Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AA | ||
Entity Registrant Name | ALCOA CORP | ||
Entity Central Index Key | 1,675,149 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 185,498,424 | ||
Entity Public Float | $ 8.7 |
Statement of Consolidated Opera
Statement of Consolidated Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Sales (E) | $ 13,403 | $ 11,652 | $ 9,318 |
Cost of goods sold (exclusive of expenses below) | 10,081 | 8,991 | 7,877 |
Selling, general administrative, and other expenses | 248 | 280 | 356 |
Research and development expenses | 31 | 32 | 33 |
Provision for depreciation, depletion, and amortization | 733 | 750 | 718 |
Restructuring and other charges (D) | 527 | 309 | 318 |
Interest expense (S) | 122 | 104 | 243 |
Other expenses (income), net (S) | 64 | 27 | (65) |
Total costs and expenses | 11,806 | 10,493 | 9,480 |
Income (Loss) before income taxes | 1,597 | 1,159 | (162) |
Provision for income taxes (P) | 726 | 600 | 184 |
Net income (loss) | 871 | 559 | (346) |
Less: Net income attributable to noncontrolling interest | 644 | 342 | 54 |
Net Income (Loss) Attributable to Alcoa Corporation | $ 227 | $ 217 | $ (400) |
Earnings per Share Attributable to Alcoa Corporation Common Shareholders (F): | |||
Basic | $ 1.22 | $ 1.18 | $ (2.19) |
Diluted | $ 1.20 | $ 1.16 | $ (2.19) |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ 871 | $ 559 | $ (346) |
Other comprehensive income (loss) income, net of tax (G): | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 504 | (447) | (202) |
Foreign currency translation adjustments | (833) | 284 | 315 |
Net change in unrecognized gains/losses on cash flow hedges | 698 | (1,089) | (342) |
Total Other comprehensive income (loss), net of tax | 369 | (1,252) | (229) |
Comprehensive income (loss) | 1,240 | (693) | (575) |
Alcoa Corporation [Member] | |||
Net income (loss) | 227 | 217 | (400) |
Other comprehensive income (loss) income, net of tax (G): | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 503 | (456) | (202) |
Foreign currency translation adjustments | (604) | 188 | 213 |
Net change in unrecognized gains/losses on cash flow hedges | 718 | (1,139) | (346) |
Total Other comprehensive income (loss), net of tax | 617 | (1,407) | (335) |
Comprehensive income (loss) | 844 | (1,190) | (735) |
Non-controlling Interest [Member] | |||
Net income (loss) | 644 | 342 | 54 |
Other comprehensive income (loss) income, net of tax (G): | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 1 | 9 | |
Foreign currency translation adjustments | (229) | 96 | 102 |
Net change in unrecognized gains/losses on cash flow hedges | (20) | 50 | 4 |
Total Other comprehensive income (loss), net of tax | (248) | 155 | 106 |
Comprehensive income (loss) | $ 396 | $ 497 | $ 160 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents (O) | $ 1,113 | $ 1,358 |
Receivables from customers | 830 | 811 |
Other receivables | 173 | 232 |
Inventories (I) | 1,644 | 1,453 |
Fair value of derivative instruments (O) | 73 | 113 |
Prepaid expenses and other current assets | 301 | 271 |
Total current assets | 4,134 | 4,238 |
Properties, plants, and equipment, net (J) | 8,327 | 9,138 |
Investments (H) | 1,360 | 1,410 |
Deferred income taxes (P) | 560 | 814 |
Fair value of derivative instruments (O) | 82 | 128 |
Other noncurrent assets (S) | 1,475 | 1,719 |
Total Assets | 15,938 | 17,447 |
Current liabilities: | ||
Accounts payable, trade | 1,663 | 1,898 |
Accrued compensation and retirement costs | 400 | 459 |
Taxes, including income taxes | 426 | 282 |
Fair value of derivative instruments (O) | 82 | 185 |
Other current liabilities (C) | 347 | 412 |
Long-term debt due within one year (L & O) | 1 | 16 |
Total current liabilities | 2,919 | 3,252 |
Long-term debt, less amount due within one year (L & O) | 1,801 | 1,388 |
Accrued pension benefits (N) | 1,407 | 2,341 |
Accrued other postretirement benefits (N) | 868 | 1,100 |
Asset retirement obligations (Q) | 529 | 617 |
Environmental remediation (R) | 236 | 258 |
Fair value of derivative instruments (O) | 261 | 1,105 |
Noncurrent income taxes (P) | 301 | 309 |
Other noncurrent liabilities and deferred credits (S) | 222 | 279 |
Total liabilities | 8,544 | 10,649 |
Contingencies and commitments (R) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock (M) | 2 | 2 |
Additional capital | 9,611 | 9,590 |
Retained earnings | 341 | 113 |
Accumulated other comprehensive loss (G) | (4,565) | (5,182) |
Total Alcoa Corporation shareholders’ equity | 5,389 | 4,523 |
Noncontrolling interest (A) | 2,005 | 2,275 |
Total equity | 7,394 | 6,798 |
Total Liabilities and Equity | $ 15,938 | $ 17,447 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash from Operations | |||
Net income (loss) | $ 871 | $ 559 | $ (346) |
Adjustments to reconcile net income (loss) to cash from operations: | |||
Depreciation, depletion, and amortization | 733 | 752 | 718 |
Deferred income taxes (P) | (36) | 176 | (46) |
Equity earnings, net of dividends (H) | 17 | 9 | 48 |
Restructuring and other charges (D) | 527 | 309 | 318 |
Net gain from investing activities—asset sales (S) | (116) | (164) | |
Net periodic pension benefit cost (N) | 146 | 111 | 66 |
Stock-based compensation (M) | 35 | 24 | 28 |
Other | (59) | 32 | (16) |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | |||
(Increase) in receivables | (43) | (118) | (234) |
(Increase) Decrease in inventories | (278) | (238) | 1 |
(Increase) Decrease in prepaid expenses and other current assets | (32) | 43 | (52) |
(Decrease) Increase in accounts payable, trade | (165) | 377 | 6 |
(Decrease) in accrued expenses | (319) | (563) | (320) |
Increase (Decrease) in taxes, including income taxes | 241 | 111 | (148) |
Pension contributions (N) | (992) | (106) | (66) |
(Increase) in noncurrent assets | (101) | (99) | (184) |
(Decrease) Increase in noncurrent liabilities | (97) | (39) | 80 |
Cash provided from (used for) operations | 448 | 1,224 | (311) |
Financing Activities | |||
Net transfers from former parent company | 806 | ||
Cash paid to former parent company related to separation (A) | (247) | (1,072) | |
Net change in short-term borrowings (original maturities of three months or less) | 7 | (4) | |
Additions to debt (original maturities greater than three months) (L) | 560 | 21 | 1,228 |
Payments on debt (original maturities greater than three months) (L) | (135) | (60) | (34) |
Proceeds from the exercise of employee stock options (M) | 23 | 43 | 10 |
Repurchase of common stock (M) | (50) | ||
Contributions from noncontrolling interest (A) | 149 | 80 | 48 |
Distributions to noncontrolling interest | (827) | (342) | (233) |
Other | (8) | (8) | |
Cash (used for) provided from financing activities | (288) | (506) | 749 |
Investing Activities | |||
Capital expenditures | (399) | (405) | (404) |
Proceeds from the sale of assets and businesses (C) | 1 | 245 | 112 |
Additions to investments (H) | (7) | (66) | (3) |
Sales of investments (H) | 146 | ||
Cash used for investing activities | (405) | (226) | (149) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (4) | 14 | 13 |
Net change in cash and cash equivalents and restricted cash | (249) | 506 | 302 |
Cash and cash equivalents and restricted cash at beginning of year | 1,365 | 859 | 557 |
Cash and cash equivalents and restricted cash at end of year | $ 1,116 | $ 1,365 | $ 859 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained (Deficit) Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] | ParentCo [Member]Parent Company Net Investment [Member] | Alcoa Corporation [Member]Retained (Deficit) Earnings [Member] |
Beginning Balance at Dec. 31, 2015 | $ 11,513 | $ (1,600) | $ 2,071 | $ 11,042 | ||||
Net (loss) income | (346) | 54 | (296) | $ (104) | ||||
Other comprehensive (loss) income (G) | (229) | (335) | 106 | |||||
Establishment of additional defined benefit plans (N) | (2,528) | (2,704) | 176 | |||||
Change in Parent Company net investment | (603) | (603) | ||||||
Cash provided at separation to Parent Company (A) | (1,072) | (1,072) | ||||||
Separation-related adjustments (A) | 1,138 | $ 9,521 | 864 | $ (9,247) | ||||
Issuance of common stock (M) | $ 2 | (2) | ||||||
Stock-based compensation (M) | 2 | 2 | ||||||
Common stock issued: compensation plans (M) | 10 | 10 | ||||||
Contributions (A) | 48 | 48 | ||||||
Distributions | (233) | (233) | ||||||
Other | (3) | (3) | ||||||
Ending Balance at Dec. 31, 2016 | 7,697 | 2 | 9,531 | $ (104) | (3,775) | 2,043 | ||
Net (loss) income | 559 | 217 | 342 | |||||
Other comprehensive (loss) income (G) | (1,252) | (1,407) | 155 | |||||
Stock-based compensation (M) | 24 | 24 | ||||||
Common stock issued: compensation plans (M) | 43 | 43 | ||||||
Contributions (A) | 80 | 80 | ||||||
Distributions | (342) | (342) | ||||||
Other | (11) | (8) | (3) | |||||
Ending Balance at Dec. 31, 2017 | 6,798 | 2 | 9,590 | 113 | (5,182) | 2,275 | ||
Net (loss) income | 871 | 227 | 644 | |||||
Other comprehensive (loss) income (G) | 369 | 617 | (248) | |||||
Stock-based compensation (M) | 35 | 35 | ||||||
Common stock issued: compensation plans (M) | 23 | 23 | ||||||
Repurchase of common stock (M) | (50) | (50) | ||||||
Contributions (A) | 149 | 149 | ||||||
Distributions | (827) | (827) | ||||||
Other | 26 | 13 | 1 | 12 | ||||
Ending Balance at Dec. 31, 2018 | $ 7,394 | $ 2 | $ 9,611 | $ 341 | $ (4,565) | $ 2,005 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | A. Basis of Presentation Alcoa Corporation (or the “Company”) is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting, casting, and rolling), and energy generation. The Company has more than 40 operating locations (through direct and indirect ownership) in 10 countries around the world, situated primarily in Australia, Brazil, Canada, Iceland, Norway, Spain, and the United States. References in these Notes to “ParentCo” refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries (through October 31, 2016, at which time was renamed Arconic Inc. (Arconic)). Separation Transaction. On November 1, 2016 (the “Separation Date”), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic, effective at 12:01 a.m. Eastern Standard Time (the “Separation Transaction”). Alcoa Corporation includes the Alumina and Primary Metals segments, which comprised the bauxite mining, alumina refining, aluminum smelting and casting, and energy operations of ParentCo, as well as the Warrick, Indiana rolling operations and the 25.1% equity interest in the rolling mill at the joint venture in Saudi Arabia, both of which were part of ParentCo’s Global Rolled Products segment. Arconic includes the operations that comprise the Global Rolled Products (except for the aforementioned rolling operations that were included in Alcoa Corporation), Engineered Products and Solutions, and Transportation and Construction Solutions segments. ParentCo shareholders of record as of the close of business on October 20, 2016 (the “Record Date”) received one share of Alcoa Corporation common stock, representing in aggregate 80.1% of the common stock of the Company, for every three shares of ParentCo common stock held as of the close of business on the Record Date (cash was paid by ParentCo to its’ shareholders in lieu of fractional shares). Arconic retained the remaining 19.9% of Alcoa Corporation common stock ( Arconic sold this retained interest in 2017 ). To effect the Separation Transaction, ParentCo undertook a series of transactions to separate the net assets and certain legal entities of ParentCo, resulting in a cash payment of $1,072 to ParentCo by Alcoa Corporation (an additional $247 was paid to Arconic by the Company in 2017, including $243 associated with the sale of certain of the Alcoa Corporation’s energy operations – see Note C) In connection with the Separation Transaction, Alcoa Corporation and Arconic entered into certain agreements to implement the legal and structural separation between the two companies, govern the relationship between the Company and Arconic after the completion of the Separation Transaction, and allocate between Alcoa Corporation and Arconic various assets, liabilities, and obligations, including, among other things, employee benefits, environmental liabilities, intellectual property, and tax-related assets and liabilities. These agreements included a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, Transition Services Agreement, certain Patent, Know-How, Trade Secret License and Trademark License Agreements, and Stockholder and Registration Rights Agreement. ParentCo incurred costs to evaluate, plan, and execute the Separation Transaction, and Alcoa Corporation was allocated a pro rata portion of those costs based on segment revenue (see Cost Allocations below). ParentCo recognized $152 from January 2016 through October 2016 for costs related to the Separation Transaction, of which $68 was allocated to Alcoa Corporation. The allocated amounts were included in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Basis of Presentation. The Consolidated Financial Statements of Alcoa Corporation are prepared in conformity with accounting principles generally accepted in the United States of America (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. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation (see Recently Adopted Accounting Guidance in Note B). Principles of Consolidation. The Consolidated Financial Statements of the Company 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 applied to investments in affiliates and other joint ventures over which the Company has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for on the cost method. 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 the Company’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and a portion of the São Luís refinery, all in Brazil) and a portion (55%) of the Portland smelter (Australia) within the Company’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. In 2018, 2017, and 2016, AWAC received $149, $80, and $48, respectively, in contributions from Alumina Limited. Management evaluates whether an Alcoa Corporation entity or interest is a variable interest entity and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa Corporation does not have any variable interest entities requiring consolidation. Prior to the Separation Date, the Company did not operate as a separate, standalone entity. Alcoa Corporation’s operations were included in ParentCo’s financial results. Accordingly, for all periods prior to the Separation Date, the accompanying Consolidated Financial Statements were prepared from ParentCo’s historical accounting records and were presented on a standalone basis as if Alcoa Corporation’s operations had been conducted independently from ParentCo. Such Consolidated Financial Statements include the historical operations that were considered to comprise Alcoa Corporation’s businesses, as well as certain assets and liabilities that were historically held at ParentCo’s corporate level but were specifically identifiable or otherwise attributable to Alcoa Corporation. ParentCo’s net investment in these operations is reflected as Parent Company net investment on the accompanying Consolidated Financial Statements. All significant transactions and accounts within Alcoa Corporation have been eliminated. All significant intercompany transactions between ParentCo and Alcoa Corporation were included within Parent Company net investment on the accompanying Consolidated Financial Statements. Cost Allocations. The description and information on cost allocations is applicable for all periods included in the accompanying Consolidated Financial Statements prior to the Separation Date. The Consolidated Financial Statements of Alcoa Corporation include general corporate expenses of ParentCo that were not historically charged to Alcoa Corporation for certain support functions that were provided on a centralized basis, such as expenses related to finance, audit, legal, information technology, human resources, communications, compliance, facilities, employee benefits and compensation, and research and development activities. Such general corporate expenses were included on the accompanying Statement of Consolidated Operations within Cost of goods sold, Selling, general administrative and other expenses, and Research and development expenses. These expenses were allocated to Alcoa Corporation on the basis of direct usage when identifiable, with the remainder allocated based on Alcoa Corporation’s segment revenue as a percentage of ParentCo’s total segment revenue for both Alcoa Corporation and Arconic. All external debt not directly attributable to Alcoa Corporation was excluded from the Company’s Consolidated Balance Sheet. Financing costs related to these debt obligations were allocated to Alcoa Corporation based on the ratio of capital invested in Alcoa Corporation to the total capital invested by ParentCo in both Alcoa Corporation and Arconic, and were included on the accompanying Statement of Consolidated Operations within Interest expense. The following table reflects the allocations described above: 2016 Cost of goods sold (1) $ 40 Selling, general administrative, and other expenses (2) 150 Research and development expenses 2 Provision for depreciation, depletion, and amortization 18 Restructuring and other charges 1 Interest expense 198 Other income, net (7 ) (1) Allocation principally relates to expenses for ParentCo’s retained pension and other postretirement benefits associated with closed and sold operations. (2) Allocation includes costs incurred by ParentCo associated with the Separation Transaction (see Separation Transaction above). Management believes the assumptions regarding the allocation of ParentCo’s general corporate expenses and financing costs were reasonable. Nevertheless, the Consolidated Financial Statements of Alcoa Corporation may not include all of the actual expenses that would have been incurred and may not reflect the Company’s consolidated results of operations, financial position, and cash flows had it been a standalone company during the periods prior to the Separation Date. Actual costs that would have been incurred if Alcoa Corporation had been a standalone company would depend on multiple factors, including organizational structure, capital structure, and strategic decisions made in various areas, including information technology and infrastructure. Transactions between Alcoa Corporation and ParentCo were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these transactions is reflected on the accompanying Statement of Consolidated Cash Flows as a financing activity and on Alcoa Corporation’s Consolidated Balance Sheet as Parent Company net investment. Cash Management. The description and information on cash management is applicable for all periods included in the Consolidated Financial Statements prior to the Separation Date. Cash was managed centrally with certain net earnings reinvested locally and working capital requirements met from existing liquid funds. Accordingly, the cash and cash equivalents held by ParentCo at the corporate level were not attributed to Alcoa Corporation for any of the periods prior to the Separation Date. Only cash amounts specifically attributable to Alcoa Corporation were reflected in the Company’s Consolidated Balance Sheet. Transfers of cash, both to and from ParentCo’s centralized cash management system, were reflected as a component of Parent Company net investment on Alcoa Corporation’s Consolidated Balance Sheet and as a financing activity on the accompanying Consolidated Statement of Cash Flows. ParentCo had an arrangement with several financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables was completed through the use of a bankruptcy-remote special-purpose entity, which was a consolidated subsidiary of ParentCo. In connection with this arrangement, certain of Alcoa Corporation’s customer receivables were sold on a revolving basis to this bankruptcy-remote subsidiary of ParentCo; these sales were reflected as a component of Parent Company net investment on Alcoa Corporation’s Consolidated Balance Sheet. ParentCo participated in several accounts payable settlement arrangements with certain vendors and third-party intermediaries. These arrangements provided that, at the vendor’s request, the third-party intermediary advance the amount of the scheduled payment to the vendor, less an appropriate discount, before the scheduled payment date and ParentCo made payment to the third-party intermediary on the date stipulated in accordance with the commercial terms negotiated with its vendors. In connection with these arrangements, certain of Alcoa Corporation’s accounts payable were settled, at the vendor’s request, before the scheduled payment date; these settlements were reflected as a component of Parent Company net investment on Alcoa Corporation’s Consolidated Balance Sheet. Related Party Transactions. Alcoa Corporation buys products from and sells products to various related companies, consisting of entities in which the Company retains a 50% or less equity interest, at negotiated prices between the two parties. These transactions were not material to the financial position or results of operations of Alcoa Corporation for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | B. Summary of Significant Accounting Policies Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. Inventory Valuation. Inventories are carried at the lower of cost or market, with cost for a substantial portion of U.S. inventories and a small portion of Canadian inventories determined under the last-in, first-out (LIFO) method. The cost of other inventories is principally determined under the average-cost method. Effective January 1, 2019, Alcoa Corporation will discontinue the use of the LIFO method for the referenced inventories. The cost of these inventories will now be determined on the average-cost method. In accordance with GAAP, all prior periods presented in the Company’s Consolidated Financial Statements will be recast to retroactively apply this inventory costing change. Alcoa Corporation is still finalizing this change in accounting principle; however, management does not expect the inventory costing change to have a material impact on the Company’s Statement of Consolidated Operations for the year ended December 31, 2018. Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Also, interest related to the construction of qualifying assets is capitalized as part of the construction costs. Depreciation is recorded principally on the straight-line method at rates based on the estimated useful lives of the assets. For greenfield assets (i.e. construction of new assets on undeveloped land) the units of production method is used to record depreciation. These assets require a significant period (generally greater than one-year) to ramp-up to full production capacity. As a result, the units of production method is deemed a more systematic and rational method for recognizing depreciation on these assets. Depreciation is recorded on temporarily idled facilities until such time management approves a permanent closure. The following table details the weighted-average useful lives of structures and machinery and equipment by type of operation (numbers in years): Segment Structures Machinery and equipment Bauxite mining 35 16 Alumina refining 30 28 Aluminum smelting and casting 36 22 Energy generation 33 24 Aluminum rolling 31 23 Repairs and maintenance are charged to expense as incurred. Gains or losses from the sale of assets are generally recorded in Other expenses (income), net. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of assets also require significant judgments. Equity Investments. Alcoa Corporation invests in a number of privately-held companies, primarily through joint ventures and consortia, which are accounted for using the equity method. The equity method is applied in situations where Alcoa Corporation has the ability to exercise significant influence, but not control, over the investee. Management reviews equity investments for impairment whenever certain indicators are present suggesting that the carrying value of an investment is not recoverable. This analysis requires a significant amount of judgment from management to identify events or circumstances indicating that an equity investment is impaired. The following items are examples of impairment indicators: significant, sustained declines in an investee’s revenue, earnings, and cash flow trends; adverse market conditions of the investee’s industry or geographic area; the investee’s ability to continue operations measured by several items, including liquidity; and other factors. Once an impairment indicator is identified, management uses considerable judgment to determine if the impairment is other than temporary, in which case the equity investment is written down to its estimated fair value. An impairment that is other than temporary could significantly and adversely impact reported results of operations. Deferred Mining Costs. Alcoa Corporation recognizes deferred mining costs during the development stage of a mine life cycle. Such costs include the construction of access and haul roads, detailed drilling and geological analysis to further define the grade and quality of the known bauxite, and overburden removal costs. These costs relate to sections of the related mines where Alcoa Corporation is either currently extracting bauxite or is preparing for production in the near term. These sections are outlined and planned incrementally and generally are mined over periods ranging from one to five years, depending on mine specifics. The amount of geological drilling and testing necessary to determine the economic viability of the bauxite deposit being mined is such that the reserves are considered to be proven, and the mining costs are amortized based on this level of reserves. Deferred mining costs are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet. Goodwill and Other Intangible Assets. Goodwill is not amortized; it is instead reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods. The fair value that could be realized in an actual transaction may differ from that used to evaluate goodwill for impairment. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Alcoa Corporation has five reporting units, of which three are included in the Aluminum segment (smelting/casting, energy generation, and rolling operations). The remaining two reporting units are the Bauxite and Alumina segments. Of these five reporting units, only Bauxite and Alumina contain goodwill. As of December 31, 2018, the carrying value of the goodwill for Bauxite and Alumina was $51 and $100, respectively. These amounts include an allocation of goodwill held at the corporate level (see Note K). In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. Alcoa Corporation’s policy for its annual review of goodwill is to perform the qualitative assessment for all reporting units not subjected directly to the quantitative impairment test. Generally, management will proceed directly to the quantitative impairment test for each of its two reporting units that contain goodwill at least once during every three-year period, as part of its annual review of goodwill. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit. During the 2018 annual review of goodwill, management performed the qualitative assessment for the Alumina reporting unit. Management concluded it was not more likely than not that the respective estimated fair value of this reporting unit was less than the respective carrying value. As such, no further analysis was required. Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Alcoa Corporation uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market share, sales volumes and prices, production costs, tax rates, capital spending, discount rate, and working capital changes. Certain of these assumptions can vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The betas used in calculating the individual reporting units’ WACC rate are estimated for each business with the assistance of valuation experts. In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, an impairment loss equal to the excess of the reporting unit's carrying value over its fair value not to exceed the total amount of goodwill applicable to that reporting unit would be recognized. During the 2018 annual review of goodwill, management proceeded directly to the quantitative impairment test for the Bauxite reporting unit. The estimated fair value of this reporting unit was substantially in excess of its carrying value, resulting in no impairment. Management last proceeded directly to the quantitative impairment test for the Alumina reporting unit in 2016. At that time, the estimated fair value of the Alumina reporting unit was substantially in excess of its carrying value, resulting in no impairment. Additionally, in all prior years presented, there have been no triggering events that necessitated an impairment test for either the Bauxite or Alumina reporting units. Intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by type of operation (numbers in years): Segment Software Other intangible assets Bauxite mining 6 10 Alumina refining 6 20 Aluminum smelting and casting 4 39 Energy generation 3 28 Aluminum rolling 4 20 Asset Retirement Obligations. Alcoa Corporation recognizes asset retirement obligations (AROs) related to legal obligations associated with the standard operation of bauxite mines, alumina refineries, and aluminum smelters. These AROs consist primarily of costs associated with mine reclamation, closure of bauxite residue areas, spent pot lining disposal, and landfill closure. Alcoa Corporation also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities. The fair values of these AROs are recorded on a discounted basis, at the time the obligation is incurred, and accreted over time for the change in present value. Additionally, Alcoa Corporation capitalizes asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful life. Certain conditional asset retirement obligations (CAROs) related to alumina refineries, aluminum smelters, rolling mills, and energy generation facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. A CARO is a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within Alcoa Corporation’s control. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made (e.g., planned demolition), Alcoa Corporation would record an ARO for the removal, treatment, transportation, storage, and/or disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, polychlorinated biphenyls (PCBs), various process residuals, solid wastes, electronic equipment waste, and various other materials. Such amounts may be material to the Consolidated Financial Statements in the period in which they are recorded. Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery, which are recognized as agreements are reached with third parties. The estimates also include costs related to other potentially responsible parties to the extent that Alcoa Corporation has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Management determines the likelihood of an unfavorable outcome based on many factors such as, among others, the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters. Once an unfavorable outcome is deemed probable, management weighs the probability of estimated losses, and the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed to be reasonably possible, then the matter is disclosed and no liability is recorded. With respect to unasserted claims or assessments, management must first determine that the probability that an assertion will be made is likely, then, a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. Revenue Recognition. The Company recognizes revenue when it satisfies a performance obligation(s) in accordance with the provisions of a customer order or contract. This is achieved when control of the product has been transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (commercial delivery truck, train, or vessel). Accordingly, except for the sale of electricity, the sale of Alcoa Corporation’s products to its customers represent single performance obligations for which revenue is recognized at a point in time. Based on the foregoing, no significant judgment is required to determine when control of a product has been transferred to a customer. The Company measures revenue based on the consideration it expects to be entitled to receive in exchange for its products. The standard terms and conditions of customer orders and contracts include general rights of return and product warranty provisions related to nonconforming or “out-of-spec” product. Depending on the circumstances, the product is either replaced or a quality adjustment is issued. Historically, such returns and adjustments have not been material to Alcoa Corporation’s Consolidated Financial Statements. The Company considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a result, customer payments of shipping and handling costs are recorded as a component of revenue. Also, Alcoa Corporation may collect various taxes (e.g., sales, use, value-added, excise) from its customers related to the sale of its products and remit such amounts to governmental authorities. As such, amounts paid to the Company for these types of taxes are excluded from the transaction price used to determine the proper measurement of revenue. Stock-Based Compensation. For all periods prior to the Separation Date, eligible employees attributable to Alcoa Corporation operations participated in ParentCo’s stock-based compensation plans. The compensation expense recorded by Alcoa Corporation included the expense associated with these employees, as well as the expense associated with the allocation of stock-based compensation expense for ParentCo’s corporate employees. Beginning on the Separation Date and forward, Alcoa Corporation recorded stock-based compensation expense for all eligible Company employees. The following accounting policy describes how stock-based compensation expense is initially determined for both Alcoa Corporation and ParentCo. Compensation expense for employee equity grants is recognized using the non-substantive vesting period approach, in which the expense (net of estimated forfeitures) is recognized ratably over the requisite service period based on the grant date fair value. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. Most plan participants can choose whether to receive their award in the form of stock options, stock units, or a combination of both. This choice is made before the grant is issued and is irrevocable. Pension and Other Postretirement Benefit Plans. For all periods prior to August 1, 2016 (see below), certain employees attributable to Alcoa Corporation operations participated in defined benefit pension and other postretirement benefit plans (the “Shared Plans”) sponsored by ParentCo, which also included participants attributable to non-Alcoa Corporation operations. Alcoa Corporation accounted for these Shared Plans as multiemployer benefit plans. Accordingly, Alcoa Corporation did not record an asset or liability to recognize the funded status of the Shared Plans. However, the related expense recorded by Alcoa Corporation was based primarily on pensionable compensation and estimated interest costs related to employees attributable to Alcoa Corporation operations. Prior to the Separation Date, certain other plans that were entirely attributable to employees of Alcoa Corporation-related operations (the “Direct Plans”) were accounted for as defined benefit pension and other postretirement benefit plans. Accordingly, the funded and unfunded position of each Direct Plan was recorded in the Consolidated Balance Sheet. Actuarial gains and losses that had not yet been recognized through earnings were recorded in accumulated other comprehensive income, net of taxes, until they were amortized as a component of net periodic benefit cost. The determination of benefit obligations and recognition of expenses related to the Direct Plans is dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, and future compensation increases. ParentCo’s management developed each assumption using relevant company experience in conjunction with market-related data for each individual location in which such plans exist. In preparation for the Separation Transaction, effective August 1, 2016, certain of the Shared Plans were separated into standalone plans for both Alcoa Corporation and ParentCo (see Note N). Additionally, certain of the other remaining Shared Plans were assumed by Alcoa Corporation (See Note N). Accordingly, beginning on August 1, 2016 and forward, the standalone plans and assumed plans were accounted for as defined benefit pension and other postretirement plans. Additionally, the Direct Plans continued to be accounted for as defined benefit pension and other postretirement plans. Derivatives and Hedging. Derivatives are held for purposes other than trading and are part of a formally documented risk management program. Alcoa Corporation accounts for hedges of firm customer commitments for aluminum as fair value hedges. The fair values of the derivatives and changes in the fair values of the underlying hedged items are reported as assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in Sales, consistent with the underlying hedged item. The Company accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded as assets and liabilities in the Consolidated Balance Sheet. The changes in the fair values of these derivatives are recorded in Other comprehensive income (loss) and are reclassified to Sales, Cost of goods sold, or Other expenses (income), net in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years. On April 1, 2018, Alcoa Corporation adopted new accounting guidance for hedging activities (see Recently Adopted Accounting Guidance below), which included the elimination of the concept of ineffectiveness, effective on January 1, 2018. Accordingly, there is no longer a requirement to separately measure and report ineffectiveness. Therefore, the following policy description of effectiveness was applicable to periods prior to January 1, 2018. For derivatives designated as fair value hedges, Alcoa Corporation measures hedge effectiveness by formally assessing, at inception and at least quarterly, the historical high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. For derivatives designated as cash flow hedges, Alcoa Corporation measures hedge effectiveness by formally assessing, at inception and at least quarterly, the probable high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The ineffective portions of both types of hedges are recorded in Sales or Other expenses (income), net in the current period. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, future gains or losses on the derivative instrument are recorded in Other expenses (income), net. If no hedging relationship is designated, the derivative is marked to market through Other expenses (income), net. Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions. Income Taxes. Beginning on the Separation Date and forward, the provision for income taxes was determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Alcoa Corporation’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. In all periods prior to the Separation Date, Alcoa Corporation’s operations were included in the income tax filings of ParentCo. The provision for income taxes in Alcoa Corporation’s Statement of Consolidated Operations was determined in the same manner described above, but on a separate return methodology as if the Company was a standalone taxpayer filing hypothetical income tax returns where applicable. Any additional accrued tax liability or refund arising as a result of this approach was assumed to be immediately settled with ParentCo as a component of Parent Company net investment. Deferred tax assets were also determined in the same manner described above and were reflected in the Consolidated Balance Sheet for net operating losses, credits or other attributes to the extent that such attributes were expected to transfer to Alcoa Corporation upon the Separation Transaction. Any difference from attributes generated in a hypothetical return on a separate return basis was adjusted as a component of Parent Company net investment. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa Corporation’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Foreign Currency. The local currency is the functional currency for Alcoa Corporation’s significant operations outside the United States, except for certain operations in Canada and Iceland, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Alcoa Corporation’s operations is made based on the appropriate economic and management indicators. Recently Adopted Accounting Guidance. On January 1, 2018, Alcoa Corporation adopted changes issued by the Financial Accounting Standards Board (FASB) to the recognition of revenue from contracts with customers. This guidance created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. Management’s assessment of this guidance was applied only to those customer contracts that were open on the date of adoption under the modified retrospective method. Through a previously established project team, the Company completed a detailed review of the terms and provisions of its customer contracts, as well as evaluated these contracts under the new guidance, throughout 2017 and concluded that Alcoa Corporation’s revenue recognition practices were in compliance with this framework. That said, the Company did make some minor modifications to its internal accounting policies and internal control structure to ensure that any future customer contracts that may have different terms and conditions of those that the Company has today are properly evaluated under the new guidance. Other than providing additional disclosure (see Revenue Recognition above and the Product Information section in Note E), the adoption of this guidance had no impact on the Consolidated Financial Statements. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting and reporting of certain equity investments. This guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | C. Acquisitions and Divestitures In February 2017, Alcoa Corporation’s wholly-owned subsidiary, Alcoa Power Generating Inc., completed the sale of its 215-megawatt Yadkin Hydroelectric Project (Yadkin) to Cube Hydro Carolinas, LLC for $249 in cash ($8 of which was received in June and November 2017 combined as post-closing adjustments). In 2017, Alcoa Corporation recognized a gain of $122 (pre- and after-tax) in Other expenses, net on the accompanying Statement of Consolidated Operations. In accordance with the Separation and Distribution Agreement (see Note A), Alcoa Corporation remitted $243 of the proceeds to Arconic. At December 31, 2016, Alcoa Corporation had a liability of $243, which was included in Other current liabilities on the Company’s Consolidated Balance Sheet. The sale of Yadkin is subject to further post-closing adjustments related to potential earnouts through January 31, 2027, unless the provisions of the earnouts are met earlier. Any such adjustment would result in Alcoa Corporation receiving additional cash (none of which would be remitted to Arconic) and recognizing nonoperating income. Yadkin encompasses four hydroelectric power developments (reservoirs, dams, and powerhouses), known as High Rock, Tuckertown, Narrows, and Falls, situated along a 38-mile stretch of the Yadkin River through the central part of North Carolina. Prior to the divestiture, the power generated by Yadkin was primarily sold into the open market. Yadkin generated sales of $29 in 2016, and had approximately 30 employees as of December 31, 2016. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges | D. Restructuring and Other Charges Restructuring and other charges for each year in the three-year period ended December 31, 2018 were comprised of the following: 2018 2017 2016 Settlements and/or curtailments related to retirement benefits (N) $ 331 $ 8 $ 17 Allowance on value-added tax credits (S) 107 — — Power contract payments – non-recurring 62 244 — Asset impairments 18 40 155 Asset retirement obligations (Q) 5 10 97 Environmental remediation (R) 2 8 26 Layoff costs 2 15 15 Legal matter in Italy (R) — (22 ) — Other 48 49 44 Reversals of previously recorded layoff and other costs (48 ) (43 ) (36 ) Restructuring and other charges $ 527 $ 309 $ 318 * In 2016, Other includes $1 related to the allocation of restructuring charges to Alcoa Corporation from ParentCo (see Note A). Layoff costs were recorded based on approved detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts or statutory requirements, and the expected timetable for completion of the plans. 2018 Actions. In 2018, Alcoa Corporation recorded Restructuring and other charges of $527, which were comprised of the following components: $331 (net) related to settlements and curtailments of certain pension and other postretirement employee benefits (see Note N); $107 to establish an allowance on certain value-added tax credits related to the Company’s operations in Brazil (see Note S); $86 for additional costs related to the curtailed Wenatchee (Washington) smelter, including $73 associated with 2018 management decisions (see below); a $15 net benefit related to the Portovesme (Italy) smelter, composed of a $38 reversal and a $23 charge (see “Italy 148” in the Litigation section of Note R); and an $18 net charge for other items. In June 2018, management decided not to restart the fully curtailed Wenatchee smelter within the term provided in the related electricity supply agreement. Alcoa Corporation was therefore required to make a $62 payment to the energy supplier under the provisions of the agreement. Additionally, management decided to permanently close one (38 kmt) of the four potlines at this smelter. This potline has not operated since 2001 and the investments needed to restart this line are cost prohibitive. The remaining three curtailed potlines have a capacity of 146 kmt. In connection with these decisions, the Company recognized a charge of $73, composed of the $62 payment, $10 for asset impairments, and $1 for asset retirement obligations triggered by the decision to decommission the potline. 2017 Actions. In 2017, Alcoa Corporation recorded Restructuring and other charges of $309, which were comprised of the following components: $244 related to the early termination of a power contract (see below); $49 for exit costs related to a decision to permanently close and demolish a smelter (see below); $41 for additional contract costs related to the curtailed Wenatchee and São Luís (Brazil) smelters; $22 for layoff costs, including the separation of approximately 130 employees (115 in the Aluminum segment), mostly for voluntary separation programs; a $22 reversal to reduce a reserve previously established at the end of 2015 related to a legal matter in Italy (see “Italy 148” in the Litigation section of Note R); an $18 net charge for other items, including the relocation of the Company’s headquarters and principal executive office from New York, New York to Pittsburgh, Pennsylvania; and a $43 reversal associated with several reserves related to prior periods (see below). In October 2017, Alcoa Corporation and Luminant Generation Company LLC (Luminant) executed an early termination agreement of a power contract, as well as other related fuel and lease agreements, effective October 1, 2017, related to the Company’s Rockdale (Texas) smelter, which has been fully curtailed since the end of 2008. In accordance with the terms of the early termination agreement, Alcoa made a cash payment of $238 and transferred approximately 2,200 acres of related land and other assets and liabilities to Luminant (net asset carrying value of $6). Since the curtailment of the Rockdale smelter, the Company had been selling surplus electricity into the energy market. The power contract was set to expire no earlier than 2038, except for limited circumstances in which one or both parties could elect to early terminate without penalty for which conditions had never been met. In 2017 (through September 30) and 2016, Alcoa Corporation recognized $105 and $141, respectively, in Sales and $148 and $210, respectively, in Cost of goods sold on the accompanying Statement of Consolidated Operations related to the sale of the surplus electricity and the cost of the Luminant power contract. As a result of the early termination of the power contract, Alcoa initiated a strategic review of the remaining buildings and equipment associated with the smelter, casthouse, and the aluminum powder plant at the Rockdale location. ParentCo previously decided to curtail the operating capacity of the Rockdale smelter in 2008 as a result of an uncompetitive power supply and then-overall unfavorable market conditions. Under this review, which was completed in December 2017, management determined that the Rockdale operations have limited economic prospects. Consequently, management approved the permanent closure and demolition of the Rockdale smelter (capacity of 191 kmt-per-year) and related operations effective immediately. Demolition and remediation activities related to this action began in 2018 and are expected to be completed by the end of 2022. Separately, the Company continues to own more than 30,000 acres of land surrounding the Rockdale operations. In 2017, costs related to this decision included asset impairments of $32, representing the write-off of the remaining book value of all related properties, plants, and equipment; $1 for the layoff of approximately 10 employees (Corporate); and $16 in other costs. Additionally in 2017, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value, resulting in a charge of $6, which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other costs of $16 represent $8 in asset retirement obligations and $8 in environmental remediation, both of which were triggered by the decisions to permanently close and demolish the Rockdale facilities. In July 2017, Alcoa Corporation announced plans to restart three (capacity of 161 kmt-per-year) of the five potlines (capacity of 269 kmt-per-year) at the Warrick (Indiana) smelter. This smelter was previously permanently closed in March 2016 by ParentCo (see 2016 Actions below). The capacity identified for restart will directly supply the existing rolling mill at the Warrick location to improve efficiency of the integrated site and provide an additional source of metal to help meet an anticipated increase in production volumes. As a result of the decision to reopen this smelter, in 2017, Alcoa Corporation reversed $33 in remaining liabilities related to the original closure decision. These liabilities consisted of $20 in asset retirement obligations and $4 in environmental remediation obligations, which were necessary due to the previous decision to demolish the smelter, and $9 in severance and contract termination costs. Additionally, the carrying value of the smelter and related assets was reduced to zero as the smelter ramped down between the permanent closure decision date (end of 2015) and the end of March 2016. Once these assets are placed back into service in conjunction with the restart, their carrying value will remain zero. As such, only newly acquired or constructed assets related to the Warrick smelter will be depreciated. As of December 31, 2018, the separations associated with 2017 restructuring programs were essentially complete. In 2018 and 2017, cash payments of $3 and $9, respectively, were made against layoff reserves related to 2017 restructuring programs. 2016 Actions. In 2016, Alcoa Corporation recorded Restructuring and other charges of $318, which were comprised of the following components: $131 for exit costs related to a decision to permanently close and demolish a refinery (see below); $87 for additional net costs related to decisions made in late 2015 to permanently close and demolish the Warrick smelter and to curtail both the Wenatchee smelter and Point Comfort (Texas) refinery; $72 for the impairment of an interest in gas exploration assets in Western Australia (see below); $32 for layoff costs related to cost reduction initiatives, including the separation of approximately 75 employees (60 in the Aluminum segment and 15 in the Bauxite segment) and related pension settlement costs (see Note N); an $8 net charge for other items; and a $12 reversal associated with a number of small layoff reserves related to prior periods. In December 2016, management approved the permanent closure of the Suralco refinery (capacity of 2,207 kmt-per-year) in Suriname. The Suralco refinery had been fully curtailed since November 2015. Management of ParentCo decided to curtail the remaining operating capacity of the Suralco refinery during 2015 in an effort to improve the position of ParentCo’s refining operations on the global alumina cost curve. Since that time, management of ParentCo (through October 31, 2016) and then separately management of Alcoa Corporation (from November 1, 2016 through the end of 2016) had been in discussions with the Government of the Republic of Suriname to determine the best long-term solution for Suralco due to limited bauxite reserves and the absence of a long-term energy alternative. The decision to permanently close the Suralco refinery was based on the ultimate conclusion of those discussions. Demolition and remediation activities related to this action began in 2017 and are expected to be completed by the end of 2022. The related bauxite mines in Suriname will also be permanently closed while the hydroelectric facility that supplied power to the Suralco refinery, known as Afobaka, will continue to operate and supply power to the Government of the Republic of Suriname. In 2016, costs related to the closure and curtailment actions included accelerated depreciation of $70 related to the Warrick smelter as it continued to operate through March 2016; asset impairments of $16, representing the write-off of the remaining book value of various assets; a reversal of $24 associated with severance costs initially recorded in late 2015; and $156 in other costs. Additionally in 2016, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value, resulting in a charge of $5, which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other costs of $156 represent $94 in asset retirement obligations and $26 in environmental remediation, both of which were triggered by the decisions to permanently close and demolish the Suralco refinery (includes the rehabilitation of related bauxite mines) and the rehabilitation of a coal mine related to the Warrick smelter, $32 for contract terminations, and $4 in other related costs. Also in December 2016, management of Alcoa Corporation concluded that an interest in certain gas exploration assets in Western Australia has been impaired. AofA owns an interest in a gas exploration project (relinquished in June 2018) that was initially entered into in 2007 as a potential source of low-cost gas to supply AofA’s refineries in Western Australia. This interest, now at 43% (as of December 31, 2016), relates to four separate gas wells. In late 2016, AofA received the results of a technical analysis performed earlier in the year for two of the wells and an updated analysis for a third well that concluded that the cost of gas recovery would be significantly higher than the market price of gas. For the fourth well, the results of a technical analysis performed prior to 2016 indicated that the cost of gas recovery would be lower than the market price of gas and, therefore, would require additional investment to move to the next phase of commercial evaluation, which management previously supported. In late 2016, management re-evaluated its options related to the fourth well and decided it is not economical to make such a commitment for the foreseeable future. As a result, AofA fully impaired its $72 interest. As of June 30, 2017, the separations associated with 2016 restructuring programs were essentially complete. In 2017 and 2016, cash payments of $2 and $7, respectively, were made against layoff reserves related to 2016 restructuring programs. Alcoa Corporation does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: 2018 2017 2016 Bauxite $ 1 $ 2 $ (5 ) Alumina 112 3 72 Aluminum 102 51 75 Segment total 215 56 142 Corporate 312 253 176 Total restructuring and other charges $ 527 $ 309 $ 318 Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2015 $ 137 $ 15 $ 152 2016: Cash payments (74 ) (35 ) (109 ) Restructuring charges 32 168 200 Other* (57 ) (120 ) (177 ) Reserve balances at December 31, 2016 38 28 66 2017 Cash payments (30 ) (43 ) (73 ) Restructuring charges 23 67 90 Other* (20 ) (18 ) (38 ) Reserve balances at December 31, 2017 11 34 45 2018 Cash payments (7 ) (95 ) (102 ) Restructuring charges 2 117 119 Other* (1 ) (14 ) (15 ) Reserve balances at December 31, 2018 $ 5 $ 42 $ 47 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2017 and 2016, Other for Layoff costs also included a reclassification of $8 and $16 in pension and/or other postretirement benefits costs, as these obligations were included in Alcoa Corporation’s separate liability for pension and other postretirement benefits obligations (see Note N). Additionally, in 2018, 2017, and 2016, Other for Other costs also included a reclassification of the following restructuring charges: $5, $10, and $97, respectively, in asset retirement and $2, $8, and $26, respectively, in environmental obligations, as these liabilities were included in Alcoa Corporation’s separate reserves for asset retirement obligations (see Note Q) and environmental remediation (see Note R) The remaining reserves are expected to be paid in cash during 2019, with the exception of $9, of which $8 is expected to be paid in 2020 related to the Portovesme smelter (see “Italy 148” in the Litigation section of Note R). |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Related Information | E. Segment and Related Information Segment Information Alcoa Corporation is a producer of bauxite, alumina, and aluminum products (primary and flat-rolled). The Company has three operating and reportable segments, which are organized by product on a global basis: Bauxite, Alumina, and Aluminum. 