or cash flow hedging instruments (except as described below). Alcoa Corporation also has several derivative instruments classified as Level 3 under the fair value hierarchy, which are either designated as cash flow hedges or undesignated. Alcoa includes the changes in its equity method investee’s Level 2 derivatives in Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheet. The following tables present the detail for Level 1 and 3 derivatives (see additional Level 3 information in further tables below): September 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Level 1 derivative instruments $ 29 $ 16 $ 84 $ 14 Level 3 derivative instruments 7 1,115 52 1,212 Total $ 36 $ 1,131 $ 136 $ 1,226 Less: Current 33 204 134 200 Noncurrent $ 3 $ 927 $ 2 $ 1,026 2023 2022 Third quarter ended September 30, Unrealized gain (loss) recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Unrealized gain recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Level 1 derivative instruments $ ( 11 ) $ 22 $ 59 $ 32 Level 3 derivative instruments ( 110 ) ( 54 ) 49 ( 67 ) Noncontrolling and equity interest (Level 2) 1 3 2 ( 2 ) Total $ ( 120 ) $ ( 29 ) $ 110 $ ( 37 ) For the third quarter of 2023 , the realized gain of $ 22 on Level 1 cash flow hedges was recognized in Sales. For the third quarter of 2022, the realized gain of $ 32 on Level 1 cash flow hedges was comprised of a $ 34 gain recognized in Sales and a $ 2 loss recognized in Cost of goods sold. 2023 2022 Nine months ended September 30, Unrealized gain (loss) recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Unrealized gain recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Level 1 derivative instruments $ 20 $ 66 $ 158 $ 12 Level 3 derivative instruments ( 87 ) ( 164 ) 62 ( 286 ) Noncontrolling and equity interest (Level 2) 1 5 11 ( 6 ) Total $ ( 66 ) $ ( 93 ) $ 231 $ ( 280 ) For the nine-month period of 2023 , the realized gain of $ 66 on Level 1 cash flow hedges was comprised of a $ 70 gain recognized in Sales and a $ 4 loss recognized in Cost of goods sold. For the nine-month period of 2022 , the realized gain of $ 12 on Level 1 cash flow hedges was comprised of a $ 16 gain recognized in Sales and a $ 4 loss recognized in Cost of goods sold. The following table presents the outstanding quantities of derivative instruments classified as Level 1: Classification September 30, 2023 September 30, 2022 Aluminum (in kmt) Commodity buy forwards 126 178 Aluminum (in kmt) Commodity sell forwards 144 398 Foreign currency (in millions of euro) Foreign exchange buy forwards 68 67 Foreign currency (in millions of euro) Foreign exchange sell forwards 18 — Foreign currency (in millions of Norwegian krone) Foreign exchange buy forwards 185 87 Foreign currency (in millions of Brazilian real) Foreign exchange buy forwards 734 1,216 Foreign currency (in millions of Brazilian real) Foreign exchange sell forwards — 17 Foreign currency (in millions of Canadian dollar) Foreign exchange sell forwards 33 — Alcoa routinely uses Level 1 aluminum derivative instruments to manage exposures to changes in the fair value of firm commitments for the purchases or sales of aluminum. Additionally, Alcoa uses Level 1 aluminum derivative instruments to manage exposures to changes in the LME associated with the Alumar (Brazil) restart (expires December 2023 ) and the San Ciprián strike (expired October 2022 ). In the second quarter of 2023, as a result of a delay with the Alumar restart, it became probable that certain of the original forecasted transactions would not occur by the end of the originally specified time period and Alcoa dedesignated certain aluminum sell forwards. The Company reclassified the related unrealized gain of $ 11 included in Accumulated other comprehensive loss to Sales during the second quarter of 2023. In conjunction with the dedesignations, the Company entered into aluminum buy forwards for the same volume and periods which were also not designated. The unrealized and realized gains and losses on the aluminum buy and sell forwards that are not designated will offset resulting in no impact to Alcoa’s earnings. Alcoa Corporation uses Level 1 foreign exchange forward contracts to mitigate the risk of foreign exchange exposure related to euro power purchases in Norway (expires December 2026 ), krone capital expenditures in Norway (expires June 2025 ), U.S. dollar alumina and aluminum sales in Brazil (expires August 2025 ), and Canadian dollar capital expenditures in Canada (expires March 2025 ). Additional Level 3 Disclosures The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh): September 30, 2023 Unobservable Input Unobservable Input Range Asset Derivatives Financial contract (undesignated) $ 7 Interrelationship of forward energy price, LME forward price and the Consumer Price Index Electricity 2023: $ 29.76 54.21 LME (per mt) 2023: $ 2,339 2024: $ 2,374 Power contract — MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2023: $ 2,339 2,353 Midwest premium 2023: $ 0.1940 0.1950 Electricity Rate of 2 million MWh per year Total Asset Derivatives $ 7 Liability Derivatives Power contract $ 196 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2023: $ 2,339 2,707 Electricity Rate of 4 million MWh per year Power contracts 919 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2023: $ 2,339 2,711 2,959 Midwest premium 2023: $ 0.1940 0.2200 0.2200 Electricity Rate of 18 million MWh per year Power contract (undesignated) — Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 1.55 %: 30-year debt yield spread 7.37 %: Alcoa (estimated) 5.82 %: counterparty Total Liability Derivatives $ 1,115 In addition to the instruments presented above, Alcoa had a financial contract that expired on February 28, 2023 that was designated as a cash flow hedge of forward sales of power. The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2023 December 31, 2022 Derivatives designated as hedging instruments: Current—financial contract $ — $ 20 Total derivatives designated as hedging instruments $ — $ 20 Derivatives not designated as hedging instruments: Current—financial contract $ 7 $ 32 Total derivatives not designated as hedging instruments $ 7 $ 32 Total Asset Derivatives $ 7 $ 52 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 196 $ 195 Noncurrent—power contracts 919 1,017 Total derivatives designated as hedging instruments $ 1,115 $ 1,212 Total Liability Derivatives $ 1,115 $ 1,212 Assuming market rates remain constant with the rates at September 30, 2023 , a realized loss of $ 196 related to power contracts is expected to be recognized in Sales over the next 12 months. At September 30, 2023 and December 31, 2022 , the power contracts with embedded derivatives designated as cash flow hedges include hedges of forecasted aluminum sales of 1,513 kmt and 1,683 kmt, respectively. The following tables present the reconciliation of activity for Level 3 derivative instruments: Assets Third quarter ended September 30, 2023 Power contracts Financial contracts July 1, 2023 $ 1 $ 28 Total gains or losses included in: Sales (realized) ( 2 ) — Other expenses, net (unrealized/realized) — ( 20 ) Other comprehensive income (unrealized) 1 — Settlements and other — ( 1 ) September 30, 2023 $ — $ 7 Change in unrealized gains or losses included in earnings Other expenses, net $ — $ ( 20 ) Liabilities Third quarter ended September 30, 2023 Power contracts July 1, 2023 $ 1,060 Total gains or losses included in: Sales (realized) ( 56 ) Other comprehensive income (unrealized) 111 September 30, 2023 $ 1,115 Assets Nine months ended September 30, 2023 Power contracts Financial contracts January 1, 2023 $ — $ 52 Total gains or losses included in: Sales (realized) ( 4 ) — Cost of goods sold (realized) — ( 20 ) Other expenses, net (unrealized/realized) — ( 3 ) Other comprehensive income (unrealized) 4 — Settlements and other — ( 22 ) September 30, 2023 $ — $ 7 Change in unrealized gains or losses included in earnings Other expenses, net $ — $ ( 3 ) Liabilities Nine months ended September 30, 2023 Power contracts January 1, 2023 $ 1,212 Total gains or losses included in: Sales (realized) ( 188 ) Other comprehensive income (unrealized) 91 September 30, 2023 $ 1,115 There were no purchases, sales, or settlements of Level 3 derivative instruments in the periods presented. Other Financial Instruments The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: September 30, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 926 $ 926 $ 1,363 $ 1,363 Restricted cash 104 104 111 111 Short-term borrowings 42 42 — — Long-term debt due within one year 1 1 1 1 Long-term debt, less amount due within one year 1,809 1,726 1,806 1,744 The following methods were used to estimate the fair values of other financial instruments: Cash and cash equivalents and Restricted cash. The carrying amounts approximate fair value because of the short maturity of the instruments. The fair value amounts for Cash and cash equivalents and Restricted cash were classified in Level 1 of the fair value hierarchy. Short-term borrowings and Long-term debt, including amounts due within one year. The fair value of Long-term debt, less amounts due within one year was based on quoted market prices for public debt and on interest rates that are currently available to Alcoa Corporation for issuance of debt with similar terms and maturities for non-public debt. The fair value amounts for all Short-term borrowings and Long-term debt were classified in Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | O. Income Taxes – Alcoa Corporation’s estimated annualized effective tax rate (AETR) for 2023 as of September 30, 2023 differs from the U.S. federal statutory rate of 21 % primarily due to losses in certain jurisdictions with full valuation allowances resulting in no tax benefit in addition to foreign jurisdictions with higher statutory tax rates, partially offset by the reversal of a valuation allowance recorded against the deferred tax assets of the Company's subsidiaries in Iceland. Nine months ended September 30, 2023 2022 (Loss) income before income taxes $ ( 507 ) $ 942 Estimated annualized effective tax rate ( 18.9 ) % 54.0 % Income tax expense $ 96 $ 509 Favorable tax impact related to losses in jurisdictions with no tax benefit — ( 27 ) Discrete tax (benefit) expense ( 57 ) 2 Provision for income taxes $ 39 $ 484 The Comp any’s subsidiaries in Iceland had a full valuation allowance recorded against deferred tax assets, which was established in 2015 and 2017, as the Company believed it was more likely than not that these tax benefits would not be realized. During 2023, after considering all positive and negative evidence, including the expectation that the jurisdiction will remain in a three-year cumulative income position, the Company determined that it is more likely than not that the net deferred tax assets will be realized. Based on this conclusion, the Company reversed the valuation allowance totaling $ 58 during the third quarter of 2023, generating a non-cash benefit from income taxes. As of September 30, 2023, management’s position continues to be it is more likely than not that the deferred tax assets of AWAB will be realized. A valuation allowance has not been recorded against the deferred tax assets. However, if future losses are incurred by AWAB, it is reasonably possible that a valuation allowance could be established as a result of negative evidence to support the realization of such assets. AWAB’s net deferred tax assets were $ 132 at September 30, 2023. The majority of AWAB’s net deferred tax assets relate to prior net operating losses; the loss carryforwards are not subject to an expiration period. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA), which includes a 15 % minimum tax on book income of certain large corporations, a 1 % excise tax on net stock repurchases after December 31, 2 022, and several tax incentives to promote clean energy. As a result of the provisions of the IRA, we will incur an excise tax of 1 % for certain common stock repurchases made subsequent to December 31, 2022, which will be reflected in the cost of purchasing the underlying shares. The minimum corporate tax will not have an impact on the Company for 2023. The IRA contains a number of tax credits and other incentives for investments in renewable energy production, carbon capture, and other climate-related actions, as well as the production of critical minerals. These provisions may result in an incremental benefit to the Company. However, given the complexity and uncertainty around the applicability of the incentives to our specific facts and circumstances, we continue to analyze the IRA provisions and seek clarity from relevant government entities to identify and quantify potential opportunities and applicable benefits included in the legislation. At this time the applicability of those provisions to the Company’s specific facts and circumstances are uncertain, and an estimate of those benefits has not been recorded. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | P. Asset Retirement Obligations During the third quarter and nine-month period of 2023, the Company recorded liabilities of $ 4 (both periods) as a result of updated estimates related to spent pot lining treatment and disposal at a previously closed site and $ 36 (nine-month period only) related to the closure of the previously curtailed Intalco aluminum smelter. Further, the Company recorded a reversal of a reserve of $ 2 (both periods) due to the completion of the demolition project at the previously closed Lake Charles anode facility in Louisiana. These amounts were recorded in Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations. The Company recorded a liability of $ 15 in the third quarter of 2022 related to the closure of the previously curtailed magnesium smelter in Addy. The facility has been fully curtailed since 2001. The additional accrual was recorded in Restructuring and other charges, net (see Note D) on the Statement of Consolidated Operations. The Company recorded a liability of $ 47 in the second quarter of 2022 when an initial estimate became available for improvements required on both operating and non-operating bauxite residue areas at the Poços de Caldas refinery to comply with updated impoundment regulations in the region. The additional accruals were recorded with a charge to Cost of goods sold of $ 39 and a corresponding capitalized asset retirement cost of $ 8 . In the third quarter of 2022, the Company updated its initial estimate and recorded an additional liability of $ 9 . The additional accruals were recorded with a charge to Cost of goods sold of $ 8 and a corresponding capitalized asset retirement cost of $ 1 . |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Q. Contingencies Environmental Matters Alcoa Corporation participates in environmental assessments and cleanups at several locations. These include currently or previously owned or operated facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. Alcoa Corporation’s environmental remediation reserve balance reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2021 $ 309 Liabilities incurred 32 Cash payments ( 26 ) Reversals of previously recorded liabilities ( 30 ) Foreign currency translation and other ( 1 ) Balance at December 31, 2022 284 Liabilities incurred 38 Cash payments ( 42 ) Reversals of previously recorded liabilities ( 1 ) Foreign currency translation and other ( 1 ) Balance at September 30, 2023 $ 278 At September 30, 2023 and December 31, 2022 , the current portion of the environmental remediation reserve balance was $5 3 and $ 58 , respectively. During the third quarter and nine-month period of 2023 , the Company incurred liabilities of $ 20 and $ 38 , respectively. The Company incurred liabilities of $ 14 (nine-month period only) primarily related to the closure of the previously curtailed Intalco aluminum smelter and $ 13 ( both periods) for ongoing remediation work at the previously closed Longview (Washington) site , which were recorded in Restructuring and other charges, net on the Statement of Consolidated Operations. The Company incurred liabilities of $ 7 (both periods) and $ 4 (nine-month period only) for ongoing remediation work at various other sites, which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. Payments related to remediation expenses applied against the reserve were $ 19 and $ 42 in the third quarter and nine-month period of 2023, respectively. These amounts include mandated expenditures as well as those not required by any regulatory authority or third party. Further, the Company recorded a reversal of a reserve of $ 1 during the nine-month period of 2023 due to the determination that certain remaining site remediation is no longer required. During the third quarter and nine-month period of 2022, the Company incurred liabilities of $ 18 and $ 23 , respectively, primarily related to $ 14 (both periods) for the closure of the previously curtailed magnesium smelter in Addy, which was recorded in Restructuring and other charges, net, $ 5 (nine-month period only) related to a new phase of work at the former East St. Louis (Illinois) site and $ 4 (both periods) for environmental activities at various sites, which were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. Payments related to remediation expenses applied against the reserve were $ 7 and $ 17 in the third quarter and nine-month period of 2022, respectively. These amounts include mandated expenditures as well as those not required by any regulatory authority or third party. Further, the Company recorded a reversal of a reserve of $ 3 during the nine-month period of 2022, due to the determination that certain remaining site remediation is no longer required. The estimated timing of cash outflows on the environmental remediation reserve at September 30, 2023 is as follows: 2023 (excluding the nine months ended September 30, 2023) $ 14 2024 - 2028 184 Thereafter 80 Total $ 278 Reserve balances at September 30, 2023 and December 31, 2022 , associated with significant sites with active remediation underway or for future remediation were $ 221 and $ 234 , respectively. In management’s judgment, the Company’s reserves are sufficient to satisfy the provisions of the respective action plans. Upon changes in facts or circumstances, a change to the reserve may be required. The Company’s significant sites include: Suriname —The reserve associated with the 2017 closure of the Suralco refinery and bauxite mine is for treatment and disposal of refinery waste and soil remediation. The work began in 2017 and is expected to be completed at the end of 2025. Hurricane Creek, Arkansas —The reserve associated with the 1990 closure of two mining areas and refineries near Hurricane Creek, Arkansas is for ongoing monitoring and maintenance for water quality surrounding the mine areas and residue disposal areas. Massena, New York —The reserve associated with the 2015 closure of the Massena East smelter by the Company’s subsidiary, Reynolds Metals Company, is for subsurface soil remediation to be performed after demolition of the structures. Remediation work commenced in 2021 and will take four to eight years to complete. Point Comfort, Texas —The reserve associated with the 2019 closure of the Point Comfort alumina refinery is for disposal of industrial wastes contained at the site, subsurface remediation, and post-closure monitoring and maintenance. The final remediation plan is currently being developed, which may result in a change to the existing reserve. Sherwin, Texas —In connection with the 2018 settlement of a dispute related to the previously-owned Sherwin alumina refinery, the Company’s subsidiary, Copano Enterprises LLC, accepted responsibility for the final closure of four bauxite residue waste disposal areas (known as the Copano facility). Work commenced on the first residue disposal area in 2018 and will take up to three additional years to complete, depending on the nature of its potential re-use. Other than ongoing maintenance and repair activities, work on the next three areas has not commenced but is expected to be completed by 2048, depending on its potential re-use. Longview, Washington —In connection with a 2018 Consent Decree and Cleanup Action Plan with the State of Washington Department of Ecology, the Company’s subsidiary, Northwest Alloys as landowner, accepted certain responsibilities for future remediation of contaminated soil and sediments at the site located near Longview, Washington. In December 2020, the lessee of the land, who was a partner in the remediation of the site, filed for bankruptcy and exited the site in January 2021. The full site remediation project design, long-term and post-closure monitoring and maintenance at the site was approved in March 2023. In the third quarter of 2023, changes in scope and cost increases for remediation resulted in an increase to the reserve. The project is planned to be completed in the next two years. Addy, Washington —The reserve associated with the 2022 closure of the Addy magnesium smelter facility is for site-wide remediation and investigation and post-closure monitoring and maintenance. Remediation work is not expected to begin until 2024 and will take three to five years to complete. The final remediation plan is currently being developed, which may result in a change to the existing reserve. Ferndale, Washington — The reserve associated with the 2023 closure of the Intalco aluminum smelter in Ferndale, Washington is for below grade site remediation and five years of post-closure maintenance and monitoring. The final remediation plan is under review but is expected to be completed in three years . Other Sites —The Company is in the process of decommissioning various other plants and remediating sites in several countries for potential redevelopment or to return the land to a natural state. In aggregate, there are remediation projects at 32 other sites that are planned or underway. These activities will be completed at various times in the future with the latest expected to be in 2026, after which ongoing monitoring and other activities may be required. At September 30, 2023 and December 31, 2022 , the reserve balance associated with these activities was $ 57 and $ 50 , respectively. Tax Brazil (AWAB) —In March 2013, AWAB was notified by the Brazilian Federal Revenue Office (RFB) that approximately $ 110 (R$ 220 ) of value added tax credits previously claimed were being disallowed and a penalty of 50 % was assessed. Of this amount, AWAB received $ 41 (R$ 82 ) in cash in May 2012. The value added tax credits were claimed by AWAB for both fixed assets and export sales related to the Juruti bauxite mine and São Luís refinery expansion for tax years 2009 through 2011. The RFB has disallowed credits they allege belong to the consortium in which AWAB owns an interest and should not have been claimed by AWAB. Credits have also been disallowed as a result of challenges to apportionment methods used, questions about the use of the credits, and an alleged lack of documented proof. AWAB presented defense of its claim to the RFB on April 8, 2013. In February 2022, the RFB notified AWAB that it had inspected the value added tax credits claimed for 2012 and disallowed $ 4 (R$ 19 ). In its decision, the RFB allowed credits of $ 14 (R$ 65 ) that were similar to those previously disallowed for 2009 through 2011. In July 2022, the RFB notified AWAB that it had inspected the value added tax credits claimed for 2013 and disallowed $ 13 (R$ 70 ). In its decision, the RFB allowed credits of $ 16 (R$ 84 ) that were similar to those previously disallowed for 2009 through 2011. The decisions on the 2012 and 2013 credits provide positive evidence to support management’s opinion that there is no basis for these credits to be disallowed. AWAB received the 2012 allowed credits with interest of $ 9 (R$ 44 ) in March 2022 and the 2013 allowed credits with interest of $ 6 (R$ 31 ) in August 2022. AWAB will continue to dispute the credits that were disallowed for 2012 and 2013. If AWAB is successful in this administrative process, the RFB would have no further recourse. If unsuccessful in this process, AWAB has the option to litigate at a judicial level. Separately from AWAB’s administrative appeal, in June 2015, a new tax law was enacted repealing the provisions in the tax code that were the basis for the RFB assessing a 50 % penalty in this matter. As such, the estimated range of reasonably possible loss for these matters is $ 0 to $ 47 (R$ 239 ). It is management’s opinion that the allegations have no basis; however, at this time, the Company is unable to reasonably predict an outcome for this matter. Australia (AofA) —In December 2019, AofA received a statement of audit position (SOAP) from the Australian Taxation Office (ATO) related to the pricing of certain historic third-party alumina sales. The SOAP proposed adjustments that would result in additional income tax payable by AofA. During 2020, the SOAP was the subject of an independent review process within the ATO. At the conclusion of this process, the ATO determined to continue with the proposed adjustments and issued Notices of Assessment (the Notices) that were received by AofA on July 7, 2020. The Notices asserted claims for income tax payable by AofA of approximately $ 137 (A$ 214 ). The Notices also included claims for compounded interest on the tax amount totaling approximately $ 452 (A$ 707 ). On September 17, 2020, the ATO issued a position paper with its preliminary view on the imposition of administrative penalties related to the tax assessment issued to AofA. This paper proposed penalties of approximately $ 82 (A$ 128 ). AofA disagreed with the Notices and with the ATO’s proposed position on penalties. In September 2020, AofA lodged formal objections to the Notices. In the fourth quarter of 2020, AofA provided a submission on the ATO’s imposition of interest and also submitted a response to the ATO’s position paper on penalties. After the ATO completes its review of AofA’s response to the penalties position paper, the ATO could issue a penalty assessment. To date, AofA has not received a response to its submission on the ATO’s imposition of interest or its response to the ATO’s position paper on penalties. Through February 1, 2022, AofA did not receive a response from the ATO on AofA’s formal objections to the Notices and, on that date, AofA submitted statutory notices to the ATO requiring the ATO to make decisions on AofA’s objections within a 60-day period. On April 1, 2022, the ATO issued its decision disallowing