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) of 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 Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The chief operating decision maker function regularly reviews the financial information, including Sales and Adjusted EBITDA, of these three operating segments to assess performance and allocate resources. Segment assets include, among others, customer receivables (third-party and intersegment), inventories (excluding LIFO adjustments), properties, plants, and equipment, and equity investments. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note B). Transactions among segments are established based on negotiation among the parties. Differences between segment totals and Alcoa Corporation’s consolidated totals for line items not reconciled are in Corporate. The following are detailed descriptions of Alcoa Corporation’s reportable segments: Bauxite. This segment represents the Company’s global bauxite mining operations. A portion of this segment’s production represents the offtake from equity method investments in Brazil and Guinea, as well as AWAC’s share of production related to an equity investment in Saudi Arabia. The bauxite mined by this segment is sold primarily to internal customers within the Alumina segment; a portion of the bauxite is sold to external customers. Bauxite mined by this segment and used internally is transferred to the Alumina segment at negotiated terms that are intended to approximate market prices; sales to third-parties are conducted on a contract basis. Generally, this segment’s sales are transacted in U.S. dollars while costs and expenses are transacted in the local currency of the respective operations, which are the Australian dollar and the Brazilian real. Most of the operations that comprise the Bauxite segment are part of AWAC (see Principles of Consolidation in Note A). Alumina. This segment represents the Company’s worldwide refining system, which processes bauxite into alumina. The alumina produced by this segment is sold primarily to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. Approximately two-thirds of Alumina’s production is sold under supply contracts to third parties worldwide, while the remainder is used internally by the Aluminum segment. Alumina produced by this segment and used internally is transferred to the Aluminum segment at prevailing market prices. A portion of this segment’s third-party sales are completed through the use of agents, alumina traders, and distributors. Generally, this segment’s sales are transacted in U.S. dollars while costs and expenses are transacted in the local currency of the respective operations, which are the Australian dollar, the Brazilian real, the U.S. dollar, and the euro. Most of the operations that comprise the Alumina segment are part of AWAC (see Principles of Consolidation in Note A). This segment also includes AWAC’s 25.1% ownership interest in a mining and refining joint venture company in Saudi Arabia (see Note H). Aluminum. This segment consists of the Company’s (i) worldwide smelting and casthouse system, which processes alumina into primary aluminum, (ii) portfolio of energy assets in Brazil, Canada, and the United States, and (iii) rolling mill in the United States. Aluminum’s combined smelting and casting operations produce primary aluminum products, virtually all of which is sold to external customers and traders; a portion of this primary aluminum is consumed by the rolling mill. The smelting operations produce molten primary aluminum, which is then formed by the casting operations into either common alloy ingot (e.g., t-bar, sow, standard ingot) or into value-add ingot products (e.g., foundry, billet, rod, and slab). A variety of external customers purchase the primary aluminum products for use in fabrication operations, which produce products primarily for the transportation, building and construction, packaging, wire, and other industrial markets. Results from the sale of aluminum powder and scrap are also included in this segment, as well as the impacts of embedded aluminum derivatives (see Note O) related to energy supply contracts. The energy assets supply power to external customers in Brazil and, to a lesser extent, in the United States, and internal customers in the Aluminum (Canadian smelters and Warrick (Indiana) smelter and rolling mill) and Alumina segments (Brazilian refineries). The rolling mill produces aluminum sheet primarily sold directly to customers in the packaging market for the production of aluminum cans (beverage and food). Additionally, from the Separation Date through the end of 2018, Alcoa Corporation had a tolling arrangement (contractually ended on December 31, 2018) with Arconic whereby Arconic’s rolling mill in Tennessee produced can sheet products for certain customers of the Company’s rolling operations. Alcoa Corporation supplied all of the raw materials to the Tennessee facility and paid Arconic for the tolling service. Seasonal increases in can sheet sales are generally experienced in the second and third quarters of the calendar year. Generally, this segment’s aluminum sales are transacted in U.S. dollars while costs and expenses of this segment are transacted in the local currency of the respective operations, which are the U.S. dollar, the euro, the Norwegian krone, the Icelandic krona, the Canadian dollar, the Brazilian real, and the Australian dollar. This segment also includes Alcoa Corporation’s 25.1% ownership interest in both a smelting and rolling mill joint venture company in Saudi Arabia (see Note H). The operating results, capital expenditures, and assets of Alcoa Corporation’s reportable segments were as follows: Bauxite Alumina Aluminum Total 2018 Sales: Third-party sales $ 271 $ 4,215 $ 8,829 $ 13,315 Intersegment sales 944 2,101 18 3,063 Total sales $ 1,215 $ 6,316 $ 8,847 $ 16,378 Adjusted EBITDA $ 426 $ 2,373 $ 404 $ 3,203 Supplemental information: Depreciation, depletion, and amortization $ 111 $ 197 $ 394 $ 702 Equity income (loss) — 32 (38 ) (6 ) 2017 Sales: Third-party sales $ 333 $ 3,133 $ 8,027 $ 11,493 Intersegment sales 875 1,723 21 2,619 Total sales $ 1,208 $ 4,856 $ 8,048 $ 14,112 Adjusted EBITDA $ 424 $ 1,289 $ 1,012 $ 2,725 Supplemental information: Depreciation, depletion, and amortization $ 82 $ 207 $ 419 $ 708 Equity loss — (5 ) (19 ) (24 ) 2016 Sales: Third-party sales $ 315 $ 2,300 $ 6,531 $ 9,146 Intersegment sales 751 1,307 42 2,100 Total sales $ 1,066 $ 3,607 $ 6,573 $ 11,246 Adjusted EBITDA $ 374 $ 376 $ 703 $ 1,453 Supplemental information: Depreciation, depletion, and amortization $ 77 $ 186 $ 414 $ 677 Equity loss — (40 ) (24 ) (64 ) 2018 Assets: Capital expenditures $ 47 $ 194 $ 125 $ 366 Equity investments 189 290 856 1,335 Total assets 1,448 4,643 7,722 13,813 2017 Assets: Capital expenditures $ 53 $ 144 $ 178 $ 375 Equity investments 191 262 930 1,383 Total assets 1,609 5,129 8,060 14,798 The following tables reconcile certain segment information to consolidated totals: 2018 2017 2016 Sales: Total segment sales $ 16,378 $ 14,112 $ 11,246 Elimination of intersegment sales (3,063 ) (2,619 ) (2,100 ) Other 88 159 172 Consolidated sales $ 13,403 $ 11,652 $ 9,318 2018 2017 2016 Net income (loss) attributable to Alcoa Corporation: Total segment Adjusted EBITDA $ 3,203 $ 2,725 $ 1,453 Unallocated amounts: Transformation (1),(2) (3 ) (49 ) (168 ) Corporate inventory accounting (1),(3) 11 (107 ) (14 ) Corporate expenses (4) (96 ) (131 ) (171 ) Provision for depreciation, depletion, and amortization (733 ) (750 ) (718 ) Restructuring and other charges (D) (527 ) (309 ) (318 ) Interest expense (S) (122 ) (104 ) (243 ) Other (expenses) income, net (S) (64 ) (27 ) 65 Other (5) (72 ) (89 ) (48 ) Consolidated income (loss) before income taxes 1,597 1,159 (162 ) Provision for income taxes (P) (726 ) (600 ) (184 ) Net income attributable to noncontrolling interest (644 ) (342 ) (54 ) Consolidated net income (loss) attributable to Alcoa Corporation $ 227 $ 217 $ (400 ) (1) (2) (3) Corporate inventory accounting is composed of the impacts of LIFO inventory accounting, metal price lag, and intersegment profit eliminations. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by Alcoa Corporation’s rolled aluminum operations. In general, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable. (4) 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. (5) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments. December 31, 2018 2017 Assets: Total segment assets $ 13,813 $ 14,798 Elimination of intersegment receivables (271 ) (299 ) Unallocated amounts: Cash and cash equivalents 1,113 1,358 LIFO reserve (307 ) (306 ) Corporate fixed assets, net 520 520 Corporate goodwill 146 148 Deferred income taxes 563 814 Other 361 414 Consolidated assets $ 15,938 $ 17,447 Product Information Alcoa Corporation has five product divisions as follows: Bauxite— Bauxite is a reddish clay rock that is mined from the surface of the earth’s terrain. This ore is the basic raw material used to produce alumina and is the primary source of aluminum. Alumina— Alumina is an oxide that is extracted from bauxite and is the basic raw material used to produce primary aluminum. This product can also be consumed for non-metallurgical purposes, such as industrial chemical products. Primary aluminum— Primary aluminum is metal in the form of a common alloy ingot (e.g., t-bar, sow, standard ingot) or a value-add ingot (e.g., billet, rod, and slab). These products are sold primarily to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets. Flat-rolled aluminum— Flat-rolled aluminum is metal in the form of sheet, which is sold primarily to customers that produce beverage and food cans, including body, tab, and end stock. Energy— Energy is the generation of electricity, which is sold in the wholesale market to traders, large industrial consumers, distribution companies, and other generation companies. The following table represents the general commercial profile of the Company’s Bauxite, Alumina, Primary aluminum, and Flat-rolled aluminum product divisions (see text below table for Energy): Product division Pricing components Shipping terms (4) Payment terms (5) Bauxite Negotiated FOB/CIF LC Sight Alumina: Smelter-grade API (1) FOB LC Sight/CAD/Net 30 days Non-metallurgical Negotiated FOB/CIF Net 30 days Primary aluminum: Common alloy ingot LME + Regional premium (2) DAP/CIF Net 30 to 45 days Value-add ingot LME + Regional premium + Product premium (2) DAP/CIF Net 30 to 45 days Flat-rolled aluminum Metal + Conversion (3) DAP Negotiated ( 1) API (Alumina Price Index) is a pricing mechanism that is calculated by the Company based on the weighted average of a prior month’s daily spot prices published by the following three indices: CRU Metallurgical Grade Alumina Price; Platts Metals Daily Alumina PAX Price; and Metal Bulletin Non-Ferrous Metals Alumina Index (2) LME (London Metal Exchange) is a globally recognized exchange for commodity trading, including aluminum. The LME pricing component represents the underlying base metal component, based on quoted prices for aluminum on the exchange. The regional premium represents the incremental price over the base LME component that is associated with the physical delivery of metal to a particular region (e.g., the Midwest premium for metal sold in the United States). The product premium represents the incremental price for receiving physical metal in a particular shape (e.g., billet, rod, slab, etc.) or alloy (3) M etal represents the underlying base metal component plus a regional premium (see footnote 2). Conversion represents the incremental price over the metal price component that is associated with converting primary or scrap aluminum into sheet (4) CIF (cost, insurance, and freight) means that the Company pays for these items until the product reaches the buyer’s designated destination point related to transportation by vessel. DAP (delivered at place) means the same as CIF related to all methods of transportation. FOB (free on board) means that the Company pays for costs, insurance, and freight until the product reaches the seller’s designated shipping point. (5) The net number of days means that the customer is required to remit payment to the Company for the invoice amount within the designated number of days. LC Sight is a letter of credit that is payable immediately (usually within five to ten business days) after a seller meets the requirements of the letter of credit (i.e. shipping documents that evidence the seller performed its obligations as agreed to with a buyer). CAD (cash against documents) is a payment arrangement in which a seller instructs a bank to provide shipping and title documents to the buyer at the time the buyer pays in full the accompanying bill of exchange. For the Company’s Energy product division, sales of electricity are based on current market prices. Electricity is provided to customers on demand through a national or regional power grid; the customer simultaneously receives and consumes the electricity. Payment terms are generally within 10 days related to the previous 30 days of electricity consumption. The following table details Alcoa Corporation’s Sales by product division: 2018 2017 2016 Sales: Primary aluminum $ 6,787 $ 6,168 $ 5,204 Alumina 4,209 3,121 2,280 Flat-rolled aluminum 1,884 1,666 1,068 Energy 335 446 422 Bauxite 254 333 315 Other* (66 ) (82 ) 29 $ 13,403 $ 11,652 $ 9,318 * Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note O). Geographic Area Information Geographic information for Sales was as follows (based upon the country where the point of sale originated): 2018 2017 2016 Sales: United States (1) $ 5,941 $ 5,370 $ 4,365 Spain (2) 3,806 3,303 2,663 Australia 2,930 2,266 1,644 Brazil 498 569 432 Canada 162 93 141 Other 66 51 73 $ 13,403 $ 11,652 $ 9,318 (1) Sales of a portion of the alumina from refineries in Australia, Brazil, and Suriname (prior to closure in December 2016) and most of the aluminum from smelters in Canada occurred in the United States. (2) Sales of the aluminum produced from smelters in Iceland and Norway, as well as the off-take related to an interest in the Saudi Arabia joint venture (see Note H), occurred in Spain. Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2018 2017 Long-lived assets: Australia $ 2,002 $ 2,220 Brazil 1,729 2,111 United States 1,599 1,658 Iceland 1,216 1,276 Canada 1,064 1,116 Norway 381 427 Spain 321 316 Other 15 14 $ 8,327 $ 9,138 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | F. Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing Net income (loss) attributable to Alcoa Corporation 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 (in millions): 2018 2017 2016 Average shares outstanding—basic 186 184 183 Effect of dilutive securities: Stock options 1 1 — Stock units 2 2 — Average shares outstanding—diluted 189 187 183 Options to purchase 1 million shares of common stock outstanding as of December 31, 2018 at a weighted average exercise price of $38.67 per share were not included in the computation of diluted EPS because the exercise prices of these options were greater than the average market price of Alcoa Corporation’s common stock. In 2016, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Options to purchase 1 million shares of common stock outstanding as of December 31, 2016 at a weighted average exercise price of $33.05 per share were not included in the computation of diluted EPS because the exercise prices of these options were greater than the average market price of Alcoa Corporation’s common stock. Additionally, 1 million stock units and stock options combined were not included in the computation of diluted EPS because Alcoa Corporation generated a net loss. Had Alcoa Corporation generated net income in 2016, 1 million potential shares of common stock related to stock units and stock options combined would have been included in diluted average shares outstanding. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [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 2018 2017 2016 2018 2017 2016 Pension and other postretirement benefits (N) Balance at beginning of period $ (2,786 ) $ (2,330 ) $ (352 ) $ (47 ) $ (56 ) $ (56 ) Establishment of additional defined benefit plans — — (2,704 ) — — — Separation-related adjustments (A) — — 928 — — — Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 19 (671 ) (307 ) (3 ) 9 2 Tax (expense) benefit (8 ) 25 6 — (2 ) (6 ) Total Other comprehensive income (loss) before reclassifications, net of tax 11 (646 ) (301 ) (3 ) 7 (4 ) Amortization of net actuarial loss and prior service cost/benefit (1) 546 199 107 4 2 5 Tax expense (2) (54 ) (9 ) (8 ) — — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 492 190 99 4 2 4 Total Other comprehensive income (loss) 503 (456 ) (202 ) 1 9 — Balance at end of period $ (2,283 ) $ (2,786 ) $ (2,330 ) $ (46 ) $ (47 ) $ (56 ) Foreign currency translation Balance at beginning of period $ (1,467 ) $ (1,655 ) $ (1,851 ) $ (581 ) $ (677 ) $ (779 ) Separation-related adjustments (A) — — (17 ) — — — Other comprehensive (loss) income (3) (604 ) 188 213 (229 ) 96 102 Balance at end of period $ (2,071 ) $ (1,467 ) $ (1,655 ) $ (810 ) $ (581 ) $ (677 ) Cash flow hedges (O) Balance at beginning of period $ (929 ) $ 210 $ 603 $ 51 $ 1 $ (3 ) Separation-related adjustments (A) — — (47 ) — — — Other comprehensive income (loss): Net change from periodic revaluations 803 (1,489 ) (558 ) (4 ) 83 38 Tax (expense) benefit (159 ) 251 233 1 (25 ) (12 ) Total Other comprehensive income (loss) before reclassifications, net of tax 644 (1,238 ) (325 ) (3 ) 58 26 Net amount reclassified to earnings: Aluminum contracts (4) 108 130 7 — — — Financial contracts (5) (37 ) (19 ) (54 ) (24 ) (12 ) (37 ) Foreign exchange contracts (4) 6 (2 ) — — — — Interest rate contract (6) — — 7 — — 5 Sub-total 77 109 (40 ) (24 ) (12 ) (32 ) Tax (expense) benefit (2) (3 ) (10 ) 19 7 4 10 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 74 99 (21 ) (17 ) (8 ) (22 ) Total Other comprehensive income (loss) 718 (1,139 ) (346 ) (20 ) 50 4 Balance at end of period $ (211 ) $ (929 ) $ 210 $ 31 $ 51 $ 1 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note N). For 2018, the amounts for Alcoa Corporation include $330, (net) and for Noncontrolling interest include $1 related to settlements and/or curtailments of certain pension and other postretirement employee benefits (see Note N). (2) These amounts were reported in Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (4) These amounts were reported in Sales on the accompanying Statement of Consolidated Operations. (5) The 2018 and 2017 amounts were reported in Cost of goods sold and the 2016 amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations. (6) These amounts were included in Other expenses (income), net 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. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 6. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments | H. Investments December 31, 2018 2017 Equity investments $ 1,350 $ 1,400 Other investments 10 10 $ 1,360 $ 1,410 Equity Investments. The following table summarizes information of Alcoa Corporation’s equity investments as of December 31, 2018 and 2017 (the Elysis Limited Partnership began in June 2018 (see below)): Investee Country Nature of investment (4) Ownership interest Ma’aden Aluminum Company (1) Saudi Arabia Aluminum smelter and casthouse 25.1 % Ma’aden Bauxite and Alumina Company (1) Saudi Arabia Bauxite mine and alumina refinery 25.1 % (5) Ma’aden Rolling Company (1) Saudi Arabia Aluminum rolling mill 25.1 % Halco Mining, Inc. (2) Guinea Bauxite mine 45 % (5) Energetica Barra Grande S.A. Brazil Hydroelectric generation facility 42.18 % Pechiney Reynolds Quebec, Inc. (3) Canada Aluminum smelter 50 % Consorcio Serra do Facão Brazil Hydroelectric generation facility 34.97 % Mineração Rio do Norte S.A. Brazil Bauxite mine 18.2 % (5) Manicouagan Power Limited Partnership Canada Hydroelectric generation facility 40 % Elysis Limited Partnership Canada Aluminum smelting technology 48.235 % (1) See Saudi Arabia Joint Venture below for additional information. (2) Halco Mining, Inc. owns 100% of Boké Investment Company, which owns 51% of Compagnie des Bauxites de Guinée. (3) Pechiney Reynolds Quebec, Inc. owns a 50.1% interest in the Bécancour smelter in Quebec, Canada thereby entitling Alcoa Corporation to a 25.05% interest in the smelter. Through two wholly-owned Canadian subsidiaries, Alcoa Corporation also owns 49.9% of the Bécancour smelter. (4) Each of the investees either owns the facility listed or has an ownership interest in an entity that owns the facility listed. (5) A portion or all of each of these ownership interests are held by majority-owned subsidiaries that are part of AWAC. In June 2018, Alcoa Corporation, Rio Tinto plc, and the provincial government of Quebec, Canada launched a new joint venture, Elysis Limited Partnership (Elysis). The purpose of this partnership is to advance larger scale development and commercialization of the Company’s patent-protected technology that produces oxygen and eliminates all direct greenhouse gas emissions from the traditional aluminum smelting process. Alcoa Corporation and Rio Tinto plc, as general partners, each own a 48.235% stake in Elysis, and the Quebec provincial government, as a limited partner, owns a 3.53% stake. The federal government of Canada and Apple Inc., as well as the Quebec provincial government, will provide initial financing to the partnership. The total planned combined investment (equity and debt) of the five participants in the joint venture is $145 (C$188). Alcoa Corporation and Rio Tinto plc will invest a combined $42 (C$55) over the next three years, as well as contribute and license certain intellectual property and patents to Elysis. In 2018, the Company contributed $5 (C$6) toward its initial investment commitment in Elysis. In 2018, 2017, and 2016, Alcoa Corporation received $45, $71, and $74, respectively, in dividends from these equity investments. Financial information for these equity investments is as follows (amounts represent 100% of the investee’s financial information): Saudi Arabia Joint Venture (1) Halco Mining, Inc. Energetica Barra Grande S.A. Pechiney Reynolds Quebec, Inc. Consorcio Serra do Facão Mineração Rio do Norte S.A. Manicouagan Power L.P. DBNGP Trust (2) Total Profit and loss data— year ended December 31, 2018 Sales $ 3,986 $ 402 $ 84 $ 120 $ 93 $ 400 $ 106 $ — $ 5,191 Cost of goods sold 3,334 268 66 110 71 254 9 — $ 4,112 Income before income taxes 301 41 17 8 21 120 96 — $ 604 Net income 9 38 6 16 19 33 89 — $ 210 Equity in net income of affiliated companies, before reconciling adjustments 2 17 3 8 7 6 36 — $ 79 Other (13 ) (2 ) — (1 ) (1 ) (8 ) (3 ) — $ (28 ) Alcoa Corporation’s equity in net (loss) income of affiliated companies (11 ) 15 3 7 6 (2 ) 33 — $ 51 Profit and loss data— year ended December 31, 2017 Sales $ 3,032 $ 416 $ 131 $ 332 $ 103 $ 350 $ 105 $ — $ 4,469 Cost of goods sold 2,776 266 117 292 48 273 9 — 3,781 (Loss) income before income taxes (142 ) 50 13 35 45 35 96 — 132 Net (loss) income (157 ) 47 5 23 46 30 88 — 82 Equity in net (loss) income of affiliated companies, before reconciling adjustments (39 ) 21 2 11 16 6 35 — 52 Other 9 (1 ) — — — — 2 — 10 Alcoa Corporation’s equity in net (loss) income of affiliated companies (30 ) 20 2 11 16 6 37 — 62 Profit and loss data— year ended December 31, 2016 Sales $ 1,970 $ 437 $ 60 $ 309 $ 90 $ 451 $ 104 $ 86 $ 3,507 Cost of goods sold 1,905 242 35 272 65 297 10 18 2,844 (Loss) income before income taxes (295 ) 53 16 36 8 152 94 21 85 Net (loss) income (295 ) 50 15 16 5 129 87 14 21 Equity in net (loss) income of affiliated companies, before reconciling adjustments (75 ) 23 6 8 2 23 35 3 25 Other 7 2 (1 ) (4 ) — (1 ) — — 3 Alcoa Corporation’s equity in net (loss) income of affiliated companies (68 ) 25 5 4 2 22 35 3 28 Saudi Arabia Joint Venture (1) Halco Mining, Inc. Energetica Barra Grande S.A. Pechiney Reynolds Quebec, Inc. Consorcio Serra do Facão Mineração Rio do Norte S.A. Manicouagan Power L.P. DBNGP Trust (2) Total Balance sheet data—as of December 31, 2018 Current assets $ 1,684 $ 58 $ 18 $ 139 $ 43 $ 127 $ 23 $ — $ 2,092 Noncurrent assets 9,115 164 224 97 242 653 76 — 10,571 Current liabilities 1,379 10 5 49 20 116 11 — 1,590 Noncurrent liabilities 6,101 17 18 4 83 422 — — 6,645 Balance sheet data—as of December 31, 2017 Current assets $ 1,415 $ 40 $ 44 $ 140 $ 79 $ 121 $ 23 $ — $ 1,862 Noncurrent assets 9,373 174 285 106 261 744 72 — 11,015 Current liabilities 1,331 1 48 65 25 220 9 — 1,699 Noncurrent liabilities 6,191 12 6 12 117 413 — — 6,751 (1) The amounts included in this column represent the combined financial information related to Ma’aden Aluminum Company, Ma’aden Bauxite and Alumina Company, and Ma’aden Rolling Company. (2) AofA sold its interest in the Dampier to Bunbury Natural Gas Pipeline (DBNGP) Trust in April 2016 (see DBNGP Trust below). Saudi Arabia Joint Venture— Alcoa Corporation and Saudi Arabian Mining Company (known as “Ma’aden”) have a 30-year (from December 2009) joint venture shareholders agreement (automatic extension for an additional 20 years, unless the parties agree otherwise or unless earlier terminated) setting forth the terms for the development, construction, ownership, and operation of an integrated aluminum complex in Saudi Arabia. Specifically, the project developed by the joint venture consists of: (i) a bauxite mine for the extraction of approximately 4,000 kmt of bauxite from the Al Ba’itha bauxite deposit near Quiba in the northern part of Saudi Arabia; (ii) an alumina refinery with an initial capacity of 1,800 kmt; (iii) a primary aluminum smelter with an initial capacity of 740 kmt; and (iv) an aluminum rolling mill with an initial capacity of 380 kmt. The refinery, smelter, and rolling mill were constructed in an industrial area at Ras Al Khair on the east coast of Saudi Arabia. The facilities use critical infrastructure, including power generation derived from reserves of natural gas, as well as port and rail facilities, developed by the government of Saudi Arabia. First production from the smelter, rolling mill, and mine and refinery occurred in December of 2012, 2013, and 2014, respectively. In 2012, Alcoa Corporation and Ma’aden agreed to expand the capabilities of the rolling mill to include a capacity of 100 kmt dedicated to supplying the automotive, building and construction, and foil packaging markets with aluminum sheet. First production related to the expanded capacity occurred in 2014. This expansion did not result in additional equity investment (see below) due to significant savings from a change in the project execution strategy of the initial 380 kmt capacity of the rolling mill. The joint venture is owned 74.9% by Ma’aden and 25.1% by Alcoa Corporation and consists of three separate companies as follows: one each for the mine and refinery, the smelter, and the rolling mill. The Alcoa Corporation affiliates that hold the Company’s interests in the smelting company and the rolling mill company are wholly-owned by Alcoa Corporation, and the Alcoa Corporation affiliate that holds the Company’s interests in the mining and refining company is majority-owned (part of AWAC) by Alcoa Corporation. Except in limited circumstances, Alcoa Corporation may not sell, transfer or otherwise dispose of or encumber or enter into any agreement in respect of the votes or other rights attached to its interests in the joint venture without Ma’aden’s prior written consent. Ma’aden and Alcoa Corporation have put and call options, respectively, whereby Ma’aden can require Alcoa Corporation to purchase from Ma’aden, or Alcoa Corporation can require Ma’aden to sell to Alcoa Corporation, a 14.9% interest in the joint venture at the then fair market value. These options may only be exercised in a six-month window that opens five years after the last Commercial Production Date (as defined in the joint venture shareholders agreement) of the three joint venture companies and, if exercised, must be exercised for the full 14.9% interest. The Commercial Production Date was declared on September 1, 2014 for the smelting company and on October 1, 2016 for the mining and refining company. There has not been a similar declaration yet for the rolling mill company. Ma’aden and Alcoa Corporation also may not sell, transfer, or otherwise dispose of, pledge, or encumber any interests in the joint venture until five years after the last Commercial Production Date. Under the joint venture shareholders agreement, upon the occurrence of an unremedied event of default by Alcoa Corporation, Ma’aden may purchase, or, upon the occurrence of an unremedied event of default by Ma’aden, Alcoa Corporation may sell, its interest for consideration that varies depending on the time of the default. A number of Alcoa Corporation employees perform various types of services for the smelting, rolling mill, and mining and refining companies as part of the operation of the fully-integrated aluminum complex. At December 31, 2018 and 2017, the Company had an aggregate outstanding receivable of $11 and $13, respectively, from the smelting, rolling mill, and mining and refining companies for labor and other employee-related expenses. Capital investment in the project is expected to total approximately $10,800 (SAR 40.5 billion) and has been funded through a combination of equity contributions by the joint venture partners and project financing obtained by the joint venture companies, which has been partially guaranteed by both partners (see below). Both the equity contributions and the guarantees of the project financing are based on the joint venture partners’ ownership interests. Originally, it was estimated that Alcoa Corporation’s total equity contribution in the joint venture related to the capital investment in the project would be approximately $1,100, of which Alcoa Corporation has contributed $982, including $1 in 2016. Based on changes to both the project’s capital investment and equity and debt structure from the initial plans, the estimated $1,100 equity contribution may be reduced. Separate from the capital investment in the project, Alcoa Corporation contributed $66 (Ma’aden contributed $199) to the joint venture in 2017 for short-term funding purposes in accordance with the terms of the joint venture companies’ financing arrangements. Both partners may be required to make such additional contributions in future periods. As of December 31, 2018 and 2017, the carrying value of Alcoa Corporation’s investment in this joint venture was $874 and $887, respectively. The rolling mill company has project financing totaling $1,179 (reflects principal repayments made through December 31, 2018), of which $296 represents Alcoa Corporation’s 25.1% interest in the rolling mill company. Alcoa Corporation has issued guarantees (see below) to the lenders in the event of default on the debt service requirements by the rolling mill company through 2018 and 2021 (Ma’aden issued similar guarantees related to its 74.9% interest). Alcoa Corporation’s guarantees for the rolling mill company cover total debt service requirements of $50 in principal and up to a maximum of approximately $10 in interest per year (based on projected interest rates). Previously, Alcoa Corporation issued similar guarantees related to the project financing of both the smelting company and the mining and refining company. In December 2017 and July 2018, the smelting company and the mining and refining company, respectively, refinanced and/or amended all of their existing outstanding debt. The guarantees that were previously required of Alcoa Corporation related to both the smelting company and the mining and refining company were effectively terminated. At December 31, 2018 and 2017, the combined fair value of the guarantees was $1 and $3, respectively, which was included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. As a result of the Separation Transaction, the various lenders to the joint venture companies required Arconic to maintain joint and several guarantees with Alcoa Corporation. In the event of default by any of the joint venture companies, the lenders would make a claim against both Alcoa Corporation and Arconic. Accordingly, Alcoa Corporation would perform under its guarantee; however, if the Company failed to perform, Arconic would be required to perform under its own guarantee. Arconic would then subsequently seek indemnification from Alcoa Corporation under the terms of the Separation and Distribution Agreement. DBNGP Trust —In April 2016, AofA sold its 20% interest in a consortium, which owned the DBNGP in Western Australia, to the only other member of the consortium, DUET Group. AofA received $145 (A$192) in cash, which was included in Sales of investments on the accompanying Statement of Consolidated Cash Flows, and recorded a gain of $27 (A$35) ($11 (A$15) after-tax and noncontrolling interest) in Other income, net on the accompanying Statement of Consolidated Operations. As part of the sale transaction, AofA will maintain its current access to approximately 30% of the DBNGP transmission capacity for gas supply to its three alumina refineries in Western Australia under an existing agreement to purchase gas transmission services from the DBNGP. At December 31, 2018 and 2017, AofA has an asset of $275 (A$393) and $300 (A$385), respectively, representing prepayments made under the agreement for future gas transmission services. In 2016, prior to the sale transaction, AofA made contributions of $3 (A$5) to the consortium under an equity call plan. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | I. Inventories December 31, 2018 2017 Finished goods $ 346 $ 296 Work-in-process 315 258 Bauxite and alumina 609 585 Purchased raw materials 535 473 Operating supplies 146 147 LIFO reserve (307 ) (306 ) $ 1,644 $ 1,453 At December 31, 2018 and 2017, the total amount of inventories valued on a LIFO basis was $501, or 26%, and $516, or 29%, respectively, of total inventories before LIFO adjustments. The inventory values, prior to the application of LIFO, are generally determined under the average cost method, which approximates current cost. |
Properties, Plants, and Equipme
Properties, Plants, and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Properties, Plants, and Equipment, Net | J. Properties, Plants, and Equipment, Net December 31, 2018 2017 Land and land rights, including mines $ 328 $ 346 Structures (by type of operation): Bauxite mining 1,119 1,250 Alumina refining 2,478 2,664 Aluminum smelting and casting 3,532 3,575 Energy generation 506 552 Aluminum rolling 285 298 Other 380 417 8,300 8,756 Machinery and equipment (by type of operation): Bauxite mining 480 508 Alumina refining 3,604 4,009 Aluminum smelting and casting 6,489 6,827 Energy generation 889 905 Aluminum rolling 1,029 1,020 Other 282 288 12,773 13,557 21,401 22,659 Less: accumulated depreciation, depletion, and amortization 13,480 13,908 7,921 8,751 Construction work-in-progress 406 387 $ 8,327 $ 9,138 As of December 31, 2018 and 2017, the net carrying value of temporarily idled refining assets was $132 and $141, respectively, representing 2,305 kmt of idle capacity in both periods. Also, as of December 31, 2018 and 2017, the net carrying value of temporarily idled smelting assets was $427 and $248, respectively, representing 916 kmt and 856 kmt, respectively, of idle capacity. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | K. Goodwill and Other Intangible Assets Goodwill, which is included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, was as follows: December 31, 2018 2017 Bauxite $ 2 $ 2 Alumina 3 4 Aluminum (1) — — Corporate (2) 146 148 $ 151 $ 154 (1) The carrying value of Aluminum’s goodwill is zero, comprised of goodwill of $989 and accumulated impairment losses of $989 as of both December 31, 2018 and 2017. Additionally, the carrying value of Corporate’s goodwill is net of accumulated impairment losses of $742 as of both December 31, 2018 and 2017. (2) As of December 31, 2018, the $146 of goodwill reflected in Corporate is allocated to two of Alcoa Corporation’s three reportable segments ($49 to Bauxite and $97 to Alumina) for purposes of impairment testing (see Note B). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the two reportable segments. Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: 2018 2017 December 31, Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Computer software $ 237 $ (211 ) $ 26 $ 241 $ (212 ) $ 29 Patents and licenses 25 (7 ) 18 25 (6 ) 19 Other intangibles 19 (6 ) 13 21 (7 ) 14 Total other intangible assets $ 281 $ (224 ) $ 57 $ 287 $ (225 ) $ 62 Computer software consists primarily of software costs associated with an enterprise business solution within Alcoa Corporation to drive common systems among all businesses. Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2018, 2017, and 2016 was $12, $12, and $7, respectively, and is expected to be approximately $10 annually from 2019 to 2023. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | L. Debt Long-Term Debt. December 31, 2018 2017 6.75% Notes, due 2024 $ 750 $ 750 7.00% Notes, due 2026 500 500 6.125% Notes, due 2028 500 — BNDES Loans (see below for weighted average rates) — 137 Other 91 50 Unamortized discounts and deferred financing costs (39 ) (33 ) 1,802 1,404 Less: amount due within one year 1 16 $ 1,801 $ 1,388 The principal amount of long-term debt maturing in each of the next five years is $1 in 2019, $84 in 2020, and $1 in each of 2021, 2022, and 2023. 144A Debt —In May 2018, Alcoa Nederland Holding B.V. (ANHBV), a wholly-owned subsidiary of Alcoa Corporation, completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $500 of 6.125% Senior Notes due 2028 (the “2028 Notes”). ANHBV received $492 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the 2028 Notes. The net proceeds, along with available cash on hand, were used to make discretionary contributions to certain U.S. defined benefit pension plans (see Note N). The discount to the initial purchasers, as well as costs to complete the financing, was deferred and is being amortized to interest expense over the term of the 2028 Notes. Interest on the 2028 Notes is paid semi-annually in November and May, which commenced November 15, 2018. ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. The 2028 Notes are senior unsecured obligations of ANHBV and do not entitle the holders to any registration rights pursuant to a registration rights agreement. ANHBV does not intend to file a registration statement with respect to resales of or an exchange offer for the 2028 Notes. The 2028 Notes are guaranteed on a senior unsecured basis by Alcoa Corporation and its subsidiaries that are guarantors under the Second Amended Revolving Credit Agreement (the “subsidiary guarantors” and, together with Alcoa Corporation, the “guarantors”) (see Credit Facility below). Each of the subsidiary guarantors will be released from their 2028 Notes guarantees upon the occurrence of certain events, including the release of such guarantor from its obligations as a guarantor under the Second Amended Revolving Credit Agreement. The 2028 Notes indenture includes several customary affirmative covenants. Additionally, the 2028 Notes indenture contains several negative covenants, that, subject to certain exceptions, include limitations on liens, limitations on sale and leaseback transactions, and a prohibition on a reduction in the ownership of AWAC entities below an agreed level. The negative covenants in the 2028 Notes indenture are less extensive than those in the 2024 Notes and 2026 Notes (see below) indenture and the Second Amended Revolving Credit Agreement. For example, the 2028 Notes indenture does not include a limitation on restricted payments, such as repurchases of common stock and shareholder dividends. The 2028 Notes rank equally in right of payment with all of ANHBV’s existing and future senior indebtedness, including the 2024 Notes and 2026 Notes; rank senior in right of payment to any future subordinated obligations of ANHBV; and are effectively subordinated to ANHBV’s existing and future secured indebtedness, including under the Second Amended Revolving Credit Agreement, to the extent of the value of property and assets securing such indebtedness. In September 2016, ANHBV completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $750 of 6.75% Senior Notes due 2024 (the “2024 Notes”) and $500 of 7.00% Senior Notes due 2026 (the “2026 Notes” and, collectively with the 2024 Notes, the “Notes”). ANHBV received $1,228 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the Notes. The net proceeds were used to make a payment to ParentCo to fund the transfer of certain assets from ParentCo to Alcoa Corporation in connection with the Separation Transaction, and the remaining net proceeds were used for general corporate purposes. The discount to the initial purchasers, as well as costs to complete the financing, was deferred and is being amortized to interest expense over the respective terms of the Notes. Interest on the Notes is paid semi-annually in March and September, which commenced March 31, 2017. ANBHV has the option to redeem the Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after September 2019, in the case of the 2024 Notes, or after September 2021, in the case of the 2026 Notes, at a redemption price specified in the indenture (up to 105.063% of the principal amount for the 2024 Notes and up to 103.500% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest in each case). Also, the Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest on the Notes repurchased. The Notes are senior unsecured obligations of ANHBV and do not entitle the holders to any registration rights pursuant to a registration rights agreement. ANHBV does not intend to file a registration statement with respect to resales of or an exchange offer for the Notes. The Notes are guaranteed on a senior unsecured basis by Alcoa Corporation and its subsidiaries that are guarantors under the Second Amended Revolving Credit Agreement (the “subsidiary guarantors” and, together with Alcoa Corporation, the “guarantors”) (see Credit Facility below). Each of the subsidiary guarantors will be released from their Notes guarantees upon the occurrence of certain events, including the release of such guarantor from its obligations as a guarantor under the Second Amended Revolving Credit Agreement. The Notes indenture contains various restrictive covenants similar to those described below for the Second Amended Revolving Credit Agreement, including a limitation on restricted payments, with, among other exceptions, capacity to pay annual ordinary dividends. Under the indenture, Alcoa Corporation may declare and make annual ordinary dividends in an aggregate amount not to exceed $38 in each of the November 1, 2016 through December 31, 2017 time period and annual 2018 (no such dividends were made), $50 in each of annual 2019 and 2020, and $75 in the January 1, 2021 through September 30, 2026 (maturity date of the 2026 Notes) time period, except that 50% of any unused amount of the base amount in any of the specified time periods may be used in the next succeeding period following the use of the base amount in said time period. Additionally, the restricted payments negative covenant includes a general exception to allow for potential future transactions incremental to those specifically provided for in the Notes indenture. This general exception provides for an aggregate amount of restricted payments not to exceed the greater of $250 and 1.5% of Alcoa Corporation’s consolidated total assets. Accordingly, Alcoa Corporation may make annual ordinary dividends in any fiscal year by an aggregate amount of up to $250, assuming no other restricted payments have reduced, in part or whole, the available limit. The limits of the restricted payments negative covenant under the Second Amended Revolving Credit Agreement (see Credit Facility below) would govern the amount of ordinary dividend payments Alcoa Corporation could make in a given timeframe if the allowed amount is less than the limits of the restricted payments negative covenant under the Notes indenture. BNDES Loans —Prior to July 5, 2016, Alcoa Alumínio (Alumínio), an indirect wholly-owned subsidiary of Alcoa Corporation, had a loan agreement with Brazil’s National Bank for Economic and Social Development (BNDES) that provided for a financing commitment of $397 (R$687), which was divided into three subloans and was used to pay for certain expenditures of the Estreito hydroelectric power project. On July 5, 2016, this loan agreement was amended to change the borrower from Alumínio to a wholly-owned subsidiary of Alumínio. Interest on the three subloans was a Brazil real rate of interest equal to BNDES’ long-term interest rate, 7.00% as of December 31, 2017, plus a weighted-average margin of 2.74%. Principal and interest were payable monthly, which began in October 2011 and were originally scheduled to end in September 2029 for two of the subloans totaling R$667 and began in July 2012 and ended in June 2018 for the subloan of R$20. During 2018 and 2017, Alumínio’s subsidiary repaid $132 (R$539) and $15 (R$49), respectively, of outstanding borrowings and/or deferred interest. The repayments in 2018 include early repayments of a combined $122 (R$500) made in September and December, representing the remaining outstanding loan balance and deferred interest. These early repayments were made without penalty under the approval of BNDES. With the full repayment of this loan, the commitment was effectively terminated. As of December 31, 2017, outstanding borrowings were $137 (R$454) and the weighted-average interest rate was 9.74%, and deferred interest related to the borrowings were $25 (R$82). Additionally, Alumínio had a loan agreement with BNDES that provided for a financing commitment of $85 (R$177), which also was used to pay for certain expenditures of the Estreito hydroelectric power project. Interest on the loan was a Brazil real rate of interest equal to BNDES’ long-term interest rate plus a margin of 1.55%. Principal and interest were payable monthly, which began in January 2013 and were originally scheduled to end in September 2029. During 2017, Alumínio repaid $44 (R$138) of outstanding borrowings, which include an early repayment of $41 (R$131) made in August, representing the remaining outstanding loan balance. This early repayment was made without penalty under the approval of BNDES. With the full repayment of this loan, the commitment was effectively terminated. Credit Facility. On November 21, 2018, Alcoa Corporation and ANHBV entered into a Second Amendment and Restatement Agreement to the Revolving Credit Agreement dated September 16, 2016 and the Amendment and Restatement Agreement dated November 14, 2017 (the Revolving Credit Agreement as revised by the Amendment and Restatement Agreement, the “Amended Revolving Credit Agreement”), in each case, with a syndicate of lenders and issuers named therein to revise certain terms and provisions of the Amended Revolving Credit Agreement (the Amended Revolving Credit Agreement as revised by the Second Amendment and Restatement Agreement, the “Second Amended Revolving Credit Agreement”). Unless noted otherwise, the terms and provisions described below for the Second Amended Revolving Credit Agreement were applicable to the Amended Revolving Credit Agreement from November 14, 2017 to November 20, 2018. See “Credit Facility” in Note L to the Consolidated Financial Statements included in Part II Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for the notable terms and provisions under the Revolving Credit Agreement from September 16, 2016 to November 13, 2017. The Second Amended Revolving Credit Agreement provides a $1,500 senior secured revolving credit facility (the “Revolving Credit Facility”) to be used for working capital and/or other general corporate purposes of Alcoa Corporation and its subsidiaries. Subject to the terms and conditions of the Second Amended Revolving Credit Agreement, ANHBV may from time to time request the issuance of letters of credit up to $750 under the Revolving Credit Facility, subject to a sublimit of $400 for any letters of credit issued for the account of Alcoa Corporation or any of its domestic subsidiaries. Additionally, ANHBV may from time to time request that each of the lenders provide one or more additional tranches of term loans and/or increase the aggregate amount of revolving commitments, together in an aggregate principal amount of up to $500. The Revolving Credit Facility is scheduled to mature on November 21, 2023 (previously November 14, 2022), unless extended or earlier terminated in accordance with the provisions of the Second Amended Revolving Credit Agreement. ANHBV may make extension requests during the term of the Revolving Credit Facility, subject to the lender consent requirements set forth in the Second Amended Revolving Credit Agreement. Under the provisions of the Second Amended Revolving Credit Agreement, ANHBV will pay a quarterly commitment fee ranging from 0.200% to 0.425% (previously 0.225% to 0.450%) (based on Alcoa Corporation’s leverage ratio) on the unused portion of the Revolving Credit Facility. A maximum of $750 in outstanding borrowings under the Revolving Credit Facility may be denominated in euros. Loans will bear interest at a rate per annum equal to an applicable margin plus, at ANHBV’s option, either (a) an adjusted LIBOR rate or (b) a base rate determined by reference to the highest of (1) the U.S. prime rate as published in the Wall Street Journal (previously the prime rate of JPMorgan Chase Bank, N.A.), (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5%, and (3) the one month adjusted LIBOR rate plus 1% per annum. The applicable margin for all loans will vary based on Alcoa Corporation’s leverage ratio and will range from 1.50% to 2.25% (previously 1.75% to 2.50%) for LIBOR loans and 0.50% to 1.25% (previously 0.75% to 1.50%) for base rate loans, subject in each case to a reduction of 25 basis points if Alcoa Corporation attains at least a Baa3 rating from either Moody’s Investor Service or BBB- rating from Standard and Poor’s Global Ratings. Outstanding borrowings may be prepaid without premium or penalty, subject to customary breakage costs. All obligations of Alcoa Corporation or a domestic entity under the Revolving Credit Facility are secured by, subject to certain exceptions (including a limitation of pledges of equity interests in certain foreign subsidiaries to 65%, and certain thresholds with respect to real property), a first priority lien on substantially all assets of Alcoa Corporation and the material domestic wholly-owned subsidiaries of Alcoa Corporation and certain equity interests of specified non-U.S. subsidiaries. All other obligations under the Revolving Credit Facility are secured by, subject to certain exceptions (including certain thresholds with respect to real property), a first priority security interest in substantially all assets of Alcoa Corporation, ANHBV, the material domestic wholly-owned subsidiaries of Alcoa Corporation, and the material foreign wholly-owned subsidiaries of Alcoa Corporation located in Australia, Brazil, Canada, Luxembourg, the Netherlands, and Norway, including equity interests of certain subsidiaries that directly hold equity interests in AWAC entities. However, no AWAC entity is a guarantor of any obligation under the Revolving Credit Facility and no asset of any AWAC entity, or equity interests in any AWAC entity, will be pledged to secure the obligations under the Revolving Credit Facility. Under the Second Amended Revolving Credit Agreement, each of the mentioned companies shall be released from all obligations under the first priority lien and/or first priority security interest upon (i) Alcoa Corporation attaining at least a Baa3 rating from either Moody’s Investor Service or BBB- rating from Standard and Poor’s Global Ratings, in each case with a stable outlook or better, (ii) ANHBV delivering the required written notice, and (iii) no default or event of default, as defined in the Second Amended Revolving Credit Agreement, has occurred or is continuing (the date on which such conditions are met, the “Collateral Release Date”). The Second Amended Revolving Credit Agreement includes a number of customary affirmative covenants. Additionally, the Second Amended Revolving Credit Agreement contains a number of negative covenants (applicable to Alcoa Corporation and certain subsidiaries described as restricted), that, subject to certain exceptions, include limitations on (among other things): liens; fundamental changes; sales of assets; indebtedness (see below); entering into restrictive agreements; restricted payments (see below), including repurchases of common stock and shareholder dividends (see below); investments (see below), loans, advances, guarantees, and acquisitions; transactions with affiliates; amendment of certain material documents; and a covenant prohibiting reductions in the ownership of AWAC entities, and certain other specified restricted subsidiaries of Alcoa Corporation, below an agreed level. The Second Amended Revolving Credit Agreement also includes financial covenants requiring the maintenance of a specified interest expense coverage ratio of not less than 5.00 to 1.00, and a leverage ratio for any period of four consecutive fiscal quarters that is not greater than 2.50 to 1.00 (2.00 to 1.00 beginning on and subsequent to the Collateral Release Date, may be increased to a level not higher than 2.25 to 1.00 under certain circumstances). As of December 31, 2018 and 2017, Alcoa Corporation was in compliance with all such covenants. The indebtedness, restricted payments, and investments negative covenants include general exceptions to allow for potential future transactions incremental to those specifically provided for in the Second Amended Revolving Credit Agreement. The indebtedness negative covenant provides for an incremental amount not to exceed the greater of $1,000 and 6.0% of Alcoa Corporation’s consolidated total assets. Additionally, the restricted payments negative covenant provides for an aggregate amount not to exceed $100 and the investments negative covenant provides for an aggregate amount not to exceed $400, both of which contain two conditions in which these limits may increase. First, in any fiscal year, the thresholds for the restricted payments and investments negative covenants increase by $250 and $200, respectively, if the consolidated net leverage ratio is not greater than 1.50 (previously 1.20) to 1.00 and 1.50 (previously1.30) to 1.00, respectively, as of the end of the prior fiscal year. Secondly, in regards to both the $100 and $250 for restricted payments and the $200 for investments, 50% of any unused amount of these base amounts in any fiscal year may be used in the next succeeding fiscal year. The following describes the specific restricted payment negative covenant for share repurchases and the application of the restricted payments general exception (described above) to both share repurchases and ordinary dividend payments. Alcoa Corporation may repurchase shares of its common stock pursuant to stock option exercises and benefit plans in an aggregate amount not to exceed $25 during any fiscal year, except that 50% of any unused amount of the base amount in any fiscal year may be used in the next succeeding fiscal year following the use of the base amount in said fiscal year. Additionally, as described above, the Second Amended Revolving Credit Agreement provides general exceptions to the restricted payments negative covenant that would allow Alcoa Corporation to execute share repurchases for any purpose in any fiscal year by an aggregate amount of up to $100 (see above for conditions that provide for this limit to increase), assuming no other restricted payments have reduced, in part or whole, the available limit. Also, any ordinary dividend payments made by Alcoa Corporation are only subject to the general exception for restricted payments described above. Accordingly, Alcoa Corporation may make annual ordinary dividends in any fiscal year by an aggregate amount of up to $100 (see above for conditions that provide for this limit to increase), assuming no other restricted payments have reduced, in part or whole, the available limit. The limits of the restricted payments negative covenant under the Notes indenture (see 144A Debt above) would govern the amount of ordinary dividend payments Alcoa Corporation could make in a given timeframe if the allowed amount is less than the limits of the restricted payments negative covenant under the Second Amended Revolving Credit Agreement. The Second Amended Revolving Credit Agreement contains customary events of default, including with respect to a failure to make payments under the Revolving Credit Facility, cross-default and cross-judgment default, and certain bankruptcy and insolvency events. There were no amounts outstanding at December 31, 2018 and 2017 and no amounts were borrowed during 2018 and 2017 under the Revolving Credit Facility. |
Preferred and Common Stock
Preferred and Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Preferred and Common Stock | M. Preferred and Common Stock Preferred Stock. Alcoa Corporation is authorized to issue 100,000,000 shares of preferred stock at a par value of $0.01 per share. At December 31, 2018 and 2017, the Company had no issued preferred stock. Common Stock. Alcoa Corporation is authorized to issue 750,000,000 shares of common stock at a par value of $0.01 per share. On November 1, 2016, in conjunction with the Separation Transaction, the Company distributed 182,471,195 shares of its common stock. Of this amount, 146,159,428 shares were distributed to ParentCo’s shareholders and 36,311,767 shares were retained by ParentCo (Arconic sold all of these shares in 2017). As of December 31, 2018 and 2017, Alcoa Corporation had 184,770,249 and 185,200,713, respectively, issued and outstanding shares of common stock. Under its employee stock-based compensation plan, the Company issued shares of 1,293,336 in 2018, 2,269,718 in 2017, and 459,800 from November 1, 2016 through December 31, 2016. Also, as of December 31, 2018, 25,977,146 shares of common stock were available for issuance under Alcoa Corporation’s employee stock-based compensation plan. The Company issues new shares to satisfy the exercise of stock options and the conversion of stock units. In October 2018, Alcoa Corporation’s Board of Directors authorized a common stock repurchase program under which the Company may purchase shares of its outstanding common stock up to an aggregate transactional value of $200, depending on cash availability, market conditions, and other factors. Repurchases under the program may be made using a variety of methods, which may include open market purchases, privately negotiated transactions, or pursuant to a Rule 10b5-1 plan. This program does not have a predetermined expiration date. Alcoa Corporation intends to retire the repurchased shares of common stock. In December 2018, the Company repurchased 1,723,800 shares of its common stock for $50; these shares were immediately retired. Dividends on common stock are subject to authorization by Alcoa Corporation’s Board of Directors. The Company did not declare any dividends in 2018, 2017, and from November 1, 2016 through December 31, 2016. Stock-based Compensation In 2018, 2017, and the last two months of 2016, eligible Alcoa Corporation employees participated in the Company’s stock-based compensation plan. In all periods prior to the Separation Date, eligible Alcoa Corporation employees participated in ParentCo’s stock-based compensation plan. The stock-based compensation expense recorded by the Company in the referenced periods includes expense associated with employees historically attributable to Alcoa Corporation’s operations and an allocation of expense (see Note A) related to ParentCo’s corporate employees. Effective November 1, 2016, all outstanding stock options (vested and non-vested) and non-vested stock units originally granted under ParentCo’s stock-based compensation plan related to the Company’s employees were replaced with similar stock options and stock units under Alcoa Corporation’s stock-based compensation plan. In order to preserve the intrinsic value of the stock options and stock units originally granted under ParentCo’s stock-based compensation plan, the number of stock options and stock units issued under the Company’s stock-based compensation plan were increased by a ratio of 1.34 developed by dividing the October 31, 2016 closing market price of ParentCo’s common stock ($28.72) by the October 31, 2016 closing market price of Alcoa Corporation’s “when issued” common stock ($21.44). This resulted in a beginning balance of outstanding stock options and stock units under the Company’s stock-based compensation plan of 4,673,829 and 2,605,423, respectively, as of November 1, 2016. The following description of Alcoa Corporation’s stock-based compensation plan is not materially different from the description of ParentCo’s stock-based compensation plan prior to the Separation Transaction. Stock options and stock units are generally granted in either January or February each calendar year to eligible employees (the Company’s Board of Directors also receive certain stock units; however, these amounts are not material). Most plan participants can choose whether to receive their award in the form of stock options, stock units, or a combination of both. This choice is made before the grant is issued and is irrevocable. Stock options are granted at the closing market price of Alcoa Corporation’s common stock on the date of grant and grade vest over a three-year service period (1/3 each year) with a ten-year contractual term. Stock units cliff vest on the third anniversary of the award grant date and certain of these units also include either a market (2018, 2017, and 2016 (third tranche only-see below)) or performance (2018, 2017, and 2016) condition. The final number of market-based and performance-based stock units earned is dependent on Alcoa Corporation’s achievement of certain targets over a three-year measurement period for the 2018 and 2017 grants and a one-year measurement period for each of the three tranches of the 2016 grants. For market-based stock units granted in 2018 and 2017, the award will be earned at the end of the measurement period based on the Company’s total shareholder return measured against the total shareholder return of the Standard & Poor’s 500® Index from January 1 of the grant year through December 31 of the third year in the service period. For performance-based stock units granted in 2018 and 2017, the award will be earned at the end of the measurement period based on the Company’s performance against a pre-established return-on-capital target measured from January 1 of the grant year through December 31 of the third year in the service period. For performance-based stock units granted in 2016, one-third of the award was to be earned each year during the respective measurement period based on the Company’s performance against a pre-established return-on-capital target for that year measured from January 1 through December 31 (the majority of the third tranche and the entire second tranche of the 2016 performance units were not earned in 2018 and 2017, respectively). In January 2018, a portion of the third tranche of the 2016 performance-based stock units were changed to market-based stock units, which would be earned at the end of the measurement period based on the Company’s total shareholder return measured against the total shareholder return of the Standard & Poor’s 500® Index from January 1, 2018 through December 31, 2018 (none of the 2016 market-based stock units were earned in 2018). In 2018, 2017, and 2016, Alcoa Corporation recognized stock-based compensation expense of $35, $24, and $28, respectively, of which approximately 80% to 90% related to stock units in each period (there was no stock-based compensation expense capitalized in 2018, 2017, or 2016). Of the total pretax stock-based compensation expense recognized in 2016, $16 relates to the allocation of expense for ParentCo’s corporate employees. As part of both Alcoa Corporation’s and ParentCo’s stock-based compensation plan design in the respective periods, individuals who are retirement-eligible have a six-month requisite service period in the year of grant. As a result, a larger portion of expense was recognized in the first half of each year for these retirement-eligible employees. Of the total pretax stock-based compensation expense recognized in 2018, 2017, and 2016, $5, $4, and $7, respectively, pertains to the acceleration of expense related to retirement-eligible employees. Stock-based compensation expense is based on the grant date fair value of the applicable equity grant. For both stock units with no performance or market condition and stock units with a performance condition, the fair value was equivalent to the closing market price of either Alcoa Corporation’s or ParentCo’s common stock on the date of grant in the respective periods. For stock units with a market condition, the fair value was estimated on the date of grant using a Monte Carlo simulation model, which generated a result of $73.13 and $52.01 per unit in 2018 and 2017, respectively. The Monte Carlo simulation model uses certain assumptions to estimate the fair value of a market-based stock unit, including volatility (38.47% for the Company and 12.12% for the Standard & Poor’s 500® Index) and a risk-free interest rate (2.17%) (the assumptions used to estimate the fair value of stock units granted in 2017 were not materially different). For stock options, the fair value was estimated on the date of grant using a lattice-pricing model, which generated a result of $21.32, $12.45, and $2.12 per option in 2018, 2017, and 2016, respectively (see below for updated fair value amount for 2016 grants). The lattice-pricing model uses several assumptions to estimate the fair value of a stock option, including an average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, exercise behavior, and contractual life. The following describes in detail the assumptions used by the Company to estimate the fair value of stock options granted in 2018 (the assumptions used to estimate the fair value of stock options granted in 2017 (by Alcoa Corporation) and 2016 (by ParentCo) were not materially different). The risk-free interest rate (2.63%) was based on a yield curve of interest rates at the time of the grant over the contractual life of the option. The dividend yield (0.0%) was based on the fact that the Company did not pay any dividends from the Separation Date through 2017 and did not have any immediate plans to pay dividends in 2018. Volatility (43.32%) was based on historical and implied volatilities over the term of the option. Alcoa Corporation utilized historical option forfeiture data to estimate annual pre- and post-vesting forfeitures (4%). Exercise behavior (63%) was based on a weighted average exercise ratio (exercise patterns for grants issued over the number of years in the contractual option term) of an option’s intrinsic value resulting from historical employee exercise behavior. Based upon the other assumptions used in the determination of the fair value, the life of an option (6.0 years) was an output of the lattice-pricing model. As Alcoa Corporation was a standalone publicly-traded company only for a two-month period in 2016, the assumptions used to estimate the fair value of stock options granted in February 2017 were largely based on historical ParentCo information, where applicable (Alcoa Corporation did not grant any stock options from November 1, 2016 through December 31, 2016). The respective fair value of stock options outstanding as of October 31, 2016 (originally granted under ParentCo’s stock-based compensation plan to Alcoa Corporation employees) were adjusted to reflect both the impact of ParentCo’s 1-for-3 reverse stock split that occurred on October 5, 2016 and to maintain the intrinsic value of the stock options as a result of the Separation Transaction. Accordingly, the fair value of the stock options originally granted in 2016 was adjusted to $4.75. Alcoa Corporation did not recognize any incremental stock-based compensation expense as a result of this adjustment. The activity for stock options and stock units during 2018 was as follows: Stock options Stock units Number of options Weighted average exercise price Number of units Weighted average FMV per unit Outstanding, January 1, 2018 2,687,107 $ 25.48 2,301,332 $ 26.93 Granted 189,455 53.30 635,477 52.81 Exercised (896,645 ) 25.06 — — Converted* — — (505,930 ) 34.55 Expired or forfeited (19,990 ) 20.51 (40,941 ) 31.73 Performance share adjustment — — (84,793 ) 15.09 Outstanding, December 31, 2018 1,959,927 28.41 2,305,145 32.75 * The number of converted units includes 109,239 shares “withheld” to meet the Company’s statutory tax withholding requirements related to the income earned by the employees as a result of vesting in the units. As of December 31, 2018, the 1,959,927 outstanding stock options had a weighted average remaining contractual life of 5.50 years and a total intrinsic value of $8. Additionally, 1,298,021 of the total outstanding stock options were fully vested and exercisable and had a weighted average remaining contractual life of 4.35 years, a weighted average exercise price of $26.18, and a total intrinsic value of $5 as of December 31, 2018. Cash received from stock option exercises was $23, $43, and $10 in 2018, 2017, and 2016, respectively, and the total intrinsic value of stock options exercised during 2018, 2017, and 2016 was $26, $24, and $4, respectively. At December 31, 2018, there was $32 (pretax) of combined unrecognized compensation expense related to non-vested grants of both stock options and stock units. This expense is expected to be recognized over a weighted average period of 1.65 years. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | N. Pension and Other Postretirement Benefits Defined Benefit Plans Alcoa Corporation sponsors several defined benefit pension plans covering most U.S. employees and certain employees in foreign locations (see Plan Actions below). Pension benefits generally depend on length of service, job grade, and remuneration. Substantially all benefits are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. Most salaried and non-bargaining hourly U.S. employees hired after March 1, 2006 participate in a defined contribution plan instead of a defined benefit plan. The Company also maintains health care and life insurance postretirement employee benefit plans covering eligible U.S. retired employees and certain retirees from foreign locations (see Plan Actions below). Generally, the medical plans are unfunded and pay a percentage of medical expenses, reduced by deductibles and other coverage. Life benefits are generally provided by insurance contracts. Alcoa Corporation retains the right, subject to existing agreements, to change or eliminate these benefits. All salaried and certain non-bargaining hourly U.S. employees hired after January 1, 2002 and certain bargaining hourly U.S. employees hired after July 1, 2010 are not eligible for postretirement health care benefits. All salaried and certain hourly U.S. employees that retire on or after April 1, 2008 are not eligible for postretirement life insurance benefits. As of January 1, 2018, the pension benefit plans and the other postretirement benefit plans cover an aggregate of approximately 54,000 and approximately 48,000 participants, respectively. Plan Actions. In 2018, management initiated several actions to certain of the pension and other postretirement benefit plans as follows: • Action# 1— In January 2018, Alcoa Corporation notified all U.S. and Canadian salaried employees, who are participants in three of the Company’s defined benefit pension plans, that they will cease accruing retirement benefits for future service, effective January 1, 2021. This change will affect approximately 800 employees, who will be transitioned to country-specific defined contribution plans, in which Alcoa Corporation will contribute 3% of these participants’ eligible earnings on an annual basis. Such contributions will be incremental to any employer savings match the employees may receive under existing defined contribution plans. Participants already collecting benefits under these defined benefit pension plans are not affected by these changes. • Action# 2— In January 2018, the Company notified U.S. salaried employees and retirees that it will no longer contribute to pre-Medicare retiree medical coverage, effective January 1, 2021. This change affects approximately 700 participants in one plan. • Action# 3— In April 2018, the Alcoa Corporation signed group annuity contracts to transfer the obligation to pay the remaining retirement benefits of approximately 2,100 retirees from two Canadian defined benefit pension plans to three insurance companies. The transfer of $560 in both plan obligations and plan assets, as well as a transaction fee of $23, was completed on April 13, 2018. The Company contributed $89 between the two plans to facilitate the transaction and maintain the funding level of the remaining plan obligations. Prior to these transactions, these two Canadian pension plans combined had approximately 3,500 participants. • Action# 4— In August 2018, Alcoa Corporation signed a group annuity contract to transfer the obligation to pay the remaining retirement benefits of approximately 10,500 retirees from three U.S. defined benefit pension plans to one insurance company. The transfer of $287 in both plan obligations and plan assets, as well as a transaction fee of $10, was completed on August 7, 2018. Additionally, approximately 1,000 plan participants elected to receive lump sum settlements, representing $75 in plan obligations and $85 in plan assets. Prior to these two transactions, these three U.S. pension plans combined had approximately 43,400 participants. • Action# 5— In August 2018, the Company notified certain U.S. salaried retirees that life insurance will no longer be provided, effective September 1, 2018. This change affects approximately 5,500 participants in one plan. As part of this change, Alcoa Corporation made a one-time transition payment to the affected retirees totaling $23 in September 2018. These actions resulted in the curtailment or settlement of benefits thereby requiring remeasurement, including an update to the discount rates used to determine benefit obligations, of the affected plans. The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action # Number of plans Number of affected plan participants Weighted average discount rate as of December 31, 2017 Plan remeasurement date Weighted average discount rate as of plan remeasurement date (Decrease) increase to accrued pension benefits liability (1) Decrease to accrued other postretirement benefits liability (1) Curtailment charge (gain) (2) Settlement charge (2) 1 3 ~800 3.65% January 31, 2018 3.80% $ (57 ) $ — $ 5 $ — 2 1 ~700 3.29% January 31, 2018 3.43% — (7 ) (28 ) — 3 2 ~2,100 3.43% March 31, 2018 3.60% 24 — — 167 4 3 ~11,500 3.70% July 31, 2018 4.39% (110 ) — — 230 5 1 ~5,500 3.61% July 31, 2018 4.35% — (86 ) — (56 ) ~20,600 $ (143 ) $ (93 ) $ (23 ) $ 341 (1) A negative amount indicates a corresponding decrease to Accumulated other comprehensive loss and a positive amount indicates a corresponding increase to Accumulated other comprehensive loss. (2) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations. The eight plans affected by the curtailment and settlement actions described above represented 65% of the combined net unfunded status of the Company’s pension and other postretirement benefit plans as of December 31, 2017. Separation Transaction. The above descriptions of retirement benefits for Alcoa Corporation participants also describe the retirement benefits provided by ParentCo to its employees and retirees prior to the Separation Date. For all periods prior to August 1, 2016 (see below), eligible employees attributable to Alcoa Corporation operations participated in the U.S. defined benefit pension and other postretirement benefit plans sponsored by ParentCo (the “Shared Plans”), which included Arconic and ParentCo corporate participants. The Company accounted for its portion of the Shared Plans as multiemployer benefit plans. Accordingly, Alcoa Corporation did not record an asset or liability to recognize the funded status of the Shared Plans. The multiemployer contribution expense attributable to employees of Alcoa Corporation-related operations was based primarily on pensionable compensation of such employees for the pension plans and estimated interest costs for the other postretirement benefit plans. Additionally, for all periods prior to August 1, 2016, Alcoa Corporation recorded an allocation of expenses for the Shared Plans attributable to ParentCo corporate participants, as well as to closed and sold operations (see Cost Allocations in Note A). Also, certain of the ParentCo plans described above were specific to employees attributable to Alcoa Corporation operations (non-U.S.) in their entirety (the “Direct Plans”). The Company accounted for the Direct Plans as defined benefit pension and other postretirement benefit plans. Accordingly, the funded status of each of the Direct Plans was recorded in Alcoa Corporation’s Consolidated Balance Sheet. Actuarial gains and losses that had not yet been recognized in earnings were recorded in Accumulated other comprehensive loss until they were amortized as a component of net periodic benefit cost. The determination of benefit obligations and recognition of expenses related to Direct Plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, and future compensation increases. Management develops each assumption using relevant company experience in conjunction with market-related data for each of the plans. In preparation for the Separation Transaction, effective August 1, 2016, certain of the Shared Plans were separated into standalone plans for both Alcoa Corporation (the “New Direct Plans”) and Arconic. Accordingly, the New Direct Plans for the Company were measured as of August 1, 2016. One of the primary assumptions used to measure the New Direct Plans was a weighted average discount rate of 3.48%. This measurement yielded a combined net unfunded status of $2,348. Additionally, certain other Shared Plans were assumed by Alcoa Corporation (the “Additional New Direct Plans,” and collectively with the Direct Plans and New Direct Plans, the “Cumulative Direct Plans”) that did not require to be separated and/or to be remeasured. The Additional New Direct Plans had a combined net unfunded status of $180. The aggregate combined net unfunded status of the New Direct Plans and the Additional New Direct Plans was recognized in the Company’s Consolidated Balance Sheet at that time, consisting of a current liability of $136 and a noncurrent liability of $2,392. Additionally, Alcoa Corporation recognized $2,704 in Accumulated other comprehensive loss. The following table summarizes the total expenses recognized by the Company related to all pension and other postretirement benefits: Pension benefits Other postretirement benefits Type of Plan Type of Expense 2018 2017 2016 2018 2017 2016 Cumulative Direct Plans Net periodic benefit cost $ 561 $ 119 $ 83 $ (32 ) $ 50 $ 21 Shared Plans Multiemployer contribution expense — — 28 — — 12 Shared Plans Cost allocation — — 25 — — 8 $ 561 $ 119 $ 136 $ (32 ) $ 50 $ 41 The funded status of Alcoa Corporation’s Cumulative Direct Plans is measured as of December 31 each calendar year. All of the information that follows for pension and other postretirement benefit plans is only applicable to the Cumulative Direct Plans, as appropriate. Obligations and Funded Status Pension benefits Other postretirement benefits December 31, 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 7,639 $ 7,269 $ 1,218 $ 1,286 Service cost 60 84 5 5 Interest cost 232 250 34 38 Amendments - 2 (5 ) — Actuarial (gains) losses (346 ) 388 (88 ) (1 ) Settlements (1,009 ) (64 ) (57 ) — Curtailments (22 ) — — — Benefits paid, net of participants’ contributions (407 ) (437 ) (140 ) (116 ) Medicare Part D subsidy receipts — — 7 5 Foreign currency translation impact (150 ) 147 (1 ) 1 Benefit obligation at end of year* $ 5,997 $ 7,639 $ 973 $ 1,218 Change in plan assets Fair value of plan assets at beginning of year $ 5,322 $ 5,421 $ — $ — Actual return on plan assets (129 ) 187 — — Employer contributions 996 111 — — Participant contributions 12 15 — — Benefits paid (403 ) (432 ) — — Administrative expenses (31 ) (41 ) — — Settlements (1,030 ) (62 ) — — Foreign currency translation impact (127 ) 123 — — Fair value of plan assets at end of year* $ 4,610 $ 5,322 $ — $ — Funded status* $ (1,387 ) $ (2,317 ) $ (973 ) $ (1,218 ) Less: Amounts attributed to joint venture partners (33 ) (37 ) — — Net funded status $ (1,354 ) $ (2,280 ) $ (973 ) $ (1,218 ) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 63 $ 72 $ — $ — Current liabilities (10 ) (11 ) (105 ) (118 ) Noncurrent liabilities (1,407 ) (2,341 ) (868 ) (1,100 ) Net amount recognized $ (1,354 ) $ (2,280 ) $ (973 ) $ (1,218 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 3,261 $ 3,743 $ 176 $ 281 Prior service cost (benefit) 21 35 (4 ) (30 ) Total, before tax effect 3,282 3,778 172 251 Less: Amounts attributed to joint venture partners 40 45 — — Net amount recognized, before tax effect $ 3,242 $ 3,733 $ 172 $ 251 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) consist of: Net actuarial loss (benefit) $ 132 $ 676 $ (88 ) $ (1 ) Amortization of accumulated net actuarial loss (614 ) (187 ) (17 ) (13 ) Prior service (benefit) cost (1 ) 2 (62 ) — Amortization of prior service (cost) benefit (13 ) (9 ) 88 6 Total, before tax effect (496 ) 482 (79 ) (8 ) Less: Amounts attributed to joint venture partners (5 ) 9 — — Net amount recognized, before tax effect $ (491 ) $ 473 $ (79 ) $ (8 ) * At December 31, 2018, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $4,246, $3,160, and $(1,086), respectively. At December 31, 2017, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $5,093, $3,195, and $(1,898), respectively. Pension Plan Benefit Obligations Pension benefits 2018 2017 The aggregate projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: Projected benefit obligation $ 5,997 $ 7,639 Accumulated benefit obligation 5,792 7,426 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: Projected benefit obligation 5,502 7,061 Fair value of plan assets 4,051 4,671 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: Accumulated benefit obligation 5,380 6,885 Fair value of plan assets 4,051 4,671 Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) 2018 2017 2016 2018 2017 2016 Service cost $ 54 $ 71 $ 61 $ 5 $ 5 $ 2 Interest cost (3) 227 244 138 34 38 16 Expected return on plan assets (3) (341 ) (398 ) (242 ) — — — Recognized net actuarial loss (3) 198 185 102 13 13 8 Amortization of prior service cost (benefit) (3) 8 9 7 — (6 ) (5 ) Settlements (4) 410 5 16 (56 ) — — Curtailments (5) 5 — — (28 ) — — Special termination benefits (6) — 3 1 — — — Net periodic benefit cost (7) $ 561 $ 119 $ 83 $ (32 ) $ 50 $ 21 (1) In 2018, 2017, and 2016, net periodic benefit cost for U.S pension plans was $358, $74, and $21, respectively. (2) In 2018, 2017, and 2016, net periodic benefit cost for other postretirement benefits reflects a reduction of $8, $8 and $6, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Notes B (Recently Adopted Accounting Guidance) and S). (4) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). In 2018, settlements were due to management actions (see Plan Actions above) ($341) and payment of lump sum benefits ($13). In 2017, settlements were due to payment of lump sum benefits. In 2016, settlements were due to workforce reductions and payment of lump sum benefits. (5) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). In 2018, curtailments were due to management actions (see Plan Actions above). (6) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). In 2017 and 2016, special termination benefits were due to workforce reductions. (7) Amounts attributed to joint venture partners are not included. Amounts Expected to be Recognized in Net Periodic Benefit Cost Pension benefits Other postretirement benefits 2019 2019 Net actuarial loss recognition $ 167 $ 10 Prior service cost recognition 6 1 Assumptions. Weighted average assumptions used to determine benefit obligations for pension and other postretirement benefit plans were as follows: December 31, 2018 2017 Discount rate—pension plans 4.21 % 3.68 % Discount rate—other postretirement benefit plans 4.25 3.54 Rate of compensation increase—pension plans 3.26 3.28 The discount rate is determined using a Company-specific yield curve model (above-median) developed with the assistance of an external actuary. The cash flows of the plans’ projected benefit obligations are discounted using a single equivalent rate derived from yields on high quality corporate bonds, which represent a broad diversification of issuers in various sectors. The yield curve model parallels the plans’ projected cash flows, which have a weighted average duration of 11 years, and the underlying cash flows of the bonds included in the model exceed the cash flows needed to satisfy the Alcoa Corporation’s plan obligations multiple times. If a deep market of high quality corporate bonds does not exist in a country, then the yield on government bonds plus a corporate bond yield spread is used. The rate of compensation increase is based upon anticipated compensation increases and estimated inflation. For 2019, the rate of compensation increase will be 3.26%. Weighted average assumptions used to determine net periodic benefit cost for pension and other postretirement benefit plans were as follows: 2018 2017 2016 Discount rate—pension plans 3.59 % 3.61 % 3.45 % Discount rate—other postretirement benefit plans 3.18 3.30 2.90 Expected long-term rate of return on plan assets—pension plans 6.89 7.47 7.31 Rate of compensation increase—pension plans 3.28 3.61 3.65 The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption is one that relies on forward-looking investment returns by asset class. Management incorporates expected future investment returns on current and planned asset allocations using information from various external investment managers and consultants, as well as management’s own judgment (see Plan Assets below). For 2018, 2017, and 2016, the expected long-term rate of return used by management was based on the prevailing and planned strategic asset allocations, as well as estimates of future returns by asset class. For 2019, management anticipates that 6.59% will be the weighted-average expected long-term rate of return. Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material): 2018 2017 2016 Health care cost trend rate assumed for next year 5.5 % 5.5 % 5.5 % Rate to which the cost trend rate gradually declines 4.5 % 4.5 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2022 2021 2020 The assumed health care cost trend rate is used to measure the expected cost of gross eligible charges covered by the Company’s other postretirement benefit plans. For 2019, a 5.5% trend rate will be used, reflecting management’s best estimate of the change in future health care costs covered by the plans. The plans’ actual annual health care cost trend experience from the Separation Date through the end of 2018 has ranged from (0.5)% to 0.8% Management does not believe this three-year range is indicative of expected increases for future health care costs over the long-term. Assumed health care cost trend rates have an effect on the amounts reported for a health care plan. A one-percentage point change in these assumed rates would have the following effects: 1% increase 1% decrease Effect on other postretirement benefit obligations $ 65 $ (58 ) Effect on total of service and interest cost components 2 (2 ) Plan Assets. Alcoa Corporation’s pension plan investment policy and weighted average asset allocations at December 31, 2018 and 2017, by asset class, were as follows: Plan assets at December 31, Asset class Policy range 2018 2017 Equities 10–60% 36 % 40 % Fixed income 10–65% 51 35 Other investments 0–35% 13 25 Total 100 % 100 % The principal objectives underlying the investment of the pension plan assets are to ensure that the Company can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within various asset classes to protect asset values against adverse movements. Through 2017, specific objectives for long-term investment strategy included reducing the volatility of pension assets relative to pension liabilities and achieving risk factor diversification across the balance of the asset portfolio. A portion of the assets were matched to the interest rate profile of the benefit obligation through long duration fixed income investments and fixed income derivative instruments. Exposure to broad equity risk was decreased and diversified through investments in discretionary and systematic macro hedge funds, long/short equity hedge funds, and global and emerging market equities. Investments were further diversified by strategy, asset class, geography, and sector in an effort to enhance returns and mitigate downside risk. Several external investment managers were used to gain broad exposure to the financial markets and to mitigate manager-concentration risk. This investment strategy was defined prior to the Separation Date by ParentCo management and maintained by Alcoa Corporation management; however, this strategy resulted in investment returns less than those expected since the Separation Date. Accordingly, in 2018, management implemented a less-complex, peer-like investment strategy and, as a result, restructured the asset portfolio. This new strategy resulted in investing a higher percentage of the portfolio in assets that match the interest rate and credit risk profiles of the benefit obligations, as well as investing in assets expected to generate favorable risk-adjusted returns over a long-term investment horizon. To achieve this new strategy, the portfolio no longer includes investments in discretionary and systematic macro hedge funds and only includes a minimal amount of investments in long/short equity hedge funds (expected to be eliminated in 2019). Investment practices comply with the requirements of applicable laws and regulations in the respective jurisdictions, including the Employee Retirement Income Security Act of 1974 (ERISA) in the United States. The use of derivative instruments by external investment managers is permitted where appropriate and necessary for achieving overall investment policy objectives and for mitigating interest rate and other asset class risks. The following section describes the valuation methodologies used by the trustees to measure the fair value of pension plan assets. For plan assets measured at net asset value, this refers to the net asset value of the investment on a per share basis (or its equivalent) as a practical expedient. Otherwise, an indication of the level in the fair value hierarchy in which each type of asset is generally classified is provided (see Note O for the definition of fair value and a description of the fair value hierarchy). Equities— These securities consist of: (i) direct investments in the stock of publicly traded U.S. and non-U.S. companies and are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (ii) the plans’ share of commingled funds that are invested in the stock of publicly traded companies and are valued at net asset value; and (iii) direct investments in long/short equity hedge funds and private equity (limited partnerships and venture capital partnerships) and are valued at net asset value. Fixed income— These securities consist of: (i) U.S. government debt and are generally valued using quoted prices (included in Level 1); (ii) cash and cash equivalents invested in publicly-traded funds and are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (iii) publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds and debentures) and are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data (included in Level 2); and (iv) cash and cash equivalents invested in institutional funds and are valued at net asset value. Other investments— These investments include, among others: (i) real estate investment trusts valued based on the closing price reported in an active market on which the investments are traded (included in Level 1); (ii) the plans’ share of commingled funds that are invested in real estate partnerships and are valued at net asset value; (iii) direct investments in discretionary and systematic macro hedge funds and private real estate (includes limited partnerships) and are valued at net asset value; and (iv) absolute return strategy funds and are valued at net asset value. The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while Alcoa Corporation believes the valuation methods used by the plans’ trustees are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value: December 31, 2018 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 662 $ — $ — $ 813 $ 1,475 Long/short equity hedge funds — — — 6 6 Private equity — — — 186 186 $ 662 $ — $ — $ 1,005 $ 1,667 Fixed income: Intermediate and long duration government/credit $ 925 $ 697 $ — $ 327 $ 1,949 Cash and cash equivalent funds 56 — — 325 381 Other — 14 — — 14 $ 981 $ 711 $ — $ 652 $ 2,344 Other investments: Real estate $ 230 $ — $ — $ 318 $ 548 Other — — — 32 32 $ 230 $ — $ — $ 350 $ 580 Total (1) $ 1,873 $ 711 $ — $ 2,007 $ 4,591 December 31, 2017 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 906 $ — $ — $ 869 $ 1,775 Long/short equity hedge funds — — — 152 152 Private equity — — — 226 226 $ 906 $ — $ — $ 1,247 $ 2,153 Fixed income: Intermediate and long duration government/credit $ 95 $ 378 $ — $ 264 $ 737 Cash and cash equivalent funds 313 — — 742 1,055 Other — 56 — — 56 $ 408 $ 434 $ — $ 1,006 $ 1,848 Other investments: Real estate $ 241 $ — $ — $ 365 $ 606 Discretionary and systematic macro hedge funds — — — 581 581 Other — — — 132 132 $ 241 $ — $ — $ 1,078 $ 1,319 Total (2) $ 1,555 $ 434 $ — $ 3,331 $ 5,320 (1) As of December 31, 2018, the total fair value of pension plan assets excludes a net receivable of $19, which represents securities not yet settled plus interest and dividends earned on various investments. (2) As of December 31, 2017, the total fair value of pension plan assets excludes a net receivable of $2, which represents securities not yet settled plus interest and dividends earned on various investments, less an amount due to Arconic pension plans from Alcoa Corporation pension plans related to the separation of certain plans between the two companies. Funding and Cash Flows. It is Alcoa Corporation’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in applicable country benefits laws and tax laws, including ERISA for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate. In 2018, 2017, and 2016, cash contributions to Alcoa Corporation’s defined benefit pension plans were $992, $106, and $66. Contributions made in 2018 include a combined $725 of unscheduled contributions to several defined benefit pension plans, including a combined $620 to three of the Company’s U.S. defined benefit pension plans and a combined $105 to two of the Company’s Canadian defined benefit pension plans (inclusive of $89 for Action# 3 in Plan Actions above). The additional payments to the U.S. plans were discretionary in nature and were funded with $492 in net proceeds from a May 2018 debt issuance (see Note L) and $128 of available cash on hand. The primary purpose for issuing debt to fund a portion of the discretionary contributions to the U.S. plans was to reduce near-term pension funding risk with a fixed rate, 10-year maturity instrument. Alcoa Corporation’s minimum required contribution to defined benefit pension plans in 2019 is estimated to be $310, of which $270 is for U.S. plans. 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 2019, management will consider making such election related to the Company’s U.S. plans. Benefit payments expected to be paid to pension and other postretirement benefit plan participants and expected Medicare Part D subsidy receipts are as follows: Year ended December 31, Pension benefits Gross Other postretirement benefits Medicare Part D subsidy receipts Net Other postretirement benefits 2019 $ 420 $ 110 $ 10 $ 100 2020 420 110 10 100 2021 425 110 5 105 2022 425 105 5 100 2023 425 105 5 100 2024 through 2028 2,060 340 25 315 $ 4,175 $ 880 $ 60 $ 820 Defined Contribution Plans The Company sponsors savings and investment plans in several countries, including Australia and the United States. Prior to the Separation Date, employees attributable to Alcoa Corporation operations participated in ParentCo-sponsored plans. In the United States, employees may contribute a portion of their compensation to the plans, and Alcoa Corporation (ParentCo prior to Separation Date) matches a specified percentage of these contributions in equivalent form of the investments elected by the employee. Also, the Company makes contributions to a retirement savings account based on a percentage of eligible compensation for certain U.S. employees hired after March 1, 2006 that are not able to participate in Alcoa Corporation’s defined benefit pension plans. The Company’s expenses related to all defined contribution plans were $69 in 2018, $65 in 2017, and $57 in 2016. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Other Financial Instruments | O. 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 financial, market, political, and economic risks. The following discussion provides information regarding Alcoa Corporation’s exposure to the risks of changing commodity prices and foreign currency exchange rates. Alcoa Corporation’s commodity and derivative activities are subject to the management, direction, and control of the Strategic Risk Management Committee (SRMC), which consists of at least three members, including the chief executive officer and the chief financial officer. The remaining member(s) are other officers and/or employees of the Company as the chief executive officer may designate from time to time. Currently, the only other member of the SRMC is Alcoa Corporation’s treasurer. The SRMC meets on a periodic basis to review derivative positions and strategy and reports to the Audit Committee of Alcoa Corporation’s Board of Directors on the scope of its activities. Alcoa Corporation’s aluminum, energy, and foreign exchange contracts are held for purposes other than trading. They are used primarily to mitigate uncertainty and volatility, and to cover underlying exposures. Alcoa Corporation is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities. Several of Alcoa Corporation’s aluminum, energy, and foreign exchange contracts are classified as Level 1 or Level 2 under the fair value hierarchy. The total fair value of these derivative contracts recorded as assets and liabilities was $2 and $54, respectively, at December 31, 2018 and $44 and $117, respectively, at December 31, 2017. In 2017 and 2016, Alcoa Corporation recognized a loss of $22 and less than $1, respectively, in Other expenses (income), net on the accompanying Statement of Consolidated Operations related to these contracts. Certain of these contracts are designated as either fair value or cash flow hedging instruments. For the contracts designated as cash flow hedges, Alcoa Corporation recognized an unrealized gain of $24, an unrealized loss of $92, and an unrealized gain of $2 in Other comprehensive income (loss) in 2018, 2017, and 2016, respectively. Additionally, Alcoa Corporation reclassified a realized loss of $14 and $15 in 2018 and 2017, respectively, from Accumulated other comprehensive loss to Sales. In addition to the Level 1 and 2 derivative instruments described above, Alcoa Corporation has several derivative instruments classified as Level 3 under the fair value hierarchy. These instruments are composed of (i) embedded aluminum derivatives and an embedded credit derivative related to energy supply contracts and (ii) freestanding financial contracts related to energy purchases made in the spot market, all of which are associated with nine smelters and three refineries. Certain of the embedded aluminum derivatives and financial contracts are designated as cash flow hedging instruments. All of these Level 3 derivative instruments are described below in detail and are enumerated as D1 through D11. The following section describes the valuation methodologies used by Alcoa Corporation to measure its Level 3 derivative instruments at fair value. Derivative instruments classified as Level 3 in the fair value hierarchy represent those in which management has used at least one significant unobservable input in the valuation model. Alcoa Corporation uses a discounted cash flow model to fair value all Level 3 derivative instruments. Where appropriate, the description below includes the key inputs to those models and any significant assumptions. These valuation models are reviewed and tested at least on an annual basis. Inputs in the valuation models for Level 3 derivative instruments are composed of the following: (i) quoted market prices (e.g., aluminum prices on the 10-year London Metal Exchange (LME) forward curve and energy prices), (ii) significant other observable inputs (e.g., information concerning time premiums and volatilities for certain option type embedded derivatives and regional premiums for aluminum contracts), and (iii) unobservable inputs (e.g., aluminum and energy prices beyond those quoted in the market). For periods beyond the term of quoted market prices for aluminum, Alcoa Corporation estimates the price of aluminum by extrapolating the 10-year LME forward curve. Additionally, for periods beyond the term of quoted market prices for energy, management has developed a forward curve based on independent consultant market research. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence (Level 2). In the absence of such evidence, management’s best estimate is used (Level 3). If a significant input that is unobservable in one period becomes observable in a subsequent period, the related asset or liability would be transferred to the appropriate classification (Level 1 or 2) in the period of such change (there were no such transfers in the periods presented). D1 through D5 —Alcoa Corporation has two power contracts (D1 and D2), each of which contain an embedded derivative that indexes the price of power to the LME price of aluminum. Additionally, Alcoa Corporation has three power contracts (D3 through D5), each of which contain an embedded derivative that indexes the price of power to the LME price of aluminum plus the Midwest premium. The embedded derivatives in these five power contracts are primarily valued using observable market prices; however, due to the length of the contracts, the valuation models also require management to estimate the long-term price of aluminum based upon an extrapolation of the 10-year LME forward curve (one of the contracts no longer requires the use of prices beyond this curve). Additionally, for three of the contracts, management also estimates the Midwest premium, generally, for the next twelve months based on recent transactions and then holds constant the premium estimated in that twelfth month constant for the remaining duration of the contract. Significant increases or decreases in the actual LME price beyond 10 years would result in a higher or lower fair value measurement. An increase in actual LME price and/or the Midwest premium over the inputs used in the valuation models will result in a higher cost of power and a corresponding decrease to the derivative asset or increase to the derivative liability. The embedded derivatives have been designated as cash flow hedges of forward sales of aluminum. Unrealized gains and losses were included in Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheet while realized gains and losses were included in Sales on the accompanying Statement of Consolidated Operations. D6 —Alcoa Corporation had a power contract (expired in October 2016 —see D10 below) separate from above that contains an LME-linked embedded derivative. Prior to its expiration, the embedded derivative was valued using the probability and interrelationship of future LME prices, Australian dollar to U.S. dollar exchange rates, and the U.S. consumer price index. Significant increases or decreases in the LME price would result in a higher or lower fair value measurement. An increase in actual LME price over the inputs used in the valuation model will result in a higher cost of power and a corresponding decrease to the derivative asset. This embedded derivative did not qualify for hedge accounting treatment. Unrealized gains and losses from the embedded derivative were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases were made under the contract. At the time this derivative asset was recognized, an equivalent amount was recognized as a deferred credit in Other noncurrent liabilities and deferred credits on the Consolidated Balance Sheet. The amortization of this deferred credit was recognized in Other expenses (income), net on the accompanying Statement of Consolidated Operations as power was received over the life of the contract. D7 —Alcoa Corporation had a natural gas supply contract (expired in October 2018), which had an LME-linked ceiling. Prior to its expiration, this embedded derivative was valued using probabilities of future LME aluminum prices and the price of Brent crude oil (priced on Platts), including the interrelationships between the two commodities subject to the ceiling. Any change in the interrelationship would result in a higher or lower fair value measurement. An LME ceiling was embedded into the contract price to protect against an increase in the price of oil without a corresponding increase in the price of LME. An increase in oil prices with no similar increase in the LME price would limit the increase of the price paid for natural gas. This embedded derivative did not qualify for hedge accounting treatment. Unrealized gains and losses from the embedded derivative were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as gas purchases were made under the contract. D8 —In 2016, Alcoa Corporation and the related counterparty elected to modify the pricing of an existing power contract for a smelter in the United States. This amendment contains an embedded derivative that indexes the price of power to the LME price of aluminum plus the Midwest premium. The embedded derivative is valued using the interrelationship of future metal prices (LME base plus Midwest premium) and the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum at the smelter. Significant increases or decreases in the metal price would result in a higher or lower fair value measurement. An increase in actual metal price over the inputs used in the valuation model will result in a higher cost of power and a corresponding increase to the derivative liability. Management elected not to qualify the embedded derivative for hedge accounting treatment. Unrealized gains and losses from the embedded derivative were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases were made under the contract. At the time this derivative liability was recognized, an equivalent amount was recognized as a deferred charge in Other noncurrent assets on the accompanying Consolidated Balance Sheet. The amortization of this deferred charge is recognized in Other expenses (income), net on the accompanying Statement of Consolidated Operations as power is received over the life of the contract. D9 —Alcoa Corporation has a power contract, which contains an embedded derivative that indexes the spread between the Company’s estimated 30-year debt yield and the counterparty’s 30-year debt yield. As Alcoa Corporation does not have outstanding 30-year debt, the Company’s estimated 30-year debt yield is represented by the sum of (i) the excess of the yield on Alcoa’s outstanding notes due 2026 over the yield on only the Ba/BB-rated company debt included in Barclays High Yield Index for intermediate (10-year) credits and (ii) the yield on only the Ba/BB-rated company debt included in Barclays High Yield Index for long (30-year) credits. In accordance with the terms of the power contract, this calculation may be changed in January of each calendar year. Management uses market prices, historical relationships, and forecast services to determine fair value. Significant increases or decreases in any of these inputs would result in a lower or higher fair value measurement. A wider credit spread between Alcoa Corporation and the counterparty would result in a higher cost of power and a corresponding increase in the derivative liability. This embedded derivative did not qualify for hedge accounting treatment. Unrealized gains and losses were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases were made under the contract. D10 and D11 —Alcoa Corporation had a financial contract (D10) that hedged the anticipated power requirements at one of its smelters that began in November 2016. At that time, the energy supply contract related to this smelter had expired (see D6 above) and Alcoa Corporation began purchasing electricity directly from the spot market. Beyond the term where market information is available, management developed a forward curve, for valuation purposes, based on independent consultant market research. Significant increases or decreases in the power market may result in a higher or lower fair value measurement of the financial contract. Lower prices in the power market would cause a decrease in the derivative asset. The financial contract had been designated as a cash flow hedge of future purchases of electricity (this designation ceased in December 2016 —see below). Through November 2016, unrealized gains and losses on this contract were recorded in Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheet, while realized gains and losses were recorded in Cost of goods sold as electricity purchases were made from the spot market. In August 2016, Alcoa Corporation gave the required notice to terminate this financial contract one year from the date of notification. As a result, Alcoa Corporation decreased both the related derivative asset recorded in Other noncurrent assets and the unrealized gain recorded in Accumulated other comprehensive loss by $84, which related to the August 2017 through 2036 timeframe, resulting in no impact to Alcoa Corporation’s earnings. In December 