the Company’s objections related to the income tax assessment, while the position on penalties and interest remains outstanding. On April 29, 2022, AofA filed proceedings in the Australian Administrative Appeals Tribunal (AAT) against the ATO to contest the Notices, a process which could last several years. The AAT held the first directions hearing on July 25, 2022 ordering AofA to file its evidence and related materials by November 4, 2022, ATO to file its materials by April 14, 2023 and AofA to file reply materials by May 26, 2023. AofA filed its evidence and related materials on November 4, 2022. The ATO did not file its materials by April 14, 2023. At a directions hearing on May 17, 2023, the ATO was granted an extension to file its materials by August 18, 2023. At a directions hearing on September 26, 2023, the ATO was granted an additional extension to file its materials by November 3, 2023. There will be a directions hearing on November 22, 2023 to set a timeline to allow for AofA’s response. The substantive hearing is scheduled for June 2024. The Company maintains that the sales subject to the ATO’s review, which were ultimately sold to Aluminium Bahrain B.S.C., were the result of arm’s length transactions by AofA over two decades and were made at arm’s length prices consistent with the prices paid by other third-party alumina customers. In accordance with the ATO’s dispute resolution practices, AofA paid 50 % of the assessed income tax amount exclusive of interest and any penalties, or approximately $ 74 (A$ 107 ), during the third quarter 2020, and the ATO is not expected to seek further payment prior to final resolution of the matter. If AofA is ultimately successful, any amounts paid to the ATO as part of the 50 % payment would be refunded. AofA funded the payment with cash on hand and recorded the payment within Other noncurrent assets as a noncurrent prepaid tax asset; the related September 30, 2023 balance is $ 68 (A$ 107 ). Further interest on the unpaid tax will continue to accrue during the dispute. The initial interest assessment and the additional interest accrued are deductible against taxable income by AofA but would be taxable as income in the year the dispute is resolved if AofA is ultimately successful. AofA applied this deduction beginning in the third quarter of 2020, reducing cash tax payments. At September 30, 2023 and December 31, 2022 , total reductions in cash tax payments were $ 182 (A$ 284 ) and $ 174 (A$ 260 ), respectively, and are reflected within Other noncurrent liabilities and deferred credits as a noncurrent accrued tax liability. The Company continues to believe it is more likely than not that AofA’s tax position will be sustained and therefore is not recognizing any tax expense in relation to this matter. However, because the ultimate resolution of this matter is uncertain at this time, the Company cannot predict the potential loss or range of loss associated with the outcome, which may materially affect its results of operations and financial condition. References to any assessed U.S. dollar amounts presented in connection with this matter have been converted into U.S. dollars from Australian dollars based on the exchange rate in the respective period. AofA is part of the Company’s joint venture with Alumina Limited, an Australian public company listed on the Australian Securities Exchange. The Company and Alumina Limited own 60 % and 40 %, respectively, of the joint venture entities, including AofA. Other Spain —In July 2019, the Company completed the divestiture of the Avilés and La Coruña aluminum facilities to PARTER Capital Group AG (PARTER) in a sale process endorsed by the Spanish government and supported by the workers’ representatives following a collective dismissal process. In early 2020, PARTER sold a majority stake in the facilities to an unrelated party. Alcoa had no knowledge of the subsequent transaction prior to its announcement and on August 28, 2020, Alcoa filed a lawsuit with the Court of First Instance in Madrid, Spain asserting that the sale was in breach of the sale agreement between Alcoa and PARTER. In June 2023, the Court of First Instance in Madrid issued a declaratory judgement in Alcoa’s favor ruling that the transaction between PARTER and the unrelated party was a breach of the sale agreement. There was no financial compensation to the Company as a result of this ruling. Related to this subsequent sale transaction, certain proceedings and investigations have been initiated by or at the request of the employees of the facilities against their current employers, the new owners of the current employers, and Alcoa, alleging that certain agreements from the 2019 collective dismissal process remain in force and that, under such agreements, Alcoa remains liable for certain related employment benefits. One such proceeding is a collective case before the Spanish National Court, filed on November 10, 2020, wherein the workers’ representatives and employees are seeking to have the terms of a Collective Dismissal Agreement signed between Alcoa and the workers in January 2019 be fulfilled. Other proceedings include: a second collective claim filed in National Court on behalf of employees that were not affected by the 2019 collective dismissal process, numerous individual labor claims filed in the labor courts of Avilés and La Coruña and the initiation of a separate criminal investigation by the National Court. On June 15, 2021, the Spanish National Court ruled that the collective dismissal agreement for the divested Avilés and La Coruña aluminum facilities should be applied to the situation of the claimant workers, and that Alcoa should be liable for the severance of those employees to the extent they were affected by the 2019 collective dismissal process. Alcoa appealed this ruling to the Supreme Court of Spain. In July 2021, the Spanish National Court appointed a judicial director to oversee the facilities and later declared the facilities insolvent. In early 2022, the insolvency administrators appointed by the courts (one for each facility) announced their intention to collectively dismiss all employees at the two facilities. In April 2022, the Company received unanimous acceptance of an offer made to all then-active workers of the divested Avilés and La Coruña facilities to settle various legal disputes related to the 2019 divestiture and a Global Settlement Agreement (GSA) was fully executed. Alcoa recorded $ 79 in the nine-month period of 2022 in Restructuring and other charges, net to reflect estimated cash payments related to the GSA. On July 6, 2023, the Supreme Co urt of Spain ratified the GSA. Upon completion of the remaining administrative and judicial approvals, the Company made cash payments of $ 75 to the former employees of the facilities in the third quarter and nine-month period of 2023 in accordance with the GSA and expects remaining payments of approximately $ 3 to be made in the fourth quarter of 2023. General In addition to the matters discussed above , various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Alcoa Corporation, including those pertaining to environmental, safety and health, commercial, tax, product liability, intellectual property infringement, employment, and employee and retiree benefit matters, and other actions and claims arising out of the normal course of business. While the amounts claimed in these other matters may be substantial, the ultimate liability is not readily determinable because of the considerable uncertainties that exist. Accordingly, it is possible that the Company’s liquidity or results of operations in a particular period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company. |
Other Financial Information
Other Financial Information | 9 Months Ended |
Sep. 30, 2023 | |
Other Financial Information [Abstract] | |
Other Financial Information | R. Other Financial Information Other Expenses (Income), Net Third quarter ended Nine months ended 2023 2022 2023 2022 Equity loss (income) $ 40 $ 36 $ 179 $ ( 17 ) Foreign currency losses (gains), net 42 9 ( 13 ) 17 Net (gain) loss from asset sales ( 1 ) 2 14 7 Net loss (gain) on mark-to-market derivative instruments 20 ( 8 ) 3 ( 199 ) Non-service costs – pension and other postretirement benefits 4 13 10 44 Other ( 20 ) ( 17 ) ( 48 ) ( 37 ) $ 85 $ 35 $ 145 $ ( 185 ) Other Noncurrent Assets September 30, 2023 December 31, 2022 Value added tax credits $ 336 $ 294 Prepaid gas transmission contract 277 285 Gas supply prepayment 275 311 Deferred mining costs, net 170 161 Prepaid pension benefit 159 146 Goodwill 146 145 Noncurrent prepaid tax asset 68 72 Noncurrent restricted cash 54 56 Intangibles, net 37 29 Other 96 94 $ 1,618 $ 1,593 Value added tax credits —In the fourth quarter of 2018, after an assessment of the future realizability of Brazil state VAT credits recorded, the Company established an allowance on the accumulated state VAT credit balances and stopped recording any future credit benefits. With the restart of the Alumar smelter in São Luís, Brazil and its first metal sales in June 2022, the Company had the ability to monetize these credits. In June 2022, the Company reversed the allowance with a credit of $ 83 to Restructuring and other charges, net and reversed the subsequent additions to the valuation allowance with a credit to Cost of goods sold of $ 46 (same accounts as when incurred). Cash and Cash Equivalents and Restricted Cash September 30, 2023 December 31, 2022 Cash and cash equivalents $ 926 $ 1,363 Current restricted cash 50 55 Noncurrent restricted cash 54 56 $ 1,030 $ 1,474 |
Supplier Finance Programs
Supplier Finance Programs | 9 Months Ended |
Sep. 30, 2023 | |
Supplier Finance Programs [Abstract] | |
Supplier Finance Programs | S. Supplier Finance Programs The Company has various supplier finance programs with third-party financial institutions that are made available to suppliers to facilitate payment term negotiations. Under the terms of these agreements, participating suppliers receive payment in advance of the payment date from third-party financial institutions for qualifying invoices. Alcoa’s obligations to its suppliers, including amounts due and payment terms, are not impacted by its suppliers’ participation in these programs. The Company does not pledge any assets as security or provide any guarantees beyond payment of outstanding invoices at maturity under these arrangements. The Company does not pay fees to the financial institutions under these arrangements. At September 30, 2023 and December 31, 2022 , qualifying supplier invoices outstanding under these programs were $ 109 and $ 185 , respectively, and have payment terms ranging from 50 to 110 days. These obligations are included in Accounts payable, trade on the accompanying Consolidated Balance Sheet. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | A. Basis of Presentation – The interim Consolidated Financial Statements of Alcoa Corporation and its subsidiaries (Alcoa Corporation, Alcoa, or the Company) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2022 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which includes disclosures required by GAAP. In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Management uses historical experience and all available information to make these estimates. Management regularly evaluates the judgments and assumptions used in its estimates, and results could differ from those estimates upon future events and their effects or new information. |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements of Alcoa Corporation include the accounts of Alcoa Corporation and companies in which Alcoa Corporation has a controlling interest, including those that comprise the Alcoa World Alumina & Chemicals (AWAC) joint venture (see below). Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa Corporation has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for at cost less any impairment, a measurement alternative in accordance with GAAP. AWAC is an unincorporated global joint venture between Alcoa Corporation and Alumina Limited and consists of several affiliated operating entities, which own, have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Alumina segment (except for the Poços de Caldas mine and refinery, portions of the São Luís refinery, and investment in Mineração Rio do Norte S.A. (MRN) until its sale in April 2022, all in Brazil) and a portion ( 55 %) of the Portland smelter (Australia) within Alcoa Corporation’s Aluminum segment. Alcoa Corporation owns 60 % and Alumina Limited owns 40 % of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited (AofA), Alcoa World Alumina LLC (AWA), Alcoa World Alumina Brasil Ltda. (AWAB), and Alúmina Española, S.A. (Española). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges, Net by Reportable Segments, Pretax | Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Third quarter ended Nine months ended 2023 2022 2023 2022 Alumina (1) $ 6 $ ( 3 ) $ 8 $ ( 28 ) Aluminum ( 3 ) — 162 73 Segment total 3 ( 3 ) 170 45 Corporate 19 655 25 657 Total Restructuring and other charges, net $ 22 $ 652 $ 195 $ 702 (1) Beginning in January 2023, the Company changed its operating segments, by combining the Bauxite and Alumina segments, and reported its financial results in the following two segments: (i) Alumina and (ii) Aluminum (see Note E ). |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Severance Other Total Balance at December 31, 2021 $ 3 $ 90 $ 93 Restructuring and other charges, net 1 73 74 Cash payments ( 2 ) ( 37 ) ( 39 ) Reversals and other ( 1 ) ( 10 ) ( 11 ) Balance at December 31, 2022 1 116 117 Restructuring and other charges, net 10 49 59 Cash payments ( 4 ) ( 108 ) ( 112 ) Reversals and other — 2 2 Balance at September 30, 2023 $ 7 $ 59 $ 66 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results of Alcoa's Reportable Segments | The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Alumina Aluminum Total Third quarter ended September 30, 2023 Sales: Third-party sales $ 957 $ 1,644 $ 2,601 Intersegment sales 381 4 385 Total sales $ 1,338 $ 1,648 $ 2,986 Segment Adjusted EBITDA $ 53 $ 79 $ 132 Supplemental information: Depreciation, depletion, and amortization $ 89 $ 69 $ 158 Equity loss $ ( 9 ) $ ( 15 ) $ ( 24 ) Third quarter ended September 30, 2022 Sales: Third-party sales $ 891 $ 1,976 $ 2,867 Intersegment sales 412 10 422 Total sales $ 1,303 $ 1,986 $ 3,289 Segment Adjusted EBITDA $ 78 $ 152 $ 230 Supplemental information: Depreciation, depletion, and amortization $ 74 $ 70 $ 144 Equity loss $ ( 18 ) $ ( 5 ) $ ( 23 ) Alumina Aluminum Total Nine months ended September 30, 2023 Sales: Third-party sales $ 2,708 $ 5,242 $ 7,950 Intersegment sales 1,199 11 1,210 Total sales $ 3,907 $ 5,253 $ 9,160 Segment Adjusted EBITDA $ 189 $ 373 $ 562 Supplemental information: Depreciation, depletion, and amortization $ 246 $ 207 $ 453 Equity loss $ ( 37 ) $ ( 88 ) $ ( 125 ) Nine months ended September 30, 2022 Sales: Third-party sales $ 2,900 $ 6,903 $ 9,803 Intersegment sales 1,308 25 1,333 Total sales $ 4,208 $ 6,928 $ 11,136 Segment Adjusted EBITDA $ 738 $ 1,461 $ 2,199 Supplemental information: Depreciation, depletion, and amortization $ 243 $ 210 $ 453 Equity (loss) income $ ( 22 ) $ 74 $ 52 |
Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation | The following table reconciles total Segment Adjusted EBITDA to Consolidated net (loss) income attributable to Alcoa Corporation: Third quarter ended Nine months ended 2023 2022 2023 2022 Total Segment Adjusted EBITDA $ 132 $ 230 $ 562 $ 2,199 Unallocated amounts: Transformation (1) ( 29 ) ( 19 ) ( 54 ) ( 44 ) Intersegment eliminations ( 4 ) 23 19 133 Corporate expenses (2) ( 33 ) ( 27 ) ( 87 ) ( 91 ) Provision for depreciation, depletion, and amortization ( 163 ) ( 149 ) ( 469 ) ( 470 ) Restructuring and other charges, net (D) ( 22 ) ( 652 ) ( 195 ) ( 702 ) Interest expense ( 26 ) ( 25 ) ( 79 ) ( 80 ) Other (expenses) income, net (R) ( 85 ) ( 35 ) ( 145 ) 185 Other (3) 2 ( 75 ) ( 59 ) ( 188 ) Consolidated (loss) income before income taxes ( 228 ) ( 729 ) ( 507 ) 942 Benefit from (provision for) income taxes 35 ( 40 ) ( 39 ) ( 484 ) Net loss (income) attributable to noncontrolling interest 25 23 45 ( 186 ) Consolidated net (loss) income attributable to Alcoa Corporation $ ( 168 ) $ ( 746 ) $ ( 501 ) $ 272 (1) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. (2) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. (3) Other includes certain items that are not included in the Adjusted EBITDA of the reportable segments. |
Schedule of Sales by Product Division | The following table details Alcoa Corporation’s Sales by product division: Third quarter ended Nine months ended 2023 2022 2023 2022 Aluminum $ 1,666 $ 1,990 $ 5,336 $ 7,033 Alumina 840 821 2,328 2,735 Energy 32 74 86 155 Bauxite 107 52 343 107 Other (1) ( 43 ) ( 86 ) ( 137 ) ( 242 ) $ 2,602 $ 2,851 $ 7,956 $ 9,788 Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders | The share information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): Third quarter ended Nine months ended 2023 2022 2023 2022 Net (loss) income attributable to Alcoa Corporation $ ( 168 ) $ ( 746 ) $ ( 501 ) $ 272 Average shares outstanding – basic 178 179 178 182 Effect of dilutive securities: Stock options — — — — Stock units — — — 4 Average shares outstanding – diluted 178 179 178 186 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest Third quarter ended Third quarter ended 2023 2022 2023 2022 Pension and other postretirement benefits (M) Balance at beginning of period $ 76 $ ( 808 ) $ ( 7 ) $ ( 12 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service — 17 ( 1 ) 8 Tax expense (2) — ( 7 ) — ( 3 ) Total Other comprehensive income — 10 ( 1 ) 5 Amortization of net actuarial loss and prior (1) 5 645 — 1 Tax benefit (2) — 1 — — Total amount reclassified from Accumulated (7) 5 646 — 1 Total Other comprehensive income 5 656 ( 1 ) 6 Balance at end of period $ 81 $ ( 152 ) $ ( 8 ) $ ( 6 ) Foreign currency translation Balance at beginning of period $ ( 2,658 ) $ ( 2,658 ) $ ( 1,014 ) $ ( 971 ) Other comprehensive loss ( 67 ) ( 173 ) ( 47 ) ( 81 ) Balance at end of period $ ( 2,725 ) $ ( 2,831 ) $ ( 1,061 ) $ ( 1,052 ) Cash flow hedges (N) Balance at beginning of period $ ( 812 ) $ ( 789 ) $ 1 $ 1 Other comprehensive income (loss): Net change from periodic revaluations ( 120 ) 110 — — Tax benefit (expense) (2) 16 ( 6 ) — — Total Other comprehensive (loss) income ( 104 ) 104 — — Net amount reclassified to earnings: Aluminum contracts (3) 42 35 — — Interest rate contracts (5) ( 3 ) 2 — — Foreign exchange contracts (6) ( 10 ) — — — Sub-total 29 37 — — Tax expense (2) ( 16 ) ( 13 ) — — Total amount reclassified from Accumulated (7) 13 24 — — Total Other comprehensive (loss) income ( 91 ) 128 — — Balance at end of period $ ( 903 ) $ ( 661 ) $ 1 $ 1 Total Accumulated other comprehensive loss $ ( 3,547 ) $ ( 3,644 ) $ ( 1,068 ) $ ( 1,057 ) Alcoa Corporation Noncontrolling interest Nine months ended Nine months ended 2023 2022 2023 2022 Pension and other postretirement benefits (M) Balance at beginning of period $ 62 $ ( 882 ) $ ( 5 ) $ ( 13 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service ( 18 ) 40 ( 3 ) 9 Tax benefit (expense) (2) 8 ( 12 ) — ( 3 ) Total Other comprehensive (loss) income ( 10 ) 28 ( 3 ) 6 Amortization of net actuarial loss and prior (1) 35 702 — 1 Tax expense (2) ( 6 ) — — — Total amount reclassified from Accumulated (7) 29 702 — 1 Total Other comprehensive income (loss) 19 730 ( 3 ) 7 Balance at end of period $ 81 $ ( 152 ) $ ( 8 ) $ ( 6 ) Foreign currency translation Balance at beginning of period $ ( 2,685 ) $ ( 2,614 ) $ ( 1,040 ) $ ( 937 ) Other comprehensive loss ( 40 ) ( 217 ) ( 21 ) ( 115 ) Balance at end of period $ ( 2,725 ) $ ( 2,831 ) $ ( 1,061 ) $ ( 1,052 ) Cash flow hedges (N) Balance at beginning of period $ ( 916 ) $ ( 1,096 ) $ 1 $ ( 1 ) Other comprehensive income (loss): Net change from periodic revaluations ( 66 ) 231 — 2 Tax benefit (expense) (2) 16 ( 17 ) — — Total Other comprehensive (loss) income ( 50 ) 214 — 2 Net amount reclassified to earnings: Aluminum contracts (3) 136 277 — — Financial contracts (4) ( 20 ) — — — Interest rate contracts (5) ( 5 ) 6 — — Foreign exchange contracts (6) ( 18 ) ( 3 ) — — Sub-total 93 280 — — Tax expense (2) ( 30 ) ( 59 ) — — Total amount reclassified from Accumulated (7) 63 221 — — Total Other comprehensive income 13 435 — 2 Balance at end of period $ ( 903 ) $ ( 661 ) $ 1 $ 1 Total Accumulated other comprehensive loss $ ( 3,547 ) $ ( 3,644 ) $ ( 1,068 ) $ ( 1,057 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). (2) These amounts were reported in (Benefit from) provision for income taxes on the accompanying Statement of Consolidated Operations. (3) These amounts were reported in Sales on the accompanying Statement of Consolidated Operations. (4) These amounts were reported in Cost of goods sold on the accompanying Statement of Consolidated Operations. (5) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations. (6) In the third quarter and nine-month period of 2023 , $ 4 was reported in Cost of goods sold (nine-month period only) and $( 10 ) and $( 22 ) were reported in Sales, respectively, on the accompanying Statement of Consolidated Operations. In the third quarter and nine-month period of 2022 , $ 2 and $ 4 were reported in Cost of goods sold, respectively, and $( 2 ) and $( 7 ) were reported in Sales, respectively, on the accompanying Statement of Consolidated Operations. (7) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments | A summary of unaudited financial information for Alcoa Corporation’s equity investments is as follows (amounts represent 100% of investee financial information): Third quarter ended September 30, 2023 Saudi Arabia Mining Energy Other Sales $ 725 $ 157 $ 61 $ 117 Cost of goods sold 645 121 28 105 Net (loss) income ( 39 ) 6 31 ( 21 ) Equity in net (loss) income of affiliated companies, ( 10 ) 3 12 ( 11 ) Other ( 15 ) — ( 2 ) ( 6 ) Alcoa Corporation’s equity in net (loss) income of ( 25 ) 3 10 ( 17 ) Third quarter ended September 30, 2022 Sales $ 773 $ 167 $ 66 $ 121 Cost of goods sold 692 101 38 110 Net (loss) income ( 94 ) 14 28 ( 19 ) Equity in net (loss) income of affiliated companies, ( 24 ) 7 11 ( 9 ) Other ( 1 ) — ( 3 ) 1 Alcoa Corporation’s equity in net (loss) income of ( 25 ) 7 8 ( 8 ) Nine months ended September 30, 2023 Sales $ 2,025 $ 516 $ 178 $ 354 Cost of goods sold 1,947 325 87 324 Net (loss) income ( 390 ) 44 77 ( 70 ) Equity in net (loss) income of affiliated companies, ( 98 ) 20 30 ( 34 ) Other ( 30 ) 1 ( 1 ) ( 6 ) Alcoa Corporation’s equity in net (loss) income of ( 128 ) 21 29 ( 40 ) Nine months ended September 30, 2022 Sales $ 2,686 $ 589 $ 193 $ 363 Cost of goods sold 2,020 370 91 332 Net income (loss) 217 95 80 ( 77 ) Equity in net income (loss) of affiliated companies, 54 33 32 ( 37 ) Other ( 5 ) ( 2 ) ( 4 ) 16 Alcoa Corporation’s equity in net income (loss) of 49 31 28 ( 21 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | September 30, 2023 December 31, 2022 Finished goods $ 404 $ 385 Work-in-process 323 350 Bauxite and alumina 577 584 Purchased raw materials 680 923 Operating supplies 206 185 $ 2,190 $ 2,427 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill which is Included in Other Noncurrent Assets | Goodwill, which is included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, was as follows: September 30, 2023 December 31, 2022 Alumina $ 4 $ 4 Aluminum — — Corporate (1) 142 141 $ 146 $ 145 (1) The carrying value of Corporate’s goodwill is net of accumulated impairment losses of $ 742 as of both September 30, 2023 and December 31, 2022. As of September 30, 2023 , the $ 142 of goodwill reflected in Corporate is allocated to Alcoa Corporation’s Alumina reportable segment for purposes of impairment testing. This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the reportable segment. Changes in the carrying amount of goodwill were attributable to foreign currency translation as of September 30, 2023 and December 31, 2022 . |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: Third quarter ended Nine months ended Pension benefits 2023 2022 2023 2022 Service cost $ 2 $ 3 $ 7 $ 10 Interest cost (1) 27 24 87 78 Expected return on plan assets (1) ( 35 ) ( 35 ) ( 111 ) ( 123 ) Recognized net actuarial loss (1) 7 19 21 74 Settlements (2) — 626 21 626 Net periodic benefit cost $ 1 $ 637 $ 25 $ 665 Third quarter ended Nine months ended Other postretirement benefits 2023 2022 2023 2022 Service cost $ — $ 1 $ 2 $ 3 Interest cost (1) 7 4 20 12 Recognized net actuarial loss (1) 1 5 3 14 Amortization of prior service benefit (1) ( 3 ) ( 4 ) ( 10 ) ( 11 ) Net periodic benefit cost $ 5 $ 6 $ 15 $ 18 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note R ). These amounts were reported in Restructuring and other charges, net on the accompanying Statements of Consolidated Operations (see Note D ) and Cash Flows. |
Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans | Action # Number of Weighted Plan Weighted Increase to Decrease to Decrease to accrued other Settlement (1) 1 ~ 370 5.58 % March 31, 2023 5.20 % $ 15 $ — $ ( 9 ) $ — 2 ~ 530 5.20 % April 30, 2023 4.80 % $ 22 $ ( 5 ) $ — $ 21 3 ~ 50 5.08 % September 30, 2023 5.03 % $ — $ ( 2 ) $ — $ — (1) These amounts represent the net actuarial loss and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note D ) on the accompanying Statement of Consolidated Operations. |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Detail for Level 1 and 3 Derivatives | The following tables present the detail for Level 1 and 3 derivatives (see additional Level 3 information in further tables below): September 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Level 1 derivative instruments $ 29 $ 16 $ 84 $ 14 Level 3 derivative instruments 7 1,115 52 1,212 Total $ 36 $ 1,131 $ 136 $ 1,226 Less: Current 33 204 134 200 Noncurrent $ 3 $ 927 $ 2 $ 1,026 2023 2022 Third quarter ended September 30, Unrealized gain (loss) recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Unrealized gain recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Level 1 derivative instruments $ ( 11 ) $ 22 $ 59 $ 32 Level 3 derivative instruments ( 110 ) ( 54 ) 49 ( 67 ) Noncontrolling and equity interest (Level 2) 1 3 2 ( 2 ) Total $ ( 120 ) $ ( 29 ) $ 110 $ ( 37 ) 2023 2022 Nine months ended September 30, Unrealized gain (loss) recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Unrealized gain recognized in Other comprehensive loss Realized gain (loss) reclassed from Other comprehensive loss to earnings Level 1 derivative instruments $ 20 $ 66 $ 158 $ 12 Level 3 derivative instruments ( 87 ) ( 164 ) 62 ( 286 ) Noncontrolling and equity interest (Level 2) 1 5 11 ( 6 ) Total $ ( 66 ) $ ( 93 ) $ 231 $ ( 280 ) |