2016, the smelter experienced an unplanned outage, resulting in a portion of the financial contract no longer qualifying for hedge accounting, at which point management elected to discontinue hedge accounting for all of the remainder of the contract (through August 2017). As a result, Alcoa Corporation reclassified an unrealized gain of $7 from Accumulated other comprehensive loss to Other expenses, net related to the portion of the contract that no longer qualified for hedge accounting. The remaining $6 unrealized gain in Accumulated other comprehensive loss related to the portion management elected to discontinue hedge accounting was reclassified to Cost of goods sold as electricity purchases were made from the spot market through the termination date of the financial contract. Additionally, from December 2016 through August 2017, unrealized gains and losses on this contract were recorded in Other expenses (income), net, and realized gains and losses were recorded in Other expenses (income), net as electricity purchases were made from the spot market. In January 2017, Alcoa Corporation and the counterparty entered into a new financial contract (D11) to hedge the anticipated power requirements at this smelter for the period from August 2017 through July 2021 and amended the existing financial contract to both reduce the hedged amount of anticipated power requirements and to move up the effective termination date to July 31, 2017. The new financial contract has been designated as a cash flow hedge of future purchases of electricity. Unrealized gains and losses on the new financial contract were recorded in Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheet while realized gains and losses were recorded (began in August 2017) in Cost of goods sold as electricity purchases were made from the spot market. The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments: Fair value at December 31, 2018* Unobservable input Range ($ in full amounts) Assets: Financial contract (D11) $ 112 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $68.60 per megawatt hour in 2019 to $44.91 per megawatt hour in 2021 Embedded aluminum derivatives (D3 through D5) 20 Price of aluminum beyond forward curve Aluminum: $2,426 per metric ton in April 2029 to $2,458 per metric ton in December 2029 (two contracts) and $2,756 per metric ton in 2036 (one contract) Midwest premium: $0.1900 per pound in 2019 to $0.1800 per pound in 2029 (two contracts) and 2036 (one contract) Liabilities: Embedded aluminum derivative (D1) 234 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,823 per metric ton in 2019 to $2,350 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivative (D8) 5 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,823 per metric ton in January 2019 to $1,848 per metric ton in March 2019 Midwest premium: $0.1900 per pound in January 2019 to $0.1900 per pound in March 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative (D2) 9 Interrelationship of LME price to overall energy price Aluminum: $1,946 per metric ton in January 2019 to $1,907 per metric ton in December 2019 Embedded credit derivative (D9) 20 Estimated spread between the respective 30-year debt yield of Alcoa Corporation and counterparty 3.11% (30-year debt yields: Alcoa Corporation—7.47% (estimated) and counterparty—4.36%) * The fair value of the embedded aluminum derivatives (D3 through D5) reflected as an asset in this table is lower by $21 compared to the respective amount reflected in the Level 3 tables presented below. This is due to the fact that these contracts are in an asset position for the noncurrent portion and are in a liability position for the current portion, which are reflected as such on the accompanying Consolidated Balance Sheet. However, these derivatives are reflected as a net asset in the above table for purposes of presenting the assumptions utilized to measure the fair value of the derivative instrument in its entirety. The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives December 31, 2018 December 31, 2017 Derivatives designated as hedging instruments: Fair value of derivative instruments—current: Financial contract $ 70 $ 96 Fair value of derivative instruments—noncurrent: Embedded aluminum derivatives 41 — Financial contract 42 101 Total derivatives designated as hedging instruments $ 153 $ 197 Total Asset Derivatives $ 153 $ 197 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments—current: Embedded aluminum derivatives $ 46 $ 120 Fair value of derivative instruments—noncurrent: Embedded aluminum derivatives 218 992 Total derivatives designated as hedging instruments $ 264 $ 1,112 Derivatives not designated as hedging instruments: Fair value of derivative instruments—current: Embedded aluminum derivative $ 5 $ 28 Embedded credit derivative 4 4 Fair value of derivative instruments—noncurrent: Embedded aluminum derivative — 6 Embedded credit derivative 16 23 Total derivatives not designated as hedging instruments $ 25 $ 61 Total Liability Derivatives $ 289 $ 1,173 The following table shows the net fair values of the Level 3 derivative instruments at December 31, 2018 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed as of December 31, 2018: Fair value asset/(liability) Index change of + / -10% Embedded aluminum derivatives $ (228 ) $ 343 Embedded credit derivative (20 ) 2 Financial contract 112 35 The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities 2018 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Opening balance—January 1, 2018 $ — $ 197 $ 1,146 $ 27 Total gains or losses (realized and unrealized) included in: Sales — — (100 ) — Cost of goods sold — (62 ) — (3 ) Other expenses, net — — (19 ) (4 ) Other comprehensive income 40 (11 ) (745 ) — Purchases, sales, issuances, and settlements* — — — — Transfers into and/or out of Level 3* — — — — Other 1 (12 ) (13 ) — Closing balance—December 31, 2018 $ 41 $ 112 $ 269 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2018: Sales $ — $ — $ — $ — Cost of goods sold — — — — Other expenses, net — — (19 ) (4 ) * In 2018, there were no purchases, sales, issuances or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3 Assets Liabilities 2017 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Opening balance—January 1, 2017 $ 497 $ 17 $ 232 $ 35 Total gains or losses (realized and unrealized) included in: Sales 3 — (110 ) — Cost of goods sold — (31 ) — (5 ) Other expenses, net 1 (7 ) 18 (3 ) Other comprehensive loss (499 ) 88 1,022 — Purchases, sales, issuances, and settlements* — 119 — — Transfers into and/or out of Level 3* — — — — Other (2 ) 11 (16 ) — Closing balance—December 31, 2017 $ — $ 197 $ 1,146 $ 27 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2017: Sales $ — $ — $ — $ — Cost of goods sold — — — — Other expenses, net 1 (7 ) 18 (3 ) * In January 2017, there was an issuance of a new financial contract (see D11 above). There were no purchases, sales or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. Derivatives Designated As Hedging Instruments—Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, effective on January 1, 2018, the entire amount of unrealized gains or losses on the derivative is reported as a component of other comprehensive income. Prior to January 1, 2018, only the effective portion of unrealized gains or losses on the derivative is reported as a component of other comprehensive income while the ineffective portion of unrealized gains or losses is recognized directly in earnings immediately. On April 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for hedging activities (see Recently Adopted Accounting Guidance in Note B), which included the elimination of the concept of ineffectiveness. Accordingly, there is no longer a requirement to separately measure and report ineffectiveness. In all periods presented, realized gains or losses on the derivative are reclassified from other comprehensive income into earnings in the same period or periods during which the hedged transaction impacts earnings. Additionally, gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized directly in earnings immediately. Alcoa Corporation has five Level 3 embedded aluminum derivatives and one Level 3 financial contract (through November 2016 – see D10 above) that have been designated as cash flow hedges as described below. Additionally, in January 2017, Alcoa Corporation entered into a new financial contract (see D11 above), which was designated as a cash flow hedging instrument and was classified as Level 3 under the fair value hierarchy, that replaced the existing financial contract (see D10 above) in August 2017. Embedded aluminum derivatives (D1 through D5). Alcoa Corporation has entered into energy supply contracts that contain pricing provisions related to the LME aluminum price. The LME-linked pricing features are considered embedded derivatives. Five of these embedded derivatives have been designated as cash flow hedges of forward sales of aluminum. At December 31, 2018 and 2017, these embedded aluminum derivatives hedge forecasted aluminum sales of 2,508 kmt and 2,859 kmt, respectively. In 2018, 2017, and 2016, Alcoa Corporation recognized a net unrealized gain of $785, a net unrealized loss of $1,521, and a net unrealized loss of $615, respectively, in Other comprehensive income (loss) related to these five derivative instruments. Additionally, Alcoa Corporation reclassified a realized loss of $100, $113, and $7 from Accumulated other comprehensive loss to Sales in 2018, 2017, and 2016, respectively. Assuming market rates remain constant with the rates at December 31, 2018, a realized loss of $46 is expected to be recognized in Sales over the next 12 months. There was no ineffectiveness related to these five derivative instruments in 2017 and 2016. Financial contracts (D10 and D11). Alcoa Corporation had a financial contract to hedge the anticipated power requirements at one of its smelters that became effective when the existing power contract expired in October 2016. In August 2016, Alcoa Corporation elected to terminate most of the remaining term of this financial contract (see D10 above). Additionally, in December 2016, management elected to discontinue hedge accounting for this contract (see D10 above). This financial contract hedged forecasted electricity purchases of 1,969,544 megawatt hours prior to December 2016. In 2017, Alcoa Corporation reclassified a realized gain of $6 from Accumulated other comprehensive loss to Cost of goods sold. In 2016, Alcoa Corporation recognized an unrealized gain of $96 in Other comprehensive loss. Additionally, Alcoa Corporation recognized a gain of $3 in Other income, net related to hedge ineffectiveness in 2016. In addition, in January 2017, Alcoa Corporation entered into a new financial contract that hedges the anticipated power requirements at this smelter for the period from August 2017 through July 2021 (see D11 above). At December 31, 2018 and 2017, this financial contract hedges forecasted electricity purchases of 6,348,276 and 8,805,456, respectively, megawatt hours. In 2018 and 2017, Alcoa Corporation recognized an unrealized loss of $11 and an unrealized gain of $88, respectively, in Other comprehensive income (loss). Additionally, Alcoa Corporation reclassified a realized gain of $62 and $25 in 2018 and 2017, respectively, from Accumulated other comprehensive loss to Cost of goods sold. Assuming market rates remain consistent with the rates at December 31, 2018, a realized gain of $70 is expected to be recognized in Cost of goods sold over the next 12 months. The amount of hedge ineffectiveness related to this derivative instrument was not material in 2017. Derivatives Not Designated As Hedging Instruments Alcoa Corporation has two (three prior to October 2016) Level 3 embedded aluminum derivatives (D6 through D8) and one Level 3 embedded credit derivative (D9) that do not qualify for hedge accounting treatment and one Level 3 financial contract for which management elected to discontinue hedge accounting treatment (see D10 above). As such, gains and losses related to the changes in fair value of these instruments are recorded directly in earnings. In 2018, 2017, and 2016, Alcoa Corporation recognized a gain of $23, a loss of $22, a loss of $17, respectively, in Other expenses (income), net, of which a gain of $19, a loss of $18, and a loss of $15, respectively, related to the embedded aluminum derivatives, a gain of $4, a gain of $3, and a loss of $5, respectively, related to the embedded credit derivative, and a loss of $7 (2017) and a gain of $3 (2016) related to the financial contract. Material Limitations The disclosures with respect to commodity prices and foreign currency exchange risk do not consider the underlying commitments or anticipated transactions. If the underlying items were included in the analysis, the gains or losses on the futures contracts may be offset. Actual results will be determined by several factors that are not under Alcoa Corporation’s control and could vary significantly from those factors disclosed. Alcoa Corporation is exposed to credit loss in the event of nonperformance by counterparties on the above instruments, as well as credit or performance risk with respect to its hedged customers’ commitments. Alcoa Corporation does not anticipate nonperformance by any of these parties. Contracts are with creditworthy counterparties and are further supported by cash, treasury bills, or irrevocable letters of credit issued by carefully chosen banks. In addition, various master netting arrangements are in place with counterparties to facilitate settlement of gains and losses on these contracts. Other Financial Instruments. The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: 2018 2017 December 31, Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,113 $ 1,113 $ 1,358 $ 1,358 Restricted cash 3 3 7 7 Long-term debt due within one year 1 1 16 16 Long-term debt, less amount due within one year 1,801 1,863 1,388 1,555 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. Long-term debt due within one year and Long-term debt, less amount due within one year. The fair value 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 Long-term debt were classified in Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | P. Income Taxes Provision for income taxes. The components of income (loss) before income taxes were as follows: 2018 2017 2016 Domestic $ (771 ) $ (712 ) $ (688 ) Foreign 2,368 1,871 526 $ 1,597 $ 1,159 $ (162 ) Provision for income taxes consisted of the following: 2018 2017 2016 Current: Federal* $ 5 $ 3 $ 9 Foreign 757 421 221 State and local — — — 762 424 230 Deferred: Federal* (21 ) 24 — Foreign (15 ) 152 (46 ) State and local — — — (36 ) 176 (46 ) Total $ 726 $ 600 $ 184 * Includes U.S. income taxes related to foreign income. A reconciliation of the U.S. federal statutory rate to Alcoa Corporation’s effective tax rate was as follows (the effective tax rate was a provision on income in 2018 and 2017 and a provision on a loss in 2016): 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Taxes on foreign operations—rate differential 12.8 (10.8 ) 44.3 Global intangible low-taxed income (1) 10.0 — — Changes in valuation allowances 3.4 25.8 (1.9 ) Tax holidays (2) (3.2 ) 0.4 11.2 Unrecognized tax benefits 1.9 (1.0 ) (1.1 ) Other taxes related to foreign operations 1.1 1.3 (19.5 ) Noncontrolling interest 1.0 1.4 (7.3 ) Statutory tax rate and law changes 0.1 0.1 (0.6 ) Impact of U.S. Tax Cuts and Jobs Act of 2017 — 1.9 — Losses and credits with no tax benefit (3) — (0.2 ) (163.2 ) Nondeductible costs related to the Separation Transaction — — (9.6 ) Other (2.6 ) (2.1 ) (0.9 ) Effective tax rate 45.5 % 51.8 % (113.6 )% (1) (2 ) In 2018 and 2017, the income of certain operations of several of the Company’s subsidiaries in Brazil was taxed at a lower rate as a result of approved tax holidays. The difference between the respective holiday rates and the statutory rates resulted in a benefit of $46 and $20, or $0.24 and $0.11 per diluted share, in 2018 and 2017, respectively. The majority of these tax holidays expire at the end of 2022 and one tax holiday expires at the end of 2026 (see below). In 2018 and 2017, this line item also includes a benefit of $5 and a charge of $26, respectively, for the remeasurement of certain deferred tax assets related to these tax holidays in Brazil (see below). (3 ) In 2016, hypothetical net operating losses and tax credits were determined on a separate return basis for which it is more likely than not that a tax benefit will not be realized. The related deferred tax asset and offsetting valuation allowance have been adjusted to Parent Company net investment and, as such, are not reflected in subsequent deferred tax and valuation allowance tables. In mid-2017, AWAB received approval for a tax holiday related to the operation of the Juruti (Brazil) bauxite mine. This tax holiday was made effective as of January 1, 2017 (retroactively) and decreases AWAB’s tax rate on income generated by the Juruti mine from 34% to 15.25%, which will result in future cash tax savings over a 10-year period. As a result of this income tax rate change, AWAB’s existing deferred tax assets that are expected to reverse during the holiday period were remeasured at the lower tax rate. In 2017, this remeasurement resulted in both a decrease to AWAB’s deferred tax assets and a discrete income tax charge of $26 ($15 after noncontrolling interest). An updated analysis of the deferred tax assets expected to reverse during the holiday period resulted in both an increase to AWAB’s deferred tax assets and a discrete income tax benefit of $5 ($3 after noncontrolling interest) in 2018. Deferred income taxes. The components of deferred tax assets and liabilities based on the underlying attributes without regard to jurisdiction were as follows: 2018 2017 December 31, Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Tax loss carryforwards $ 1,231 $ — $ 1,185 $ — Employee benefits 683 — 949 — Loss provisions 212 — 246 — Investment basis differences 162 — 72 — Depreciation 91 428 141 432 Derivatives and hedging activities 53 39 287 70 Tax credit carryforwards 27 — 193 — Deferred income/expense 10 103 11 109 Other 87 1 28 57 2,556 571 3,112 668 Valuation allowance (1,684 ) — (1,927 ) — $ 872 $ 571 $ 1,185 $ 668 The following table details the expiration periods of the deferred tax assets presented above: December 31, 2018 Expires within 10 years Expires within 11-20 years No expiration* Other* Total Tax loss carryforwards $ 307 $ 254 $ 670 $ — $ 1,231 Tax credit carryforwards 18 9 — — 27 Other — — 305 993 1,298 Valuation allowance (325 ) (263 ) (370 ) (726 ) (1,684 ) $ — $ — $ 605 $ 267 $ 872 * Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences and taxable temporary differences that reverse within the carryforward period. The composition of Alcoa Corporation’s net deferred tax asset by jurisdiction as of December 31, 2018 was as follows: Domestic Foreign Total Deferred tax assets $ 891 $ 1,665 $ 2,556 Valuation allowance (779 ) (905 ) (1,684 ) Deferred tax liabilities (102 ) (469 ) (571 ) $ 10 $ 291 $ 301 The Company has several income tax filers in various foreign countries. Of the $291 net deferred tax asset included under the “Foreign” column in the table above, approximately 80% relates to four of Alcoa Corporation’s income tax filers as follows: a $209 deferred tax asset for Alumínio in Brazil; a $140 net deferred tax asset for AWAB in Brazil; a $94 deferred tax asset for Española (collectively with Alumínio and AWAB, the “Foreign Filers”) in Spain; and a $220 net deferred tax liability for AofA. The future realization of the net deferred tax asset for each of the Foreign Filers was based on projections of the respective future taxable income (defined as the sum of pretax income, other comprehensive income, and permanent tax differences), exclusive of reversing temporary differences and carryforwards. The realization of the net deferred tax assets of the Foreign Filers is not dependent on any tax planning strategies. The Foreign Filers each generated taxable income in the three-year cumulative period ending December 31, 2018. Management has also forecasted taxable income for each of the Foreign Filers in 2019 and for the foreseeable future. This forecast is based on macroeconomic indicators and involves assumptions related to, among others: commodity prices; volume levels; and key inputs and raw materials, such as bauxite, caustic soda, energy, labor, and transportation costs. These are the same assumptions utilized by management to develop the financial and operating plan that is used to manage the Company and measure performance against actual results. The majority of the Foreign Filers’ net deferred tax assets relate to tax loss carryforwards. The Foreign Filers do not have a history of tax loss carryforwards expiring unused. Additionally, tax loss carryforwards have an infinite life under the respective income tax codes in Brazil and Spain. That said, utilization of an existing tax loss carryforward is limited to 30% and 25% of taxable income in a particular year in Brazil and Spain, respectively. Accordingly, management concluded that the net deferred tax assets of the Foreign Filers will more likely than not be realized in future periods, resulting in no need for a partial or full valuation allowance as of December 31, 2018. The following table details the changes in the valuation allowance: December 31, 2018 2017 2016 Balance at beginning of year $ (1,927 ) $ (1,755 ) $ (712 ) Establishment of new allowances (1) (86 ) (94 ) — Net change to existing allowances (2) 312 (33 ) (1,056 ) Foreign currency translation 17 (45 ) 13 Balance at end of year $ (1,684 ) $ (1,927 ) $ (1,755 ) (1) This line item reflects valuation allowances initially established as a result of a change in management’s judgment regarding the realizability of deferred tax assets. (2) This line item reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax asset. In 2018, Alcoa Corporation immediately established a full valuation allowance of $86 related to an initial deferred tax asset associated with the Company’s equity interest in Elysis (see Note H). At inception, Alcoa Corporation contributed certain intellectual property and patents and made an initial cash investment of $5 to Elysis. This deferred tax asset relates to an outside basis difference created by the excess of the tax basis (i.e. fair value) of these assets over the carrying value of the investment in Elysis recorded by the Company. The initial purpose of Elysis is to advance development of aluminum smelter technology with the ultimate goal of commercialization. After weighing all available positive and negative evidence, management determined it is not more likely than not that Alcoa Corporation will realize the tax benefit of this deferred tax asset. This conclusion was based on the fact that Elysis is expected to generate losses for the foreseeable future as Elysis incurs expenses during the development stage without a committed future revenue stream. The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, a portion or all of the allowance may be reversed based on changes in facts and circumstances. In 2017, the Company established a valuation allowance of $94 related to the remaining deferred tax assets in Iceland (an initial allowance was previously established in 2015). This amount was comprised of a $60 discrete income charge recognized in the Provision for income taxes on the accompanying Consolidated Statement of Operations and a $34 charge to Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheet. These deferred tax assets relate to tax loss carryforwards, which have an expiration period ranging from 2017 to 2026, and deferred losses associated with derivative and hedging activities. After weighing all available positive and negative evidence, management determined that it was no longer more likely than not that Alcoa Corporation will realize the tax benefit of these deferred tax assets. This conclusion was based on existing cumulative losses and a short expiration period. Such losses were generated as a result of intercompany interest expense under the Company’s global treasury and cash management system and the realization of deferred losses associated with an LME-linked embedded derivative in a power contract (see Note O). This interest expense is expected to continue and additional deferred losses associated with the embedded derivative will be realized in future years. As a result, management estimates that there will not be sufficient taxable income available to utilize the operating losses during the expiration period. The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, a portion or all of the allowance may be reversed based on changes in facts and circumstances. Undistributed net earnings. The cumulative amount of Alcoa Corporation’s foreign undistributed net earnings deemed to be permanently reinvested was approximately $1,010 as of December 31, 2018. This amount relates to foreign undistributed net earnings generated prior to the Separation Date, as well as approximately $230 of certain earnings generated during 2018 and 2017. Alcoa Corporation has several commitments and obligations related to the Company’s operations in various foreign jurisdictions; therefore, management has no plans to distribute such earnings in the foreseeable future. Alcoa Corporation continuously evaluates its local and global cash needs for future business operations and anticipated debt facilities, which may influence future repatriation decisions. As described below (see U.S. Tax Cuts and Jobs Act of 2017 below), beginning on January 1, 2018, dividends received from foreign subsidiaries will no longer be subject to U.S. federal income tax; however, there was a mandatory one-time deemed repatriation of existing foreign undistributed net earnings during 2017 that may have resulted in a tax obligation for the Company. Based on an analysis completed in 2018, management determined that Alcoa Corporation had sufficient U.S. tax losses and foreign tax credits to apply against such tax, resulting in no impact to the Company’s Consolidated Financial Statements. Accordingly, with the exception of potential foreign currency exchange rate differences, the earnings described above will not be subject to residual U.S. income tax if repatriated in the future. Additionally, any such repatriation will not be subject to foreign income tax with the exception of withholding tax in certain jurisdictions. Management does not expect any such withholding tax to be material to the Company’s Consolidated Financial Statements. Unrecognized tax benefits. Alcoa Corporation and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various foreign and U.S. state jurisdictions. With few exceptions, the Company is not subject to income tax examinations by tax authorities for years prior to 2014. For U.S. federal income tax purposes, virtually all of Alcoa Corporation’s U.S. operations were included in the income tax filings of ParentCo’s U.S. consolidated tax group prior to the Separation Date. Since that time, the Company’s U.S. consolidated tax group, comprised of the referenced U.S. operations, has filed both a two-month (related to 2016) and a 2017 U.S. federal income tax return, which have not been examined by the Internal Revenue Service. The U.S. federal income tax filings of ParentCo’s U.S. consolidated tax group have been examined for all prior periods through the Separation Date. Foreign jurisdiction tax authorities are in the process of examining income tax returns of several of Alcoa Corporation’s subsidiaries for various tax years between and including 2006 through 2017. For U.S. state income tax purposes, Alcoa Corporation and its subsidiaries remain subject to income tax examinations for the 2014 tax year and forward (as of December 31, 2018, there are no active examinations). A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2018 2017 2016 Balance at beginning of year $ 10 $ 23 $ 22 Additions for tax positions of the current year 1 1 3 Additions for tax positions of prior years 20 — 1 Reductions for tax positions of prior years — (5 ) (2 ) Settlements with tax authorities — (6 ) (2 ) Expiration of the statute of limitations — (3 ) — Foreign currency translation (1 ) — 1 Balance at end of year $ 30 $ 10 $ 23 For all periods presented, a portion of the balance at end of year pertains to state tax liabilities, which are presented before any offset for federal tax benefits. The effect of unrecognized tax benefits, if recorded, that would impact the annual effective tax rate for 2018, 2017, and 2016 would be 2%, 1%, and 10%, respectively, of pretax book income (loss). In 2018, the Company recorded a charge of $30 (€26), including $10 (€9) for interest, in Provision for income taxes on the accompanying Statement of Consolidated Operations to establish a liability for its 49% share of the estimated loss on a disputed income tax matter (see “Spain” in the Tax section of Note R). Alcoa Corporation does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Statement of Consolidated Operations during 2019. It is the Company’s policy to recognize interest and penalties related to income taxes as a component of the Provision for income taxes on the accompanying Statement of Consolidated Operations. In 2018, 2017, and 2016, Alcoa Corporation recognized $10, $1, and $1, respectively, in interest and penalties. Due to the expiration of the statute of limitations, settlements with tax authorities, and refunded overpayments, the Company also recognized interest income of $1, $6, and $2 in 2018, 2017, and 2016, respectively. As of December 31, 2018 and 2017, the amount accrued for the payment of interest and penalties was $12 and $2, respectively. U.S. Tax Cuts and Jobs Act of 2017. On December 22, 2017, U.S. tax legislation known as the U.S. Tax Cuts and Jobs Act of 2017 (the “TCJA”) was enacted. For corporations, the TCJA amends the U.S. Internal Revenue Code by reducing the corporate income tax rate and modifying several business deduction and international tax provisions. Specifically, the corporate income tax rate was reduced to 21% from 35%. Other significant changes, in general, include the following, among others: (i) a mandatory one-time deemed repatriation of accumulated foreign earnings (see Undistributed net earnings above) at either an 8% or 15.5% tax rate, depending on circumstances; (ii) dividends received from foreign subsidiaries can be deducted in full regardless of ownership interest (previously such dividends were fully taxable); (iii) a 21% or 10.5% tax (effective in 2018), depending on circumstances, on a new category of income, referred to as global intangible low tax income (GILTI), related to earnings of foreign entities above a prescribed return on the associated fixed asset base; (iv) a 5% to 10% tax (effective in 2018) on base erosion payments (deductible cross-border payments to related parties) that exceed 3% of a company’s deductible expenses; and (v) net operating losses have an unlimited carryforward period (previously 20 years) and no carryback period (previously 2 years), but deductions for such losses are limited to 80% of taxable income (previously 100% of taxable income) beginning with the 2018 tax year. As a result of the close proximity of the enactment date of the TCJA in relation to Alcoa Corporation’s 2017 calendar year-end, management elected January 17, 2018 as a cut-off date for purposes of recognizing any impacts from the TCJA in the Company’s 2017 Consolidated Financial Statements. This date coincided with Alcoa Corporation’s public release of its preliminary financial results for the fourth quarter and year ended December 31, 2017. Accordingly, the Company’s preliminary analysis of the provisions of the TCJA resulted in a discrete income tax charge of $22, which was reflected in Provision for income taxes on the accompanying Statement of Consolidated Operations for 2017, as described below. The $22 charge relates specifically to management’s reasonable estimate of the corporate income tax rate change, which resulted in the remeasurement of Alcoa Corporation’s deferred income tax accounts. On a gross basis, the Company reduced its deferred tax assets, valuation allowance, and deferred tax liabilities by $506, $433, and $51, respectively. Management also completed a preliminary analysis of the remaining provisions of the TCJA, including those specifically described above, in order to make a reasonable estimate as of the cut-off date, which resulted in no additional impact to the Company’s 2017 Consolidated Financial Statements. Specifically, the reasonable estimate for the TCJA provisions described above was based on the following: for (i), (ii), and (iii), Alcoa Corporation’s existing tax profile, which includes significant current U.S. tax losses that would be applied against such taxable income, as well as significant foreign tax credits that can be applied against these taxes; for (iv) management estimates that the Company will be under the 3% threshold; and for (v) Alcoa Corporation’s deferred income tax assets related to U.S. net operating losses were fully reserved as of December 31, 2017. The Company’s preliminary analyses and provisional estimates of the financial statement impacts of the TCJA were completed in accordance with guidance issued by the SEC under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act Throughout the majority of 2018, management continued to gather information and perform additional analysis of the TCJA provisions related to Alcoa Corporation’s 2017 Consolidated Financial Statements. Upon completion of this analysis, management concluded that there was no material impact to the Company’s 2017 Consolidated Financial Statements related to both the reduced corporate income tax rate and the other applicable provisions of the TCJA. Also in 2018, management completed its analysis of the impact of the tax law changes, including GILTI, that became effective January 1, 2018 under the TCJA related to Alcoa Corporation’s 2018 Consolidated Financial Statements. The Company made an accounting policy election to include as a period cost the tax impact generated by including GILTI in U.S. taxable income. The inclusion of GILTI in 2018 U.S. taxable income was fully offset by current U.S. tax losses and net operating loss carryforwards as expected. None of the remaining provisions of the TCJA had a material impact on Alcoa Corporation’s 2018 Consolidated Financial Statements. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Q. Asset Retirement Obligations Alcoa Corporation has recorded AROs related to legal obligations associated with the standard operation of bauxite mines, alumina refineries, and aluminum smelters. These AROs consist primarily of costs associated with mine reclamation, closure of bauxite residue areas, spent pot lining disposal, and landfill closure. Alcoa Corporation also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities. In addition to AROs, certain CAROs related to alumina refineries, aluminum smelters, rolling mills, and energy generation facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made (e.g., planned demolition), Alcoa Corporation would record an ARO for the removal, treatment, transportation, storage, and/or disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, PCBs, various process residuals, solid wastes, electronic equipment waste, and various other materials. If Alcoa Corporation was required to demolish all such structures immediately, the estimated CARO as of December 31, 2018 ranges from $3 to $28 per structure (24 structures) in today’s dollars. The following table details the carrying value of recorded AROs by major category (of which $122 and $108 was classified as a current liability as of December 31, 2018 and 2017, respectively): December 31, 2018 2017 Mine reclamation $ 198 $ 221 Closure of bauxite residue areas 231 238 Spent pot lining disposal 113 125 Demolition* 76 113 Landfill closure 33 27 Other — 1 $ 651 $ 725 * In 2018, 2017, and 2016, AROs were recorded as a result of management’s decision to permanently close and demolish certain structures (see Note D). The following table details the changes in the total carrying value of recorded AROs: December 31, 2018 2017 Balance at beginning of year $ 725 $ 708 Accretion expense 17 17 Payments (80 ) (69 ) Liabilities incurred 63 70 Reversals of previously recorded liabilities* (37 ) (27 ) Foreign currency translation and other (37 ) 26 Balance at end of year $ 651 $ 725 * In 2018 and 2017, Reversals of previously recorded liabilities include $36 and $20 related to the Portovesme (Italy) and Warrick (Indiana) smelters, respectively (see Note D). |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | R. Contingencies and Commitments Unless specifically described to the contrary, all matters within Note R are the full responsibility of Alcoa Corporation pursuant to the Separation and Distribution Agreement. Additionally, the Separation and Distribution Agreement provides for cross-indemnities between the Company and Arconic for claims subject to indemnification. Contingencies Litigation. Italy 148 —Beginning in 2006, ParentCo and the Italian Energy Authority (Autorità di Regolazione per Energia Reti e Ambiente, formerly l’Autorità per l’Energia Elettrica, il Gas e il Sistema Idrico, the “Energy Authority”) had been in a dispute regarding the calculation of a drawback applied to a portion of the price of power under a special tariff received by Alcoa Trasformazioni S.r.l. (“Trasformazioni,” previously a subsidiary of ParentCo; now a subsidiary of Alcoa Corporation). This dispute arose as a result of a resolution (148/2004) issued in 2004 by the Energy Authority that changed the method for calculating the drawback. Through 2009, Trasformazioni continued to receive the power price drawback for its Portovesme and Fusina smelters in accordance with the original resolution (204/1999), at which time the European Commission declared all such special tariffs to be impermissible “state aid.” Between 2006 and 2014, several judicial hearings occurred related to continuous appeals filed by both ParentCo and the Energy Authority regarding the dispute on the calculation of the drawback; a hearing on the latest appeal was scheduled for May 2018 (see below). Additionally, between 2012 and 2013, Trasformazioni received multiple letters from the agency responsible for making and collecting payments on behalf of the Energy Authority demanding payment for the difference in the drawback calculation between the two resolutions. The latest such demand was for $97 (€76), including interest, and allegedly included consideration of a third resolution (44/2012) issued in 2012 on the calculation of the drawback; Trasformazioni rejected this demand. In the meantime, as a result of the conclusion of the European Commission Matter in January 2016 (see Note R to the Consolidated Financial Statements in Part II Item 8 of Alcoa Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017), ParentCo’s management modified its outlook with respect to a portion of the then-pending legal proceedings related to the drawback dispute. As such, a charge of $37 (€34) was recorded in Restructuring and other charges for the year ended December 31, 2015 to establish a partial reserve for this matter. In December 2017, through an agreement with the Energy Authority, Alcoa Corporation settled this matter for $18 (€15) (paid in January 2018). Accordingly, the Company recorded a reduction of $22 (€19) (the U.S. dollar amount reflects the effects of foreign currency movements since 2015) to its previously established reserve in Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations. In January 2018, subsequent to making the previously referenced payment, Alcoa Corporation and the respective state attorney in Italy filed a joint request with the Regional Administrative Court for Lombardy to have this matter formally dismissed. On October 9, 2018, the court formally dismissed the case and this matter is now closed. Also in December 2017, as part of a separate but related agreement to the above, the Company agreed to transfer ownership of the Portovesme smelter (permanently closed in 2014) to Invitalia, an Italian government agency responsible for managing economic development. Under the provisions of the agreement, the Company will retain the responsibility for environmental-related obligations associated with decommissioning the Portovesme smelter (see below). The agreement further provides that the Company may be relieved of such obligations upon Invitalia exercising an option to receive a cash payment of $23 (€20) from the Company. Additionally, this agreement included a framework for the future settlement of a groundwater remediation project related to the Portovesme site (see Fusina and Portovesme, Italy in Environmental Matters below). In February 2018, the Company completed the transfer of ownership of the Portovesme smelter to Invitalia. The carrying value of the assets related to the Portovesme site were previously written down to zero as a direct result of ParentCo’s decision in 2014 to decommission the facility. In mid-2018, Invitalia sold the Portovesme smelter to SiderAlloys International S.A., a Switzerland company, which intends to restart the facility. In June 2018, Invitalia gave notice to the Company that it was exercising its option under the December 2017 agreement to receive the cash payment thereby releasing the Company from responsibility of all environmental-related obligations associated with a future decommissioning of the Portovesme smelter. The cash payment will be made in three installments, one in each of 2018 (paid $8 (€7) on June 18), 2019, and 2020. Accordingly, Alcoa Corporation recognized a $15 net benefit in Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations, comprised of (i) a $38 reversal of previously accrued asset retirement obligations ($36) and environmental reserves ($2) related to the Company’s former decommissioning plan for the Portovesme smelter, and (ii) a $23 charge to establish a liability for the planned cash payment to Invitalia. Environmental Matters. Alcoa Corporation participates in environmental assessments and cleanups at several locations. These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as, among others, the nature and extent of contamination, changes in remedial requirements, and technological changes. Alcoa Corporation’s remediation reserve balance was $280 and $294 at December 31, 2018 and 2017 (of which $44 and $36 was classified as a current liability), respectively, and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. In 2018, the remediation reserve was increased by $16 due to an increase of $9 related to the former Sherwin location (see below), a reversal of $2 (recorded in Restructuring and other charges) related to the Portovesme location (unrelated to the matter below – see Italy 148 in Litigation above), and a net charge of $9 ($7 and $2 were recorded in Cost of goods sold and Restructuring and other charges, respectively) associated with several sites. In 2017, the remediation reserve was increased by $1 due to a charge of $8 related to the planned demolition of the Rockdale smelter (see Note D), a combined reduction of $6 related to the Baie Comeau and Mosjøen locations (see below), a reversal of $4 related to the restart of the Warrick smelter (see Note D), and a net charge of $3 associated with several other sites. In 2016, the remediation reserve was increased by $39 due to a charge of $26 related to the planned demolition of the Suriname refinery and permanent closure of the related bauxite mines (see Note D) and a net charge of $13 associated with several other sites. Of the changes to the remediation reserve in 2017 and 2016, $4 and $26, respectively, was recorded in Restructuring and other charges, while the remainder was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. Payments related to remediation expenses applied against the reserve were $25, $48, and $32 in 2018, 2017, and 2016, respectively. These amounts include expenditures currently mandated, as well as those not required by any regulatory authority or third party. In 2018, the change in the reserve also reflects a decrease of $6 due to the effects of foreign currency translation and an increase of $1 for reclassifications made between this reserve and the Company’s liability for asset retirement obligations. In 2017, the change in the reserve also reflects an increase of $17, including $11 due to the effects of foreign currency translation and $5 for the reclassification of an amount previously included in Asset retirement obligations on Alcoa Corporation’s Consolidated Balance Sheet as of December 31, 2016. In 2016, the change in the reserve also reflects an increase for each of the following: $60 of obligations transferred from ParentCo in connection with the Separation Transaction on November 1, 2016, including Sherwin and East St. Louis described below; $17 for the reclassification of amounts included in other reserves within Other noncurrent liabilities and deferred credits on Alcoa Corporation’s Consolidated Balance Sheet as of December 31, 2015; and $5 due to the effects of foreign currency translation. The Separation and Distribution Agreement includes provisions for the assignment or allocation of environmental liabilities between Alcoa Corporation and Arconic, including certain remediation obligations associated with environmental matters. In general, the respective parties are responsible for the environmental matters associated with their operations, and with the properties and other assets assigned to each. Additionally, the Separation and Distribution Agreement lists environmental matters with a shared responsibility between the two companies with an allocation of responsibility and the lead party responsible for management of each matter. For matters assigned to Alcoa Corporation and Arconic under the Separation and Distribution Agreement, the companies have agreed to indemnify each other in whole or in part for environmental liabilities arising from operations prior to the Separation Date. The following description provides details regarding the current status of certain significant reserves related to current or former Alcoa Corporation sites. With the exception of the Fusina, Italy matter, Alcoa Corporation assumed full responsibility of the matters described below. General —The Company is in the process of decommissioning various plants in several countries. As a result, redeveloping these sites for reuse or returning the land to a natural state requires the performance of certain remediation activities. In aggregate, the majority of 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 will be required. At December 31, 2018 and 2017, the reserve balance associated with these activities was $132 and $150, respectively. Sherwin, TX —In connection with ParentCo’s sale of the Sherwin alumina refinery, which was required to be divested as part of ParentCo’s acquisition of Reynolds Metals Company in 2000, ParentCo agreed to retain responsibility for the remediation of the then-existing environmental conditions, as well as a pro rata share of the final closure of the active bauxite residue waste disposal areas (known as the Copano facility). All ParentCo obligations regarding the Sherwin refinery and Copano facility were transferred from ParentCo to Alcoa Corporation as part of the Separation Transaction on November 1, 2016. Since October 2016, Reynolds Metals Company, a subsidiary of Alcoa Corporation, had been involved in a legal dispute with the owner of Sherwin related to the allocation of responsibility for the environmental obligations at this site. In April 2018, Reynolds Metals Company reached a settlement agreement with the owner of Sherwin, as well as a separate agreement with the Texas Commission on Environmental Quality, that revised the environmental responsibilities and obligations for each related to the Sherwin refinery site and Copano facility. These agreements became effective on May 21, 2018. Accordingly, the Company increased the reserve associated with this matter by $9 to reflect certain incremental obligations under the agreements. At December 31, 2018 and 2017, the reserve balance associated with this matter was $38 and $29, respectively. In management’s judgment, the Company’s reserve as of December 31, 2018 is sufficient to satisfy the provisions of the settlement agreements. Upon changes in facts or circumstances, a change to the reserve may be required. See “Sherwin” in the Other section below for a complete description of this matter. Baie Comeau, Quebec, Canada —Alcoa Corporation has a remediation project related to known polychlorinated biphenyls (PCBs) and polycyclic aromatic hydrocarbons (PAHs) contained in sediments of the Anse du Moulin bay, which is near the Company’s Baie Comeau smelter. The project, which was approved by the Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks through a final ministerial decree issued in July 2015, is aimed at dredging and capping of the contaminated sediments. The project work began in April 2017 and was virtually completed in December 2017. At the end of 2017, the Company decreased the reserve for Baie Comeau by $4 to reflect the final cost estimate of the remaining work and the subsequent monitoring program, which is expected to last through 2023. At December 31, 2018 and 2017, the reserve balance associated with this matter was $3 and $5, respectively. Fusina and Portovesme, Italy— The following matters are in regards to an order issued in 2004 to Alcoa Trasformazioni S.r.l. (“Trasformazioni”) (Trasformazioni is now a subsidiary of Alcoa Corporation and owns the Fusina smelter and Portovesme smelter (until February 2017 – see Italy 148 in Litigation above) sites, and Fusina Rolling S.r.l., a new ParentCo subsidiary, now owns the Fusina rolling operations) by the Italian Ministry of Environment and Protection of Land and Sea (the “MOE”) for the development of a clean-up plan related to soil and groundwater contamination in excess of allowable limits under legislative decree and, for only the Fusina site, to institute emergency actions and pay natural resource damages. For the Fusina site, Trasformazioni has a soil and groundwater remediation project, which was approved by the MOE through a final ministerial decree issued in August 2014. Additionally, under an administrative agreement reached in February 2014 with the MOE, Trasformazioni is required to make annual payments over a 10-year period for groundwater emergency containment and natural resource damages related to the Fusina site. Trasformazioni began work on the soil remediation project in October 2017 and expects to complete the project by the end of 2019. The MOE assumed the responsibility for the execution of the groundwater remediation/emergency containment in accordance with the February 2014 settlement agreement, as part of a regional effort by the MOE, and project work is slated to begin in 2020. At December 31, 2018 and 2017, the reserve balance associated with all of the foregoing Fusina-related matters (excluding a portion related to the rolling operations – see below) was $5 and $8, respectively. Effective with the Separation Transaction, Arconic retained the portion of Trasformazioni’s obligation related to the Fusina rolling operations. Specifically, under the Separation and Distribution Agreement, Trasformazioni, and with it the Fusina properties, were assigned to Alcoa Corporation. Fusina Rolling S.r.l., entered into a lease agreement for the portion of property that included the rolling operations. Pursuant to the Separation and Distribution Agreement, the liabilities at Fusina described above were allocated between Alcoa Corporation (Trasformazioni) and Arconic (Fusina Rolling S.r.l.) For the Portovesme site, Trasformazioni has a soil remediation project, which was approved by the MOE through a final ministerial decree issued in October 2015. Project work on the soil remediation project commenced in mid-2016 and is expected to be completed by the end of 2019. Additionally, Trasformazioni, along with four other entities that operated in the same industrial park, have submitted a groundwater remediation project, which was preliminarily approved in 2010 by the MOE. Since that time, the parties have performed additional studies and work to be incorporated into the final remedial design. In December 2017, a framework for the future settlement of the groundwater remediation project was included within an agreement to transfer the ownership of the Portovesme smelter to an Italian government agency (see Italy 148 in Litigation above). The MOE has confirmed its acceptance of the proposal set out in the framework; however, the total cost of the groundwater remediation project will not be determined until the final remedial design is completed in mid-2019. The ultimate outcome of this matter may result in a change to the existing reserve for Portovesme . Mosjøen, Norway —Alcoa Corporation has a remediation project related to known PAHs in the sediments located in the harbor and extending out into the fjord, which are near the Company’s Mosjøen smelter. The project, which was approved by the Norwegian Environmental Agency through a final order issued in June 2015, is aimed at dredging and capping of the contaminated sediments. In order to allow for the sediment dredging in the harbor, the project also includes stabilization of the wharf. Project work commenced in early 2016 and the main portion of such work was completed in the second half of 2017. At that time, the Company reexamined its cost estimate for the remaining project work, resulting in a reduction of the reserve associated with this matter by $2. In mid-2018, the remaining project work was completed. At December 31, 2018, there is a small reserve balance for required ongoing reporting and monitoring activities. At December 31, 2017, the reserve balance associated with this matter was $2. East St. Louis, IL —Alcoa Corporation has an ongoing remediation project related to an area used for the disposal of bauxite residue from ParentCo’s former alumina refining operations. The project, which was selected by the U.S. Environmental Protection Agency (EPA) in a Record of Decision issued in July 2012 and approved in a consent decree entered as final in February 2014 by the U.S. Department of Justice, is aimed at implementing a soil cover over the affected area. As a result, ParentCo began the project work in March 2014; the fieldwork on a majority of this project was completed by the end of June 2016. A completion report was approved by the EPA in September 2016 and this matter, for the completed portion of the project, transitioned into a long-term (approximately 30 years) inspection, maintenance, and monitoring program. Fieldwork for the remaining portion of the project is expected to be completed in 2020, at which time it would also transition into a long-term inspection, maintenance, and monitoring program. This obligation was transferred from ParentCo to Alcoa Corporation as part of the Separation Transaction on November 1, 2016. At December 31, 2018 and 2017, the reserve balance associated with this matter was $3 and $4, respectively. Tax. Spain —In July 2013, following a corporate income tax audit covering the 2006 through 2009 tax years, an assessment was received as a result of Spain’s tax authorities disallowing certain interest deductions claimed by a former Spanish consolidated tax group previously owned by ParentCo. The following month, ParentCo filed an appeal of this assessment in Spain’s Central Tax Administrative Court. In conjunction with this appeal, as required under Spanish tax law, ParentCo provided financial assurance in this matter in the form of both a bank guarantee (Arconic) and a lien secured with the San Ciprian smelter (Alcoa Corporation) to Spain’s tax authorities. In January 2015, Spain’s Central Tax Administrative Court denied ParentCo’s appeal of this assessment. Two months later, ParentCo filed an appeal of the assessment in Spain’s National Court (the “National Court”). The amount of this assessment, including interest, was $152 (€131) as of June 30, 2018. On July 6, 2018, the National Court denied ParentCo’s appeal of the assessment; however, the decision includes a requirement that Spain’s tax authorities issue a new assessment, which considers available net operating losses of the former Spanish consolidated tax group from prior tax years that can be utilized during the assessed tax years. Spain’s tax authorities will not issue a new assessment until this matter is resolved; however, based on estimated calculations completed by Arconic and Alcoa Corporation (collectively, the “Companies”), the amount of the new assessment, including applicable interest, is expected to be in the range of $25 to $61 (€21 to €53) after consideration of available net operating losses and tax credits. Under the Tax Matters Agreement related to the Separation Transaction, Arconic and Alcoa Corporation are responsible for 51% and 49%, respectively, of the assessed amount in the event of an unfavorable outcome. On July 12, 2018, the Companies sent a letter to the National Court seeking clarification on one part of the decision. A response was received from the National Court on October 1, 2018, resulting in no change to its July 6, 2018 decision. On November 8, 2018, the Companies filed a petition for appeal to Spain’s Supreme Court, to which Spain’s tax authorities have filed their opposition. Notwithstanding the petition for appeal, based on a review of the bases on which the National Court decided this matter, Alcoa Corporation management no longer believes that the Companies are more likely than not (greater than 50%) to prevail in this matter. Accordingly, Alcoa Corporation recorded a charge of $30 (€26) in Provision for income taxes on the accompanying Statement of Consolidated Operations to establish a liability for its 49% share of the estimated loss in this matter, representing management’s best estimate at this time. As indicated above, at a future point in time, the Companies will receive an updated assessment from Spain’s tax authorities, which may result in a change to management’s estimate following further analysis. Separately, in January 2017, the National Court issued a decision in favor of the former Spanish consolidated tax group related to a similar assessment for the 2003 through 2005 tax years, effectively making that assessment null and void. Additionally, in August 2017, in lieu of receiving a formal assessment, the Companies reached a settlement with Spain’s tax authorities for the 2010 through 2013 tax years that had been under audit for a similar matter. Alcoa Corporation’s share of this settlement was not material to the Company’s Consolidated Financial Statements. The ultimate outcomes related to the 2003 through 2005 and the 2010 through 2013 tax years are not indicative of the potential ultimate outcome of the assessment for the 2006 through 2009 tax years due to procedural differences. Also, it is possible that the Companies may receive similar assessments for tax years subsequent to 2013; however, management does not expect any such assessment, if received, to be material to Alcoa Corporation’s Consolidated Financial Statements. 