Schedule of Outstanding Quantities of Derivative Instruments | The following table presents the outstanding quantities of derivative instruments classified as Level 1: Classification September 30, 2023 September 30, 2022 Aluminum (in kmt) Commodity buy forwards 126 178 Aluminum (in kmt) Commodity sell forwards 144 398 Foreign currency (in millions of euro) Foreign exchange buy forwards 68 67 Foreign currency (in millions of euro) Foreign exchange sell forwards 18 — Foreign currency (in millions of Norwegian krone) Foreign exchange buy forwards 185 87 Foreign currency (in millions of Brazilian real) Foreign exchange buy forwards 734 1,216 Foreign currency (in millions of Brazilian real) Foreign exchange sell forwards — 17 Foreign currency (in millions of Canadian dollar) Foreign exchange sell forwards 33 — |
Schedule of Quantitative Information for Level 3 Derivative Contracts | The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh): September 30, 2023 Unobservable Input Unobservable Input Range Asset Derivatives Financial contract (undesignated) $ 7 Interrelationship of forward energy price, LME forward price and the Consumer Price Index Electricity 2023: $ 29.76 54.21 LME (per mt) 2023: $ 2,339 2024: $ 2,374 Power contract — MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2023: $ 2,339 2,353 Midwest premium 2023: $ 0.1940 0.1950 Electricity Rate of 2 million MWh per year Total Asset Derivatives $ 7 Liability Derivatives Power contract $ 196 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2023: $ 2,339 2,707 Electricity Rate of 4 million MWh per year Power contracts 919 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2023: $ 2,339 2,711 2,959 Midwest premium 2023: $ 0.1940 0.2200 0.2200 Electricity Rate of 18 million MWh per year Power contract (undesignated) — Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 1.55 %: 30-year debt yield spread 7.37 %: Alcoa (estimated) 5.82 %: counterparty Total Liability Derivatives $ 1,115 |
Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities | The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2023 December 31, 2022 Derivatives designated as hedging instruments: Current—financial contract $ — $ 20 Total derivatives designated as hedging instruments $ — $ 20 Derivatives not designated as hedging instruments: Current—financial contract $ 7 $ 32 Total derivatives not designated as hedging instruments $ 7 $ 32 Total Asset Derivatives $ 7 $ 52 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 196 $ 195 Noncurrent—power contracts 919 1,017 Total derivatives designated as hedging instruments $ 1,115 $ 1,212 Total Liability Derivatives $ 1,115 $ 1,212 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present the reconciliation of activity for Level 3 derivative instruments: Assets Third quarter ended September 30, 2023 Power contracts Financial contracts July 1, 2023 $ 1 $ 28 Total gains or losses included in: Sales (realized) ( 2 ) — Other expenses, net (unrealized/realized) — ( 20 ) Other comprehensive income (unrealized) 1 — Settlements and other — ( 1 ) September 30, 2023 $ — $ 7 Change in unrealized gains or losses included in earnings Other expenses, net $ — $ ( 20 ) Liabilities Third quarter ended September 30, 2023 Power contracts July 1, 2023 $ 1,060 Total gains or losses included in: Sales (realized) ( 56 ) Other comprehensive income (unrealized) 111 September 30, 2023 $ 1,115 Assets Nine months ended September 30, 2023 Power contracts Financial contracts January 1, 2023 $ — $ 52 Total gains or losses included in: Sales (realized) ( 4 ) — Cost of goods sold (realized) — ( 20 ) Other expenses, net (unrealized/realized) — ( 3 ) Other comprehensive income (unrealized) 4 — Settlements and other — ( 22 ) September 30, 2023 $ — $ 7 Change in unrealized gains or losses included in earnings Other expenses, net $ — $ ( 3 ) Liabilities Nine months ended September 30, 2023 Power contracts January 1, 2023 $ 1,212 Total gains or losses included in: Sales (realized) ( 188 ) Other comprehensive income (unrealized) 91 September 30, 2023 $ 1,115 |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: September 30, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 926 $ 926 $ 1,363 $ 1,363 Restricted cash 104 104 111 111 Short-term borrowings 42 42 — — Long-term debt due within one year 1 1 1 1 Long-term debt, less amount due within one year 1,809 1,726 1,806 1,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Nine months ended September 30, 2023 2022 (Loss) income before income taxes $ ( 507 ) $ 942 Estimated annualized effective tax rate ( 18.9 ) % 54.0 % Income tax expense $ 96 $ 509 Favorable tax impact related to losses in jurisdictions with no tax benefit — ( 27 ) Discrete tax (benefit) expense ( 57 ) 2 Provision for income taxes $ 39 $ 484 |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Recorded Environmental Remediation Reserves | The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2021 $ 309 Liabilities incurred 32 Cash payments ( 26 ) Reversals of previously recorded liabilities ( 30 ) Foreign currency translation and other ( 1 ) Balance at December 31, 2022 284 Liabilities incurred 38 Cash payments ( 42 ) Reversals of previously recorded liabilities ( 1 ) Foreign currency translation and other ( 1 ) Balance at September 30, 2023 $ 278 |
Schedule of Estimate Timing of Cash Outflows on Environmental Reserves | The estimated timing of cash outflows on the environmental remediation reserve at September 30, 2023 is as follows: 2023 (excluding the nine months ended September 30, 2023) $ 14 2024 - 2028 184 Thereafter 80 Total $ 278 |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Financial Information [Abstract] | |
Schedule of Other Expenses (Income), Net | Other Expenses (Income), Net Third quarter ended Nine months ended 2023 2022 2023 2022 Equity loss (income) $ 40 $ 36 $ 179 $ ( 17 ) Foreign currency losses (gains), net 42 9 ( 13 ) 17 Net (gain) loss from asset sales ( 1 ) 2 14 7 Net loss (gain) on mark-to-market derivative instruments 20 ( 8 ) 3 ( 199 ) Non-service costs – pension and other postretirement benefits 4 13 10 44 Other ( 20 ) ( 17 ) ( 48 ) ( 37 ) $ 85 $ 35 $ 145 $ ( 185 ) |
Schedule of Other Noncurrent Assets | Other Noncurrent Assets September 30, 2023 December 31, 2022 Value added tax credits $ 336 $ 294 Prepaid gas transmission contract 277 285 Gas supply prepayment 275 311 Deferred mining costs, net 170 161 Prepaid pension benefit 159 146 Goodwill 146 145 Noncurrent prepaid tax asset 68 72 Noncurrent restricted cash 54 56 Intangibles, net 37 29 Other 96 94 $ 1,618 $ 1,593 |
Schedule of Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash September 30, 2023 December 31, 2022 Cash and cash equivalents $ 926 $ 1,363 Current restricted cash 50 55 Noncurrent restricted cash 54 56 $ 1,030 $ 1,474 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2023 | |
Aluminum Segment [Member] | |
Basis Of Presentation [Line Items] | |
Ownership interest in joint venture | 55% |
AWAC [Member] | Alumina Limited [Member] | |
Basis Of Presentation [Line Items] | |
Non-controlling interest, ownership percentage | 40% |
AWAC [Member] | Alcoa Corporation [Member] | |
Basis Of Presentation [Line Items] | |
Ownership interest percentage | 60% |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | Accounting Standard Update No. 2022-04 |
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) - Warrick Rolling Mill [Member] - Disposal Group, Held-for-Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Disposition [Line Items] | ||||
Estimated Liabilities For Future Site Separation Commitment Charge | $ 17 | $ 5 | ||
Payments against the reserve | $ 19 | $ 13 | 44 | $ 22 |
Remaining reserve | $ 19 | $ 19 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Employees | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | $ 22 | $ 652 | $ 195 | $ 702 | ||
Australia [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees associated with employee termination and severance costs | Employees | 90 | |||||
Restructuring and other charges, net (D) | $ 6 | |||||
Pension Benefits [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Settlement of certain other postretirement benefits | [1] | 626 | 21 | 626 | ||
Restructuring and other charges, net (D) | 626 | 626 | ||||
MRN [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Asset impairments | 58 | |||||
Alcoa Corporation [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Noncurrent portion of the reserve | 21 | 21 | $ 3 | |||
Magnesium Smelter Facility in Addy [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 29 | 29 | ||||
Intalco [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Asset impairments | 50 | |||||
Severance costs | $ 1 | |||||
Number of employees associated with employee termination and severance costs | Employees | 12 | |||||
Cash outlays expected in 2024 | $ 85 | |||||
Cash outlays expected in 2025 | 85 | |||||
Cash outlays spent in 2023 | 1 | 1 | ||||
Restructuring and other charges, net (D) | 101 | |||||
Cost of Goods Sold [Member] | Intalco [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other costs | 16 | |||||
Restructuring and Other Charges [Member] | San Ciprian Facility [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 47 | |||||
2023 Restructuring Plans Action [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 22 | 195 | ||||
Environmental and Asset Retirement Obligation Reserves [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring And Other Charges | 15 | 15 | ||||
Legal Disputes Related to 2019 Divestiture [Member] | Aviles and La Coruna Facilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 79 | |||||
Additional Contract Costs [Member] | Wenatchee (Washington) and Intalco [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | (6) | |||||
Closure Cost [Member] | Intalco [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Asset impairments | 101 | |||||
Restructuring and other charges, net (D) | 117 | |||||
Valuation Allowance on Brazil Value-Added Taxes [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 83 | |||||
Remediation at Previously Closed Sites [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | $ (3) | $ (1) | ||||
Certain Employee Obligations [Member] | San Ciprian Facility [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 47 | |||||
Environmental and Demolition Obligation [Member] | Intalco [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 50 | |||||
Severance and Employee Termination Costs [Member] | Australia [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | $ 7 | 10 | ||||
Other Miscellaneous Charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | $ 1 | |||||
[1] These amounts were reported in Restructuring and other charges, net on the accompanying Statements of Consolidated Operations (see Note D ) and Cash Flows. |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net - Schedule of Restructuring and Other Charges, Net by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net | $ 22 | $ 652 | $ 195 | $ 702 |
Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net | 3 | (3) | 170 | 45 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net | 19 | 655 | 25 | 657 |
Alumina [Member] | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net | 6 | $ (3) | 8 | (28) |
Aluminum Segment [Member] | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net | $ (3) | $ 162 | $ 73 |
Restructuring and Other Charg_5
Restructuring and Other Charges, Net - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 117 | $ 93 |
Restructuring and other charges, net (D) | 59 | 74 |
Cash payments | (112) | (39) |
Reversals and other | 2 | (11) |
Restructuring reserve ending balance | 66 | 117 |
Severance and Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 1 | 3 |
Restructuring and other charges, net (D) | 10 | 1 |
Cash payments | (4) | (2) |
Reversals and other | (1) | |
Restructuring reserve ending balance | 7 | 1 |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 116 | 90 |
Restructuring and other charges, net (D) | 49 | 73 |
Cash payments | (108) | (37) |
Reversals and other | 2 | (10) |
Restructuring reserve ending balance | $ 59 | $ 116 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Operating Results of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 132 | $ 230 | $ 562 | $ 2,199 |
Depreciation, depletion, and amortization | 158 | 144 | 453 | 453 |
Equity (loss) income | (24) | (23) | (125) | 52 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 2,986 | 3,289 | 9,160 | 11,136 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 385 | 422 | 1,210 | 1,333 |
Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 2,601 | 2,867 | 7,950 | 9,803 |
Alumina [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 53 | 78 | 189 | 738 |
Depreciation, depletion, and amortization | 89 | 74 | 246 | 243 |
Equity (loss) income | (9) | (18) | (37) | (22) |
Alumina [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,338 | 1,303 | 3,907 | 4,208 |
Alumina [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 381 | 412 | 1,199 | 1,308 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 957 | 891 | 2,708 | 2,900 |
Aluminum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 79 | 152 | 373 | 1,461 |
Depreciation, depletion, and amortization | 69 | 70 | 207 | 210 |
Equity (loss) income | (15) | (5) | (88) | 74 |
Aluminum [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,648 | 1,986 | 5,253 | 6,928 |
Aluminum [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 4 | 10 | 11 | 25 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | $ 1,644 | $ 1,976 | $ 5,242 | $ 6,903 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Segment Adjusted EBITDA | $ 132 | $ 230 | $ 562 | $ 2,199 |
Transformation | (29) | (19) | (54) | (44) |
Intersegment eliminations | (4) | 23 | 19 | 133 |
Corporate expenses | (33) | (27) | (87) | (91) |
Provision for depreciation, depletion, and amortization | (163) | (149) | (469) | (470) |
Restructuring and other charges, net (D) | (22) | (652) | (195) | (702) |
Interest expense | (26) | (25) | (79) | (80) |
Other (expenses) income, net (R) | (85) | (35) | (145) | 185 |
Income before income taxes | (228) | (729) | (507) | 942 |
Benefit from (provision for) income taxes | 35 | (40) | (39) | (484) |
Net loss (income) attributable to noncontrolling interest | 25 | 23 | 45 | (186) |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | (168) | (746) | (501) | 272 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other | $ 2 | $ (75) | $ (59) | $ (188) |
Segment Information - Schedul_3
Segment Information - Schedule of Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 2,602 | $ 2,851 | $ 7,956 | $ 9,788 |
Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 1,666 | 1,990 | 5,336 | 7,033 |
Alumina [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 840 | 821 | 2,328 | 2,735 |
Energy [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 32 | 74 | 86 | 155 |
Bauxite [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 107 | 52 | 343 | 107 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ (43) | $ (86) | $ (137) | $ (242) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) | $ (168) | $ (746) | $ (501) | $ 272 |
Average shares outstanding – basic | 178 | 179 | 178 | 182 |
Effect of dilutive securities: | ||||
Stock units | 4 | |||
Average shares outstanding – diluted | 178 | 179 | 178 | 186 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - Stock Awards and Stock Options [Member] - shares shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common shares equivalents that would have been included in diluted average shares outstanding | 3 | 3 | 3 |
Number of anti-dilutive securities | 3 | 3 | 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Pension and other postretirement benefits (M) | |||||
Total Other comprehensive income (loss) | $ (4) | $ (662) | $ (16) | $ (737) | |
Foreign currency translation | |||||
Other comprehensive income (loss) | (114) | (254) | (61) | (332) | |
Cash flow hedges (N) | |||||
Net change from periodic revaluations | (120) | 110 | (66) | 231 | |
Net amount reclassified to earnings | 29 | 37 | 93 | 280 | |
Total Accumulated other comprehensive loss | (3,547) | (3,547) | $ (3,539) | ||
Alcoa Corporation [Member] | |||||
Pension and other postretirement benefits (M) | |||||
Balance at beginning of period | 76 | (808) | 62 | (882) | |
Unrecognized net actuarial loss and prior service cost/benefit | 17 | (18) | 40 | ||
Tax benefit (expense) | (7) | 8 | (12) | ||
Total Other comprehensive income (loss) before reclassifications, net of tax | 10 | (10) | 28 | ||
Amortization of net actuarial loss and prior service cost/benefit | 5 | 645 | 35 | 702 | |
Tax benefit (expense) | 1 | (6) | |||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 5 | 646 | 29 | 702 | |
Total Other comprehensive income (loss) | 5 | 656 | 19 | 730 | |
Balance at end of period | 81 | (152) | 81 | (152) | |
Foreign currency translation | |||||
Balance at beginning of period | (2,658) | (2,658) | (2,685) | (2,614) | |
Other comprehensive income (loss) | (67) | (173) | (40) | (217) | |
Balance at end of period | (2,725) | (2,831) | (2,725) | (2,831) | |
Cash flow hedges (N) | |||||
Balance at beginning of period | (812) | (789) | (916) | (1,096) | |
Net change from periodic revaluations | (120) | 110 | (66) | 231 | |
Tax benefit (expense) | 16 | (6) | 16 | (17) | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (104) | 104 | (50) | 214 | |
Net amount reclassified to earnings | 29 | 37 | 93 | 280 | |
Tax expense | (16) | (13) | (30) | (59) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 13 | 24 | 63 | 221 | |
Total Other comprehensive (loss) income | (91) | 128 | 13 | 435 | |
Balance at end of period | (903) | (661) | (903) | (661) | |
Total Accumulated other comprehensive loss | (3,547) | (3,644) | (3,547) | (3,644) | |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||||
Cash flow hedges (N) | |||||
Net amount reclassified to earnings | 42 | 35 | 136 | 277 | |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||||
Cash flow hedges (N) | |||||
Net amount reclassified to earnings | (20) | ||||
Alcoa Corporation [Member] | Interest Rate Contracts [Member] | |||||
Cash flow hedges (N) | |||||
Net amount reclassified to earnings | (3) | 2 | (5) | 6 | |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||||
Cash flow hedges (N) | |||||
Net amount reclassified to earnings | (10) | (18) | (3) | ||
Non-controlling Interest [Member] | |||||
Pension and other postretirement benefits (M) | |||||
Balance at beginning of period | (7) | (12) | (5) | (13) | |
Unrecognized net actuarial loss and prior service cost/benefit | (1) | 8 | (3) | 9 | |
Tax benefit (expense) | (3) | (3) | |||
Total Other comprehensive income (loss) before reclassifications, net of tax | (1) | 5 | (3) | 6 | |
Amortization of net actuarial loss and prior service cost/benefit | 1 | 1 | |||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 1 | 1 | |||
Total Other comprehensive income (loss) | (1) | 6 | (3) | 7 | |
Balance at end of period | (8) | (6) | (8) | (6) | |
Foreign currency translation | |||||
Balance at beginning of period | (1,014) | (971) | (1,040) | (937) | |
Other comprehensive income (loss) | (47) | (81) | (21) | (115) | |
Balance at end of period | (1,061) | (1,052) | (1,061) | (1,052) | |
Cash flow hedges (N) | |||||
Balance at beginning of period | 1 | 1 | 1 | (1) | |
Net change from periodic revaluations | 2 | ||||
Total Other comprehensive (loss) income before reclassifications, net of tax | 2 | ||||
Total Other comprehensive (loss) income | 2 | ||||
Balance at end of period | 1 | 1 | 1 | 1 | |
Total Accumulated other comprehensive loss | $ (1,068) | $ (1,057) | $ (1,068) | $ (1,057) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net amount reclassified to earnings | $ 29 | $ 37 | $ 93 | $ 280 |
Cost of Goods Sold [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net amount reclassified to earnings | (2) | (4) | (4) | |
Sales [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net amount reclassified to earnings | $ 10 | $ 2 | $ 22 | $ 7 |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||||||||
Net income (loss) | $ (193) | $ (121) | $ (232) | $ (769) | $ 674 | $ 553 | $ (546) | $ 458 |
Ma'aden Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Sales | 725 | 773 | 2,025 | 2,686 | ||||
Cost of goods sold | 645 | 692 | 1,947 | 2,020 | ||||
Net income (loss) | (39) | (94) | (390) | 217 | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | (10) | (24) | (98) | 54 | ||||
Other | (15) | (1) | (30) | (5) | ||||
Alcoa Corporation [Member] | Ma'aden Joint Venture [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Alcoa Corporations equity in net income (loss) of affiliated companies | (25) | (25) | (128) | 49 | ||||
Mining [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Sales | 157 | 167 | 516 | 589 | ||||
Cost of goods sold | 121 | 101 | 325 | 370 | ||||
Net income (loss) | 6 | 14 | 44 | 95 | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | 3 | 7 | 20 | 33 | ||||
Other | 0 | 0 | 1 | (2) | ||||
Mining [Member] | Alcoa Corporation [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Alcoa Corporations equity in net income (loss) of affiliated companies | 3 | 7 | 21 | 31 | ||||
Energy [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Sales | 61 | 66 | 178 | 193 | ||||
Cost of goods sold | 28 | 38 | 87 | 91 | ||||
Net income (loss) | 31 | 28 | 77 | 80 | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | 12 | 11 | 30 | 32 | ||||
Other | (2) | (3) | (1) | (4) | ||||
Energy [Member] | Alcoa Corporation [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Alcoa Corporations equity in net income (loss) of affiliated companies | 10 | 8 | 29 | 28 | ||||
Other [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Sales | 117 | 121 | 354 | 363 | ||||
Cost of goods sold | 105 | 110 | 324 | 332 | ||||
Net income (loss) | (21) | (19) | (70) | (77) | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | (11) | (9) | (34) | (37) | ||||
Other | (6) | 1 | (6) | 16 | ||||
Other [Member] | Alcoa Corporation [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Alcoa Corporations equity in net income (loss) of affiliated companies | $ (17) | $ (8) | $ (40) | $ (21) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Apr. 30, 2022 | |
Alcoa Corporation [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Charges recorded | $ 62,000,000 | |||||
Alcoa Corporation [Member] | Other Nonoperating Income Expense [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Charges recorded | $ 21,000,000 | 41,000,000 | ||||
Mineracao Rio do Norte S.A [Member] | Brazil [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Asset impairment charges | $ 58,000,000 | |||||
Proceeds from Sale of Long-term Investments | $ 10,000,000 | |||||
Additional cash to be received upon satisfying post closing conditions | $ 30,000,000 | |||||
ELYSIS TM Limited Partnership [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Basis in investment, due to share of losses | 0 | $ 0 | ||||
Unrecognized losses | $ (62,000,000) |
Receivables - Additional Inform
Receivables - Additional Information (Detail) - Receivables Purchase Agreement Member - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Aug. 27, 2023 | Jan. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Sale of gross customer receivables | $ 146 | $ 320 | ||
Reinvested collections from previously sold receivables | 94 | 221 | ||
Cash proceeds from financial institution | 52 | 99 | ||
Unsold customer receivables as collateral sold receivables | 91 | |||
Accounts Payable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Cash collections from previously sold receivables yet to be reinvested | $ 79 | $ 79 | ||
Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables previously secured by credit facility | $ 130 | $ 150 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 404 | $ 385 |
Work-in-process | 323 | 350 |
Bauxite and alumina | 577 | 584 |
Purchased raw materials | 680 | 923 |
Operating supplies | 206 | 185 |
Inventories, total | $ 2,190 | $ 2,427 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Alumina [Member] | |
Goodwill [Line Items] | |
Goodwill impairment | $ 0 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill which is Included in Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 146 | $ 145 |
Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 146 | 145 |
Alumina [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 4 | 4 |
Corporate Segment [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 142 | $ 141 |
Goodwill - Summary of Goodwil_2
Goodwill - Summary of Goodwill which is Included in Other Noncurrent Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 146 | $ 145 |
Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 146 | 145 |
Corporate Segment [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | 742 | 742 |
Corporate Segment [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 142 | 141 |
Alumina [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 4 | $ 4 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Apr. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Borrowings of inventory related to agreement | $ 55,000,000 | $ 80,000,000 | ||||
Inventory sold | 2,190,000,000 | 2,190,000,000 | $ 2,427,000,000 | |||
Repurchase of inventory related to agreement | 23,000,000 | 38,000,000 | ||||
Other Current Liabilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | 42,000,000 | 42,000,000 | ||||
Prepaid Expenses and Other Current Assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Other current assets | 42,000,000 | 42,000,000 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit | 0 | 0 | $ 0 | |||
Amounts borrowed under the credit facility | 0 | $ 0 | 0 | $ 0 | ||
Line of credit facility, outstanding borrowings | $ 1,250,000,000 | $ 1,250,000,000 | ||||
Line of credit facility, maturity month and year | 2027-06 | |||||
$250 Japanese Yen Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured revolving credit facility | $ 250,000,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 2 | $ 3 | $ 7 | $ 10 | |
Interest cost | [1] | 27 | 24 | 87 | 78 |
Expected return on plan assets | [1] | (35) | (35) | (111) | (123) |
Recognized net actuarial loss | [1] | 7 | 19 | 21 | 74 |
Settlements | [2] | 626 | 21 | 626 | |
Net periodic benefit cost | 1 | 637 | 25 | 665 | |
Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1 | 2 | 3 | ||