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 are being disallowed and a penalty of 50% 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. 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. 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, 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 is $0 to $27 (R$103), whereby the maximum end of the range represents the portion of the disallowed credits applicable to the export sales and excludes the 50% penalty. Additionally, the estimated range of disallowed credits related to AWAB’s fixed assets is $0 to $30 (R$117), which would increase the net carrying value of AWAB’s fixed assets if ultimately disallowed. 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. Brazil (Alumínio) —Between 2000 and 2002, Alumínio sold approximately 2,000 metric tons of metal per month from its Poços de Caldas facility, located in the State of Minas Gerais (the “State”), Brazil, to Alfio, a customer also located in the State. Sales in the State were exempted from value-added tax (VAT) requirements. Alfio subsequently sold metal to customers outside of the State, but did not pay the required VAT on those transactions. In July 2002, Alumínio received an assessment from State auditors on the theory that Alumínio should be jointly and severally liable with Alfio for the unpaid VAT. In June 2003, the administrative tribunal found Alumínio liable, and Alumínio filed a judicial case in the State in February 2004 contesting the finding. In May 2005, the Court of First Instance found Alumínio solely liable, and a panel of a State appeals court confirmed this finding in April 2006. Alumínio filed a special appeal to the Superior Tribunal of Justice (STJ) in Brasilia (the federal capital of Brazil) later in 2006. In 2011, the STJ (through one of its judges) reversed the judgment of the lower courts, finding that Alumínio should neither be solely nor jointly and severally liable with Alfio for the VAT, which ruling was then appealed by the State. In August 2012, the STJ agreed to have the case reheard before a five-judge panel. On February 21, 2017, the lead judge of the STJ issued a ruling confirming that Alumínio should be held liable in this matter. On March 16, 2017, Alumínio filed an appeal to have its case reheard before the five-judge panel as originally agreed to by the STJ in August 2012. Separately, in June 2017, the State opened a tax amnesty program. At the end of August 2017, Alumínio elected to submit this matter for consideration into the amnesty program, which the State approved. As a result, under the terms of the amnesty program, this matter was settled for $8 (R$25). In 2017, a charge for the settlement amount was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. Prior to submitting this matter for consideration into the amnesty program, the assessment, including penalties and interest, totaled $46 (R$145). This matter is now closed. Other. Reynolds— On January 11, 2016, Sherwin Alumina Company, LLC (“Sherwin”), the current owner of a refinery previously owned by ParentCo (see below), and one of its affiliate entities, filed bankruptcy petitions in Corpus Christi, Texas for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Sherwin informed the bankruptcy court that it intends to cease operations because it is not able to continue its bauxite supply agreement. On November 23, 2016, the bankruptcy court approved Sherwin’s plans for cessation of its operations. On February 16, 2017, Sherwin filed a bankruptcy Chapter 11 Plan (the “Plan”) and, on February 17, 2017, the court approved that Plan. In 2000, ParentCo acquired Reynolds Metals Company (“Reynolds,” a subsidiary of Alcoa Corporation), which included an alumina refinery in Gregory, Texas. As a condition of the Reynolds acquisition, ParentCo was required to divest this alumina refinery. In accordance with the terms of the divestiture in 2000, ParentCo agreed to retain responsibility for certain environmental obligations (see Sherwin, TX in Environmental Matters above) and assigned to the buyer an Energy Services Agreement (“ESA”) with Gregory Power Partners (“Gregory Power”) for purchase of steam and electricity by the refinery. Through the bankruptcy proceedings, the owner of Sherwin exercised its right under the U.S. Bankruptcy Code to reject the agreement from 2000 containing the previously mentioned retained responsibility, which had the effect of terminating all rights and responsibilities of the parties to the agreement. As a result of Sherwin’s initial bankruptcy filing, separate legal actions were initiated against Reynolds by Gregory Power and Sherwin as described below. Gregory Power: On January 26, 2016, Gregory Power delivered notice to Reynolds that Sherwin’s bankruptcy filing constitutes a breach of the ESA; on January 29, 2016, Reynolds responded that the filing does not constitute a breach. On September 16, 2016, Gregory Power filed a complaint in the bankruptcy case against Reynolds alleging breach of the ESA. In response to this complaint, on November 10, 2016, Reynolds filed both a motion to dismiss, including a jury demand, and a motion to withdraw the reference to the bankruptcy court based on the jury demand. On July 18, 2017, the district court ordered that any trial would be held to a jury in district court, but that the bankruptcy court would retain jurisdiction on all pre-trial matters. Since that time, Gregory Power filed an amended complaint to include Allied Alumina LLC (“Allied”), the successor to the original purchaser of the refinery from Reynolds. In September 2018, Reynolds and Allied filed their respective answers to the amended complaint, and Allied filed a cross complaint against Reynolds, which was answered by Reynolds on October 15, 2018. The court has yet to rule on several pending pretrial matters. At this time, Alcoa Corporation is unable to reasonably predict the ultimate outcome of this matter. Sherwin: On October 4, 2016, the Texas Commission on Environmental Quality (TCEQ) filed suit against Sherwin in the bankruptcy proceeding seeking to hold Sherwin responsible for remediation of alleged environmental conditions at the Sherwin refinery site and related bauxite residue waste disposal areas (known as the Copano facility). On October 11, 2016, Sherwin filed a similar suit against Reynolds in the case. As provided in the Plan, Sherwin, including certain affiliated companies, and Reynolds had been negotiating an allocation among them as to the ownership of and responsibility for certain areas of the refinery and the Copano facility. In March 2018, Reynolds and Sherwin reached a settlement agreement that assigns to Reynolds all environmental liabilities associated with the Copano facility and assigns to Sherwin all environmental liabilities associated with the Sherwin refinery site. Additionally, Reynolds and the TCEQ reached an agreement that defines the operating and environmental steps required for the Copano facility, which Reynolds intends to operate for the purpose of managing materials other than bauxite residue waste, including third-party dredge material. The effectiveness and enforceability of each of these two agreements are pre-conditioned on the other being accepted by the bankruptcy court. A public notice and comment period on these agreements expired on April 26, 2018 without material affect to the documents. On June 5, 2018, the bankruptcy court accepted and entered the agreements into the judicial record as submitted (May 21, 2018 serves as the “effective date” for both agreements). On June 5, 2018, the transaction between Sherwin and Reynolds was completed. Under the agreement with Sherwin, in exchange for assuming full responsibility for the environmental-related liabilities (see below related to the Company’s existing reserve) associated with the Copano facility, Reynolds assumed ownership of the land that comprises the Copano f |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Other Financial Information | S. Other Financial Information Interest Cost Components 2018 2017 2016 Amount charged to expense $ 122 $ 104 $ 243 Amount capitalized 14 17 23 $ 136 $ 121 $ 266 Other Expenses (Income), Net 2018 2017 2016 Equity loss $ 17 $ 28 $ 70 Foreign currency (gains) losses, net (57 ) 8 8 Net gain from asset sales — (116 ) (164 ) Net (gain) loss on mark-to-market derivative instruments (O) (25 ) 24 9 Non-service costs – 139 85 24 Other, net (10 ) (2 ) (12 ) $ 64 $ 27 $ (65 ) In 2017, Net gain from asset sales included a $122 gain related to the sale of Yadkin (see Note C). In 2016, Net gain from asset sales included a $118 gain related to the sale of wharf property near the Intalco (Washington) smelter and a $27 gain related to the sale of an equity interest in a natural gas pipeline in Australia (see Note H). Other Noncurrent Assets December 31, 2018 2017 Gas supply prepayment (R) $ 458 $ 510 Prepaid gas transmission contract (H) 275 300 Value-added tax credits 210 340 Goodwill (K) 151 154 Deferred mining costs, net 123 139 Prepaid pension benefit (N) 63 72 Intangibles, net (K) 57 62 Other 138 142 $ 1,475 $ 1,719 The Value-added tax (VAT) credits (federal and state) relate to two of the Company’s subsidiaries in Brazil, AWAB and Alumínio, concerning the São Luís refinery. This refinery pays VAT on the purchase of goods and services used in the alumina production process. Instead of expensing the paid VAT, such amounts are capitalized as credits as they, generally, can be utilized to offset the VAT charged on domestic sales of alumina and aluminum. However, there is not a domestic market in Brazil for the sale of alumina and the São Luís smelter has been fully curtailed since April 2015. That said, the federal VAT credits can be used to reduce other types of federal tax obligations; conversely, there is no other available opportunity to monetize the state VAT credits. For a significant portion of time, including 2017 and 2018, since the São Luís smelter curtailment, management has negotiated with multiple electricity providers to obtain an economical power supply to facilitate a potential restart of the São Luís smelter in the event that persistent favorable market conditions develop to no avail. In the fourth quarter of 2018, management performed an updated assessment of the future realizability of the state VAT credits amid unfavorable market conditions (e.g., a declining LME aluminum price) and a perceived inability to obtain a favorable power contract in the near-term for the São Luís smelter. As a result of this analysis, management determined it necessary to stop recording additional state VAT credits; instead, the state VAT will be expensed in Cost of goods sold as incurred by the São Luís refinery. Additionally, the Company recorded a $107 charge in Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations to establish an allowance on the accumulated state VAT balances. While the Company retains the ability to utilize the state credits in the future, only the restart of the São Luís smelter provides the opportunity to monetize these credits. No allowance was established on the federal VAT credits as they can be monetized without the restart of the São Luís smelter. Management continues to believe the São Luís smelter assets are valuable for the future, and, as such, the Company continues to maintain these assets. Other Noncurrent Liabilities and Deferred Credits December 31, 2018 2017 Accrued compensation and retirement costs $ 107 $ 127 Deferred alumina sales revenue 61 68 Other 54 84 $ 222 $ 279 Cash and Cash Equivalents and Restricted Cash December 31, 2018 2017 Cash and cash equivalents $ 1,113 $ 1,358 Restricted cash* 3 7 $ 1,116 $ 1,365 * These amounts are reported in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. Cash Flow Information Cash paid for interest and income taxes was as follows: 2018 2017 2016 Interest, net of amount capitalized $ 111 $ 100 $ 226 Income taxes, net of amount refunded 507 363 265 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | T. Subsequent Events Management evaluated all activity of Alcoa Corporation and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements, except as described below. On January 22, 2019, the workforce at the Company’s Avilés and La Coruña aluminum plants in Spain ratified an agreement previously reached on January 16, 2019 between Alcoa Corporation and the workers’ representatives related to the Company’s initiation of a collective dismissal process in October 2018. As a result, Alcoa Corporation curtailed the two smelters’ remaining, combined operating capacity of 124 kmt (completed on February 14, 2019). The casthouse at each plant and the paste facility at La Coruña will remain in operation. This action was the result of an internal analysis that determined that organizational improvements could be achieved if the Company ceased aluminum production at these two smelters and reorganized production at Alcoa Corporation’s San Ciprián aluminum plant in Spain. In accordance with the ratified agreement, the Company will maintain the smelters in restart condition in the event an agreement to sell the plants can be reached by June 30, 2019. Depending on the ultimate outcome of the sale process, Alcoa Corporation may record restructuring-related charges in the first half of 2019 for the employee severance actions and the closure of the two smelters. Such charges are estimated to range between $215 and $250 (pre- and after-tax), or $1.14 to $1.35 per diluted share, of which approximately 40% would be non-cash. The remaining 60% will result in cash outlays, most of which will be paid in the remainder of 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Separation Transaction | Separation Transaction. On November 1, 2016 (the “Separation Date”), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic, effective at 12:01 a.m. Eastern Standard Time (the “Separation Transaction”). Alcoa Corporation includes the Alumina and Primary Metals segments, which comprised the bauxite mining, alumina refining, aluminum smelting and casting, and energy operations of ParentCo, as well as the Warrick, Indiana rolling operations and the 25.1% equity interest in the rolling mill at the joint venture in Saudi Arabia, both of which were part of ParentCo’s Global Rolled Products segment. Arconic includes the operations that comprise the Global Rolled Products (except for the aforementioned rolling operations that were included in Alcoa Corporation), Engineered Products and Solutions, and Transportation and Construction Solutions segments. ParentCo shareholders of record as of the close of business on October 20, 2016 (the “Record Date”) received one share of Alcoa Corporation common stock, representing in aggregate 80.1% of the common stock of the Company, for every three shares of ParentCo common stock held as of the close of business on the Record Date (cash was paid by ParentCo to its’ shareholders in lieu of fractional shares). Arconic retained the remaining 19.9% of Alcoa Corporation common stock ( Arconic sold this retained interest in 2017 ). To effect the Separation Transaction, ParentCo undertook a series of transactions to separate the net assets and certain legal entities of ParentCo, resulting in a cash payment of $1,072 to ParentCo by Alcoa Corporation (an additional $247 was paid to Arconic by the Company in 2017, including $243 associated with the sale of certain of the Alcoa Corporation’s energy operations – see Note C) In connection with the Separation Transaction, Alcoa Corporation and Arconic entered into certain agreements to implement the legal and structural separation between the two companies, govern the relationship between the Company and Arconic after the completion of the Separation Transaction, and allocate between Alcoa Corporation and Arconic various assets, liabilities, and obligations, including, among other things, employee benefits, environmental liabilities, intellectual property, and tax-related assets and liabilities. These agreements included a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, Transition Services Agreement, certain Patent, Know-How, Trade Secret License and Trademark License Agreements, and Stockholder and Registration Rights Agreement. ParentCo incurred costs to evaluate, plan, and execute the Separation Transaction, and Alcoa Corporation was allocated a pro rata portion of those costs based on segment revenue (see Cost Allocations below). ParentCo recognized $152 from January 2016 through October 2016 for costs related to the Separation Transaction, of which $68 was allocated to Alcoa Corporation. The allocated amounts were included in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements of Alcoa Corporation are prepared in conformity with accounting principles generally accepted in the United States of America (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. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation (see Recently Adopted Accounting Guidance in Note B). |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements of the Company 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 applied to investments in affiliates and other joint ventures over which the Company has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for on the cost method. 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 the Company’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and a portion of the São Luís refinery, all in Brazil) and a portion (55%) of the Portland smelter (Australia) within the Company’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. In 2018, 2017, and 2016, AWAC received $149, $80, and $48, respectively, in contributions from Alumina Limited. Management evaluates whether an Alcoa Corporation entity or interest is a variable interest entity and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa Corporation does not have any variable interest entities requiring consolidation. Prior to the Separation Date, the Company did not operate as a separate, standalone entity. Alcoa Corporation’s operations were included in ParentCo’s financial results. Accordingly, for all periods prior to the Separation Date, the accompanying Consolidated Financial Statements were prepared from ParentCo’s historical accounting records and were presented on a standalone basis as if Alcoa Corporation’s operations had been conducted independently from ParentCo. Such Consolidated Financial Statements include the historical operations that were considered to comprise Alcoa Corporation’s businesses, as well as certain assets and liabilities that were historically held at ParentCo’s corporate level but were specifically identifiable or otherwise attributable to Alcoa Corporation. ParentCo’s net investment in these operations is reflected as Parent Company net investment on the accompanying Consolidated Financial Statements. All significant transactions and accounts within Alcoa Corporation have been eliminated. All significant intercompany transactions between ParentCo and Alcoa Corporation were included within Parent Company net investment on the accompanying Consolidated Financial Statements. |
Cost Allocations | Cost Allocations. The description and information on cost allocations is applicable for all periods included in the accompanying Consolidated Financial Statements prior to the Separation Date. The Consolidated Financial Statements of Alcoa Corporation include general corporate expenses of ParentCo that were not historically charged to Alcoa Corporation for certain support functions that were provided on a centralized basis, such as expenses related to finance, audit, legal, information technology, human resources, communications, compliance, facilities, employee benefits and compensation, and research and development activities. Such general corporate expenses were included on the accompanying Statement of Consolidated Operations within Cost of goods sold, Selling, general administrative and other expenses, and Research and development expenses. These expenses were allocated to Alcoa Corporation on the basis of direct usage when identifiable, with the remainder allocated based on Alcoa Corporation’s segment revenue as a percentage of ParentCo’s total segment revenue for both Alcoa Corporation and Arconic. All external debt not directly attributable to Alcoa Corporation was excluded from the Company’s Consolidated Balance Sheet. Financing costs related to these debt obligations were allocated to Alcoa Corporation based on the ratio of capital invested in Alcoa Corporation to the total capital invested by ParentCo in both Alcoa Corporation and Arconic, and were included on the accompanying Statement of Consolidated Operations within Interest expense. The following table reflects the allocations described above: 2016 Cost of goods sold (1) $ 40 Selling, general administrative, and other expenses (2) 150 Research and development expenses 2 Provision for depreciation, depletion, and amortization 18 Restructuring and other charges 1 Interest expense 198 Other income, net (7 ) (1) Allocation principally relates to expenses for ParentCo’s retained pension and other postretirement benefits associated with closed and sold operations. (2) Allocation includes costs incurred by ParentCo associated with the Separation Transaction (see Separation Transaction above). Management believes the assumptions regarding the allocation of ParentCo’s general corporate expenses and financing costs were reasonable. Nevertheless, the Consolidated Financial Statements of Alcoa Corporation may not include all of the actual expenses that would have been incurred and may not reflect the Company’s consolidated results of operations, financial position, and cash flows had it been a standalone company during the periods prior to the Separation Date. Actual costs that would have been incurred if Alcoa Corporation had been a standalone company would depend on multiple factors, including organizational structure, capital structure, and strategic decisions made in various areas, including information technology and infrastructure. Transactions between Alcoa Corporation and ParentCo were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these transactions is reflected on the accompanying Statement of Consolidated Cash Flows as a financing activity and on Alcoa Corporation’s Consolidated Balance Sheet as Parent Company net investment. |
Cash Management | Cash Management. The description and information on cash management is applicable for all periods included in the Consolidated Financial Statements prior to the Separation Date. Cash was managed centrally with certain net earnings reinvested locally and working capital requirements met from existing liquid funds. Accordingly, the cash and cash equivalents held by ParentCo at the corporate level were not attributed to Alcoa Corporation for any of the periods prior to the Separation Date. Only cash amounts specifically attributable to Alcoa Corporation were reflected in the Company’s Consolidated Balance Sheet. Transfers of cash, both to and from ParentCo’s centralized cash management system, were reflected as a component of Parent Company net investment on Alcoa Corporation’s Consolidated Balance Sheet and as a financing activity on the accompanying Consolidated Statement of Cash Flows. ParentCo had an arrangement with several financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables was completed through the use of a bankruptcy-remote special-purpose entity, which was a consolidated subsidiary of ParentCo. In connection with this arrangement, certain of Alcoa Corporation’s customer receivables were sold on a revolving basis to this bankruptcy-remote subsidiary of ParentCo; these sales were reflected as a component of Parent Company net investment on Alcoa Corporation’s Consolidated Balance Sheet. ParentCo participated in several accounts payable settlement arrangements with certain vendors and third-party intermediaries. These arrangements provided that, at the vendor’s request, the third-party intermediary advance the amount of the scheduled payment to the vendor, less an appropriate discount, before the scheduled payment date and ParentCo made payment to the third-party intermediary on the date stipulated in accordance with the commercial terms negotiated with its vendors. In connection with these arrangements, certain of Alcoa Corporation’s accounts payable were settled, at the vendor’s request, before the scheduled payment date; these settlements were reflected as a component of Parent Company net investment on Alcoa Corporation’s Consolidated Balance Sheet. |
Related Party Transactions | Related Party Transactions. Alcoa Corporation buys products from and sells products to various related companies, consisting of entities in which the Company retains a 50% or less equity interest, at negotiated prices between the two parties. These transactions were not material to the financial position or results of operations of Alcoa Corporation for all periods presented. |
Cash Equivalents | Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. |
Inventory Valuation | Inventory Valuation. Inventories are carried at the lower of cost or market, with cost for a substantial portion of U.S. inventories and a small portion of Canadian inventories determined under the last-in, first-out (LIFO) method. The cost of other inventories is principally determined under the average-cost method. Effective January 1, 2019, Alcoa Corporation will discontinue the use of the LIFO method for the referenced inventories. The cost of these inventories will now be determined on the average-cost method. In accordance with GAAP, all prior periods presented in the Company’s Consolidated Financial Statements will be recast to retroactively apply this inventory costing change. Alcoa Corporation is still finalizing this change in accounting principle; however, management does not expect the inventory costing change to have a material impact on the Company’s Statement of Consolidated Operations for the year ended December 31, 2018. |
Properties, Plants, and Equipment | Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Also, interest related to the construction of qualifying assets is capitalized as part of the construction costs. Depreciation is recorded principally on the straight-line method at rates based on the estimated useful lives of the assets. For greenfield assets (i.e. construction of new assets on undeveloped land) the units of production method is used to record depreciation. These assets require a significant period (generally greater than one-year) to ramp-up to full production capacity. As a result, the units of production method is deemed a more systematic and rational method for recognizing depreciation on these assets. Depreciation is recorded on temporarily idled facilities until such time management approves a permanent closure. The following table details the weighted-average useful lives of structures and machinery and equipment by type of operation (numbers in years): Segment Structures Machinery and equipment Bauxite mining 35 16 Alumina refining 30 28 Aluminum smelting and casting 36 22 Energy generation 33 24 Aluminum rolling 31 23 Repairs and maintenance are charged to expense as incurred. Gains or losses from the sale of assets are generally recorded in Other expenses (income), net. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of assets also require significant judgments. |
Equity Investments | Equity Investments. Alcoa Corporation invests in a number of privately-held companies, primarily through joint ventures and consortia, which are accounted for using the equity method. The equity method is applied in situations where Alcoa Corporation has the ability to exercise significant influence, but not control, over the investee. Management reviews equity investments for impairment whenever certain indicators are present suggesting that the carrying value of an investment is not recoverable. This analysis requires a significant amount of judgment from management to identify events or circumstances indicating that an equity investment is impaired. The following items are examples of impairment indicators: significant, sustained declines in an investee’s revenue, earnings, and cash flow trends; adverse market conditions of the investee’s industry or geographic area; the investee’s ability to continue operations measured by several items, including liquidity; and other factors. Once an impairment indicator is identified, management uses considerable judgment to determine if the impairment is other than temporary, in which case the equity investment is written down to its estimated fair value. An impairment that is other than temporary could significantly and adversely impact reported results of operations. |
Deferred Mining Costs | Deferred Mining Costs. Alcoa Corporation recognizes deferred mining costs during the development stage of a mine life cycle. Such costs include the construction of access and haul roads, detailed drilling and geological analysis to further define the grade and quality of the known bauxite, and overburden removal costs. These costs relate to sections of the related mines where Alcoa Corporation is either currently extracting bauxite or is preparing for production in the near term. These sections are outlined and planned incrementally and generally are mined over periods ranging from one to five years, depending on mine specifics. The amount of geological drilling and testing necessary to determine the economic viability of the bauxite deposit being mined is such that the reserves are considered to be proven, and the mining costs are amortized based on this level of reserves. Deferred mining costs are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Goodwill is not amortized; it is instead reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods. The fair value that could be realized in an actual transaction may differ from that used to evaluate goodwill for impairment. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Alcoa Corporation has five reporting units, of which three are included in the Aluminum segment (smelting/casting, energy generation, and rolling operations). The remaining two reporting units are the Bauxite and Alumina segments. Of these five reporting units, only Bauxite and Alumina contain goodwill. As of December 31, 2018, the carrying value of the goodwill for Bauxite and Alumina was $51 and $100, respectively. These amounts include an allocation of goodwill held at the corporate level (see Note K). In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. Alcoa Corporation’s policy for its annual review of goodwill is to perform the qualitative assessment for all reporting units not subjected directly to the quantitative impairment test. Generally, management will proceed directly to the quantitative impairment test for each of its two reporting units that contain goodwill at least once during every three-year period, as part of its annual review of goodwill. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit. During the 2018 annual review of goodwill, management performed the qualitative assessment for the Alumina reporting unit. Management concluded it was not more likely than not that the respective estimated fair value of this reporting unit was less than the respective carrying value. As such, no further analysis was required. Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Alcoa Corporation uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market share, sales volumes and prices, production costs, tax rates, capital spending, discount rate, and working capital changes. Certain of these assumptions can vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The betas used in calculating the individual reporting units’ WACC rate are estimated for each business with the assistance of valuation experts. In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, an impairment loss equal to the excess of the reporting unit's carrying value over its fair value not to exceed the total amount of goodwill applicable to that reporting unit would be recognized. During the 2018 annual review of goodwill, management proceeded directly to the quantitative impairment test for the Bauxite reporting unit. The estimated fair value of this reporting unit was substantially in excess of its carrying value, resulting in no impairment. Management last proceeded directly to the quantitative impairment test for the Alumina reporting unit in 2016. At that time, the estimated fair value of the Alumina reporting unit was substantially in excess of its carrying value, resulting in no impairment. Additionally, in all prior years presented, there have been no triggering events that necessitated an impairment test for either the Bauxite or Alumina reporting units. Intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by type of operation (numbers in years): Segment Software Other intangible assets Bauxite mining 6 10 Alumina refining 6 20 Aluminum smelting and casting 4 39 Energy generation 3 28 Aluminum rolling 4 20 |
Asset Retirement Obligations | Asset Retirement Obligations. Alcoa Corporation recognizes asset retirement obligations (AROs) related to legal obligations associated with the standard operation of bauxite mines, alumina refineries, and aluminum smelters. These AROs consist primarily of costs associated with mine reclamation, closure of bauxite residue areas, spent pot lining disposal, and landfill closure. Alcoa Corporation also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities. The fair values of these AROs are recorded on a discounted basis, at the time the obligation is incurred, and accreted over time for the change in present value. Additionally, Alcoa Corporation capitalizes asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful life. Certain conditional asset retirement obligations (CAROs) related to alumina refineries, aluminum smelters, rolling mills, and energy generation facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. A CARO is a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within Alcoa Corporation’s control. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made (e.g., planned demolition), Alcoa Corporation would record an ARO for the removal, treatment, transportation, storage, and/or disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, polychlorinated biphenyls (PCBs), various process residuals, solid wastes, electronic equipment waste, and various other materials. Such amounts may be material to the Consolidated Financial Statements in the period in which they are recorded. |
Environmental Matters | Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery, which are recognized as agreements are reached with third parties. The estimates also include costs related to other potentially responsible parties to the extent that Alcoa Corporation has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. |
Litigation Matters | Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Management determines the likelihood of an unfavorable outcome based on many factors such as, among others, the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters. Once an unfavorable outcome is deemed probable, management weighs the probability of estimated losses, and the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed to be reasonably possible, then the matter is disclosed and no liability is recorded. With respect to unasserted claims or assessments, management must first determine that the probability that an assertion will be made is likely, then, a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. |
Revenue Recognition | Revenue Recognition. The Company recognizes revenue when it satisfies a performance obligation(s) in accordance with the provisions of a customer order or contract. This is achieved when control of the product has been transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (commercial delivery truck, train, or vessel). Accordingly, except for the sale of electricity, the sale of Alcoa Corporation’s products to its customers represent single performance obligations for which revenue is recognized at a point in time. Based on the foregoing, no significant judgment is required to determine when control of a product has been transferred to a customer. The Company measures revenue based on the consideration it expects to be entitled to receive in exchange for its products. The standard terms and conditions of customer orders and contracts include general rights of return and product warranty provisions related to nonconforming or “out-of-spec” product. Depending on the circumstances, the product is either replaced or a quality adjustment is issued. Historically, such returns and adjustments have not been material to Alcoa Corporation’s Consolidated Financial Statements. The Company considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a result, customer payments of shipping and handling costs are recorded as a component of revenue. Also, Alcoa Corporation may collect various taxes (e.g., sales, use, value-added, excise) from its customers related to the sale of its products and remit such amounts to governmental authorities. As such, amounts paid to the Company for these types of taxes are excluded from the transaction price used to determine the proper measurement of revenue. |
Stock-Based Compensation | Stock-Based Compensation. For all periods prior to the Separation Date, eligible employees attributable to Alcoa Corporation operations participated in ParentCo’s stock-based compensation plans. The compensation expense recorded by Alcoa Corporation included the expense associated with these employees, as well as the expense associated with the allocation of stock-based compensation expense for ParentCo’s corporate employees. Beginning on the Separation Date and forward, Alcoa Corporation recorded stock-based compensation expense for all eligible Company employees. The following accounting policy describes how stock-based compensation expense is initially determined for both Alcoa Corporation and ParentCo. Compensation expense for employee equity grants is recognized using the non-substantive vesting period approach, in which the expense (net of estimated forfeitures) is recognized ratably over the requisite service period based on the grant date fair value. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. Most plan participants can choose whether to receive their award in the form of stock options, stock units, or a combination of both. This choice is made before the grant is issued and is irrevocable. |
Pensions and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans. For all periods prior to August 1, 2016 (see below), certain employees attributable to Alcoa Corporation operations participated in defined benefit pension and other postretirement benefit plans (the “Shared Plans”) sponsored by ParentCo, which also included participants attributable to non-Alcoa Corporation operations. Alcoa Corporation accounted for these Shared Plans as multiemployer benefit plans. Accordingly, Alcoa Corporation did not record an asset or liability to recognize the funded status of the Shared Plans. However, the related expense recorded by Alcoa Corporation was based primarily on pensionable compensation and estimated interest costs related to employees attributable to Alcoa Corporation operations. Prior to the Separation Date, certain other plans that were entirely attributable to employees of Alcoa Corporation-related operations (the “Direct Plans”) were accounted for as defined benefit pension and other postretirement benefit plans. Accordingly, the funded and unfunded position of each Direct Plan was recorded in the Consolidated Balance Sheet. Actuarial gains and losses that had not yet been recognized through earnings were recorded in accumulated other comprehensive income, net of taxes, until they were amortized as a component of net periodic benefit cost. The determination of benefit obligations and recognition of expenses related to the Direct Plans is dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, and future compensation increases. ParentCo’s management developed each assumption using relevant company experience in conjunction with market-related data for each individual location in which such plans exist. In preparation for the Separation Transaction, effective August 1, 2016, certain of the Shared Plans were separated into standalone plans for both Alcoa Corporation and ParentCo (see Note N). Additionally, certain of the other remaining Shared Plans were assumed by Alcoa Corporation (See Note N). Accordingly, beginning on August 1, 2016 and forward, the standalone plans and assumed plans were accounted for as defined benefit pension and other postretirement plans. Additionally, the Direct Plans continued to be accounted for as defined benefit pension and other postretirement plans. |
Derivatives and Hedging | Derivatives and Hedging. Derivatives are held for purposes other than trading and are part of a formally documented risk management program. Alcoa Corporation accounts for hedges of firm customer commitments for aluminum as fair value hedges. The fair values of the derivatives and changes in the fair values of the underlying hedged items are reported as assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in Sales, consistent with the underlying hedged item. The Company accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded as assets and liabilities in the Consolidated Balance Sheet. The changes in the fair values of these derivatives are recorded in Other comprehensive income (loss) and are reclassified to Sales, Cost of goods sold, or Other expenses (income), net in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years. On April 1, 2018, Alcoa Corporation adopted new accounting guidance for hedging activities (see Recently Adopted Accounting Guidance below), which included the elimination of the concept of ineffectiveness, effective on January 1, 2018. Accordingly, there is no longer a requirement to separately measure and report ineffectiveness. Therefore, the following policy description of effectiveness was applicable to periods prior to January 1, 2018. For derivatives designated as fair value hedges, Alcoa Corporation measures hedge effectiveness by formally assessing, at inception and at least quarterly, the historical high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. For derivatives designated as cash flow hedges, Alcoa Corporation measures hedge effectiveness by formally assessing, at inception and at least quarterly, the probable high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The ineffective portions of both types of hedges are recorded in Sales or Other expenses (income), net in the current period. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, future gains or losses on the derivative instrument are recorded in Other expenses (income), net. If no hedging relationship is designated, the derivative is marked to market through Other expenses (income), net. Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions. |
Income Taxes | Income Taxes. Beginning on the Separation Date and forward, the provision for income taxes was determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Alcoa Corporation’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. In all periods prior to the Separation Date, Alcoa Corporation’s operations were included in the income tax filings of ParentCo. The provision for income taxes in Alcoa Corporation’s Statement of Consolidated Operations was determined in the same manner described above, but on a separate return methodology as if the Company was a standalone taxpayer filing hypothetical income tax returns where applicable. Any additional accrued tax liability or refund arising as a result of this approach was assumed to be immediately settled with ParentCo as a component of Parent Company net investment. Deferred tax assets were also determined in the same manner described above and were reflected in the Consolidated Balance Sheet for net operating losses, credits or other attributes to the extent that such attributes were expected to transfer to Alcoa Corporation upon the Separation Transaction. Any difference from attributes generated in a hypothetical return on a separate return basis was adjusted as a component of Parent Company net investment. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa Corporation’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. |
Foreign Currency | Foreign Currency. The local currency is the functional currency for Alcoa Corporation’s significant operations outside the United States, except for certain operations in Canada and Iceland, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Alcoa Corporation’s operations is made based on the appropriate economic and management indicators. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance. On January 1, 2018, Alcoa Corporation adopted changes issued by the Financial Accounting Standards Board (FASB) to the recognition of revenue from contracts with customers. This guidance created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. Management’s assessment of this guidance was applied only to those customer contracts that were open on the date of adoption under the modified retrospective method. Through a previously established project team, the Company completed a detailed review of the terms and provisions of its customer contracts, as well as evaluated these contracts under the new guidance, throughout 2017 and concluded that Alcoa Corporation’s revenue recognition practices were in compliance with this framework. That said, the Company did make some minor modifications to its internal accounting policies and internal control structure to ensure that any future customer contracts that may have different terms and conditions of those that the Company has today are properly evaluated under the new guidance. Other than providing additional disclosure (see Revenue Recognition above and the Product Information section in Note E), the adoption of this guidance had no impact on the Consolidated Financial Statements. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting and reporting of certain equity investments. This guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Additionally, the impairment assessment of equity investments without readily determinable fair values has been simplified by requiring a qualitative assessment to identify impairment. The adoption of this guidance had no impact on the Consolidated Financial Statements, as all of Alcoa Corporation’s equity investments are accounted for under the equity method of accounting. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the presentation of several items in the statement of cash flows. Specifically, the guidance identifies nine cash flow items and the sections where they must be presented within the statement of cash flows, including distributions received from equity method investees, proceeds from the settlement of insurance claims, and restricted cash. Other than as it relates to restricted cash, the adoption of this guidance had no impact on the Consolidated Financial Statements. This guidance requires that restricted cash be aggregated with cash and cash equivalents in both the beginning-of-period and end-of-period line items at the bottom of the statement of cash flows. Previously, the change in restricted cash between the beginning-of-period and end-of period was reflected as either an investing, financing, operating, or non-cash activity based on the underlying nature of the transaction. Accordingly, for the accompanying Statement of Consolidated Cash Flows for the year ended December 31, 2018, the Cash and cash equivalents and restricted cash at beginning of year and Cash and cash equivalents and restricted cash at end of year line items include restricted cash of $7 and $3, respectively. Additionally, the Company’s Statement of Consolidated Cash Flows for the years ended December 31, 2017 and 2016 were recast to reflect this change in presentation as follows (only line items impacted are reflected in the table): 2017 2016 For the year ended December 31, As previously reported Change As recast As previously reported Change As recast Financing activities Net transfers from former parent company $ — $ — $ — $ 802 $ 4 $ 806 Additions to debt (original maturities greater than three months * — — — — 1,228 1,228 Cash (used for) provided from financing activities (506 ) — (506 ) (483 ) 1,232 749 Investing activities Net change in restricted cash — — — 1,226 (1,226 ) — Cash (used for) provided from investing activities (226 ) — (226 ) 1,077 (1,226 ) (149 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash 13 1 14 13 — 13 Net change in cash and cash equivalents and restricted cash 505 1 506 296 6 302 Cash and cash equivalents and restricted cash at beginning of year 853 6 859 557 — 557 Cash and cash equivalents and restricted cash at end of year 1,358 7 1,365 853 6 859 * In September 2016, a subsidiary of the Company issued $1,250 in new senior notes (see Note L) in preparation for the Separation Transaction. The net proceeds of $1,228 from the debt issuance were required to be placed in escrow contingent on completion of the Separation Transaction. As a result, the $1,228 of escrowed cash was recorded as restricted cash. Prior to the adoption of this new guidance, in previously issued reports, the issuance of the new senior notes and the increase in restricted cash were properly excluded from Alcoa Corporation’s Statement of Consolidated Cash Flows for the year ended December 31, 2016 as noncash financing and investing activities, respectively. However, in this report, the adoption of the new accounting guidance results in the issuance of debt being included in the Company’s Statement of Consolidated Cash Flows for the year ended December 31, 2016 as a cash transaction. See Note S for a reconciliation of Cash and cash equivalents and Restricted cash reported in the accompanying Consolidated Balance Sheet that sum to the Cash and cash equivalents and restricted cash at both the beginning of year and end of year presented on the accompanying Statement of Consolidated Cash Flows for the year ended December 31, 2018. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for intra-entity transactions, other than inventory. The guidance requires the current and deferred income tax consequences of an intra-entity transfer to be recorded immediately when the transaction occurs; the exception to defer the tax consequences of inventory transactions is maintained. Prior to this guidance, no immediate tax impact was permitted to be recognized in an entity’s financial statements as a result of intra-entity transfers of assets. An entity was precluded from reflecting a tax benefit or expense from an intra-entity asset transfer between entities that file separate tax returns, whether or not such entities are in different tax jurisdictions, until the asset had been sold to a third party or otherwise recovered. The buyer of such asset was prohibited from recognizing a deferred tax asset for the temporary difference arising from the excess of the buyer’s tax basis over the cost to the seller. The adoption of this guidance had an immaterial impact on the Consolidated Financial Statements. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to accounting for business combinations. This guidance clarifies the definition of a business for the purposes of evaluating whether a particular transaction should be accounted for as an acquisition or disposal of a business or an asset. Generally, a business is an integrated set of assets and activities that contain inputs, processes, and outputs, although outputs are not required. This guidance provides a “screen” to determine whether an integrated set of assets and activities qualifies as a business. If substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets, the definition of a business has not been met and the transaction should be accounted for as an acquisition or disposal of an asset. Otherwise, an entity is required to evaluate whether the integrated set of assets and activities include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and are no longer to consider whether a market participant could replace any missing elements. This guidance also narrows the definition of an output. Previously, an output was defined as the ability to provide a return in the form of dividends, lower costs, or other economic benefits directly to investors, owners, members, or participants. An output is now defined as the ability to provide goods or services to customers, investment income, or other revenues. The adoption of this guidance had no immediate impact on the Consolidated Financial Statements; however, this guidance will need to be considered in the event Alcoa Corporation acquires or disposes of an integrated set of assets and activities. On January 1, 2018, Alcoa Corporation early adopted guidance issued by the FASB to the assessment of goodwill for impairment as it relates to the quantitative test. Prior to this guidance, there were two steps when performing a quantitative impairment test. The first step required an entity to compare the current fair value of a reporting unit to its carrying value. In the event the reporting unit’s estimated fair value was less than its carrying value, an entity performed the second step, which was to compare the carrying amount of the reporting unit’s goodwill with the implied fair value of that goodwill. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination and the fair value of the reporting unit represented the purchase price. If the carrying value of goodwill exceeded its implied fair value, an impairment loss equal to such excess was recognized. This guidance eliminates the second step of the quantitative impairment test. Accordingly, an entity would recognize an impairment of goodwill for a reporting unit, if under what was previously referred to as the first step, the estimated fair value of the reporting unit is less than the carrying value. The impairment would be equal to the excess of the reporting unit’s carrying value over its fair value not to exceed the total amount of goodwill applicable to that reporting unit. The adoption of this guidance had no immediate impact on the Consolidated Financial Statements; however, this guidance will need to be considered each time the Company performs an assessment of goodwill for impairment under the quantitative test (see Goodwill and Other Intangible Assets above). On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the presentation of net periodic benefit cost related to pension and other postretirement benefit plans. This guidance requires that an entity report the service cost component of net periodic benefit cost in the same line item(s) on its income statement as other compensation costs arising from services rendered by the pertinent employees during a reporting period. The other components of net periodic benefit cost (see Note N) are required to be reported separately from the service cost component. In other words, these other components may be aggregated and presented as a separate line item or they may be reported in existing line items on the income statement other than such line items that include the service cost component. Previously, Alcoa Corporation reported all components of net periodic benefit cost, except for certain settlements, curtailments, and special termination benefits, in Cost of goods sold (business employees) and Selling, general administrative, and other expenses (corporate employees) consistent with the location of other compensation costs related to the respective employees. The non-service cost components noted as exceptions are reported in Restructuring and other charges, as applicable. Additionally, this guidance only permits the service cost component to be capitalized as applicable (e.g., as a cost of internally manufactured inventory). Upon adoption of this guidance, management began reporting the non-service cost components of net periodic benefit cost, except for certain settlements, curtailments, and special termination benefits that will continue to be reported in Restructuring and other charges, in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note N). For the year ended December 31, 2018, the non-service cost components reported in Other expenses, net was $139. Additionally, the Statement of Consolidated Operations for the years ended December 31, 2017 and 2016 was recast to reflect the reclassification of the non-service cost components of net periodic benefit cost to Other expense (income), net from both Cost of goods sold and Selling, general administrative, and other expenses as follows: 2017 2016 For the year ended December 31, As previously reported Change As recast As previously reported Change As recast Cost of goods sold $ 9,072 $ (81 ) $ 8,991 $ 7,898 $ (21 ) $ 7,877 Selling, general administrative, and other expenses 284 (4 ) 280 359 (3 ) 356 Other expenses (income), net (58 ) 85 27 (89 ) 24 (65 ) Under the practical expedient option provided for in the guidance, the Company used previously disclosed amounts for non-service cost components to recast these line items for the years ended December 31, 2017 and 2016. Furthermore, Alcoa Corporation no longer capitalizes any non-service cost components as part of the cost of inventory prospectively beginning January 1, 2018. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for stock-based compensation when there has been a modification to the terms or conditions of a share-based payment award. This guidance requires an entity to account for the modification only when there has been a substantive change to the terms or conditions of a share-based payment award. A substantive change occurs when the fair value, vesting conditions or balance sheet classification (liability or equity) of a share-based payment award is/are different immediately before and after the modification. Previously, an entity was required to account for any modification in the terms or conditions of a share-based payment award. The adoption of this guidance had no immediate impact on the Consolidated Financial Statements; however, this guidance will need to be considered if the Company initiates a modification that is determined to be a substantive change to an outstanding share-based award. Additionally, the Company will no longer account for any future non-substantive change to the terms or conditions of a share-based payment awards as a modification. On April 1, 2018, Alcoa Corporation early adopted guidance issued by the FASB to the accounting for hedging activities retroactive to January 1, 2018. This guidance permits hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk; reduces current limitations on the designation and measurement of a hedged item in a fair value hedge of interest rate risk; removes the requirement to separately measure and report hedge ineffectiveness; provides an election to systematically and rationally recognize in earnings the initial value of any amount excluded from the assessment of hedge effectiveness for all types of hedges; and eases the requirements of effectiveness testing. Additionally, modifications to existing disclosures, as well as additional disclosures, are required, as applicable, to reflect these changes regarding the measurement and recognition of hedging activities. This guidance is to be initially applied only to hedging instruments that exist as of the adoption date using the modified retrospective method. In other words, any financial statement impact from application of these changes to open hedging instruments as of the adoption date related to periods prior to the adoption year is to be recognized through a cumulative effect adjustment in beginning retained earnings of the adoption year. Accordingly, upon adoption of this guidance, Alcoa Corporation recognized an immaterial cumulative effect adjustment within equity effective January 1, 2018 related to open Level 1 hedging instruments as of the adoption date. The Company had no open Level 2 hedging instruments as of the adoption date and there was no financial statement impact from Alcoa Corporation’s open Level 3 hedging instruments as of the adoption date. This guidance will also be applied prospectively upon the Company entering into any new hedging instruments. See the Derivatives section of Note O for additional information. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance. In January 2018, the FASB issued guidance regarding the assessment of land easements (or rights of way) under the pending lease accounting requirements to be adopted on January 1, 2019 (see below). This guidance provides an entity an option to not evaluate existing or expired land easements as leases in preparation for the adoption of the new lease accounting requirements, as long as such land easements were recorded as something other than leases under current accounting requirements. That said, any new land easement acquired or existing land easement modified on January 1, 2019 or later must be assessed for lease accounting under the new requirements. This guidance becomes effective for Alcoa Corporation on January 1, 2019. Management plans to elect the option to not evaluate existing or expired land easements that are currently accounted for as something other than leases under the new lease accounting requirements. The Company’s land easements are currently accounted for as fixed assets and are immaterial to Alcoa Corporation’s Consolidated Financial Statements. Accordingly, management has determined that the adoption of this guidance will not have an immediate impact on the Company’s Consolidated Financial Statements. The new lease accounting requirements will need to be considered if the Company acquires a new land easement or modifies an existing land easement on January 1, 2019 or later. In February 2018, the FASB issued guidance regarding the reclassification of certain income tax effects reported in accumulated comprehensive income (loss) in response to U.S. tax legislation enacted on December 22, 2017 known as the U.S. Tax Cuts and Jobs Act of 2017 (the “TCJA”). For corporations, one of the main provisions of the TCJA was the reduction in the corporate income tax rate to 21% from 35%. Under current income tax accounting requirements, an entity was required to remeasure applicable U.S. deferred tax assets and deferred tax liabilities at the 21% tax rate effective on the TCJA enactment date. This remeasurement was required to be recognized in an entity’s income tax provision in its income statement. However, certain of these deferred tax assets and deferred tax liabilities relate to income tax effects initially recognized at the 35% tax rate through other comprehensive income (loss) on items reported within accumulated other comprehensive income (loss) on an entity’s balance sheet. Consequently, an entity’s financial statements will reflect an inconsistency between the deferred tax assets and deferred tax liabilities measured at 21% and the related income tax effects in accumulated other comprehensive income (loss) recorded at 35%. Accordingly, this guidance provides a one-time option to remeasure the income tax effects within accumulated other comprehensive income (loss) at the 21% income tax rate. The impact from this remeasurement is to be recorded directly in retained earnings on an entity’s balance sheet. This guidance becomes effective for Alcoa Corporation on January 1, 2019, with early adoption permitted. Management has concluded its analysis and decided not to elect this option as permitted in the new guidance. In June 2018, the FASB issued guidance regarding the accounting for nonemployee share-based payment transactions. This guidance effectively changes the accounting for such transactions to be consistent with the accounting for employee share-based payment transactions. The nonemployee share-based payment transactions subject to this guidance are those in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This guidance is not to be applied to other nonemployee share-based payment transactions, such as those used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under revenue recognition principles. This guidance becomes effective for Alcoa Corporation on January 1, 2019, with early adoption permitted. The only nonemployees to receive share-based payments from Alcoa Corporation are the members of the Company’s Board of Directors. Accordingly, management does not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued separate guidance regarding the respective disclosure requirements associated with fair value measurements and defined benefit plans. This guidance makes changes to the disclosures of fair value measurements and defined benefit plans through several removals, modifications, additions, and/or clarifications of the existing requirements. The following are the changes that will have an immediate disclosure impact for Alcoa Corporation upon adoption of the guidance for fair value measurements: (i) disclosure of the valuation processes for Level 3 fair value measurements is no longer required, (ii) changes in unrealized gains and losses for the reporting period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period is a new disclosure requirement, and (iii) the range and weighted average (or other reasonable and rational method) of significant unobservable inputs used to develop Level 3 fair value measurements is a new disclosure requirement. The following are the changes that will have an immediate disclosure impact for Alcoa Corporation upon adoption of the guidance for defined benefit plans: (i) disclosure of the amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year is no longer required, (ii) disclosure of the effects of a one-percentage-point change in assumed health care cost trend rates on both the aggregate of the service and interest cost components of net periodic benefit costs and the benefit obligation for postretirement health care benefits is no longer required, and (iii) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the reporting period is a new disclosure requirement. The guidance for fair value measurements and defined benefit plans becomes effective for Alcoa Corporation on January 1, 2020 and December 31, 2020, respectively, with early adoption permitted. Other than updating the applicable disclosures, the adoption of this guidance will not have an impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued guidance regarding the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract (in other words, does not contain a software license). This guidance aligns the accounting for cloud computing implementation costs with that of costs to develop or obtain internal-use software, meaning such costs that are part of the application development stage are capitalized as an asset and amortized over the term of the arrangement, otherwise, such costs are expensed as incurred. Additionally, this guidance requires applying existing impairment guidance for long-lived assets to the capitalized implementation costs. Furthermore, this guidance requires the following presentation in an entity’s financial statements: (i) payments for the capitalized implementation costs should be classified on the cash flows statement in the same manner as payments for the service fees associated with the arrangement, (ii) the capitalized implementation costs should be presented in the same asset line item on the balance sheet as any prepayment for the service fees associated with the arrangement, and (iii) the amortization of the capitalized implementation costs should be reflected in the same expense line item on the income statement as the service fees associated with the arrangement. This guidance becomes effective for Alcoa Corporation on January 1, 2020, with early adoption permitted. Management is currently evaluating the potential impact of this guidance on the Consolidated Financial Statements. In February 2016, the FASB issued guidance regarding the accounting for leases. This guidance requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for leases classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right of use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option, or not exercise an option to terminate the lease. A right-of-use asset represents an entity’s right to use the underlying asset for the lease term, and a lease liability represents an entity’s obligation to make lease payments. Currently, an asset and liability only are recorded for leases classified as capital leases (financing leases). The measurement, recognition, and presentation of expenses and cash flows arising from leases by a lessee remains the same. This guidance becomes effective for Alcoa Corporation on January 1, 2019. Through a previously established cross-functional project team, the Company has completed the accumulation of all leases into a lease management system and has validated the information for accuracy and completeness. Additionally, the project team has finished the system implementation. This system will be the primary source for the Company’s lease information and the related accounting. Upon adoption of the new lease guidance, management expects to record a right-of-use asset and lease liability, each in the amount of $181, on Alcoa Corporation’s Consolidated Balance Sheet for several types of operating leases, including land and buildings, alumina refinery process control technology, plant equipment, vehicles, and computer equipment. This amount is equivalent to the aggregate future minimum lease payments on a discounted basis. Additionally, in July 2018, the FASB issued guidance to provide for an alternative transition method to the new lease guidance, whereby an entity can choose to not reflect the impact of the new lease guidance in the prior periods included in its financial statements. The Company intends to elect this alternative transition method on the January 1, 2019 adoption date. In June 2016, the FASB added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. These changes become effective for Alcoa Corporation on January 1, 2020. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cost Allocation | The following table reflects the allocations described above: 2016 Cost of goods sold (1) $ 40 Selling, general administrative, and other expenses (2) 150 Research and development expenses 2 Provision for depreciation, depletion, and amortization 18 Restructuring and other charges 1 Interest expense 198 Other income, net (7 ) (1) Allocation principally relates to expenses for ParentCo’s retained pension and other postretirement benefits associated with closed and sold operations. (2) Allocation includes costs incurred by ParentCo associated with the Separation Transaction (see Separation Transaction above). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Weighted-Average Useful Lives of Structures and Machinery and Equipment | The following table details the weighted-average useful lives of structures and machinery and equipment by type of operation (numbers in years): Segment Structures Machinery and equipment Bauxite mining 35 16 Alumina refining 30 28 Aluminum smelting and casting 36 22 Energy generation 33 24 Aluminum rolling 31 23 |
Weighted-Average Useful Lives of Software and Other Intangible Assets | The following table details the weighted-average useful lives of software and other intangible assets by type of operation (numbers in years): Segment Software Other intangible assets Bauxite mining 6 10 Alumina refining 6 20 Aluminum smelting and casting 4 39 Energy generation 3 28 Aluminum rolling 4 20 |
Recast of Statement of Consolidated Cash Flows and Consolidated Operations to Reflect Adoption of FASB Guidance | Additionally, the Company’s Statement of Consolidated Cash Flows for the years ended December 31, 2017 and 2016 were recast to reflect this change in presentation as follows (only line items impacted are reflected in the table): 2017 2016 For the year ended December 31, As previously reported Change As recast As previously reported Change As recast Financing activities Net transfers from former parent company $ — $ — $ — $ 802 $ 4 $ 806 Additions to debt (original maturities greater than three months * — — — — 1,228 1,228 Cash (used for) provided from financing activities (506 ) — (506 ) (483 ) 1,232 749 Investing activities Net change in restricted cash — — — 1,226 (1,226 ) — Cash (used for) provided from investing activities (226 ) — (226 ) 1,077 (1,226 ) (149 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash 13 1 14 13 — 13 Net change in cash and cash equivalents and restricted cash 505 1 506 296 6 302 Cash and cash equivalents and restricted cash at beginning of year 853 6 859 557 — 557 Cash and cash equivalents and restricted cash at end of year 1,358 7 1,365 853 6 859 * In September 2016, a subsidiary of the Company issued $1,250 in new senior notes (see Note L) in preparation for the Separation Transaction. The net proceeds of $1,228 from the debt issuance were required to be placed in escrow contingent on completion of the Separation Transaction. As a result, the $1,228 of escrowed cash was recorded as restricted cash. Prior to the adoption of this new guidance, in previously issued reports, the issuance of the new senior notes and the increase in restricted cash were properly excluded from Alcoa Corporation’s Statement of Consolidated Cash Flows for the year ended December 31, 2016 as noncash financing and investing activities, respectively. However, in this report, the adoption of the new accounting guidance results in the issuance of debt being included in the Company’s Statement of Consolidated Cash Flows for the year ended December 31, 2016 as a cash transaction. 2017 2016 For the year ended December 31, As previously reported Change As recast As previously reported Change As recast Cost of goods sold $ 9,072 $ (81 ) $ 8,991 $ 7,898 $ (21 ) $ 7,877 Selling, general administrative, and other expenses 284 (4 ) 280 359 (3 ) 356 Other expenses (income), net (58 ) 85 27 (89 ) 24 (65 ) |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges | Restructuring and other charges for each year in the three-year period ended December 31, 2018 were comprised of the following: 2018 2017 2016 Settlements and/or curtailments related to retirement benefits (N) $ 331 $ 8 $ 17 Allowance on value-added tax credits (S) 107 — — Power contract payments – non-recurring 62 244 — Asset impairments 18 40 155 Asset retirement obligations (Q) 5 10 97 Environmental remediation (R) 2 8 26 Layoff costs 2 15 15 Legal matter in Italy (R) — (22 ) — Other 48 49 44 Reversals of previously recorded layoff and other costs (48 ) (43 ) (36 ) Restructuring and other charges $ 527 $ 309 $ 318 * In 2016, Other includes $1 related to the allocation of restructuring charges to Alcoa Corporation from ParentCo (see Note A). |
Schedule Of Restructuring Charges Before Income Tax Not Allocated To Reportable Segment | Alcoa Corporation does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: 2018 2017 2016 Bauxite $ 1 $ 2 $ (5 ) Alumina 112 3 72 Aluminum 102 51 75 Segment total 215 56 142 Corporate 312 253 176 Total restructuring and other charges $ 527 $ 309 $ 318 |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2015 $ 137 $ 15 $ 152 2016: Cash payments (74 ) (35 ) (109 ) Restructuring charges 32 168 200 Other* (57 ) (120 ) (177 ) Reserve balances at December 31, 2016 38 28 66 2017 Cash payments (30 ) (43 ) (73 ) Restructuring charges 23 67 90 Other* (20 ) (18 ) (38 ) Reserve balances at December 31, 2017 11 34 45 2018 Cash payments (7 ) (95 ) (102 ) Restructuring charges 2 117 119 Other* (1 ) (14 ) (15 ) Reserve balances at December 31, 2018 $ 5 $ 42 $ 47 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2017 and 2016, Other for Layoff costs also included a reclassification of $8 and $16 in pension and/or other postretirement benefits costs, as these obligations were included in Alcoa Corporation’s separate liability for pension and other postretirement benefits obligations (see Note N). Additionally, in 2018, 2017, and 2016, Other for Other costs also included a reclassification of the following restructuring charges: $5, $10, and $97, respectively, in asset retirement and $2, $8, and $26, respectively, in environmental obligations, as these liabilities were included in Alcoa Corporation’s separate reserves for asset retirement obligations (see Note Q) and environmental remediation (see Note R) |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results, Capital Expenditures and Assets of Alcoa's Reportable Segments | The operating results, capital expenditures, and assets of Alcoa Corporation’s reportable segments were as follows: Bauxite Alumina Aluminum Total 2018 Sales: Third-party sales $ 271 $ 4,215 $ 8,829 $ 13,315 Intersegment sales 944 2,101 18 3,063 Total sales $ 1,215 $ 6,316 $ 8,847 $ 16,378 Adjusted EBITDA $ 426 $ 2,373 $ 404 $ 3,203 Supplemental information: Depreciation, depletion, and amortization $ 111 $ 197 $ 394 $ 702 Equity income (loss) — 32 (38 ) (6 ) 2017 Sales: Third-party sales $ 333 $ 3,133 $ 8,027 $ 11,493 Intersegment sales 875 1,723 21 2,619 Total sales $ 1,208 $ 4,856 $ 8,048 $ 14,112 Adjusted EBITDA $ 424 $ 1,289 $ 1,012 $ 2,725 Supplemental information: Depreciation, depletion, and amortization $ 82 $ 207 $ 419 $ 708 Equity loss — (5 ) (19 ) (24 ) 2016 Sales: Third-party sales $ 315 $ 2,300 $ 6,531 $ 9,146 Intersegment sales 751 1,307 42 2,100 Total sales $ 1,066 $ 3,607 $ 6,573 $ 11,246 Adjusted EBITDA $ 374 $ 376 $ 703 $ 1,453 Supplemental information: Depreciation, depletion, and amortization $ 77 $ 186 $ 414 $ 677 Equity loss — (40 ) (24 ) (64 ) 2018 Assets: Capital expenditures $ 47 $ 194 $ 125 $ 366 Equity investments 189 290 856 1,335 Total assets 1,448 4,643 7,722 13,813 2017 Assets: Capital expenditures $ 53 $ 144 $ 178 $ 375 Equity investments 191 262 930 1,383 Total assets 1,609 5,129 8,060 14,798 |
Schedule of Reconciliation of Certain Segment Information to Consolidated Totals | The following tables reconcile certain segment information to consolidated totals: 2018 2017 2016 Sales: Total segment sales $ 16,378 $ 14,112 $ 11,246 Elimination of intersegment sales (3,063 ) (2,619 ) (2,100 ) Other 88 159 172 Consolidated sales $ 13,403 $ 11,652 $ 9,318 |
Schedule of Segment ATOI to Combined Net Income (Loss) Attributable to Alcoa Corporation | 2018 2017 2016 Net income (loss) attributable to Alcoa Corporation: Total segment Adjusted EBITDA $ 3,203 $ 2,725 $ 1,453 Unallocated amounts: Transformation (1),(2) (3 ) (49 ) (168 ) Corporate inventory accounting (1),(3) 11 (107 ) (14 ) Corporate expenses (4) (96 ) (131 ) (171 ) Provision for depreciation, depletion, and amortization (733 ) (750 ) (718 ) Restructuring and other charges (D) (527 ) (309 ) (318 ) Interest expense (S) (122 ) (104 ) (243 ) Other (expenses) income, net (S) (64 ) (27 ) 65 Other (5) (72 ) (89 ) (48 ) Consolidated income (loss) before income taxes 1,597 1,159 (162 ) Provision for income taxes (P) (726 ) (600 ) (184 ) Net income attributable to noncontrolling interest (644 ) (342 ) (54 ) Consolidated net income (loss) attributable to Alcoa Corporation $ 227 $ 217 $ (400 ) (1) (2) (3) Corporate inventory accounting is composed of the impacts of LIFO inventory accounting, metal price lag, and intersegment profit eliminations. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by Alcoa Corporation’s rolled aluminum operations. In general, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable. (4) 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. (5) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments. |
Schedule of Segment Reporting Information to Consolidated Assets | December 31, 2018 2017 Assets: Total segment assets $ 13,813 $ 14,798 Elimination of intersegment receivables (271 ) (299 ) Unallocated amounts: Cash and cash equivalents 1,113 1,358 LIFO reserve (307 ) (306 ) Corporate fixed assets, net 520 520 Corporate goodwill 146 148 Deferred income taxes 563 814 Other 361 414 Consolidated assets $ 15,938 $ 17,447 |
Schedule of Product Division Information | The following table represents the general commercial profile of the Company’s Bauxite, Alumina, Primary aluminum, and Flat-rolled aluminum product divisions (see text below table for Energy): Product division Pricing components Shipping terms (4) Payment terms (5) Bauxite Negotiated FOB/CIF LC Sight Alumina: Smelter-grade API (1) FOB LC Sight/CAD/Net 30 days Non-metallurgical Negotiated FOB/CIF Net 30 days Primary aluminum: Common alloy ingot LME + Regional premium (2) DAP/CIF Net 30 to 45 days Value-add ingot LME + Regional premium + Product premium (2) DAP/CIF Net 30 to 45 days Flat-rolled aluminum Metal + Conversion (3) DAP Negotiated ( 1) API (Alumina Price Index) is a pricing mechanism that is calculated by the Company based on the weighted average of a prior month’s daily spot prices published by the following three indices: CRU Metallurgical Grade Alumina Price; Platts Metals Daily Alumina PAX Price; and Metal Bulletin Non-Ferrous Metals Alumina Index (2) LME (London Metal Exchange) is a globally recognized exchange for commodity trading, including aluminum. The LME pricing component represents the underlying base metal component, based on quoted prices for aluminum on the exchange. The regional premium represents the incremental price over the base LME component that is associated with the physical delivery of metal to a particular region (e.g., the Midwest premium for metal sold in the United States). The product premium represents the incremental price for receiving physical metal in a particular shape (e.g., billet, rod, slab, etc.) or alloy (3) M etal represents the underlying base metal component plus a regional premium (see footnote 2). Conversion represents the incremental price over the metal price component that is associated with converting primary or scrap aluminum into sheet (4) CIF (cost, insurance, and freight) means that the Company pays for these items until the product reaches the buyer’s designated destination point related to transportation by vessel. DAP (delivered at place) means the same as CIF related to all methods of transportation. FOB (free on board) means that the Company pays for costs, insurance, and freight until the product reaches the seller’s designated shipping point. (5) The net number of days means that the customer is required to remit payment to the Company for the invoice amount within the designated number of days. LC Sight is a letter of credit that is payable immediately (usually within five to ten business days) after a seller meets the requirements of the letter of credit (i.e. shipping documents that evidence the seller performed its obligations as agreed to with a buyer). CAD (cash against documents) is a payment arrangement in which a seller instructs a bank to provide shipping and title documents to the buyer at the time the buyer pays in full the accompanying bill of exchange. |
Schedule of Sales by Product Division | The following table details Alcoa Corporation’s Sales by product division: 2018 2017 2016 Sales: Primary aluminum $ 6,787 $ 6,168 $ 5,204 Alumina 4,209 3,121 2,280 Flat-rolled aluminum 1,884 1,666 1,068 Energy 335 446 422 Bauxite 254 333 315 Other* (66 ) (82 ) 29 $ 13,403 $ 11,652 $ 9,318 * Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note O). |
Schedule of Geographic Information for Sales | Geographic information for Sales was as follows (based upon the country where the point of sale originated): 2018 2017 2016 Sales: United States (1) $ 5,941 $ 5,370 $ 4,365 Spain (2) 3,806 3,303 2,663 Australia 2,930 2,266 1,644 Brazil 498 569 432 Canada 162 93 141 Other 66 51 73 $ 13,403 $ 11,652 $ 9,318 (1) Sales of a portion of the alumina from refineries in Australia, Brazil, and Suriname (prior to closure in December 2016) and most of the aluminum from smelters in Canada occurred in the United States. (2) Sales of the aluminum produced from smelters in Iceland and Norway, as well as the off-take related to an interest in the Saudi Arabia joint venture (see Note H), occurred in Spain. |
Schedule of Geographic Information for Long-Lived Assets | Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2018 2017 Long-lived assets: Australia $ 2,002 $ 2,220 Brazil 1,729 2,111 United States 1,599 1,658 Iceland 1,216 1,276 Canada 1,064 1,116 Norway 381 427 Spain 321 316 Other 15 14 $ 8,327 $ 9,138 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 (in millions): 2018 2017 2016 Average shares outstanding—basic 186 184 183 Effect of dilutive securities: Stock options 1 1 — Stock units 2 2 — Average shares outstanding—diluted 189 187 183 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [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 2018 2017 2016 2018 2017 2016 Pension and other postretirement benefits (N) Balance at beginning of period $ (2,786 ) $ (2,330 ) $ (352 ) $ (47 ) $ (56 ) $ (56 ) Establishment of additional defined benefit plans — — (2,704 ) — — — Separation-related adjustments (A) — — 928 — — — Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 19 (671 ) (307 ) (3 ) 9 2 Tax (expense) benefit (8 ) 25 6 — (2 ) (6 ) Total Other comprehensive income (loss) before reclassifications, net of tax 11 (646 ) (301 ) (3 ) 7 (4 ) Amortization of net actuarial loss and prior service cost/benefit (1) 546 199 107 4 2 5 Tax expense (2) (54 ) (9 ) (8 ) — — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 492 190 99 4 2 4 Total Other comprehensive income (loss) 503 (456 ) (202 ) 1 9 — Balance at end of period $ (2,283 ) $ (2,786 ) $ (2,330 ) $ (46 ) $ (47 ) $ (56 ) Foreign currency translation Balance at beginning of period $ (1,467 ) $ (1,655 ) $ (1,851 ) $ (581 ) $ (677 ) $ (779 ) Separation-related adjustments (A) — — (17 ) — — — Other comprehensive (loss) income (3) (604 ) 188 213 (229 ) 96 102 Balance at end of period $ (2,071 ) $ (1,467 ) $ (1,655 ) $ (810 ) $ (581 ) $ (677 ) Cash flow hedges (O) Balance at beginning of period $ (929 ) $ 210 $ 603 $ 51 $ 1 $ (3 ) Separation-related adjustments (A) — — (47 ) — — — Other comprehensive income (loss): Net change from periodic revaluations 803 (1,489 ) (558 ) (4 ) 83 38 Tax (expense) benefit (159 ) 251 233 1 (25 ) (12 ) Total Other comprehensive income (loss) before reclassifications, net of tax 644 (1,238 ) (325 ) (3 ) 58 26 Net amount reclassified to earnings: Aluminum contracts (4) 108 130 7 — — — Financial contracts (5) (37 ) (19 ) (54 ) (24 ) (12 ) (37 ) Foreign exchange contracts (4) 6 (2 ) — — — — Interest rate contract (6) — — 7 — — 5 Sub-total 77 109 (40 ) (24 ) (12 ) (32 ) Tax (expense) benefit (2) (3 ) (10 ) 19 7 4 10 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 74 99 (21 ) (17 ) (8 ) (22 ) Total Other comprehensive income (loss) 718 (1,139 ) (346 ) (20 ) 50 4 Balance at end of period $ (211 ) $ (929 ) $ 210 $ 31 $ 51 $ 1 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note N). For 2018, the amounts for Alcoa Corporation include $330, (net) and for Noncontrolling interest include $1 related to settlements and/or curtailments of certain pension and other postretirement employee benefits (see Note N). (2) These amounts were reported in Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (4) These amounts were reported in Sales on the accompanying Statement of Consolidated Operations. (5) The 2018 and 2017 amounts were reported in Cost of goods sold and the 2016 amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations. (6) These amounts were included in Other expenses (income), net 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. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 6. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Investment | December 31, 2018 2017 Equity investments $ 1,350 $ 1,400 Other investments 10 10 $ 1,360 $ 1,410 |
Schedule of Equity Investment | The following table summarizes information of Alcoa Corporation’s equity investments as of December 31, 2018 and 2017 (the Elysis Limited Partnership began in June 2018 (see below)): Investee Country Nature of investment (4) Ownership interest Ma’aden Aluminum Company (1) Saudi Arabia Aluminum smelter and casthouse 25.1 % Ma’aden Bauxite and Alumina Company (1) Saudi Arabia Bauxite mine and alumina refinery 25.1 % (5) Ma’aden Rolling Company (1) Saudi Arabia Aluminum rolling mill 25.1 % Halco Mining, Inc. (2) Guinea Bauxite mine 45 % (5) Energetica Barra Grande S.A. Brazil Hydroelectric generation facility 42.18 % Pechiney Reynolds Quebec, Inc. (3) Canada Aluminum smelter 50 % Consorcio Serra do Facão Brazil Hydroelectric generation facility 34.97 % Mineração Rio do Norte S.A. Brazil Bauxite mine 18.2 % (5) Manicouagan Power Limited Partnership Canada Hydroelectric generation facility 40 % Elysis Limited Partnership Canada Aluminum smelting technology 48.235 % (1) See Saudi Arabia Joint Venture below for additional information. (2) Halco Mining, Inc. owns 100% of Boké Investment Company, which owns 51% of Compagnie des Bauxites de Guinée. (3) Pechiney Reynolds Quebec, Inc. owns a 50.1% interest in the Bécancour smelter in Quebec, Canada thereby entitling Alcoa Corporation to a 25.05% interest in the smelter. Through two wholly-owned Canadian subsidiaries, Alcoa Corporation also owns 49.9% of the Bécancour smelter. (4) Each of the investees either owns the facility listed or has an ownership interest in an entity that owns the facility listed. (5) A portion or all of each of these ownership interests are held by majority-owned subsidiaries that are part of AWAC. |
Summary of Financial Information for Alcoa Corporation's Equity Investments | Financial information for these equity investments is as follows (amounts represent 100% of the investee’s financial information): Saudi Arabia Joint Venture (1) Halco Mining, Inc. Energetica Barra Grande S.A. Pechiney Reynolds Quebec, Inc. Consorcio Serra do Facão Mineração Rio do Norte S.A. Manicouagan Power L.P. DBNGP Trust (2) Total Profit and loss data— year ended December 31, 2018 Sales $ 3,986 $ 402 $ 84 $ 120 $ 93 $ 400 $ 106 $ — $ 5,191 Cost of goods sold 3,334 268 66 110 71 254 9 — $ 4,112 Income before income taxes 301 41 17 8 21 120 96 — $ 604 Net income 9 38 6 16 19 33 89 — $ 210 Equity in net income of affiliated companies, before reconciling adjustments 2 17 3 8 7 6 36 — $ 79 Other (13 ) (2 ) — (1 ) (1 ) (8 ) (3 ) — $ (28 ) Alcoa Corporation’s equity in net (loss) income of affiliated companies (11 ) 15 3 7 6 (2 ) 33 — $ 51 Profit and loss data— year ended December 31, 2017 Sales $ 3,032 $ 416 $ 131 $ 332 $ 103 $ 350 $ 105 $ — $ 4,469 Cost of goods sold 2,776 266 117 292 48 273 9 — 3,781 (Loss) income before income taxes (142 ) 50 13 35 45 35 96 — 132 Net (loss) income (157 ) 47 5 23 46 30 88 — 82 Equity in net (loss) income of affiliated companies, before reconciling adjustments (39 ) 21 2 11 16 6 35 — 52 Other 9 (1 ) — — — — 2 — 10 Alcoa Corporation’s equity in net (loss) income of affiliated companies (30 ) 20 2 11 16 6 37 — 62 Profit and loss data— year ended December 31, 2016 Sales $ 1,970 $ 437 $ 60 $ 309 $ 90 $ 451 $ 104 $ 86 $ 3,507 Cost of goods sold 1,905 242 35 272 65 297 10 18 2,844 (Loss) income before income taxes (295 ) 53 16 36 8 152 94 21 85 Net (loss) income (295 ) 50 15 16 5 129 87 14 21 Equity in net (loss) income of affiliated companies, before reconciling adjustments (75 ) 23 6 8 2 23 35 3 25 Other 7 2 (1 ) (4 ) — (1 ) — — 3 Alcoa Corporation’s equity in net (loss) income of affiliated companies (68 ) 25 5 4 2 22 35 3 28 Saudi Arabia Joint Venture (1) Halco Mining, Inc. Energetica Barra Grande S.A. Pechiney Reynolds Quebec, Inc. Consorcio Serra do Facão Mineração Rio do Norte S.A. Manicouagan Power L.P. DBNGP Trust (2) Total Balance sheet data—as of December 31, 2018 Current assets $ 1,684 $ 58 $ 18 $ 139 $ 43 $ 127 $ 23 $ — $ 2,092 Noncurrent assets 9,115 164 224 97 242 653 76 — 10,571 Current liabilities 1,379 10 5 49 20 116 11 — 1,590 Noncurrent liabilities 6,101 17 18 4 83 422 — — 6,645 Balance sheet data—as of December 31, 2017 Current assets $ 1,415 $ 40 $ 44 $ 140 $ 79 $ 121 $ 23 $ — $ 1,862 Noncurrent assets 9,373 174 285 106 261 744 72 — 11,015 Current liabilities 1,331 1 48 65 25 220 9 — 1,699 Noncurrent liabilities 6,191 12 6 12 117 413 — — 6,751 (1) The amounts included in this column represent the combined financial information related to Ma’aden Aluminum Company, Ma’aden Bauxite and Alumina Company, and Ma’aden Rolling Company. (2) AofA sold its interest in the Dampier to Bunbury Natural Gas Pipeline (DBNGP) Trust in April 2016 (see DBNGP Trust below). |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | December 31, 2018 2017 Finished goods $ 346 $ 296 Work-in-process 315 258 Bauxite and alumina 609 585 Purchased raw materials 535 473 Operating supplies 146 147 LIFO reserve (307 ) (306 ) $ 1,644 $ 1,453 |
Properties, Plants, and Equip_2
Properties, Plants, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Properties, Plants, and Equipment, Net | December 31, 2018 2017 Land and land rights, including mines $ 328 $ 346 Structures (by type of operation): Bauxite mining 1,119 1,250 Alumina refining 2,478 2,664 Aluminum smelting and casting 3,532 3,575 Energy generation 506 552 Aluminum rolling 285 298 Other 380 417 8,300 8,756 Machinery and equipment (by type of operation): Bauxite mining 480 508 Alumina refining 3,604 4,009 Aluminum smelting and casting 6,489 6,827 Energy generation 889 905 Aluminum rolling 1,029 1,020 Other 282 288 12,773 13,557 21,401 22,659 Less: accumulated depreciation, depletion, and amortization 13,480 13,908 7,921 8,751 Construction work-in-progress 406 387 $ 8,327 $ 9,138 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, 2018 2017 Bauxite $ 2 $ 2 Alumina 3 4 Aluminum (1) — — Corporate (2) 146 148 $ 151 $ 154 (1) The carrying value of Aluminum’s goodwill is zero, comprised of goodwill of $989 and accumulated impairment losses of $989 as of both December 31, 2018 and 2017. Additionally, the carrying value of Corporate’s goodwill is net of accumulated impairment losses of $742 as of both December 31, 2018 and 2017. (2) As of December 31, 2018, the $146 of goodwill reflected in Corporate is allocated to two of Alcoa Corporation’s three reportable segments ($49 to Bauxite and $97 to Alumina) for purposes of impairment testing (see Note B). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the two reportable segments. |
Other Intangible Assets | Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: 2018 2017 December 31, Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Computer software $ 237 $ (211 ) $ 26 $ 241 $ (212 ) $ 29 Patents and licenses 25 (7 ) 18 25 (6 ) 19 Other intangibles 19 (6 ) 13 21 (7 ) 14 Total other intangible assets $ 281 $ (224 ) $ 57 $ 287 $ (225 ) $ 62 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-Term Debt. December 31, 2018 2017 6.75% Notes, due 2024 $ 750 $ 750 7.00% Notes, due 2026 500 500 6.125% Notes, due 2028 500 — BNDES Loans (see below for weighted average rates) — 137 Other 91 50 Unamortized discounts and deferred financing costs (39 ) (33 ) 1,802 1,404 Less: amount due within one year 1 16 $ 1,801 $ 1,388 |
Preferred and Common Stock (Tab
Preferred and Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Activity for Stock Options and Stock Units | The activity for stock options and stock units during 2018 was as follows: Stock options Stock units Number of options Weighted average exercise price Number of units Weighted average FMV per unit Outstanding, January 1, 2018 2,687,107 $ 25.48 2,301,332 $ 26.93 Granted 189,455 53.30 635,477 52.81 Exercised (896,645 ) 25.06 — — Converted* — — (505,930 ) 34.55 Expired or forfeited (19,990 ) 20.51 (40,941 ) 31.73 Performance share adjustment — — (84,793 ) 15.09 Outstanding, December 31, 2018 1,959,927 28.41 2,305,145 32.75 * The number of converted units includes 109,239 shares “withheld” to meet the Company’s statutory tax withholding requirements related to the income earned by the employees as a result of vesting in the units. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans | The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action # Number of plans Number of affected plan participants Weighted average discount rate as of December 31, 2017 Plan remeasurement date Weighted average discount rate as of plan remeasurement date (Decrease) increase to accrued pension benefits liability (1) Decrease to accrued other postretirement benefits liability (1) Curtailment charge (gain) (2) Settlement charge (2) 1 3 ~800 3.65% January 31, 2018 3.80% $ (57 ) $ — $ 5 $ — 2 1 ~700 3.29% January 31, 2018 3.43% — (7 ) (28 ) — 3 2 ~2,100 3.43% March 31, 2018 3.60% 24 — — 167 4 3 ~11,500 3.70% July 31, 2018 4.39% (110 ) — — 230 5 1 ~5,500 3.61% July 31, 2018 4.35% — (86 ) — (56 ) ~20,600 $ (143 ) $ (93 ) $ (23 ) $ 341 (1) A negative amount indicates a corresponding decrease to Accumulated other comprehensive loss and a positive amount indicates a corresponding increase to Accumulated other comprehensive loss. (2) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations. |
Schedule of Obligations and Funded Status | Obligations and Funded Status Pension benefits Other postretirement benefits December 31, 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 7,639 $ 7,269 $ 1,218 $ 1,286 Service cost 60 84 5 5 Interest cost 232 250 34 38 Amendments - 2 (5 ) — Actuarial (gains) losses (346 ) 388 (88 ) (1 ) Settlements (1,009 ) (64 ) (57 ) — Curtailments (22 ) — — — Benefits paid, net of participants’ contributions (407 ) (437 ) (140 ) (116 ) Medicare Part D subsidy receipts — — 7 5 Foreign currency translation impact (150 ) 147 (1 ) 1 Benefit obligation at end of year* $ 5,997 $ 7,639 $ 973 $ 1,218 Change in plan assets Fair value of plan assets at beginning of year $ 5,322 $ 5,421 $ — $ — Actual return on plan assets (129 ) 187 — — Employer contributions 996 111 — — Participant contributions 12 15 — — Benefits paid (403 ) (432 ) — — Administrative expenses (31 ) (41 ) — — Settlements (1,030 ) (62 ) — — Foreign currency translation impact (127 ) 123 — — Fair value of plan assets at end of year* $ 4,610 $ 5,322 $ — $ — Funded status* $ (1,387 ) $ (2,317 ) $ (973 ) $ (1,218 ) Less: Amounts attributed to joint venture partners (33 ) (37 ) — — Net funded status $ (1,354 ) $ (2,280 ) $ (973 ) $ (1,218 ) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 63 $ 72 $ — $ — Current liabilities (10 ) (11 ) (105 ) (118 ) Noncurrent liabilities (1,407 ) (2,341 ) (868 ) (1,100 ) Net amount recognized $ (1,354 ) $ (2,280 ) $ (973 ) $ (1,218 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 3,261 $ 3,743 $ 176 $ 281 Prior service cost (benefit) 21 35 (4 ) (30 ) Total, before tax effect 3,282 3,778 172 251 Less: Amounts attributed to joint venture partners 40 45 — — Net amount recognized, before tax effect $ 3,242 $ 3,733 $ 172 $ 251 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) consist of: Net actuarial loss (benefit) $ 132 $ 676 $ (88 ) $ (1 ) Amortization of accumulated net actuarial loss (614 ) (187 ) (17 ) (13 ) Prior service (benefit) cost (1 ) 2 (62 ) — Amortization of prior service (cost) benefit (13 ) (9 ) 88 6 Total, before tax effect (496 ) 482 (79 ) (8 ) Less: Amounts attributed to joint venture partners (5 ) 9 — — Net amount recognized, before tax effect $ (491 ) $ 473 $ (79 ) $ (8 ) * At December 31, 2018, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $4,246, $3,160, and $(1,086), respectively. At December 31, 2017, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $5,093, $3,195, and $(1,898), respectively. |
Schedule of Pension Plan Benefit Obligations | Pension Plan Benefit Obligations Pension benefits 2018 2017 The aggregate projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: Projected benefit obligation $ 5,997 $ 7,639 Accumulated benefit obligation 5,792 7,426 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: Projected benefit obligation 5,502 7,061 Fair value of plan assets 4,051 4,671 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: Accumulated benefit obligation 5,380 6,885 Fair value of plan assets 4,051 4,671 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) 2018 2017 2016 2018 2017 2016 Service cost $ 54 $ 71 $ 61 $ 5 $ 5 $ 2 Interest cost (3) 227 244 138 34 38 16 Expected return on plan assets (3) (341 ) (398 ) (242 ) — — — Recognized net actuarial loss (3) 198 185 102 13 13 8 Amortization of prior service cost (benefit) (3) 8 9 7 — (6 ) (5 ) Settlements (4) 410 5 16 (56 ) — — Curtailments (5) 5 — — (28 ) — — Special termination benefits (6) — 3 1 — — — Net periodic benefit cost (7) $ 561 $ 119 $ 83 $ (32 ) $ 50 $ 21 (1) In 2018, 2017, and 2016, net periodic benefit cost for U.S pension plans was $358, $74, and $21, respectively. (2) In 2018, 2017, and 2016, net periodic benefit cost for other postretirement benefits reflects a reduction of $8, $8 and $6, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Notes B (Recently Adopted Accounting Guidance) and S). (4) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). In 2018, settlements were due to management actions (see Plan Actions above) ($341) and payment of lump sum benefits ($13). In 2017, settlements were due to payment of lump sum benefits. In 2016, settlements were due to workforce reductions and payment of lump sum benefits. (5) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). In 2018, curtailments were due to management actions (see Plan Actions above). (6) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). In 2017 and 2016, special termination benefits were due to workforce reductions. (7) Amounts attributed to joint venture partners are not included. |
Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost | Amounts Expected to be Recognized in Net Periodic Benefit Cost Pension benefits Other postretirement benefits 2019 2019 Net actuarial loss recognition $ 167 $ 10 Prior service cost recognition 6 1 |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material): 2018 2017 2016 Health care cost trend rate assumed for next year 5.5 % 5.5 % 5.5 % Rate to which the cost trend rate gradually declines 4.5 % 4.5 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2022 2021 2020 |
Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates | Assumed health care cost trend rates have an effect on the amounts reported for a health care plan. A one-percentage point change in these assumed rates would have the following effects: 1% increase 1% decrease Effect on other postretirement benefit obligations $ 65 $ (58 ) Effect on total of service and interest cost components 2 (2 ) |
Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations | Plan Assets. Alcoa Corporation’s pension plan investment policy and weighted average asset allocations at December 31, 2018 and 2017, by asset class, were as follows: Plan assets at December 31, Asset class Policy range 2018 2017 Equities 10–60% 36 % 40 % Fixed income 10–65% 51 35 Other investments 0–35% 13 25 Total 100 % 100 % |
Schedule of Fair Value of Pension Plan Assets | The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value: December 31, 2018 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 662 $ — $ — $ 813 $ 1,475 Long/short equity hedge funds — — — 6 6 Private equity — — — 186 186 $ 662 $ — $ — $ 1,005 $ 1,667 Fixed income: Intermediate and long duration government/credit $ 925 $ 697 $ — $ 327 $ 1,949 Cash and cash equivalent funds 56 — — 325 381 Other — 14 — — 14 $ 981 $ 711 $ — $ 652 $ 2,344 Other investments: Real estate $ 230 $ — $ — $ 318 $ 548 Other — — — 32 32 $ 230 $ — $ — $ 350 $ 580 Total (1) $ 1,873 $ 711 $ — $ 2,007 $ 4,591 December 31, 2017 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 906 $ — $ — $ 869 $ 1,775 Long/short equity hedge funds — — — 152 152 Private equity — — — 226 226 $ 906 $ — $ — $ 1,247 $ 2,153 Fixed income: Intermediate and long duration government/credit $ 95 $ 378 $ — $ 264 $ 737 Cash and cash equivalent funds 313 — — 742 1,055 Other — 56 — — 56 $ 408 $ 434 $ — $ 1,006 $ 1,848 Other investments: Real estate $ 241 $ — $ — $ 365 $ 606 Discretionary and systematic macro hedge funds — — — 581 581 Other — — — 132 132 $ 241 $ — $ — $ 1,078 $ 1,319 Total (2) $ 1,555 $ 434 $ — $ 3,331 $ 5,320 (1) As of December 31, 2018, the total fair value of pension plan assets excludes a net receivable of $19, which represents securities not yet settled plus interest and dividends earned on various investments. (2) As of December 31, 2017, the total fair value of pension plan assets excludes a net receivable of $2, which represents securities not yet settled plus interest and dividends earned on various investments, less an amount due to Arconic pension plans from Alcoa Corporation pension plans related to the separation of certain plans between the two companies. |
Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts | Benefit payments expected to be paid to pension and other postretirement benefit plan participants and expected Medicare Part D subsidy receipts are as follows: Year ended December 31, Pension benefits Gross Other postretirement benefits Medicare Part D subsidy receipts Net Other postretirement benefits 2019 $ 420 $ 110 $ 10 $ 100 2020 420 110 10 100 2021 425 110 5 105 2022 425 105 5 100 2023 425 105 5 100 2024 through 2028 2,060 340 25 315 $ 4,175 $ 880 $ 60 $ 820 |
Benefit Obligation [Member] | |
Schedule of Total Expenses Related to All Pension and Other Postretirement Benefits | The following table summarizes the total expenses recognized by the Company related to all pension and other postretirement benefits: Pension benefits Other postretirement benefits Type of Plan Type of Expense 2018 2017 2016 2018 2017 2016 Cumulative Direct Plans Net periodic benefit cost $ 561 $ 119 $ 83 $ (32 ) $ 50 $ 21 Shared Plans Multiemployer contribution expense — — 28 — — 12 Shared Plans Cost allocation — — 25 — — 8 $ 561 $ 119 $ 136 $ (32 ) $ 50 $ 41 |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Assumptions. Weighted average assumptions used to determine benefit obligations for pension and other postretirement benefit plans were as follows: December 31, 2018 2017 Discount rate—pension plans 4.21 % 3.68 % Discount rate—other postretirement benefit plans 4.25 3.54 Rate of compensation increase—pension plans 3.26 3.28 |
Net Periodic Benefit Cost [Member] | |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for pension and other postretirement benefit plans were as follows: 2018 2017 2016 Discount rate—pension plans 3.59 % 3.61 % 3.45 % Discount rate—other postretirement benefit plans 3.18 3.30 2.90 Expected long-term rate of return on plan assets—pension plans 6.89 7.47 7.31 Rate of compensation increase—pension plans 3.28 3.61 3.65 |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
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: Fair value at December 31, 2018* Unobservable input Range ($ in full amounts) Assets: Financial contract (D11) $ 112 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $68.60 per megawatt hour in 2019 to $44.91 per megawatt hour in 2021 Embedded aluminum derivatives (D3 through D5) 20 Price of aluminum beyond forward curve Aluminum: $2,426 per metric ton in April 2029 to $2,458 per metric ton in December 2029 (two contracts) and $2,756 per metric ton in 2036 (one contract) Midwest premium: $0.1900 per pound in 2019 to $0.1800 per pound in 2029 (two contracts) and 2036 (one contract) Liabilities: Embedded aluminum derivative (D1) 234 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,823 per metric ton in 2019 to $2,350 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivative (D8) 5 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,823 per metric ton in January 2019 to $1,848 per metric ton in March 2019 Midwest premium: $0.1900 per pound in January 2019 to $0.1900 per pound in March 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative (D2) 9 Interrelationship of LME price to overall energy price Aluminum: $1,946 per metric ton in January 2019 to $1,907 per metric ton in December 2019 Embedded credit derivative (D9) 20 Estimated spread between the respective 30-year debt yield of Alcoa Corporation and counterparty 3.11% (30-year debt yields: Alcoa Corporation—7.47% (estimated) and counterparty—4.36%) * The fair value of the embedded aluminum derivatives (D3 through D5) reflected as an asset in this table is lower by $21 compared to the respective amount reflected in the Level 3 tables presented below. This is due to the fact that these contracts are in an asset position for the noncurrent portion and are in a liability position for the current portion, which are reflected as such on the accompanying Consolidated Balance Sheet. However, these derivatives are reflected as a net asset in the above table for purposes of presenting the assumptions utilized to measure the fair value of the derivative instrument in its entirety. |
Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities | The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives December 31, 2018 December 31, 2017 Derivatives designated as hedging instruments: Fair value of derivative instruments—current: Financial contract $ 70 $ 96 Fair value of derivative instruments—noncurrent: Embedded aluminum derivatives 41 — Financial contract 42 101 Total derivatives designated as hedging instruments $ 153 $ 197 Total Asset Derivatives $ 153 $ 197 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments—current: Embedded aluminum derivatives $ 46 $ 120 Fair value of derivative instruments—noncurrent: Embedded aluminum derivatives 218 992 Total derivatives designated as hedging instruments $ 264 $ 1,112 Derivatives not designated as hedging instruments: Fair value of derivative instruments—current: Embedded aluminum derivative $ 5 $ 28 Embedded credit derivative 4 4 Fair value of derivative instruments—noncurrent: Embedded aluminum derivative — 6 Embedded credit derivative 16 23 Total derivatives not designated as hedging instruments $ 25 $ 61 Total Liability Derivatives $ 289 $ 1,173 |
Schedule of Net Fair Values of Level 3 Derivative Instruments and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates | The following table shows the net fair values of the Level 3 derivative instruments at December 31, 2018 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed as of December 31, 2018: Fair value asset/(liability) Index change of + / -10% Embedded aluminum derivatives $ (228 ) $ 343 Embedded credit derivative (20 ) 2 Financial contract 112 35 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities 2018 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Opening balance—January 1, 2018 $ — $ 197 $ 1,146 $ 27 Total gains or losses (realized and unrealized) included in: Sales — — (100 ) — Cost of goods sold — (62 ) — (3 ) Other expenses, net — — (19 ) (4 ) Other comprehensive income 40 (11 ) (745 ) — Purchases, sales, issuances, and settlements* — — — — Transfers into and/or out of Level 3* — — — — Other 1 (12 ) (13 ) — Closing balance—December 31, 2018 $ 41 $ 112 $ 269 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2018: Sales $ — $ — $ — $ — Cost of goods sold — — — — Other expenses, net — — (19 ) (4 ) * In 2018, there were no purchases, sales, issuances or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3 Assets Liabilities 2017 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Opening balance—January 1, 2017 $ 497 $ 17 $ 232 $ 35 Total gains or losses (realized and unrealized) included in: Sales 3 — (110 ) — Cost of goods sold — (31 ) — (5 ) Other expenses, net 1 (7 ) 18 (3 ) Other comprehensive loss (499 ) 88 1,022 — Purchases, sales, issuances, and settlements* — 119 — — Transfers into and/or out of Level 3* — — — — Other (2 ) 11 (16 ) — Closing balance—December 31, 2017 $ — $ 197 $ 1,146 $ 27 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2017: Sales $ — $ — $ — $ — Cost of goods sold — — — — Other expenses, net 1 (7 ) 18 (3 ) * In January 2017, there was an issuance of a new financial contract (see D11 above). There were no purchases, sales or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. |
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: 2018 2017 December 31, Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,113 $ 1,113 $ 1,358 $ 1,358 Restricted cash 3 3 7 7 Long-term debt due within one year 1 1 16 16 Long-term debt, less amount due within one year 1,801 1,863 1,388 1,555 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Loss from Continuing Operations Before Income Taxes | The components of income (loss) before income taxes were as follows: 2018 2017 2016 Domestic $ (771 ) $ (712 ) $ (688 ) Foreign 2,368 1,871 526 $ 1,597 $ 1,159 $ (162 ) |
Schedule of Provision for Income Taxes on Income from Continuing Operations | Provision for income taxes consisted of the following: 2018 2017 2016 Current: Federal* $ 5 $ 3 $ 9 Foreign 757 421 221 State and local — — — 762 424 230 Deferred: Federal* (21 ) 24 — Foreign (15 ) 152 (46 ) State and local — — — (36 ) 176 (46 ) Total $ 726 $ 600 $ 184 * Includes U.S. income taxes related to foreign income. |
Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to Alcoa Corporation’s effective tax rate was as follows (the effective tax rate was a provision on income in 2018 and 2017 and a provision on a loss in 2016): 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Taxes on foreign operations—rate differential 12.8 (10.8 ) 44.3 Global intangible low-taxed income (1) 10.0 — — Changes in valuation allowances 3.4 25.8 (1.9 ) Tax holidays (2) (3.2 ) 0.4 11.2 Unrecognized tax benefits 1.9 (1.0 ) (1.1 ) Other taxes related to foreign operations 1.1 1.3 (19.5 ) Noncontrolling interest 1.0 1.4 (7.3 ) Statutory tax rate and law changes 0.1 0.1 (0.6 ) Impact of U.S. Tax Cuts and Jobs Act of 2017 — 1.9 — Losses and credits with no tax benefit (3) — (0.2 ) (163.2 ) Nondeductible costs related to the Separation Transaction — — (9.6 ) Other (2.6 ) (2.1 ) (0.9 ) Effective tax rate 45.5 % 51.8 % (113.6 )% (1) (2 ) In 2018 and 2017, the income of certain operations of several of the Company’s subsidiaries in Brazil was taxed at a lower rate as a result of approved tax holidays. The difference between the respective holiday rates and the statutory rates resulted in a benefit of $46 and $20, or $0.24 and $0.11 per diluted share, in 2018 and 2017, respectively. The majority of these tax holidays expire at the end of 2022 and one tax holiday expires at the end of 2026 (see below). In 2018 and 2017, this line item also includes a benefit of $5 and a charge of $26, respectively, for the remeasurement of certain deferred tax assets related to these tax holidays in Brazil (see below). (3 ) In 2016, hypothetical net operating losses and tax credits were determined on a separate return basis for which it is more likely than not that a tax benefit will not be realized. The related deferred tax asset and offsetting valuation allowance have been adjusted to Parent Company net investment and, as such, are not reflected in subsequent deferred tax and valuation allowance tables. |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities based on the underlying attributes without regard to jurisdiction were as follows: 2018 2017 December 31, Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Tax loss carryforwards $ 1,231 $ — $ 1,185 $ — Employee benefits 683 — 949 — Loss provisions 212 — 246 — Investment basis differences 162 — 72 — Depreciation 91 428 141 432 Derivatives and hedging activities 53 39 287 70 Tax credit carryforwards 27 — 193 — Deferred income/expense 10 103 11 109 Other 87 1 28 57 2,556 571 3,112 668 Valuation allowance (1,684 ) — (1,927 ) — $ 872 $ 571 $ 1,185 $ 668 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above: December 31, 2018 Expires within 10 years Expires within 11-20 years No expiration* Other* Total Tax loss carryforwards $ 307 $ 254 $ 670 $ — $ 1,231 Tax credit carryforwards 18 9 — — 27 Other — — 305 993 1,298 Valuation allowance (325 ) (263 ) (370 ) (726 ) (1,684 ) $ — $ — $ 605 $ 267 $ 872 * Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. |
Composition of Net Deferred Tax Asset by Jurisdiction | The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences and taxable temporary differences that reverse within the carryforward period. The composition of Alcoa Corporation’s net deferred tax asset by jurisdiction as of December 31, 2018 was as follows: Domestic Foreign Total Deferred tax assets $ 891 $ 1,665 $ 2,556 Valuation allowance (779 ) (905 ) (1,684 ) Deferred tax liabilities (102 ) (469 ) (571 ) $ 10 $ 291 $ 301 |
Schedule of Changes in Valuation Allowance | Accordingly, management concluded that the net deferred tax assets of the Foreign Filers will more likely than not be realized in future periods, resulting in no need for a partial or full valuation allowance as of December 31, 2018. The following table details the changes in the valuation allowance: December 31, 2018 2017 2016 Balance at beginning of year $ (1,927 ) $ (1,755 ) $ (712 ) Establishment of new allowances (1) (86 ) (94 ) — Net change to existing allowances (2) 312 (33 ) (1,056 ) Foreign currency translation 17 (45 ) 13 Balance at end of year $ (1,684 ) $ (1,927 ) $ (1,755 ) (1) This line item reflects valuation allowances initially established as a result of a change in management’s judgment regarding the realizability of deferred tax assets. (2) This line item reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax asset. |
Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2018 2017 2016 Balance at beginning of year $ 10 $ 23 $ 22 Additions for tax positions of the current year 1 1 3 Additions for tax positions of prior years 20 — 1 Reductions for tax positions of prior years — (5 ) (2 ) Settlements with tax authorities — (6 ) (2 ) Expiration of the statute of limitations — (3 ) — Foreign currency translation (1 ) — 1 Balance at end of year $ 30 $ 10 $ 23 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Carrying Value of Recorded AROs by Major Category | The following table details the carrying value of recorded AROs by major category (of which $122 and $108 was classified as a current liability as of December 31, 2018 and 2017, respectively): December 31, 2018 2017 Mine reclamation $ 198 $ 221 Closure of bauxite residue areas 231 238 Spent pot lining disposal 113 125 Demolition* 76 113 Landfill closure 33 27 Other — 1 $ 651 $ 725 * In 2018, 2017, and 2016, AROs were recorded as a result of management’s decision to permanently close and demolish certain structures (see Note D). |
Schedule of Changes in Carrying Value of Recorded AROs | The following table details the changes in the total carrying value of recorded AROs: December 31, 2018 2017 Balance at beginning of year $ 725 $ 708 Accretion expense 17 17 Payments (80 ) (69 ) Liabilities incurred 63 70 Reversals of previously recorded liabilities* (37 ) (27 ) Foreign currency translation and other (37 ) 26 Balance at end of year $ 651 $ 725 * In 2018 and 2017, Reversals of previously recorded liabilities include $36 and $20 related to the Portovesme (Italy) and Warrick (Indiana) smelters, respectively (see Note D). |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Interest Cost Components | Interest Cost Components 2018 2017 2016 Amount charged to expense $ 122 $ 104 $ 243 Amount capitalized 14 17 23 $ 136 $ 121 $ 266 |
Schedule of Other Expenses (Income), Net | Other Expenses (Income), Net 2018 2017 2016 Equity loss $ 17 $ 28 $ 70 Foreign currency (gains) losses, net (57 ) 8 8 Net gain from asset sales — (116 ) (164 ) Net (gain) loss on mark-to-market derivative instruments (O) (25 ) 24 9 Non-service costs – 139 85 24 Other, net (10 ) (2 ) (12 ) $ 64 $ 27 $ (65 ) |
Schedule of Other Noncurrent Assets | Other Noncurrent Assets December 31, 2018 2017 Gas supply prepayment (R) $ 458 $ 510 Prepaid gas transmission contract (H) 275 300 Value-added tax credits 210 340 Goodwill (K) 151 154 Deferred mining costs, net 123 139 Prepaid pension benefit (N) 63 72 Intangibles, net (K) 57 62 Other 138 142 $ 1,475 $ 1,719 |
Schedule of Other Noncurrent Liabilities and Deferred Credits | Other Noncurrent Liabilities and Deferred Credits December 31, 2018 2017 Accrued compensation and retirement costs $ 107 $ 127 Deferred alumina sales revenue 61 68 Other 54 84 $ 222 $ 279 |
Schedule of Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash December 31, 2018 2017 Cash and cash equivalents $ 1,113 $ 1,358 Restricted cash* 3 7 $ 1,116 $ 1,365 * These amounts are reported in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. |
Schedule of Cash Paid for Interest and Income Taxes | Cash Flow Information Cash paid for interest and income taxes was as follows: 2018 2017 2016 Interest, net of amount capitalized $ 111 $ 100 $ 226 Income taxes, net of amount refunded 507 363 265 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions | Nov. 01, 2016USD ($)$ / sharesshares | Oct. 31, 2016USD ($) | Dec. 31, 2018USD ($)CountryLocation$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) |
Basis Of Presentation [Line Items] | |||||
Number of countries in which entity operates | Country | 10 | ||||
Separation based on pro rata distribution percentage on common stock | 80.10% | ||||
Common stock conversion ratio | 0.333 | ||||
Cash payment related to separation transaction | $ 1,072 | $ 247 | $ 1,072 | ||
Proceeds from sale of assets | $ 243 | ||||
Common stock distributed related to separation transaction | shares | 146,159,428 | ||||
Common stock sold | shares | 36,311,767 | ||||
Common stock par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Costs related to separation transaction | $ 152 | ||||
Proceeds from noncontrolling shareholder | $ 149 | $ 80 | 48 | ||
Aluminum Segment [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Ownership interest in joint venture | 55.00% | ||||
Alumina Limited [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Proceeds from noncontrolling shareholder | $ 149 | $ 80 | $ 48 | ||
AWAC [Member] | Alumina Limited [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Non-controlling interest, ownership percentage | 40.00% | ||||
Alcoa Corporation [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Minority interest percentage | 25.10% | 25.10% | |||
Costs related to separation transaction | $ 68 | ||||
Alcoa Corporation [Member] | AWAC [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Ownership interest percentage | 60.00% | ||||
Parent Co [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Percentage of common stock retained | 19.90% | ||||
Common stock shares retained | shares | 36,311,767 | ||||
Minimum [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Number of operating locations | Location | 40 | ||||
Maximum [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Percent of equity investments in other entity | 50.00% |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Cost Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basis Of Presentation [Line Items] | |||||
Cost of goods sold | $ 10,081 | $ 8,991 | $ 7,877 | ||
Selling, general administrative, and other expenses | 248 | 280 | 356 | ||
Research and development expenses | 31 | 32 | 33 | ||
Provision for depreciation, depletion, and amortization | 733 | 750 | 718 | ||
Restructuring and other charges | $ 138 | $ 297 | 527 | 309 | 318 |
Interest expense | 122 | 104 | 243 | ||
Other income, net | $ (64) | $ (27) | 65 | ||
Alcoa Corporation [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Cost of goods sold | 40 | ||||
Selling, general administrative, and other expenses | 150 | ||||
Research and development expenses | 2 | ||||
Provision for depreciation, depletion, and amortization | 18 | ||||
Restructuring and other charges | 1 | ||||
Interest expense | 198 | ||||
Other income, net | $ (7) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($)Reporting_Unit | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Original maturity of cash equivalents | three months | |||
Segment Allocation, Goodwill Recognized | $ 989,000,000 | $ 989,000,000 | ||
Minimum percentage of estimated fair value of reporting unit to be less than carrying amount of goodwill | 50.00% | |||
Maximum hedging contracts period, in years | 5 years | |||
Restricted cash | $ 3,000,000 | $ 7,000,000 | ||
Corporate income tax rate | 21.00% | 35.00% | 35.00% | |
Accounting Standards Update 2017-07 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Non-service cost components in other expenses, net | $ 139,000,000 | |||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease, right-of-use asset | $ 181,000,000 | |||
Operating lease, liability | $ 181,000,000 | |||
Alumina [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Goodwill impairment | 0 | |||
Aluminum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Segment Allocation, Goodwill Recognized | 0 | |||
Bauxite [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Goodwill impairment | $ 0 | |||
Alcoa Corporation [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reporting units for goodwill allocation | Reporting_Unit | 5 | |||
Alcoa Corporation [Member] | Alumina [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reporting units for goodwill allocation | Reporting_Unit | 1 | |||
Segment Allocation, Goodwill Recognized | $ 100,000,000 | |||
Alcoa Corporation [Member] | Aluminum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reporting units for goodwill allocation | Reporting_Unit | 3 | |||
Alcoa Corporation [Member] | Bauxite [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reporting units for goodwill allocation | Reporting_Unit | 1 | |||
Segment Allocation, Goodwill Recognized | $ 51,000,000 | |||
Minimum [Member] | Bauxite Mining [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Period of mining | 1 year | |||
Maximum [Member] | Bauxite Mining [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Period of mining | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Structures and Machinery and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Structures [Member] | Bauxite Mining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 35 years |
Structures [Member] | Alumina Refining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 30 years |
Structures [Member] | Aluminum Smelting and Casting [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 36 years |
Structures [Member] | Energy Generation [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 33 years |
Structures [Member] | Aluminum Rolling [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 31 years |
Machinery and Equipment [Member] | Bauxite Mining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 16 years |
Machinery and Equipment [Member] | Alumina Refining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 28 years |
Machinery and Equipment [Member] | Aluminum Smelting and Casting [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 22 years |
Machinery and Equipment [Member] | Energy Generation [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 24 years |
Machinery and Equipment [Member] | Aluminum Rolling [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 23 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Software and Other Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Software [Member] | Bauxite Mining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 6 years |
Software [Member] | Alumina Refining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 6 years |
Software [Member] | Aluminum Smelting and Casting [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 4 years |
Software [Member] | Energy Generation [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 3 years |
Software [Member] | Aluminum Rolling [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 4 years |
Other Intangible Assets [Member] | Bauxite Mining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 10 years |
Other Intangible Assets [Member] | Alumina Refining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 20 years |
Other Intangible Assets [Member] | Aluminum Smelting and Casting [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 39 years |
Other Intangible Assets [Member] | Energy Generation [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 28 years |
Other Intangible Assets [Member] | Aluminum Rolling [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Recast of Statement of Consolidated Cash Flows to Reflect Adoption of FASB Guidance (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Activities | ||||
Net transfers from former parent company | $ 806 | |||
Additions to debt (original maturities greater than three months | $ 492 | $ 560 | $ 21 | 1,228 |
Cash (used for) provided from financing activities | (288) | (506) | 749 | |
Investing Activities | ||||
Cash (used for) provided from investing activities | (405) | (226) | (149) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (4) | 14 | 13 | |
Net change in cash and cash equivalents and restricted cash | (249) | 506 | 302 | |
Cash and cash equivalents and restricted cash at beginning of year | 1,365 | 859 | 557 | |
Cash and cash equivalents and restricted cash at end of year | 1,116 | 1,365 | 859 | |
Accounting Standards Update 2016-18 [Member] | As Previously Reported [Member] | ||||
Financing Activities | ||||
Net transfers from former parent company | 802 | |||
Cash (used for) provided from financing activities | (506) | (483) | ||
Investing Activities | ||||
Net change in restricted cash | 1,226 | |||
Cash (used for) provided from investing activities | (226) | 1,077 | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 13 | 13 | ||
Net change in cash and cash equivalents and restricted cash | 505 | 296 | ||
Cash and cash equivalents and restricted cash at beginning of year | 1,358 | 853 | 557 | |
Cash and cash equivalents and restricted cash at end of year | 1,358 | 853 | ||
Accounting Standards Update 2016-18 [Member] | Change [Member] | ||||
Financing Activities | ||||
Net transfers from former parent company | 4 | |||
Additions to debt (original maturities greater than three months | 1,228 | |||
Cash (used for) provided from financing activities | 1,232 | |||
Investing Activities | ||||
Net change in restricted cash | (1,226) | |||
Cash (used for) provided from investing activities | (1,226) | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1 | |||
Net change in cash and cash equivalents and restricted cash | 1 | 6 | ||
Cash and cash equivalents and restricted cash at beginning of year | $ 7 | 6 | ||
Cash and cash equivalents and restricted cash at end of year | $ 7 | $ 6 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recast of Statement of Consolidated Cash Flows to Reflect Adoption of FASB Guidance(Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Restricted cash | $ 3 | $ 7 | |
Alcoa Nederland Holding BV [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Senior notes issued | $ 1,250 | ||
Net proceeds from issuance of senior notes | 1,228 | ||
Restricted cash | $ 1,228 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Recast of Statement of Consolidated Operations to Reflect Adoption of FASB Guidance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cost of goods sold | $ 10,081 | $ 8,991 | $ 7,877 |
Selling, general administrative, and other expenses | 248 | 280 | 356 |
Other expenses (income), net | $ 64 | 27 | (65) |
Accounting Standards Update 2017-07 [Member] | As Previously Reported [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cost of goods sold | 9,072 | 7,898 | |
Selling, general administrative, and other expenses | 284 | 359 | |
Other expenses (income), net | (58) | (89) | |
Accounting Standards Update 2017-07 [Member] | Change [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cost of goods sold | (81) | (21) | |
Selling, general administrative, and other expenses | (4) | (3) | |
Other expenses (income), net | $ 85 | $ 24 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) $ in Millions | Nov. 01, 2016USD ($) | Nov. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)HydroelectricPowerDevelopmentEmployee |
Business Disposition [Line Items] | |||||||||||||||
Cash provided at separation to Parent Company | $ 1,072 | $ 247 | $ 1,072 | ||||||||||||
Other current liabilities | $ 347 | $ 412 | $ 347 | 412 | |||||||||||
Type of Revenue [Extensible List] | us-gaap:ElectricityMember | ||||||||||||||
Sales | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 3,174 | $ 2,964 | $ 2,859 | $ 2,655 | $ 13,403 | 11,652 | $ 9,318 | ||||
Yadkin [Member] | |||||||||||||||
Business Disposition [Line Items] | |||||||||||||||
Net cash received | $ 8 | $ 8 | $ 249 | ||||||||||||
Income (loss) from divestitures before income tax | 122 | ||||||||||||||
Income (loss) from divestitures after income tax | $ 122 | ||||||||||||||
Cash provided at separation to Parent Company | 243 | ||||||||||||||
Other current liabilities | $ 243 | ||||||||||||||
Number of hydroelectric power developments | HydroelectricPowerDevelopment | 4 | ||||||||||||||
Sales | $ 29 | ||||||||||||||
Number of employees | Employee | 30 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |||||
Settlements and/or curtailments related to retirement benefits | $ 331 | $ 8 | $ 17 | ||
Allowance on value-added tax credits | 107 | ||||
Power contract payments – non-recurring | 62 | 244 | |||
Asset impairments | 18 | 40 | 155 | ||
Asset retirement obligations | 5 | 10 | 97 | ||
Environmental remediation | 2 | 8 | 26 | ||
Layoff costs | 2 | 15 | 15 | ||
Legal matter in Italy | (22) | ||||
Other | 48 | 49 | 44 | ||
Reversals of previously recorded layoff and other costs | (48) | (43) | (36) | ||
Restructuring and other charges | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Other | $ 48 | $ 49 | $ 44 |
Alcoa Corporation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | $ 1 |
Restructuring and Other Charg_5
Restructuring and Other Charges (2018 Actions) - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Potlinekt | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 | ||
Settlements and/or curtailments related to retirement benefits | 331 | 8 | 17 | ||||
Allowance on value-added tax credits | 107 | ||||||
Litigation settlement | $ 18 | € 15 | 8 | ||||
Cash payment | 102 | 73 | 109 | ||||
Asset impairments | 18 | 40 | $ 155 | ||||
Asset retirement obligations | 63 | $ 70 | |||||
2018 Restructuring Plans Action [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 527 | ||||||
Settlements and/or curtailments related to retirement benefits | 331 | ||||||
Litigation settlement | 23 | ||||||
Brazil [Member] | 2018 Restructuring Plans Action [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Allowance on value-added tax credits | 107 | ||||||
Contract Termination [Member] | 2018 Restructuring Plans Action [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 86 | ||||||
Net benefit | 15 | ||||||
Additional restructuring charge | 73 | ||||||
Cash payment | $ 62 | ||||||
Total number of potlines | Potline | 4 | ||||||
Number of potlines closed | Potline | 1 | ||||||
Capacity closure | kt | 38 | ||||||
Asset impairments | $ 10 | ||||||
Asset retirement obligations | $ 1 | ||||||
Remaining number of potlines | Potline | 3 | ||||||
Remaining curtailment capacity | kt | 146 | ||||||
Other Adjustments [Member] | 2018 Restructuring Plans Action [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Net benefit | $ 38 | ||||||
Other Item Charges [Member] | 2018 Restructuring Plans Action [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | $ 18 |
Restructuring and Other Charg_6
Restructuring and Other Charges (2017 Actions) - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Oct. 31, 2017USD ($)a | Jul. 31, 2017USD ($)Potlinekt | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)aEmployeekt | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 | |||||||||||
Cash payment | 102 | 73 | 109 | |||||||||||||
Sales | 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | 3,174 | $ 2,964 | $ 2,859 | $ 2,655 | 13,403 | 11,652 | 9,318 | |||||
Asset impairments | 18 | 40 | 155 | |||||||||||||
Other costs | 48 | 49 | 44 | |||||||||||||
Asset retirement obligations | 5 | 10 | 97 | |||||||||||||
Environmental remediation obligations | 2 | 8 | 26 | |||||||||||||
Severance costs | 2 | 15 | 15 | |||||||||||||
Carrying value of the smelter and related assets | $ 15,938 | 17,447 | 15,938 | 17,447 | ||||||||||||
Smelting and Related Assets [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Carrying value of the smelter and related assets | $ 0 | 0 | ||||||||||||||
Corporate [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | 312 | 253 | 176 | |||||||||||||
2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | $ 309 | |||||||||||||||
Number of employees associated with layoff costs | Employee | 130 | |||||||||||||||
Other costs | $ 16 | |||||||||||||||
Inventory write down | $ 6 | |||||||||||||||
Number of potlines restarted | Potline | 3 | |||||||||||||||
Capacity of restarted potlines | kt | 161 | |||||||||||||||
Total number of potlines | Potline | 5 | |||||||||||||||
Total capacity of potlines | kt | 269 | |||||||||||||||
Liabilities related to original closure decision reversed | $ 33 | |||||||||||||||
Asset retirement obligations | 20 | |||||||||||||||
Environmental remediation obligations | 4 | |||||||||||||||
Severance costs | $ 9 | |||||||||||||||
2017 Restructuring Plans Action [Member] | Smelting and Related Assets [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Carrying value of the smelter and related assets | $ 0 | $ 0 | ||||||||||||||
2017 Restructuring Plans Action [Member] | Aluminum Segment [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Number of employees associated with layoff costs | Employee | 115 | |||||||||||||||
Rarly Termination of Power Contract [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | $ 244 | |||||||||||||||
Exit Cost [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | 49 | |||||||||||||||
Contract Termination [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | $ 41 | |||||||||||||||
Cash payment | $ 238 | |||||||||||||||
Area of land transferred | a | 2,200 | |||||||||||||||
Net asset carrying value | $ 6 | |||||||||||||||
Sales | $ 105 | 141 | ||||||||||||||
Cost of goods sold | $ 148 | 210 | ||||||||||||||
Capacity closure | kt | 191 | |||||||||||||||
Area of land owned | a | 30,000 | |||||||||||||||
Asset impairments | $ 32 | |||||||||||||||
Cash payments made against the layoff reserves | 1 | |||||||||||||||
Other costs | $ 16 | |||||||||||||||
Contract Termination [Member] | 2017 Restructuring Plans Action [Member] | Corporate [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Number of employees associated with layoff costs | Employee | 10 | |||||||||||||||
Restructuring Programs Layoffs 2017 [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | $ 22 | |||||||||||||||
Cash payments made against the layoff reserves | 3 | 9 | ||||||||||||||
Reserve Previously Established [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | 22 | |||||||||||||||
Other Item Charges [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | 18 | |||||||||||||||
Other Adjustments [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | 43 | |||||||||||||||
Asset Retirement Obligations [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | 5 | 10 | 97 | |||||||||||||
Asset Retirement Obligations [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Other costs | 8 | |||||||||||||||
Environmental Remediation [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and other charges | $ 2 | $ 8 | $ 26 |
Restructuring and Other Charg_7
Restructuring and Other Charges (2016 Actions) - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)Employeekt | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 |
Severance costs | 2 | 15 | 15 | ||
Other costs | 48 | 49 | 44 | ||
Asset impairments | 18 | 40 | 155 | ||
2016 Restructuring Plans Action [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 318 | ||||
Number of employees associated with layoff costs | Employee | 75 | ||||
2016 Restructuring Plans Action [Member] | AofA [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percentage of ownership in gas exploration assets | 43.00% | ||||
Impaired interest amount | $ 72 | ||||
2016 Restructuring Plans Action [Member] | Warrick Smelter, Wenatchee Smelter and Point Comfort [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 87 | ||||
2016 Restructuring Plans Action [Member] | Western Australia [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 72 | ||||
2016 Restructuring Plans Action [Member] | Suriname [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Capacity closure | kt | 2,207 | ||||
2016 Restructuring Plans Action [Member] | Warrick, IN Smelter [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other costs | $ 156 | ||||
Inventory write down | 5 | ||||
Other related costs | $ 4 | ||||
2016 Restructuring Plans Action [Member] | Aluminum Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of employees associated with layoff costs | Employee | 60 | ||||
2016 Restructuring Plans Action [Member] | Bauxite [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of employees associated with layoff costs | Employee | 15 | ||||
Exit Cost [Member] | 2016 Restructuring Plans Action [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 131 | ||||
Restructuring Programs Layoffs 2016 [Member] | 2016 Restructuring Plans Action [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 32 | ||||
Cash payments made against the layoff reserves | 2 | 7 | |||
Other Item Charges [Member] | 2016 Restructuring Plans Action [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 8 | ||||
Other Adjustments [Member] | 2016 Restructuring Plans Action [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 12 | ||||
Asset Impairment and Accelerated Depreciation [Member] | 2016 Restructuring Plans Action [Member] | Warrick, IN Smelter [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 70 | ||||
Severance costs | 24 | ||||
Other costs | 156 | ||||
Shutdown and Curtailment Actions [Member] | 2016 Restructuring Plans Action [Member] | Warrick, IN Smelter [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | 16 | ||||
Asset Retirement Obligations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 5 | 10 | 97 | ||
Asset Retirement Obligations [Member] | 2016 Restructuring Plans Action [Member] | Warrick, IN Smelter [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other costs | 94 | ||||
Environmental Remediation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 2 | $ 8 | 26 | ||
Environmental Remediation [Member] | 2016 Restructuring Plans Action [Member] | Warrick, IN Smelter [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other costs | 26 | ||||
Contract Termination [Member] | 2016 Restructuring Plans Action [Member] | Warrick, IN Smelter [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other costs | $ 32 |
Restructuring and Other Charg_8
Restructuring and Other Charges - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 |
Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 215 | 56 | 142 | ||
Corporate [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 312 | 253 | 176 | ||
Bauxite [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 1 | 2 | (5) | ||
Alumina [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 112 | 3 | 72 | ||
Aluminum Segment [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 102 | $ 51 | $ 75 |
Restructuring and Other Charg_9
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | $ 45 | $ 66 | $ 152 |
Cash payments | (102) | (73) | (109) |
Restructuring charges | 119 | 90 | 200 |
Other | (15) | (38) | (177) |
Restructuring reserve ending balance | 47 | 45 | 66 |
Layoff Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | 11 | 38 | 137 |
Cash payments | (7) | (30) | (74) |
Restructuring charges | 2 | 23 | 32 |
Other | (1) | (20) | (57) |
Restructuring reserve ending balance | 5 | 11 | 38 |
Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | 34 | 28 | 15 |
Cash payments | (95) | (43) | (35) |
Restructuring charges | 117 | 67 | 168 |
Other | (14) | (18) | (120) |
Restructuring reserve ending balance | $ 42 | $ 34 | $ 28 |
Restructuring and Other Char_10
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Other costs | $ 48 | $ 49 | $ 44 | ||
Restructuring and other charges | $ 138 | $ 297 | 527 | 309 | 318 |
Pension and Other Postretirement Benefits Costs Charged to Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other costs | 8 | 16 | |||
Asset Retirement Obligations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 5 | 10 | 97 | ||
Environmental Remediation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 2 | $ 8 | $ 26 |
Restructuring and Other Char_11
Restructuring and Other Charges - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | |
Restructuring And Related Activities [Abstract] | |||
Amount of cash payments expected to be paid beyond the end of the current annual period | $ 9 | ||
Litigation settlement | $ 18 | € 15 | $ 8 |
Segment and Related Informati_3
Segment and Related Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018SegmentProduct_Division | Nov. 01, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 3 | |
Number of reportable segments | 3 | |
Number of product divisions | Product_Division | 5 | |
Alcoa Corporation [Member] | ||
Segment Reporting Information [Line Items] | ||
Minority interest percentage | 25.10% | 25.10% |
Alcoa Joint Venture [Member] | ||
Segment Reporting Information [Line Items] | ||
Ownership interest in joint venture | 25.10% |
Segment and Related Informati_4
Segment and Related Information - Schedule of Operating Results, Capital Expenditures and Assets of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | $ 3,203 | $ 2,725 | $ 1,453 |
Depreciation, depletion, and amortization | 702 | 708 | 677 |
Equity income (loss) | (6) | (24) | (64) |
Capital expenditures | 366 | 375 | |
Equity investments | 1,335 | 1,383 | |
Total assets | 13,813 | 14,798 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 16,378 | 14,112 | 11,246 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 3,063 | 2,619 | 2,100 |
Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | 13,315 | 11,493 | 9,146 |
Bauxite [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 426 | 424 | 374 |
Depreciation, depletion, and amortization | 111 | 82 | 77 |
Capital expenditures | 47 | 53 | |
Equity investments | 189 | 191 | |
Total assets | 1,448 | 1,609 | |
Bauxite [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,215 | 1,208 | 1,066 |
Bauxite [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 944 | 875 | 751 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | 271 | 333 | 315 |
Alumina [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 2,373 | 1,289 | 376 |
Depreciation, depletion, and amortization | 197 | 207 | 186 |
Equity income (loss) | 32 | (5) | (40) |
Capital expenditures | 194 | 144 | |
Equity investments | 290 | 262 | |
Total assets | 4,643 | 5,129 | |
Alumina [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 6,316 | 4,856 | 3,607 |
Alumina [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 2,101 | 1,723 | 1,307 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | 4,215 | 3,133 | 2,300 |
Aluminum [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 404 | 1,012 | 703 |
Depreciation, depletion, and amortization | 394 | 419 | 414 |
Equity income (loss) | (38) | (19) | (24) |
Capital expenditures | 125 | 178 | |
Equity investments | 856 | 930 | |
Total assets | 7,722 | 8,060 | |
Aluminum [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 8,847 | 8,048 | 6,573 |
Aluminum [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 18 | 21 | 42 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | $ 8,829 | $ 8,027 | $ 6,531 |
Segment and Related Informati_5
Segment and Related Information - Schedule of Reconciliation of Certain Segment Information to Consolidated Totals (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 3,174 | $ 2,964 | $ 2,859 | $ 2,655 | $ 13,403 | $ 11,652 | $ 9,318 |
Other [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | 88 | 159 | 172 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | 16,378 | 14,112 | 11,246 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | $ (3,063) | $ (2,619) | $ (2,100) |
Segment and Related Informati_6
Segment and Related Information - Schedule of Segment ATOI to Combined Net Income (Loss) Attributable to Alcoa Corporation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total segment Adjusted EBITDA | $ 3,203 | $ 2,725 | $ 1,453 | ||||||||
Transformation | (3) | (49) | (168) | ||||||||
Corporate inventory accounting | 11 | (107) | (14) | ||||||||
Corporate expenses | (96) | (131) | (171) | ||||||||
Provision for depreciation, depletion, and amortization | (733) | (750) | (718) | ||||||||
Interest expense | (122) | (104) | (243) | ||||||||
Other (expenses) income, net (S) | (64) | (27) | 65 | ||||||||
Income (Loss) before income taxes | 1,597 | 1,159 | (162) | ||||||||
Provision for income taxes | (726) | (600) | (184) | ||||||||
Net income attributable to noncontrolling interest | (644) | (342) | (54) | ||||||||
Net Income (Loss) Attributable to Alcoa Corporation | $ 43 | $ (41) | $ 75 | $ 150 | $ (196) | $ 113 | $ 75 | $ 225 | 227 | 217 | (400) |
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring and other charges (D) | (527) | (309) | (318) | ||||||||
Interest expense | (122) | (104) | (243) | ||||||||
Other | $ (72) | $ (89) | $ (48) |
Segment and Related Informati_7
Segment and Related Information - Schedule of Segment Reporting Information to Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Assets By Segment [Line Items] | ||
Consolidated assets | $ 15,938 | $ 17,447 |
Cash and cash equivalents | 1,113 | 1,358 |
LIFO reserve | (307) | (306) |
Corporate fixed assets, net | 8,327 | 9,138 |
Corporate goodwill | 989 | 989 |
Deferred income taxes | 301 | |
Operating Segments [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Consolidated assets | 13,813 | 14,798 |
Intersegment Eliminations [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Consolidated assets | (271) | (299) |
Other [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Cash and cash equivalents | 1,113 | 1,358 |
LIFO reserve | (307) | (306) |
Corporate fixed assets, net | 520 | 520 |
Corporate goodwill | 146 | 148 |
Deferred income taxes | 563 | 814 |
Other | $ 361 | $ 414 |
Segment and Related Informati_8
Segment and Related Information - Schedule of Product Division Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Bauxite [Member] | |
Product Information [Line Items] | |
Product division | Bauxite |
Pricing components | Negotiated |
Shipping terms | FOB/CIF |
Payment terms | LC Sight |
Alumina [Member] | Smelter-grade [Member] | |
Product Information [Line Items] | |
Product division | Alumina: Smelter-grade |
Pricing components | API/spot |
Shipping terms | FOB |
Payment terms | LC Sight/CAD/Net 30 days |
Alumina [Member] | Non-metallurgical [Member] | |
Product Information [Line Items] | |
Product division | Alumina: Non-metallurgical |
Pricing components | Negotiated |
Shipping terms | FOB/CIF |
Payment terms | Net 30 days |
Primary Aluminum [Member] | Common Alloy Ingot [Member] | |
Product Information [Line Items] | |
Product division | Primary aluminum: Common alloy ingot |
Pricing components | LME + Regional premium |
Shipping terms | DAP/CIF |
Payment terms | Net 30 to 45 days |
Primary Aluminum [Member] | Value-add Ingot [Member] | |
Product Information [Line Items] | |
Product division | Primary aluminum: Value-add ingot |
Pricing components | LME + Regional premium + Product premium |
Shipping terms | DAP/CIF |
Payment terms | Net 30 to 45 days |
Flat-Rolled Aluminum [Member] | |
Product Information [Line Items] | |
Product division | Flat-rolled aluminum |
Pricing components | Metal + Conversion |
Shipping terms | DAP |
Payment terms | Negotiated |
Segment and Related Informati_9
Segment and Related Information - Schedule of Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales Information [Line Items] | |||||||||||
Sales | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 3,174 | $ 2,964 | $ 2,859 | $ 2,655 | $ 13,403 | $ 11,652 | $ 9,318 |
Intersegment Eliminations [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | (3,063) | (2,619) | (2,100) | ||||||||
Primary Aluminum [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | 6,787 | 6,168 | 5,204 | ||||||||
Alumina [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | 4,209 | 3,121 | 2,280 | ||||||||
Flat-Rolled Aluminum [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | 1,884 | 1,666 | 1,068 | ||||||||
Energy [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | 335 | 446 | 422 | ||||||||
Bauxite [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | 254 | 333 | 315 | ||||||||
Other Products [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | $ 29 | ||||||||||
Other Products [Member] | Intersegment Eliminations [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Sales | $ (66) | $ (82) |
Segment and Related Informat_10
Segment and Related Information - Schedule of Geographic Information for Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 3,174 | $ 2,964 | $ 2,859 | $ 2,655 | $ 13,403 | $ 11,652 | $ 9,318 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 5,941 | 5,370 | 4,365 | ||||||||
Spain [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 3,806 | 3,303 | 2,663 | ||||||||
Western Australia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,930 | 2,266 | 1,644 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 498 | 569 | 432 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 162 | 93 | 141 | ||||||||
Other Geographical Regions [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 66 | $ 51 | $ 73 |
Segment and Related Informat_11
Segment and Related Information - Schedule of Geographic Information for Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,327 | $ 9,138 |
Western Australia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,002 | 2,220 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,729 | 2,111 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,599 | 1,658 |
Iceland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,216 | 1,276 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,064 | 1,116 |
Norway [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 381 | 427 |
Spain [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 321 | 316 |
Other Geographical Regions [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 15 | $ 14 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Average shares outstanding—basic | 186 | 184 | 183 |
Effect of dilutive securities: | |||
Stock options | 1 | 1 | |
Stock units | 2 | 2 | |
Average shares outstanding—diluted | 189 | 187 | 183 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock shares included in the calculation of EPS | 186,000,000 | 184,000,000 | 183,000,000 | |
Common stock shares issued | 184,770,249 | 185,200,713 | 182,471,195 | |
Stock Awards and Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive securities | 1,000,000 | 1,000,000 | ||
Potential common shares that would have been included in diluted average shares outstanding | 1,000,000 | |||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average exercise price of options | $ 38.67 | $ 33.05 | ||
CL Equity Unit Purchase Agreements [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive securities | 1,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension and other postretirement benefits | |||
Total Other comprehensive income (loss) | $ 504 | $ (447) | $ (202) |
Foreign currency translation | |||
Other comprehensive (loss) income | (833) | 284 | 315 |
Cash flow hedges | |||
Total Other comprehensive income (loss) before reclassifications, net of tax | 62 | 25 | |
Total Other comprehensive income (loss) | 698 | (1,089) | (342) |
Financial Contracts [Member] | |||
Cash flow hedges | |||
Total Other comprehensive income (loss) before reclassifications, net of tax | 96 | ||
Alcoa Corporation [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (2,786) | (2,330) | (352) |
Establishment of additional defined benefit plans | (2,704) | ||
Separation-related adjustments | 928 | ||
Unrecognized net actuarial loss and prior service cost/benefit | 19 | (671) | (307) |
Tax (expense) benefit | (8) | 25 | 6 |
Total Other comprehensive income (loss) before reclassifications, net of tax | 11 | (646) | (301) |
Amortization of net actuarial loss and prior service cost/benefit | 546 | 199 | 107 |
Tax expense | (54) | (9) | (8) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 492 | 190 | 99 |
Total Other comprehensive income (loss) | 503 | (456) | (202) |
Balance at end of period | (2,283) | (2,786) | (2,330) |
Foreign currency translation | |||
Balance at beginning of period | (1,467) | (1,655) | (1,851) |
Separation-related adjustments | (17) | ||
Other comprehensive (loss) income | (604) | 188 | 213 |
Balance at end of period | (2,071) | (1,467) | (1,655) |
Cash flow hedges | |||
Balance at beginning of period | (929) | 210 | 603 |
Separation-related adjustments | (47) | ||
Net change from periodic revaluations | 803 | (1,489) | (558) |
Tax (expense) benefit | (159) | 251 | 233 |
Total Other comprehensive income (loss) before reclassifications, net of tax | 644 | (1,238) | (325) |
Net amount reclassified to earnings | 77 | 109 | (40) |
Tax (expense) benefit | (3) | (10) | 19 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 74 | 99 | (21) |
Total Other comprehensive income (loss) | 718 | (1,139) | (346) |
Balance at end of period | (211) | (929) | 210 |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 108 | 130 | 7 |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | (37) | (19) | (54) |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 6 | (2) | |
Alcoa Corporation [Member] | Interest Rate Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 7 | ||
Non-controlling Interest [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (47) | (56) | (56) |
Unrecognized net actuarial loss and prior service cost/benefit | (3) | 9 | 2 |
Tax (expense) benefit | (2) | (6) | |
Total Other comprehensive income (loss) before reclassifications, net of tax | (3) | 7 | (4) |
Amortization of net actuarial loss and prior service cost/benefit | 4 | 2 | 5 |
Tax expense | (1) | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 4 | 2 | 4 |
Total Other comprehensive income (loss) | 1 | 9 | |
Balance at end of period | (46) | (47) | (56) |
Foreign currency translation | |||
Balance at beginning of period | (581) | (677) | (779) |
Other comprehensive (loss) income | (229) | 96 | 102 |
Balance at end of period | (810) | (581) | (677) |
Cash flow hedges | |||
Balance at beginning of period | 51 | 1 | (3) |
Net change from periodic revaluations | (4) | 83 | 38 |
Tax (expense) benefit | 1 | (25) | (12) |
Total Other comprehensive income (loss) before reclassifications, net of tax | (3) | 58 | 26 |
Net amount reclassified to earnings | (24) | (12) | (32) |
Tax (expense) benefit | 7 | 4 | 10 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | (17) | (8) | (22) |
Total Other comprehensive income (loss) | (20) | 50 | 4 |
Balance at end of period | 31 | 51 | 1 |
Non-controlling Interest [Member] | Financial Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | $ (24) | $ (12) | (37) |
Non-controlling Interest [Member] | Interest Rate Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | $ 5 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Settlements and/or curtailments related to retirement benefits | $ 331 | $ 8 | $ 17 |
Alcoa Corporation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Settlements and/or curtailments related to retirement benefits | 330 | ||
Non-controlling Interest [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Settlements and/or curtailments related to retirement benefits | $ 1 |
Investments - Summary of Invest
Investments - Summary of Investment (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Schedule [Abstract] | ||
Equity investments | $ 1,350 | $ 1,400 |
Other investments | 10 | 10 |
Investments | $ 1,360 | $ 1,410 |
Investments - Schedule of Equit
Investments - Schedule of Equity Investment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Maaden Aluminium Compay [Member] | SAUDI ARABIA | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum smelter and casthouse |
Percent of equity investments in other entity | 25.10% |
Maaden Bauxite and Alumina CO [Member] | SAUDI ARABIA | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Bauxite mine and alumina refinery |
Percent of equity investments in other entity | 25.10% |
Maaden Rolling CO [Member] | SAUDI ARABIA | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum rolling mill |
Percent of equity investments in other entity | 25.10% |
Halco Mining Inc [Member] | GUINEA | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Bauxite mine |
Percent of equity investments in other entity | 45.00% |
Energetica Barra Grande SA [Member] | Brazil [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Hydroelectric generation facility |
Percent of equity investments in other entity | 42.18% |
Pechiney Reynolds Quebec Inc [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum smelter |
Percent of equity investments in other entity | 50.00% |
Consorcio Serra Do Facao [Member] | Brazil [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Hydroelectric generation facility |
Percent of equity investments in other entity | 34.97% |
MRN [Member] | Brazil [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Bauxite mine |
Percent of equity investments in other entity | 18.20% |
Manicouagan Power Limited Partnership [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Hydroelectric generation facility |
Percent of equity investments in other entity | 40.00% |
Elysis Limited Partnership [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum smelting technology |
Percent of equity investments in other entity | 48.235% |
Investments - Schedule of Equ_2
Investments - Schedule of Equity Investment (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Halco Mining Inc [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of ownership | Halco Mining, Inc. owns 100% of Boké Investment Company, which owns 51% of Compagnie des Bauxites de Guinée. |
Pechiney Reynolds Quebec Inc [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of ownership | Pechiney Reynolds Quebec, Inc. owns a 50.1% interest in the Bécancour smelter in Quebec, Canada thereby entitling Alcoa Corporation to a 25.05% interest in the smelter. Through two wholly-owned Canadian subsidiaries, Alcoa Corporation also owns 49.9% of the Bécancour smelter. |
Pechiney Reynolds Quebec Inc [Member] | Alcoa Corporation [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership interest | 49.90% |
Compagnie Des Bauxites De Guinee [Member] | Halco Mining Inc [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest percentage | 51.00% |
Boke Investment Company [Member] | Halco Mining Inc [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest percentage | 100.00% |
Becancour Smelter [Member] | Pechiney Reynolds Quebec Inc [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest percentage | 50.10% |
Becancour Smelter [Member] | Pechiney Reynolds Quebec Inc [Member] | Alcoa Corporation [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership interest | 25.05% |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions, $ in Millions, $ in Millions, ر.س in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2018USD ($) | Apr. 30, 2016USD ($)Refinery | Apr. 30, 2016AUD ($)Refinery | Jun. 30, 2018USD ($) | Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)kt | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016SAR (ر.س) | Dec. 31, 2016AUD ($) | Dec. 31, 2012kt | Dec. 31, 2018AUD ($) | Jun. 30, 2018CAD ($) | Dec. 31, 2017AUD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Combined investment in joint venture | $ 1,350 | $ 1,400 | |||||||||||||
Dividends from equity investments | 45 | 71 | $ 74 | ||||||||||||
Expanded capacity amount of processed bauxite, in Kmt | kt | 100 | ||||||||||||||
Outstanding receivable for labor and other employee-related expenses | 11 | 13 | |||||||||||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | 3 | |||||||||||||
Dampier to Bunbury Natural Gas Pipeline [Member] | New Equity Call Plan [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Expected project investment | 3 | $ 5 | |||||||||||||
AofA [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investment percentage in DBP to be sold | 20.00% | 20.00% | |||||||||||||
Amount to be received by sale of investment percentage in DBP | $ 145 | $ 192 | |||||||||||||
Gain after tax and noncontrolling interest | 11 | 15 | |||||||||||||
Pretax gain on sale of investments | $ 27 | $ 35 | |||||||||||||
AofA [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investment percentage | 30.00% | 30.00% | |||||||||||||
Prepayments made under the agreement for future gas transmission services | $ 275 | 300 | $ 393 | $ 385 | |||||||||||
Bauxite Mining [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Projected capacity amount of processed bauxite, in kmt | kt | 4,000 | ||||||||||||||
Refining Facilities [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Projected capacity amount of processed bauxite, in kmt | kt | 1,800 | ||||||||||||||
Primary Aluminum Smelter [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Projected capacity amount of processed bauxite, in kmt | kt | 740 | ||||||||||||||
Rolling Mill [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Projected capacity amount of processed bauxite, in kmt | kt | 380 | ||||||||||||||
Alcoa Corporation [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Contribution to joint venture | 66 | ||||||||||||||
Elysis Limited Partnership [Member] | Quebec Provincial Government [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Limited partner ownership interest percentage | 3.53% | ||||||||||||||
Elysis Limited Partnership [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Combined investment in joint venture | $ 145 | $ 145 | $ 145 | $ 188 | |||||||||||
Contribution to joint venture | $ 5 | ||||||||||||||
Elysis Limited Partnership [Member] | Alcoa Corporation [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest percentage | 48.235% | ||||||||||||||
Contribution to joint venture | 5 | $ 6 | |||||||||||||