Interest cost | [1] | 7 | 4 | 20 | 12 |
Recognized net actuarial loss | [1] | 1 | 5 | 3 | 14 |
Amortization of prior service cost | [1] | (3) | (4) | (10) | (11) |
Net periodic benefit cost | $ 5 | $ 6 | $ 15 | $ 18 | |
[1] These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note R ). These amounts were reported in Restructuring and other charges, net on the accompanying Statements of Consolidated Operations (see Note D ) and Cash Flows. |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) Retiree | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Decrease to other noncurrent assets | $ 179,000,000 | $ 94,000,000 | |||
Action# 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase to accrued pension benefits liability | $ 15,000,000 | 15 | |||
Decrease to accrued other postretirement benefits | (9,000,000) | (9) | |||
Action# 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase to accrued pension benefits liability | 22,000,000 | 22 | |||
Decrease to other noncurrent assets | (5,000,000) | (5) | |||
Settlement of certain other postretirement benefits | 21,000,000 | 21 | |||
Non-cash settlement loss after tax | $ 16,000,000 | ||||
Number of retirees | Retiree | 530 | ||||
Plan assets | $ 235,000,000 | ||||
Plan obligations | $ 235,000,000 | ||||
Action# 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Decrease to other noncurrent assets | $ (2,000,000) | (2) | |||
United States [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum required cash contribution to pension plans | 24,000,000 | ||||
Non-U.S. [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum required cash contribution to pension plans | $ 11,000,000 | $ 3,000,000 | $ 20,000,000 | $ 12,000,000 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans (Detail) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) Employees | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) Employees | Sep. 30, 2022 USD ($) | Apr. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Decrease to other noncurrent assets | $ 179,000,000 | $ 94,000,000 | |||||
Action# 1 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of affected plan participants | Employees | 370 | 370 | |||||
Weighted average discount rate | 5.20% | 5.58% | |||||
Plan remeasurement date | Mar. 31, 2023 | ||||||
Increase to accrued pension benefits liability | $ 15,000,000 | $ 15 | |||||
Decrease to accrued otherpostretirement benefits liability | (9,000,000) | $ (9) | |||||
Action# 2 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of affected plan participants | Employees | 530 | 530 | |||||
Weighted average discount rate | 4.80% | 5.20% | |||||
Plan remeasurement date | Apr. 30, 2023 | ||||||
Increase to accrued pension benefits liability | 22,000,000 | $ 22 | |||||
Decrease to other noncurrent assets | (5,000,000) | (5) | |||||
Settlements loss | $ 21,000,000 | $ 21 | |||||
Action# 3 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of affected plan participants | Employees | 50 | 50 | |||||
Weighted average discount rate | 5.03% | 5.03% | 5.08% | ||||
Plan remeasurement date | Sep. 30, 2023 | ||||||
Decrease to other noncurrent assets | $ (2,000,000) | $ (2) |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Additional Information (Detail) kt in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) kt | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) kt | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) kt | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | $ (29) | $ (37) | $ (93) | $ (280) | ||
Unrealized gain (loss) in accumulated other comprehensive loss | (3,547) | (3,547) | $ (3,539) | |||
Level 1 [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) in accumulated other comprehensive loss | $ 11 | |||||
Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | 22 | 32 | $ 66 | 12 | ||
Commodity Contract | Level 1 [Member] | Spain [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, expiration month and year | 2022-10 | |||||
Commodity Contract | Level 1 [Member] | Brazil [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, expiration month and year | 2023-12 | |||||
Foreign Exchange Forward | Norway [Member] | Euro Power Purchases [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, expiration month and year | 2026-12 | |||||
Foreign Exchange Forward | Norway [Member] | Krone Capital Expenditures [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, expiration month and year | 2025-06 | |||||
Foreign Exchange Forward | Brazil [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, expiration month and year | 2025-08 | |||||
Foreign Exchange Forward | Canada [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, expiration month and year | 2025-03 | |||||
Financial Contracts [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivative, expiration date | Feb. 28, 2023 | |||||
Sales [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | (10) | (2) | $ (22) | (7) | ||
Cost of Goods Sold [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | 2 | 4 | 4 | |||
Derivatives Designated as Hedging Instruments [Member] | Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | $ 22 | 32 | $ 66 | 12 | ||
Derivatives Designated as Hedging Instruments [Member] | Power Contract [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Aluminum forecast sales | kt | 1,513 | 1,513 | 1,683 | |||
Derivatives Designated as Hedging Instruments [Member] | Power Contract [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Amount of (loss) gain expected to be recognized into earnings over the next 12 months | $ (196) | |||||
Derivatives Designated as Hedging Instruments [Member] | Sales [Member] | Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | 34 | 70 | 16 | |||
Derivatives Designated as Hedging Instruments [Member] | Cost of Goods Sold [Member] | Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) reclassed from Other comprehensive loss to earnings | $ (2) | $ (4) | $ (4) |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Schedule of Detail for Level 1 and 3 Derivatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets Current | $ 33 | $ 33 | $ 134 | ||
Derivative Liabilities Current | 204 | 204 | 200 | ||
Derivative Assets Noncurrent | 3 | 3 | 2 | ||
Derivative Liabilities Noncurrent | 927 | 927 | 1,026 | ||
Unrealized gain (loss) recognized in Other comprehensive loss | (120) | $ 110 | (66) | $ 231 | |
Realized gain (loss) reclassed from Other comprehensive loss to earnings | (29) | (37) | (93) | (280) | |
Level 1 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 29 | 29 | 84 | ||
Derivative Liabilities | 16 | 16 | 14 | ||
Unrealized gain (loss) recognized in Other comprehensive loss | (11) | 59 | 20 | 158 | |
Realized gain (loss) reclassed from Other comprehensive loss to earnings | 22 | 32 | 66 | 12 | |
Level 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 7 | 7 | 52 | ||
Derivative Liabilities | 1,115 | 1,115 | 1,212 | ||
Unrealized gain (loss) recognized in Other comprehensive loss | (110) | 49 | (87) | 62 | |
Realized gain (loss) reclassed from Other comprehensive loss to earnings | (54) | (67) | (164) | (286) | |
Level 1 and 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 36 | 36 | 136 | ||
Derivative Liabilities | 1,131 | 1,131 | 1,226 | ||
Derivative Assets Current | 33 | 33 | 134 | ||
Derivative Liabilities Current | 204 | 204 | 200 | ||
Derivative Assets Noncurrent | 3 | 3 | 2 | ||
Derivative Liabilities Noncurrent | 927 | 927 | $ 1,026 | ||
Level 2 Derivative Instruments [Member] | Non-controlling and Equity Interest [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) recognized in Other comprehensive loss | 1 | 2 | 1 | 11 | |
Realized gain (loss) reclassed from Other comprehensive loss to earnings | $ 3 | $ (2) | $ 5 | $ (6) |
Derivatives and Other Financi_5
Derivatives and Other Financial Instruments - Schedule of Outstanding Quantities of Derivative Instruments (Detail) - Level 1 [Member] kt in Thousands, € in Millions, kr in Millions, R$ in Millions, $ in Millions | Sep. 30, 2023 EUR (€) kt | Sep. 30, 2023 NOK (kr) kt | Sep. 30, 2023 BRL (R$) kt | Sep. 30, 2023 CAD ($) kt | Sep. 30, 2022 EUR (€) kt | Sep. 30, 2022 NOK (kr) kt | Sep. 30, 2022 BRL (R$) kt |
Foreign Exchange Buy Forwards | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Derivative Liabilities | € 68 | kr 185 | R$ 734 | € 67 | kr 87 | R$ 1216 | |
Foreign Exchange Sell Forwards | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Derivative Liabilities | € 18 | $ 33 | R$ 17 | ||||
Commodity Sell Forwards | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Outstanding quantities of derivative instruments | 144 | 144 | 144 | 144 | 398 | 398 | 398 |
Commodity Buy Forwards | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Outstanding quantities of derivative instruments | 126 | 126 | 126 | 126 | 178 | 178 | 178 |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) - Energy Contracts [Member] - Level 3 [Member] MWh in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) MWh $ / lb $ / MW | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative Assets, Fair value | $ 7,000,000 |
Derivative Liabilities, Fair value | 1,115,000,000 |
Financial Contracts [Member] | Interrelationship of Forward Energy Price, LME Forward Price and Consumer Price Index [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative Assets, Fair value | $ 7,000,000 |
Financial Contracts [Member] | Interrelationship of Forward Energy Price, LME Forward Price and Consumer Price Index [Member] | Minimum [Member] | 2023 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative forward energy price | $ / MW | 29.76 |
LME forward price | $ 2,339 |
Financial Contracts [Member] | Interrelationship of Forward Energy Price, LME Forward Price and Consumer Price Index [Member] | Maximum [Member] | 2023 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative forward energy price | $ / MW | 54.21 |
LME forward price | $ 2,374 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 2 Million MWh Per Year [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative Assets, Fair value | $ 0 |
Derivative forward energy volume | MWh | 2 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 2 Million MWh Per Year [Member] | Minimum [Member] | 2023 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | $ 2,339 |
Midwest aluminum premium | $ / lb | 0.194 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 2 Million MWh Per Year [Member] | Maximum [Member] | 2023 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | $ 2,353 |
Midwest aluminum premium | $ / lb | 0.195 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 4 Million MWh Per Year [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative Liabilities, Fair value | $ 196,000,000 |
Derivative forward energy volume | MWh | 4 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 4 Million MWh Per Year [Member] | 2023 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | $ 2,339 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 4 Million MWh Per Year [Member] | 2027 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | 2,707 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 18 Million MWh Per Year [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative Liabilities, Fair value | $ 919,000,000 |
Derivative forward energy volume | MWh | 18 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 18 Million MWh Per Year [Member] | 2023 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | $ 2,339 |
Midwest aluminum premium | $ / lb | 0.194 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 18 Million MWh Per Year [Member] | 2029 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | $ 2,711 |
Midwest aluminum premium | $ / lb | 0.22 |
Power Contract [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 18 Million MWh Per Year [Member] | 2036 [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
LME forward price | $ 2,959 |
Midwest aluminum premium | $ / lb | 0.22 |
Power Contract [Member] | Estimated Spread Between The Respective 30-Year Debt Yield Of Alcoa Corporation And The Counterparty [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Derivative Liabilities, Fair value | $ 0 |
Percentage of debt yield credit spread | 1.55% |
Power Contract [Member] | Estimated Spread Between The Respective 30-Year Debt Yield Of Alcoa Corporation And The Counterparty [Member] | Counterparty [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Percentage of debt yield credit spread | 5.82% |
Power Contract [Member] | Estimated Spread Between The Respective 30-Year Debt Yield Of Alcoa Corporation And The Counterparty [Member] | Alcoa Corporation [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Percentage of debt yield credit spread | 7.37% |
Derivatives and Other Financi_7
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments Gain Loss [Line Items] | ||
Total asset derivatives | $ 33 | $ 134 |
Total liability derivatives | 204 | 200 |
Total liability derivatives | 927 | 1,026 |
Level 3 [Member] | Energy Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total asset derivatives | 7 | 52 |
Total liability derivatives | 1,115 | 1,212 |
Level 3 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Energy Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total asset derivatives | 7 | 32 |
Level 3 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Financial Contracts [Member] | Energy Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total asset derivatives | 7 | 32 |
Level 3 [Member] | Derivatives Designated as Hedging Instruments [Member] | Energy Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total asset derivatives | 0 | 20 |
Total liability derivatives | 1,115 | 1,212 |
Level 3 [Member] | Derivatives Designated as Hedging Instruments [Member] | Power Contract [Member] | Energy Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total liability derivatives | 196 | 195 |
Total liability derivatives | 919 | 1,017 |
Level 3 [Member] | Derivatives Designated as Hedging Instruments [Member] | Financial Contracts [Member] | Energy Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total asset derivatives | $ 0 | $ 20 |
Derivatives and Other Financi_8
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | $ 28 | $ 52 |
Other comprehensive income (unrealized) | 0 | 0 |
Settlements and other | (1) | (22) |
Fair value measurement, Assets, Ending balance | 7 | 7 |
Financial Contracts [Member] | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | 0 |
Financial Contracts [Member] | Cost of Goods Sold [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (20) | |
Financial Contracts [Member] | Other Expenses, Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (20) | (3) |
Financial Contracts [Member] | Other Expenses, Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (20) | (3) |
Power Contract [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | 1 | 0 |
Other comprehensive income (unrealized) | 1 | 4 |
Settlements and other | 0 | 0 |
Fair value measurement, Assets, Ending balance | 0 | 0 |
Fair value measurement, Liabilities, Beginning balance | 1,060 | 1,212 |
Fair value measurement, Liabilities | $ (56) | $ (188) |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
Other comprehensive income (unrealized) | $ 111 | $ 91 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax |
Fair value measurement, Liabilities, Ending balance | $ 1,115 | $ 1,115 |
Power Contract [Member] | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (2) | (4) |
Power Contract [Member] | Cost of Goods Sold [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | |
Power Contract [Member] | Other Expenses, Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | 0 |
Power Contract [Member] | Other Expenses, Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | $ 0 | $ 0 |
Derivatives and Other Financi_9
Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 926 | $ 1,363 |
Restricted cash | 104 | 111 |
Short-term borrowings | 42 | 0 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | 1,809 | 1,806 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 926 | 1,363 |
Restricted cash | 104 | 111 |
Short-term borrowings | 42 | 0 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | $ 1,726 | $ 1,744 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Aug. 16, 2022 | Sep. 30, 2023 | |
Income Taxes [Line Items] | ||
Effective federal statutory tax rate | 21% | |
Income tax expense benefits on losses valuation reserves | $ 0 | |
Remaining cumulative income position period | 3 years | |
Reversed valuation allowance totaling amount | $ 58,000,000 | |
Minimum tax on book income of corporation | 15% | |
Excise tax on net stock repurchases | 1% | |
Excise tax for common stock repurchases | 1% | |
AWAB [Member] | ||
Income Taxes [Line Items] | ||
Net deferred tax assets | $ 132,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
(Loss) income before income taxes | $ (228) | $ (729) | $ (507) | $ 942 |
Estimated annualized effective tax rate | 18.90% | 54% | ||
Income tax expense | $ 96 | $ 509 | ||
Favorable tax impact related to losses in jurisdictions with no tax benefit | (27) | |||
Discrete tax (benefit) expense | (57) | 2 | ||
Provision for income taxes | $ (35) | $ 40 | $ 39 | $ 484 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2023 | |
Asset Retirement Obligations [Line Items] | ||||
Liabilities incurred | $ 9 | |||
Capitalized asset retirement cost | 1 | $ 8 | ||
Intalco Aluminum Smelter [Member] | ||||
Asset Retirement Obligations [Line Items] | ||||
Liabilities incurred | $ 36 | |||
Magnesium Smelter Facility in Addy [Member] | ||||
Asset Retirement Obligations [Line Items] | ||||
Liabilities incurred | 15 | |||
Cost of Goods Sold [Member] | ||||
Asset Retirement Obligations [Line Items] | ||||
Additional asset retirement obligation liabilities incurred | $ 8 | 39 | ||
Bauxite Residue Areas [Member] | ||||
Asset Retirement Obligations [Line Items] | ||||
Liabilities incurred | $ 47 | |||
Spent Pot Lining Treatment and Disposal [Member] | ||||
Asset Retirement Obligations [Line Items] | ||||
Liabilities incurred | $ 4 | 4 | ||
Lake Charles Anode Facility [Member] | Restructuring and Other Charges [Member] | ||||
Asset Retirement Obligations [Line Items] | ||||
Reversals of previously recorded liabilities | $ 2 | $ 2 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Project | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | $ 20 | $ 18 | $ 38 | $ 23 | $ 32 | ||
Payments against the reserve | 19 | 7 | 42 | 17 | 26 | ||
Reversals of previously recorded liabilities | 1 | 3 | 30 | ||||
Environmental remediation reserve balance, current | 3 | 3 | 58 | ||||
Active or future remediation for significant sites | 221 | 221 | 234 | ||||
Accrued environmental reserves | 278 | 278 | 284 | $ 309 | |||
Payment for settlements to former employees | 75 | 75 | |||||
Forecast [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Payment for settlement to former employees to be made | $ 3 | ||||||
Former East St Louis Site [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | 5 | ||||||
Magnesium Smelter Facility in Addy [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | 14 | 14 | |||||
Environmental Activities [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | $ 4 | $ 4 | |||||
Intalco Aluminum Smelter [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | $ 14 | ||||||
Massena, New York [Member] | Minimum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Environmental remediation work completion period | 4 years | ||||||
Massena, New York [Member] | Maximum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Environmental remediation work completion period | 8 years | ||||||
Longview, Washington [Member] | Ongoing Remediation Work [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | 13 | $ 13 | |||||
Addy, Washington [Member] | Minimum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Environmental remediation work completion period | 3 years | ||||||
Addy, Washington [Member] | Maximum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Environmental remediation work completion period | 5 years | ||||||
Ferndale, Washington [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Post-closure maintenance and monitoring period | 5 years | ||||||
Environmental remediation work completion period | 3 years | ||||||
Other Sites [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | 7 | $ 7 | |||||
Number of remediation projects at other sites | Project | 32 | ||||||
Accrued environmental reserves | $ 57 | $ 57 | $ 50 | ||||
Other Sites [Member] | Ongoing Remediation Work [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities incurred | $ 4 |
Contingencies - Additional In_2
Contingencies - Additional Information - 1 (Detail) R$ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||
Sep. 17, 2020 USD ($) | Sep. 17, 2020 AUD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 BRL (R$) | Jul. 31, 2022 USD ($) | Jul. 31, 2022 BRL (R$) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 BRL (R$) | Feb. 28, 2022 USD ($) | Feb. 28, 2022 BRL (R$) | Mar. 31, 2013 USD ($) | May 31, 2012 USD ($) | May 31, 2012 BRL (R$) | Sep. 30, 2020 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 BRL (R$) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 AUD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 AUD ($) | Jul. 31, 2022 BRL (R$) | Feb. 28, 2022 BRL (R$) | Sep. 30, 2020 AUD ($) | Jul. 07, 2020 USD ($) | Jul. 07, 2020 AUD ($) | Mar. 31, 2013 BRL (R$) | |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits | $ 538,000,000 | $ 486,000,000 | ||||||||||||||||||||||||
AWAC [Member] | Alumina Limited [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Non-controlling interest, ownership percentage | 40% | 40% | ||||||||||||||||||||||||
Australian Taxation Office [Member] | Foreign Jurisdiction [Member] | AofA [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Additional income tax payable, exclusive of interest and penalties | $ 137,000,000 | $ 214 | ||||||||||||||||||||||||
Notices include claims for compounded interest on the tax amount | $ 452,000,000 | $ 707 | ||||||||||||||||||||||||
Proposed administrative penalties | $ 82,000,000 | $ 128 | ||||||||||||||||||||||||
Payment of dispute resolution practices income tax percentage | 50% | |||||||||||||||||||||||||
Assessed income tax amount exclusive of interest and penalties | $ 74,000,000 | $ 107 | ||||||||||||||||||||||||
Payment amount refund percentage | 50% | |||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits | $ 182,000,000 | $ 284 | $ 174,000,000 | $ 260 | ||||||||||||||||||||||
Tax assessment deposit | $ 68,000,000 | $ 107 | ||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Brazilian Federal Revenue Office [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Disallowed tax credits | $ 13,000,000 | $ 4,000,000 | $ 110,000,000 | R$ 70 | R$ 19 | R$ 220 | ||||||||||||||||||||
Percentage of penalty of the gross disallowed amount | 50% | |||||||||||||||||||||||||
Value added tax receivable | $ 6,000,000 | R$ 31 | $ 16,000,000 | R$ 84 | $ 9,000,000 | R$ 44 | $ 14,000,000 | R$ 65 | $ 41,000,000 | R$ 82 | ||||||||||||||||
Alcoa Corporation [Member] | AWAC [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Ownership interest percentage | 60% | 60% | ||||||||||||||||||||||||
Minimum [Member] | Alcoa World Alumina Brasil [Member] | Brazilian Federal Revenue Office [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 0 | |||||||||||||||||||||||||
Maximum [Member] | Alcoa World Alumina Brasil [Member] | Brazilian Federal Revenue Office [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 47,000,000 | R$ 239 | ||||||||||||||||||||||||
Aviles And La Coruna Facilities [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Restructuring and other charges, net | $ 79,000,000 |
Contingencies - Changes in Carr
Contingencies - Changes in Carrying Value of Recorded Environmental Remediation Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Beginning balance | $ 284 | $ 309 | $ 309 | ||
Liabilities incurred | $ 20 | $ 18 | 38 | 23 | 32 |
Cash payments | (19) | $ (7) | (42) | (17) | (26) |
Reversals of previously recorded liabilities | (1) | $ (3) | (30) | ||
Foreign currency translation and other | (1) | (1) | |||
Ending balance | $ 278 | $ 278 | $ 284 |
Contingencies - Estimate Timing
Contingencies - Estimate Timing of Cash Outflows on Environmental Reserves (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |||
2023 (excluding the nine months ended September 30, 2023) | $ 14 | ||
2024 - 2028 | 184 | ||
Thereafter | 80 | ||
Total | $ 278 | $ 284 | $ 309 |
Other Financial Information - S
Other Financial Information - Schedule of Other Expenses (Income), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Equity loss (income) | $ 40 | $ 36 | $ 179 | $ (17) |
Foreign currency losses (gains), net | 42 | 9 | (13) | 17 |
Net (gain) loss from asset sales | (1) | 2 | 14 | 7 |
Net loss (gain) on mark-to-market derivative instruments | 20 | (8) | 3 | (199) |
Non-service costs - pension and other postretirement benefits | 4 | 13 | 10 | 44 |
Other | (20) | (17) | (48) | (37) |
Other income , net | $ 85 | $ 35 | $ 145 | $ (185) |
Other Financial Information -_2
Other Financial Information - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Value added tax credits | $ 336 | $ 294 |
Prepaid gas transmission contract | 277 | 285 |
Gas Supply Prepayment | 275 | 311 |
Deferred mining costs, net | 170 | 161 |
Prepaid pension benefit | 159 | 146 |
Goodwill | 146 | 145 |
Noncurrent prepaid tax asset | 68 | 72 |
Noncurrent restricted cash | 54 | 56 |
Intangibles, net | 37 | 29 |
Other | 96 | 94 |
Other assets, noncurrent, total | $ 1,618 | $ 1,593 |
Other Financial Information - A
Other Financial Information - Additional Information (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2022 USD ($) | |
Other Financial Information [Abstract] | |
Reversed the allowance with credit of restructuring and other charges, net | $ 83 |
Valuation allowance with credit to cost of goods sold | $ 46 |
Other Financial Information -_3
Other Financial Information - Schedule of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents (N) | $ 926 | $ 1,363 | ||
Current restricted cash | 50 | 55 | ||
Noncurrent restricted cash | 54 | 56 | ||
Cash and cash equivalents and restricted cash, total | $ 1,030 | $ 1,474 | $ 1,541 | $ 1,924 |
Supplier Finance Programs - Add
Supplier Finance Programs - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Supplier invoices outstanding | $ 109 | $ 185 |
Minimum [Member] | ||
Payment terms | 50 days | |
Maximum [Member] | ||
Payment terms | 110 days |