Elysis Limited Partnership [Member] | Alcoa Corporation And Rio Tinto Plc | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Commitment to invest In joint venture | $ 42 | $ 42 | $ 42 | $ 55 | |||||||||||
Joint Venture Investment Period | 3 years | ||||||||||||||
Elysis Limited Partnership [Member] | Rio Tinto Plc [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest percentage | 48.235% | ||||||||||||||
Ma'aden Joint Venture [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Contribution to joint venture | 199 | ||||||||||||||
Joint venture shareholders agreement period, years | 30 years | ||||||||||||||
Joint venture shareholders agreement, automatic extension additional period, years | 20 years | ||||||||||||||
Ownership interest in joint venture | 74.90% | ||||||||||||||
Alcoa Joint Venture [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest in joint venture | 25.10% | ||||||||||||||
Maaden Alcoa Joint Venture [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest in joint venture at fair market value | 14.90% | ||||||||||||||
Period Bracket To Exercise Option | 6 months | ||||||||||||||
Period To Open Option Exercise Bracket From Commercial Production Date | 5 years | ||||||||||||||
Expected project investment | 10,800 | ر.س 40.5 | |||||||||||||
Capital investment | 1 | ||||||||||||||
Equity investments | $ 874 | 887 | |||||||||||||
Maaden Alcoa Joint Venture [Member] | Alcoa Corporation [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Expected project investment | 1,100 | ||||||||||||||
Capital investment | $ 982 | ||||||||||||||
Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Guarantee issued on behalf of smelting and rolling mill companies | 1 | $ 3 | |||||||||||||
Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | Financial Guarantee [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Debt service requirements, principal | 50 | ||||||||||||||
Debt service requirements, interest maximum | 10 | ||||||||||||||
Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | AWAC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Project financing Investment | 296 | ||||||||||||||
Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | Alcoa Corporation [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Project financing Investment | $ 1,179 |
Investments - Summary of Financ
Investments - Summary of Financial Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Sales | $ 5,191 | $ 4,469 | $ 3,507 |
Cost of goods sold | 4,112 | 3,781 | 2,844 |
(Loss) income before income taxes | 604 | 132 | 85 |
Net (loss) income | 210 | 82 | 21 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 79 | 52 | 25 |
Other | (28) | 10 | 3 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 51 | 62 | 28 |
Current assets | 2,092 | 1,862 | |
Noncurrent assets | 10,571 | 11,015 | |
Current liabilities | 1,590 | 1,699 | |
Noncurrent liabilities | 6,645 | 6,751 | |
Ma'aden Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 3,986 | 3,032 | 1,970 |
Cost of goods sold | 3,334 | 2,776 | 1,905 |
(Loss) income before income taxes | 301 | (142) | (295) |
Net (loss) income | 9 | (157) | (295) |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 2 | (39) | (75) |
Other | (13) | 9 | 7 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | (11) | (30) | (68) |
Current assets | 1,684 | 1,415 | |
Noncurrent assets | 9,115 | 9,373 | |
Current liabilities | 1,379 | 1,331 | |
Noncurrent liabilities | 6,101 | 6,191 | |
Halco Mining [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 402 | 416 | 437 |
Cost of goods sold | 268 | 266 | 242 |
(Loss) income before income taxes | 41 | 50 | 53 |
Net (loss) income | 38 | 47 | 50 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 17 | 21 | 23 |
Other | (2) | (1) | 2 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 15 | 20 | 25 |
Current assets | 58 | 40 | |
Noncurrent assets | 164 | 174 | |
Current liabilities | 10 | 1 | |
Noncurrent liabilities | 17 | 12 | |
Energetica Barra Grande SA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 84 | 131 | 60 |
Cost of goods sold | 66 | 117 | 35 |
(Loss) income before income taxes | 17 | 13 | 16 |
Net (loss) income | 6 | 5 | 15 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 3 | 2 | 6 |
Other | (1) | ||
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 3 | 2 | 5 |
Current assets | 18 | 44 | |
Noncurrent assets | 224 | 285 | |
Current liabilities | 5 | 48 | |
Noncurrent liabilities | 18 | 6 | |
Pechiney Reynolds Quebec Inc [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 120 | 332 | 309 |
Cost of goods sold | 110 | 292 | 272 |
(Loss) income before income taxes | 8 | 35 | 36 |
Net (loss) income | 16 | 23 | 16 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 8 | 11 | 8 |
Other | (1) | (4) | |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 7 | 11 | 4 |
Current assets | 139 | 140 | |
Noncurrent assets | 97 | 106 | |
Current liabilities | 49 | 65 | |
Noncurrent liabilities | 4 | 12 | |
Consorcio Serra Do Facao [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 93 | 103 | 90 |
Cost of goods sold | 71 | 48 | 65 |
(Loss) income before income taxes | 21 | 45 | 8 |
Net (loss) income | 19 | 46 | 5 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 7 | 16 | 2 |
Other | (1) | ||
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 6 | 16 | 2 |
Current assets | 43 | 79 | |
Noncurrent assets | 242 | 261 | |
Current liabilities | 20 | 25 | |
Noncurrent liabilities | 83 | 117 | |
MRN [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 400 | 350 | 451 |
Cost of goods sold | 254 | 273 | 297 |
(Loss) income before income taxes | 120 | 35 | 152 |
Net (loss) income | 33 | 30 | 129 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 6 | 6 | 23 |
Other | (8) | (1) | |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | (2) | 6 | 22 |
Current assets | 127 | 121 | |
Noncurrent assets | 653 | 744 | |
Current liabilities | 116 | 220 | |
Noncurrent liabilities | 422 | 413 | |
Manicouagan Power Limited Partnership [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 106 | 105 | 104 |
Cost of goods sold | 9 | 9 | 10 |
(Loss) income before income taxes | 96 | 96 | 94 |
Net (loss) income | 89 | 88 | 87 |
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 36 | 35 | 35 |
Other | (3) | 2 | |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 33 | 37 | 35 |
Current assets | 23 | 23 | |
Noncurrent assets | 76 | 72 | |
Current liabilities | $ 11 | $ 9 | |
Dampier to Bunbury Natural Gas Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 86 | ||
Cost of goods sold | 18 | ||
(Loss) income before income taxes | 21 | ||
Net (loss) income | 14 | ||
Equity in net (loss)income of affiliated companies, before reconciling adjustments | 3 | ||
Alcoa Corporation’s equity in net (loss) income of affiliated companies | $ 3 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 346 | $ 296 |
Work-in-process | 315 | 258 |
Bauxite and alumina | 609 | 585 |
Purchased raw materials | 535 | 473 |
Operating supplies | 146 | 147 |
LIFO reserve | (307) | (306) |
Inventories, total | $ 1,644 | $ 1,453 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventories valued on a LIFO basis | $ 501 | $ 516 |
Inventories valued on a LIFO basis percentage | 26.00% | 29.00% |
Properties, Plants, and Equip_3
Properties, Plants, and Equipment, Net - Schedule of Properties, Plants, and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation, depletion, and amortization | $ 13,480 | $ 13,908 |
Properties, plants, and equipment excluding construction work-in-progress | 7,921 | 8,751 |
Construction work-in-progress | 406 | 387 |
Properties, plants, and equipment, net | 8,327 | 9,138 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 328 | 346 |
Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 8,300 | 8,756 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 12,773 | 13,557 |
Property Plant And Equipment Other Than Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 21,401 | 22,659 |
Operating Segments [Member] | Bauxite Mining [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,119 | 1,250 |
Operating Segments [Member] | Bauxite Mining [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 480 | 508 |
Operating Segments [Member] | Alumina Refining [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 2,478 | 2,664 |
Operating Segments [Member] | Alumina Refining [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 3,604 | 4,009 |
Operating Segments [Member] | Aluminum Smelting and Casting [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 3,532 | 3,575 |
Operating Segments [Member] | Aluminum Smelting and Casting [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 6,489 | 6,827 |
Operating Segments [Member] | Energy [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 506 | 552 |
Operating Segments [Member] | Energy [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 889 | 905 |
Operating Segments [Member] | Aluminum Rolling [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 285 | 298 |
Operating Segments [Member] | Aluminum Rolling [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,029 | 1,020 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, net | 520 | 520 |
Other [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 380 | 417 |
Other [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | $ 282 | $ 288 |
Properties, Plants, and Equip_4
Properties, Plants, and Equipment, Net - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)kt | Dec. 31, 2017USD ($)kt | |
Smelting Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Net carrying value of assets | $ | $ 427 | $ 248 |
Idle capacity of assets, units | kt | 916 | 856 |
Idled Refining Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Net carrying value of assets | $ | $ 132 | $ 141 |
Idle capacity of assets, units | kt | 2,305 | 2,305 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill which is Included in Other Noncurret Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 989 | $ 989 |
Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 151 | 154 |
Bauxite [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2 | 2 |
Alumina [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3 | 4 |
Corporate Segment [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 146 | $ 148 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill which is Included in Other Noncurret Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 989 | $ 989 |
Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 151 | 154 |
Aluminum [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 0 | |
Accumulated impairment losses | 989 | 989 |
Corporate Segment [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | 742 | 742 |
Corporate Segment [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 146 | 148 |
Bauxite [Member] | ||
Goodwill [Line Items] | ||
Segment reporting, goodwill | 49 | |
Bauxite [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2 | 2 |
Alumina [Member] | ||
Goodwill [Line Items] | ||
Segment reporting, goodwill | 97 | |
Alumina [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 3 | $ 4 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | $ 281 | $ 287 |
Total amortizable intangible assets, Accumulated amortization | (224) | (225) |
Total amortizable intangible assets, Net carrying amount | 57 | 62 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 237 | 241 |
Total amortizable intangible assets, Accumulated amortization | (211) | (212) |
Total amortizable intangible assets, Net carrying amount | 26 | 29 |
Patent and Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 25 | 25 |
Total amortizable intangible assets, Accumulated amortization | (7) | (6) |
Total amortizable intangible assets, Net carrying amount | 18 | 19 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 19 | 21 |
Total amortizable intangible assets, Accumulated amortization | (6) | (7) |
Total amortizable intangible assets, Net carrying amount | $ 13 | $ 14 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Liability Disclosure [Abstract] | |||
Amortization expense related to the intangible assets | $ 12,000,000 | $ 12,000,000 | $ 7,000,000 |
Expected amortization for the year 2019 | 10,000,000 | ||
Expected amortization for the year 2020 | 10,000,000 | ||
Expected amortization for the year 2021 | 10,000,000 | ||
Expected amortization for the year 2022 | 10,000,000 | ||
Expected amortization for the year 2023 | $ 10,000,000 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized discounts and deferred financing costs | $ (39) | $ (33) |
Long-term debt | 1,802 | 1,404 |
Less: amount due within one year | 1 | 16 |
Long-term debt non current | 1,801 | 1,388 |
6.75% Notes, due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 750 | 750 |
7.00% Notes, due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500 | 500 |
6.125% Notes, due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500 | |
BNDES Loans [member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 137 | |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 91 | $ 50 |
Debt - Principal maturities of
Debt - Principal maturities of long-term debt - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Principal amount of long-term debt maturing in year 2019 | $ 1 |
Principal amount of long-term debt maturing in year 2020 | 84 |
Principal amount of long-term debt maturing in year 2021 | 1 |
Principal amount of long-term debt maturing in year 2022 | 1 |
Principal amount of long-term debt maturing in year 2023 | $ 1 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2018 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Proceeds from issuance of public debt offering | $ 492,000,000 | $ 560,000,000 | $ 21,000,000 | $ 1,228,000,000 | |
Debt instrument redemption price percentage | 50.00% | ||||
Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of public debt offering | $ 1,228,000,000 | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 500,000,000 | ||||
Senior notes, interest percentage | 6.125% | ||||
Proceeds from issuance of public debt offering | $ 492,000,000 | ||||
Debt instrument maturity date | 2,028 | ||||
Debt instrument, frequency of periodic payment | semi-annually | ||||
Debt instrument, date of first required payment | Nov. 15, 2018 | ||||
Debt redemption description | ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 30 days | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 60 days | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | After May 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 103.063% | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 101.00% | ||||
6.75% Senior Notes Due 2024 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 750,000,000 | ||||
Senior notes, interest percentage | 6.75% | ||||
6.75% Senior Notes Due 2024 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 105.063% | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2,024 | ||||
Debt redemption description | ANBHV has the option to redeem the Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after September 2019, in the case of the 2024 Notes, or after September 2021, in the case of the 2026 Notes, at a redemption price specified in the indenture (up to 105.063% of the principal amount for the 2024 Notes and up to 103.500% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest in each case). Also, the Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest on the Notes repurchased. | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 30 days | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 60 days | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 101.00% | ||||
7% Senior Notes Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt convenant percentage of assets | 1.50% | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms November 1, 2016 through December 31, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | $ 38,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 38,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 50,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 50,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms January One Two Thousand And Twenty One Through September Thirty Two Thousand And Twenty Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 75,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | $ 250,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 500,000,000 | ||||
Senior notes, interest percentage | 7.00% | ||||
Debt instrument maturity date | 2,026 | ||||
7% Senior Notes Due 2026 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 103.50% |
Debt (BNDES) - Additional Infor
Debt (BNDES) - Additional Information (Detail) - Alcoa Aluminio [Member] R$ in Millions, $ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2017USD ($) | Aug. 31, 2017BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($)Agreement | Dec. 31, 2018BRL (R$)Agreement | Dec. 31, 2017USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | |
Debt Instrument [Line Items] | ||||||||||
Commitment on loan agreement | $ 85 | R$ 177 | ||||||||
Debt instrument, frequency of periodic payment | monthly | monthly | ||||||||
Debt instrument maturity year and month range start | 2013-01 | 2013-01 | ||||||||
Debt instrument maturity year and month range end | 2029-09 | 2029-09 | ||||||||
Weighted-average interest rate | 9.74% | 9.74% | ||||||||
Early repayment of outstanding borrowings | $ 44 | R$ 138 | ||||||||
Interest rate margin | 1.55% | 1.55% | ||||||||
Early payment | $ 41 | R$ 131 | $ 122 | R$ 500 | ||||||
Deferred interest | $ 25 | R$ 82 | ||||||||
Loan Agreement With Bndes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term interest rate | 7.00% | 7.00% | ||||||||
Weighted-average margin on long term debt | 2.74% | 2.74% | ||||||||
Number of Subloan agreement | Agreement | 3 | 3 | ||||||||
Loan Agreement With Bndes [Member] | Three Of Subloans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment on loan agreement | $ 397 | $ 397 | R$ 687 | |||||||
Loan Agreement With Bndes [Member] | Two Of Subloans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, frequency of periodic payment | monthly | monthly | ||||||||
Debt instrument maturity year and month range start | 2011-10 | 2011-10 | ||||||||
Debt instrument maturity year and month range end | 2029-09 | 2029-09 | ||||||||
Principal and interest | R$ 667 | |||||||||
Loan Agreement With Bndes [Member] | Third Subloan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity year and month range start | 2012-07 | 2012-07 | ||||||||
Debt instrument maturity year and month range end | 2018-06 | 2018-06 | ||||||||
Principal and interest | 20 | |||||||||
BNDES Loans, Due 2014-2029 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, outstanding borrowings | $ 137 | R$ 454 | ||||||||
Early repayment of outstanding borrowings | $ 132 | R$ 539 | $ 15 | R$ 49 |
Debt (Credit Facility) - Additi
Debt (Credit Facility) - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 21, 2018 | |
Debt Instrument [Line Items] | ||||
Principal amount of debt | $ 1,802,000,000 | $ 1,404,000,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, outstanding borrowings | $ 0 | $ 0 | $ 1,500,000,000 | |
Line of credit facility, maturity date | Nov. 21, 2023 | Nov. 14, 2022 | ||
Percentage of equity interest in foreign subsidiaries pledged as security to secured debt | 65.00% | |||
Revolving credit facility, covenant description | The Second Amended Revolving Credit Agreement also includes financial covenants requiring the maintenance of a specified interest expense coverage ratio of not less than 5.00 to 1.00, and a leverage ratio for any period of four consecutive fiscal quarters that is not greater than 2.50 to 1.00 (2.00 to 1.00 beginning on and subsequent to the Collateral Release Date, may be increased to a level not higher than 2.25 to 1.00 under certain circumstances). As of December 31, 2018 and 2017, Alcoa Corporation was in compliance with all such covenants. | |||
Leverage ratio, covenants requirements | 150.00% | 120.00% | 130.00% | |
Incremental amount of convenant, maximum | $ 1,000,000,000 | |||
Debt convenant percentage of assets | 6.00% | |||
Restricted payments negative covenant, maximum | $ 100,000,000 | |||
Investment negative covenant, maximum | 400,000,000 | |||
Thresholds for restricted payments negative covenants | 250,000,000 | |||
Thresholds for investments negative covenants | $ 200,000,000 | |||
Percentage of unused base amount used in the succeeding fiscal year | 50.00% | |||
Percentage of unused portion of credit facility | 50.00% | |||
Annual share repurchase limit | $ 100,000,000 | |||
Amounts borrowed under the credit facility | $ 0 | $ 0 | ||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio, covenants requirements | 250.00% | |||
Leverage ratio, maximum possible increase | 225.00% | 200.00% | ||
Annual share repurchase limit | $ 25,000,000 | |||
Amount of dividend restriction | $ 100,000,000 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense coverage ratio required to be maintained | 5 | |||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum outstanding borrowings | 750,000,000 | |||
Letters of credit sublimit under credit facility | 400,000,000 | |||
Credit facility, interest rate description | Loans will bear interest at a rate per annum equal to an applicable margin plus, at ANHBV’s option, either (a) an adjusted LIBOR rate or (b) a base rate determined by reference to the highest of (1) the U.S. prime rate as published in the Wall Street Journal (previously the prime rate of JPMorgan Chase Bank, N.A.), (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5%, and (3) the one month adjusted LIBOR rate plus 1% per annum. | |||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Standard and Poor’s BBB- Rating [Member] | ||||
Debt Instrument [Line Items] | ||||
Reduction of applicable margin on libor and base rate loans upon achievement of certain ratings | 0.25% | |||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Moody’s Investor Service Baa3 Rating [Member] | ||||
Debt Instrument [Line Items] | ||||
Reduction of applicable margin on libor and base rate loans upon achievement of certain ratings | 0.25% | |||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Federal Funds Effective Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, margin over variable rate | 0.50% | |||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, margin over variable rate | 1.00% | |||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt | $ 500,000,000 | |||
Commitment fee paid to maintain credit facility | 0.425% | 0.45% | ||
Applicable margin on LIBOR loans | 2.25% | 2.50% | ||
Applicable margin on base rate loans | 1.25% | 1.50% | ||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee paid to maintain credit facility | 0.20% | 0.225% | ||
Applicable margin on LIBOR loans | 1.50% | 1.75% | ||
Applicable margin on base rate loans | 0.50% | 0.75% | ||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum outstanding borrowings | $ 750,000,000 |
Preferred and Common Stock - Ad
Preferred and Common Stock - Additional Information (Detail) - USD ($) | Nov. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2018 |
Class of Stock [Line Items] | |||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, issued (in shares) | 0 | 0 | 0 | ||||
Common stock shares authorized | 750,000,000 | 750,000,000 | |||||
Common stock par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common stock shares issued | 182,471,195 | 184,770,249 | 184,770,249 | 185,200,713 | |||
Common stock distributed related to separation transaction | 146,159,428 | ||||||
Common stock shares retained by ParentCo | 36,311,767 | ||||||
Common stock shares outstanding | 184,770,249 | 184,770,249 | 185,200,713 | ||||
Common stock were reserved for future issuance | 25,977,146 | 25,977,146 | |||||
Common stock repurchase program, authorized amount | $ 200,000,000 | ||||||
Common stock dividends declared during period | $ 0 | $ 0 | $ 0 | ||||
Increase in exercise price | $ 1.34 | ||||||
Adjusted exercise option price | $ 28.72 | $ 21.44 | $ 21.44 | ||||
Number of options, Outstanding | 1,959,927 | 1,959,927 | |||||
Stock based compensation expense | $ 35,000,000 | 24,000,000 | $ 28,000,000 | ||||
Expense related to the acceleration of expense related to retirement-eligible employees | 5,000,000 | 4,000,000 | 7,000,000 | ||||
Stock-based compensation expense capitalized | $ 0 | $ 0 | $ 0 | ||||
Fair value of stock options granted | $ 21.32 | $ 12.45 | $ 2.12 | ||||
Volatility | 43.32% | ||||||
Average risk-free interest rate | 2.63% | ||||||
Dividend yield | 0.00% | ||||||
Annual pre- and post-vesting forfeitures | 4.00% | ||||||
Exercise behavior | 63.00% | ||||||
Life (years) | 6 years | ||||||
Description of reverse stock split | ParentCo’s stock-based compensation plan to Alcoa Corporation employees) were adjusted to reflect both the impact of ParentCo’s 1-for-3 reverse stock split that occurred on October 5, 2016 and to maintain the intrinsic value of the stock options as a result of the Separation Transaction. | ||||||
Number of options, Outstanding weighted average remaining contractual life | 5 years 6 months | ||||||
Total intrinsic value of options outstanding | $ 8,000,000 | $ 8,000,000 | |||||
Stock options vested | 1,298,021 | ||||||
Stock option exercisable | 1,298,021 | ||||||
Weighted average exercise price, vested and exercisable | $ 26.18 | $ 26.18 | |||||
Cash received from option exercises | $ 23,000,000 | $ 43,000,000 | $ 10,000,000 | ||||
Total intrinsic value of options exercised | $ 26,000,000 | $ 24,000,000 | $ 4,000,000 | ||||
Number of options, Vested and expected to vestweighted average remaining contractual life | 4 years 4 months 6 days | ||||||
Total intrinsic value of options vested and exercisable | $ 5,000,000 | $ 5,000,000 | |||||
Unrecognized compensation costs on non-vested stock option grants (pretax) | $ 32,000,000 | $ 32,000,000 | |||||
Unrecognized compensation costs on non-vested awards, weighted average period of recognition in years | 1 year 7 months 24 days | ||||||
Alcoa Corporation [Member] | |||||||
Class of Stock [Line Items] | |||||||
Fair value of stock options granted | $ 4.75 | ||||||
Employees [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock based compensation expense | $ 16,000,000 | ||||||
Minimum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock based compensation expense, stock units percentage | 80.00% | 80.00% | 80.00% | ||||
Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock based compensation expense, stock units percentage | 90.00% | 90.00% | 90.00% | ||||
Stock Units [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of units, Outstanding | 2,605,423 | 2,305,145 | 2,305,145 | 2,301,332 | |||
Stock granted, Fair value | $ 52.81 | ||||||
Stock Units [Member] | Cliff Vest [Member] | |||||||
Class of Stock [Line Items] | |||||||
Vesting rights percentage | 0.3333% | ||||||
Restricted Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Volatility | 38.47% | ||||||
Average risk-free interest rate | 2.17% | ||||||
Stock granted, Fair value | $ 73.13 | $ 52.01 | |||||
Restricted Stock [Member] | Standard & Poor's 500 [Member] | |||||||
Class of Stock [Line Items] | |||||||
Volatility | 12.12% | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued for employee stock-based compensation plans | 459,800 | 1,293,336 | 2,269,718 | ||||
Repurchase of common stock shares | 1,723,800 | ||||||
Repurchase of common stock value | $ 50,000,000 | ||||||
Stock Options [Member] | |||||||
Class of Stock [Line Items] | |||||||
Adjusted exercise option price | $ 28.41 | $ 28.41 | $ 25.48 | ||||
Number of options, Outstanding | 4,673,829 | 1,959,927 | 1,959,927 | 2,687,107 | |||
Stock option exercisable | 896,645 | ||||||
Stock Options [Member] | Grade Vest [Member] | |||||||
Class of Stock [Line Items] | |||||||
Vesting rights percentage | 0.3333% | ||||||
Commom stock service period | 3 years | ||||||
Common stock contractual term | 10 years |
Preferred and Common Stock - Sc
Preferred and Common Stock - Schedule of Activity for Stock Options and Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of options, Exercised | (1,298,021) |
Number of options, Outstanding end of year | 1,959,927 |
Weighted average exercise price Outstanding, end of year | $ / shares | $ 21.44 |
Stock Units [Member] | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of units, Outstanding beginning of year | 2,301,332 |
Number of units, Granted | 635,477 |
Number of units, Exercised | 0 |
Number of units, Converted | (505,930) |
Number of units, Expired or forfeited | (40,941) |
Number of units, Performance share adjustment | (84,793) |
Number of units, Outstanding end of year | 2,305,145 |
Weighted average FMV per unit, Outstanding beginning of year | $ / shares | $ 26.93 |
Stock granted, Fair value | $ / shares | 52.81 |
Weighted average FMV per unit, Exercised | $ / shares | 0 |
Weighted average FMV per unit, Converted | $ / shares | 34.55 |
Weighted average FMV per unit, Expired or forfeited | $ / shares | 31.73 |
Weighted average FMV per unit, Performance share adjustment | $ / shares | 15.09 |
Weighted average FMV per unit, Outstanding, end of year | $ / shares | $ 32.75 |
Stock Options [Member] | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of options, Outstanding beginning of year | 2,687,107 |
Number of options, Granted | 189,455 |
Number of options, Exercised | (896,645) |
Number of options, Converted | 0 |
Number of options, Expired or forfeited | (19,990) |
Number of options, Performance share adjustment | 0 |
Number of options, Outstanding end of year | 1,959,927 |
Weighted average exercise price, Outstanding beginning of year | $ / shares | $ 25.48 |
Weighted average exercise price, granted | $ / shares | 53.30 |
Weighted average exercise price, exercised | $ / shares | 25.06 |
Weighted average exercise price, Converted | $ / shares | 0 |
Weighted average exercise price, Expired or forfeited | $ / shares | 20.51 |
Weighted average exercise price, Performance share adjustment | $ / shares | 0 |
Weighted average exercise price Outstanding, end of year | $ / shares | $ 28.41 |
Preferred and Common Stock - _2
Preferred and Common Stock - Schedule of Activity for Stock Options and Stock Units (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018shares | |
Stock Units [Member] | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of shares withheld to meet statutory tax requirements | 109,239 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Additional Information (Detail) | Dec. 31, 2018USD ($)EmployeeParticipant | Jan. 17, 2018Employee | Sep. 30, 2018USD ($)Participant | Aug. 31, 2018USD ($)ParticipantRetiree | May 31, 2018USD ($) | Apr. 30, 2018USD ($)ParticipantRetiree | Dec. 31, 2019 | Dec. 31, 2018USD ($)EmployeeParticipant | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 01, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees affected the change in defined contribution plans | Participant | 20,600 | 20,600 | |||||||||
Company's contribution | $ 725,000,000 | ||||||||||
Lump sum settlements in plan assets on pension and other postretirement benefits | $ 13,000,000 | ||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 341,000,000 | ||||||||||
Defined benefit plan, percentage of combined net unfunded | 65.00% | ||||||||||
Defined benefit plan, description of basis used to determine overall expected long-term rate-of-return on assets assumption | The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans) | ||||||||||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% | 5.50% | |||||||
Health care cost trend rate | 4.50% | 4.50% | 4.50% | 4.50% | |||||||
Number of years over actual annual health care cost trend experience | 3 years | ||||||||||
Cash contribution to pension plans | $ 992,000,000 | $ 106,000,000 | $ 66,000,000 | ||||||||
Expected minimum required cash contribution to pension plans, next year | 310,000,000 | ||||||||||
Additions to debt (original maturities greater than three months | $ 492,000,000 | 560,000,000 | 21,000,000 | 1,228,000,000 | |||||||
Cash on hand | $ 128,000,000 | 128,000,000 | |||||||||
Maturity of debt instrument | 10 years | ||||||||||
Expenses related to saving and investment plans | 69,000,000 | $ 65,000,000 | 57,000,000 | ||||||||
United States [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Company's contribution | 620,000,000 | ||||||||||
Expected minimum required cash contribution to pension plans, next year | 270,000,000 | ||||||||||
Canada [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Company's contribution | $ 105,000,000 | ||||||||||
Equities [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Defined benefit plan, expected asset class mix percentage | 30.00% | 30.00% | |||||||||
Fixed Income Securities [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Defined benefit plan, expected asset class mix percentage | 50.00% | 50.00% | |||||||||
Other Investments [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Defined benefit plan, expected asset class mix percentage | 20.00% | 20.00% | |||||||||
Scenario Forecast [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Expected long term rate of return on plan assets | 6.59% | ||||||||||
Maximum [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Average duration refined yield curve model parallels the plans, years | 11 years | ||||||||||
Health care cost trend rate | 0.80% | 0.80% | |||||||||
Minimum [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Health care cost trend rate | (0.50%) | (0.50%) | |||||||||
Action# 1 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees affected the change in defined contribution plans | 800 | 800 | 800 | ||||||||
Percentage of employers contribution in defined benefit plans | 3.00% | ||||||||||
Weighted average discount rate | 3.80% | 3.80% | 3.65% | ||||||||
Action# 2 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees affected the change in defined contribution plans | Participant | 700 | 700 | |||||||||
Weighted average discount rate | 3.43% | 3.43% | 3.29% | ||||||||
Action# 3 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees affected the change in defined contribution plans | Participant | 2,100 | 2,100 | |||||||||
Defined benefit plan, number of participants reduced | Retiree | 2,100 | ||||||||||
Benefit obligation of retirement plans | $ 560,000,000 | ||||||||||
Defined benefit pension plans, transaction fee | 23,000,000 | ||||||||||
Company's contribution | $ 89,000,000 | ||||||||||
Defined benefit plan, number of participants before transaction | Participant | 3,500 | ||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 167,000,000 | ||||||||||
Weighted average discount rate | 3.60% | 3.60% | 3.43% | ||||||||
Action# 3 [Member] | Canada [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Company's contribution | $ 89,000,000 | ||||||||||
Action# 4 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees affected the change in defined contribution plans | Participant | 11,500 | 11,500 | |||||||||
Defined benefit plan, number of participants reduced | Retiree | 10,500 | ||||||||||
Benefit obligation of retirement plans | $ 287,000,000 | ||||||||||
Defined benefit pension plans, transaction fee | $ 10,000,000 | ||||||||||
Defined benefit plan, number of participants before transaction | Participant | 43,400 | ||||||||||
Defined benefit plan, additional number of participants reduced | Retiree | 1,000 | ||||||||||
Lump sum settlements in plan obligations on pension and other postretirement benefits | $ 75,000,000 | ||||||||||
Lump sum settlements in plan assets on pension and other postretirement benefits | $ 85,000,000 | ||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 230,000,000 | ||||||||||
Weighted average discount rate | 4.39% | 4.39% | 3.70% | ||||||||
Action# 5 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees affected the change in defined contribution plans | Participant | 5,500 | 5,500 | 5,500 | ||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 23,000,000 | $ (56,000,000) | |||||||||
Weighted average discount rate | 4.35% | 4.35% | 3.61% | ||||||||
New Direct Plans [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Weighted average discount rate | 3.48% | ||||||||||
Pension and other postretirement benefit plan unfunded status | $ 2,348,000,000 | ||||||||||
Pension and other postretirement benefit plan current liability | 136,000,000 | ||||||||||
Pension and other postretirement benefit plan noncurrent liability | 2,392,000,000 | ||||||||||
Pension and other postretirement benefit plan accumulated other comprehensive loss | 2,704,000,000 | ||||||||||
Additional New Direct Plans [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Pension and other postretirement benefit plan unfunded status | $ 180,000,000 | ||||||||||
Pension Benefits [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees covered under defined benefit plans | Employee | 54,000 | 54,000 | |||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ (410,000,000) | $ (5,000,000) | $ (16,000,000) | ||||||||
Weighted average discount rate | 4.21% | 4.21% | 3.68% | ||||||||
Pension and other postretirement benefit plan current liability | $ 10,000,000 | $ 10,000,000 | $ 11,000,000 | ||||||||
Pension and other postretirement benefit plan noncurrent liability | $ 1,407,000,000 | $ 1,407,000,000 | $ 2,341,000,000 | ||||||||
Rate of compensation increase | 3.26% | 3.26% | 3.28% | ||||||||
Expected long term rate of return on plan assets | 6.89% | 7.47% | 7.31% | ||||||||
Expenses related to saving and investment plans | $ 25,000,000 | ||||||||||
Pension Benefits [Member] | Scenario Forecast [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Rate of compensation increase | 3.26% | ||||||||||
Other Postretirement Benefits [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of employees covered under defined benefit plans | Employee | 48,000 | 48,000 | |||||||||
Company's contribution | $ 8,000,000 | $ 8,000,000 | 6,000,000 | ||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 56,000,000 | ||||||||||
Weighted average discount rate | 4.25% | 4.25% | 3.54% | ||||||||
Pension and other postretirement benefit plan current liability | $ 105,000,000 | $ 105,000,000 | $ 118,000,000 | ||||||||
Pension and other postretirement benefit plan noncurrent liability | $ 868,000,000 | $ 868,000,000 | $ 1,100,000,000 | ||||||||
Expenses related to saving and investment plans | $ 8,000,000 |
Pension and Other Postretirem_4
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) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)Participant | Dec. 31, 2018USD ($)ParticipantPlan | Jan. 17, 2018Employee | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of affected plan participants | Participant | 20,600 | |||
(Decrease) increase to accrued pension benefits liability | $ (143) | |||
Decrease to accrued other postretirement benefits liability | (93) | |||
Curtailment charge (gain) | (23) | |||
Settlement charge | $ 341 | |||
Action# 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plan | 3 | |||
Number of affected plan participants | 800 | 800 | ||
Weighted average discount rate | 3.80% | 3.65% | ||
Plan remeasurement date | Jan. 31, 2018 | |||
(Decrease) increase to accrued pension benefits liability | $ (57) | |||
Curtailment charge (gain) | $ 5 | |||
Action# 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plan | 1 | |||
Number of affected plan participants | Participant | 700 | |||
Weighted average discount rate | 3.43% | 3.29% | ||
Plan remeasurement date | Jan. 31, 2018 | |||
Decrease to accrued other postretirement benefits liability | $ (7) | |||
Curtailment charge (gain) | $ (28) | |||
Action# 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plan | 2 | |||
Number of affected plan participants | Participant | 2,100 | |||
Weighted average discount rate | 3.60% | 3.43% | ||
Plan remeasurement date | Mar. 31, 2018 | |||
(Decrease) increase to accrued pension benefits liability | $ 24 | |||
Settlement charge | $ 167 | |||
Action# 4 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plan | 3 | |||
Number of affected plan participants | Participant | 11,500 | |||
Weighted average discount rate | 4.39% | 3.70% | ||
Plan remeasurement date | Jul. 31, 2018 | |||
(Decrease) increase to accrued pension benefits liability | $ (110) | |||
Settlement charge | $ 230 | |||
Action# 5 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plan | 1 | |||
Number of affected plan participants | Participant | 5,500 | 5,500 | ||
Weighted average discount rate | 4.35% | 3.61% | ||
Plan remeasurement date | Jul. 31, 2018 | |||
Decrease to accrued other postretirement benefits liability | $ (86) | |||
Settlement charge | $ 23 | $ (56) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Total Expenses Recognized to All Pension and Other Postretirement Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Shared Plans - Cost allocation | $ 69 | $ 65 | $ 57 |
Total expense related to all pension and other post retirement benefits | 139 | 85 | 24 |
Pension Benefits [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Cumulative Direct Plans - Net periodic benefit cost | 561 | 119 | 83 |
Shared Plans - Multiemployer contribution expense | 28 | ||
Shared Plans - Cost allocation | 25 | ||
Total expense related to all pension and other post retirement benefits | 561 | 119 | 136 |
Other Postretirement Benefits [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Cumulative Direct Plans - Net periodic benefit cost | (32) | 50 | 21 |
Shared Plans - Multiemployer contribution expense | 12 | ||
Shared Plans - Cost allocation | 8 | ||
Total expense related to all pension and other post retirement benefits | $ (32) | $ 50 | $ 41 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ (341) | ||
Fair value of plan assets at beginning of year | 5,320 | ||
Company's contribution | 725 | ||
Fair value of plan assets at end of year | 4,591 | $ 5,320 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 7,639 | ||
Service cost | 54 | 71 | $ 61 |
Interest cost | 227 | 244 | 138 |
Settlements | 410 | 5 | 16 |
Benefit obligation at end of year | 5,997 | 7,639 | |
Funded status | 1,387 | 2,317 | |
Less: Amounts attributed to joint venture partners | (33) | (37) | |
Net funded status | 1,354 | 2,280 | |
Noncurrent assets | 63 | 72 | |
Current liabilities | (10) | (11) | |
Noncurrent liabilities | (1,407) | (2,341) | |
Net amount recognized | (1,354) | (2,280) | |
Net actuarial loss | 3,261 | 3,743 | |
Prior service cost (benefit) | 21 | 35 | |
Total, before tax effect | 3,282 | 3,778 | |
Less: Amounts attributed to joint venture partners | 40 | 45 | |
Net amount recognized, before tax effect | 3,242 | 3,733 | |
Net actuarial loss (benefit) | 132 | 676 | |
Amortization of accumulated net actuarial (loss) benefit | (614) | (187) | |
Prior service (benefit) cost | (1) | 2 | |
Amortization of prior service (cost) benefit | (13) | (9) | |
Total, before tax effect | (496) | 482 | |
Less: Amounts attributed to joint venture partners | (5) | 9 | |
Net amount recognized, before tax effect | (491) | 473 | |
Pension Benefits [Member] | Change In Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 7,639 | 7,269 | |
Service cost | 60 | 84 | |
Interest cost | 232 | 250 | |
Amendments | 2 | ||
Actuarial (gains) losses | (346) | 388 | |
Settlements | (1,009) | (64) | |
Curtailments | (22) | ||
Benefits paid | (407) | (437) | |
Foreign currency translation impact | (150) | 147 | |
Benefit obligation at end of year | 5,997 | 7,639 | 7,269 |
Pension Benefits [Member] | Change In Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | (1,030) | (62) | |
Benefits paid | (403) | (432) | |
Foreign currency translation impact | (127) | 123 | |
Fair value of plan assets at beginning of year | 5,322 | 5,421 | |
Actual return on plan assets | (129) | 187 | |
Company's contribution | 996 | 111 | |
Participant contributions | 12 | 15 | |
Administrative expenses | (31) | (41) | |
Fair value of plan assets at end of year | 4,610 | 5,322 | 5,421 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 5 | 2 |
Interest cost | 34 | 38 | 16 |
Settlements | (56) | ||
Company's contribution | 8 | 8 | 6 |
Funded status | 973 | 1,218 | |
Net funded status | 973 | 1,218 | |
Current liabilities | (105) | (118) | |
Noncurrent liabilities | (868) | (1,100) | |
Net amount recognized | (973) | (1,218) | |
Net actuarial loss | 176 | 281 | |
Prior service cost (benefit) | (4) | (30) | |
Total, before tax effect | 172 | 251 | |
Net amount recognized, before tax effect | 172 | 251 | |
Net actuarial loss (benefit) | (88) | (1) | |
Amortization of accumulated net actuarial (loss) benefit | (17) | (13) | |
Prior service (benefit) cost | (62) | ||
Amortization of prior service (cost) benefit | 88 | 6 | |
Total, before tax effect | (79) | (8) | |
Net amount recognized, before tax effect | (79) | (8) | |
Other Postretirement Benefits [Member] | Change In Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 1,218 | 1,286 | |
Service cost | 5 | 5 | |
Interest cost | 34 | 38 | |
Amendments | (5) | ||
Actuarial (gains) losses | (88) | (1) | |
Settlements | (57) | ||
Benefits paid | (140) | (116) | |
Medicare Part D subsidy receipts | 7 | 5 | |
Foreign currency translation impact | (1) | 1 | |
Benefit obligation at end of year | $ 973 | $ 1,218 | $ 1,286 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 4,591 | $ 5,320 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | 4,246 | 5,093 |
Fair value of plan assets | 3,160 | 3,195 |
Funded status | $ (1,086) | $ (1,898) |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Schedule of Pension Plan Benefit Obligations (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 5,997 | $ 7,639 |
Accumulated benefit obligation | 5,792 | 7,426 |
Projected benefit obligation | 5,502 | 7,061 |
Fair value of plan assets | 4,051 | 4,671 |
Accumulated benefit obligation | 5,380 | 6,885 |
Fair value of plan assets | $ 4,051 | $ 4,671 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ (341) | ||
Curtailments | 331 | $ 8 | $ 17 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 54 | 71 | 61 |
Interest cost | 227 | 244 | 138 |
Expected return on plan assets(3) | (341) | (398) | (242) |
Recognized net actuarial loss(3) | 198 | 185 | 102 |
Amortization of prior service cost (benefit)(3) | 8 | 9 | 7 |
Settlements | 410 | 5 | 16 |
Curtailments | 5 | ||
Special termination benefits | 3 | 1 | |
Net periodic benefit cost | 561 | 119 | 83 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 5 | 2 |
Interest cost | 34 | 38 | 16 |
Recognized net actuarial loss(3) | 13 | 13 | 8 |
Amortization of prior service cost (benefit)(3) | (6) | (5) | |
Settlements | (56) | ||
Curtailments | (28) | ||
Net periodic benefit cost | $ (32) | $ 50 | $ 21 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expense related to pension and other postretirement benefits | $ 725 | |||
Settlements and lump sum benefits | $ (13) | |||
Action Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements and lump sum benefits | $ (341) | |||
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expense related to pension and other postretirement benefits | 620 | |||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 561 | $ 119 | $ 83 | |
Pension Benefits [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 358 | 74 | 21 | |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | (32) | 50 | 21 | |
Expense related to pension and other postretirement benefits | $ 8 | $ 8 | $ 6 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 198 | $ 185 | $ 102 | |
Amortization of prior service cost (benefit)(3) | 8 | 9 | 7 | |
Pension Benefits [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 167 | |||
Amortization of prior service cost (benefit)(3) | 6 | |||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 13 | 13 | 8 | |
Amortization of prior service cost (benefit)(3) | $ (6) | $ (5) | ||
Other Postretirement Benefits [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | 10 | |||
Amortization of prior service cost (benefit)(3) | $ 1 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.21% | 3.68% | |
Rate of compensation increase | 3.26% | 3.28% | |
Discount rate | 3.59% | 3.61% | 3.45% |
Expected long-term rate of return on plan assets | 6.89% | 7.47% | 7.31% |
Rate of compensation increase | 3.28% | 3.61% | 3.65% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.25% | 3.54% | |
Discount rate | 3.18% | 3.30% | 2.90% |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% |
Rate to which the cost trend rate gradually declines | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the rate at which it is assumed to remain | 2,022 | 2,021 | 2,020 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Effect on other postretirement benefit obligations, 1% increase | $ 65 |
Effect on total of service and interest cost components, 1% increase | 2 |
Effect on other postretirement benefit obligations, 1% decrease | (58) |
Effect on total of service and interest cost components, 1% decrease | $ (2) |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits - Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 100.00% | 100.00% |
Fixed Income Securities [Member] | Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 51.00% | 35.00% |
Other Investments [Member] | Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 13.00% | 25.00% |
Equity Securities [Member] | Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 36.00% | 40.00% |
Minimum [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 10.00% | |
Minimum [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 10.00% | |
Minimum [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 0.00% | |
Maximum [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 60.00% | |
Maximum [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 65.00% | |
Maximum [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 35.00% |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 4,591 | $ 5,320 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,475 | 1,775 |
Long/Short Equity Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 6 | 152 |
Private Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 186 | 226 |
Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,667 | 2,153 |
Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,949 | 737 |
Cash and Cash Equivalent Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 381 | 1,055 |
Fixed Income, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 14 | 56 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,344 | 1,848 |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 548 | 606 |
Other Investments, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 32 | 132 |
Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 580 | 1,319 |
Discretionary and Systematic Macro Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 581 | |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,873 | 1,555 |
Level 1 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 662 | 906 |
Level 1 [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 662 | 906 |
Level 1 [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 925 | 95 |
Level 1 [Member] | Cash and Cash Equivalent Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 56 | 313 |
Level 1 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 981 | 408 |
Level 1 [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 230 | 241 |
Level 1 [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 230 | 241 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 711 | 434 |
Level 2 [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 697 | 378 |
Level 2 [Member] | Fixed Income, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 14 | 56 |
Level 2 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 711 | 434 |
Net Asset Value [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,007 | 3,331 |
Net Asset Value [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 813 | 869 |
Net Asset Value [Member] | Long/Short Equity Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 6 | 152 |
Net Asset Value [Member] | Private Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 186 | 226 |
Net Asset Value [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,005 | 1,247 |
Net Asset Value [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 327 | 264 |
Net Asset Value [Member] | Cash and Cash Equivalent Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 325 | 742 |
Net Asset Value [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 652 | 1,006 |
Net Asset Value [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 318 | 365 |
Net Asset Value [Member] | Other Investments, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 32 | 132 |
Net Asset Value [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 350 | 1,078 |
Net Asset Value [Member] | Discretionary and Systematic Macro Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 581 |
Pension and Other Postretire_17
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Compensation And Retirement Disclosure [Abstract] | ||
Net receivables which represents assets related to divested businesses to be transferred to the buyers | $ 19 | $ 2 |
Pension and Other Postretire_18
Pension and Other Postretirement Benefits - Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 420 |
2,020 | 420 |
2,021 | 425 |
2,022 | 425 |
2,023 | 425 |
2024 through 2028 | 2,060 |
Total benefit payments | 4,175 |
Gross Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 110 |
2,020 | 110 |
2,021 | 110 |
2,022 | 105 |
2,023 | 105 |
2024 through 2028 | 340 |
Total benefit payments | 880 |
Medicare Part D Subsidy Receipts [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 10 |
2,020 | 10 |
2,021 | 5 |
2,022 | 5 |
2,023 | 5 |
2024 through 2028 | 25 |
Total benefit payments | 60 |
Net Other Post Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 100 |
2,020 | 100 |
2,021 | 105 |
2,022 | 100 |
2,023 | 100 |
2024 through 2028 | 315 |
Total benefit payments | $ 820 |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Additional Information (Detail) | Dec. 31, 2016USD ($) | Apr. 30, 2016Refinery | Dec. 31, 2018USD ($)MWhRefineryMemberSmelterDerivativekt | Dec. 31, 2017USD ($)MWhkt | Dec. 31, 2016USD ($)MWh |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Minimum members required for strategic risk management committee | Member | 3 | ||||
Unrealized gain (loss) recognized | $ (11,000,000) | $ 88,000,000 | |||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | ||||
Other derivative contracts estimated term of quoted market prices, in years | 10 years | ||||
Recognized an unrealized gain (loss) | $ 62,000,000 | 25,000,000 | |||
Derivatives Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 1 | ||||
Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 1 | ||||
London Metal Exchange [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 2 | ||||
LME Plus Midwest Premium [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 3 | ||||
Derivative One Through Derivative Five | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 5 | ||||
Management estimates premium for next twelve months for number of contracts | Derivative | 3 | ||||
Minimum considerable period of significant change would result higher or lower fair value | 10 years | ||||
Derivative D7 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of commodities interrelationship considered for embedded derivative valuation | Derivative | 2 | ||||
Embedded Credit Derivative [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative contract period | 10 years | ||||
Derivative contract period, description | As Alcoa Corporation does not have outstanding 30-year debt, the Company’s estimated 30-year debt yield is represented by the sum of (i) the excess of the yield on Alcoa’s outstanding notes due 2026 over the yield on only the Ba/BB-rated company debt included in Barclays High Yield Index for intermediate (10-year) credits and (ii) the yield on only the Ba/BB-rated company debt included in Barclays High Yield Index for long (30-year) credits. In accordance with the terms of the power contract, this calculation may be changed in January of each calendar year. | ||||
Embedded Credit Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | $ 4,000,000 | 3,000,000 | $ (5,000,000) | ||
Embedded Credit Derivative [Member] | Negotiated multiplier [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative contract period | 30 years | ||||
Energy Contracts [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Increase (decrease) in derivative asset | (84,000,000) | ||||
Energy Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Other income | 7,000,000 | ||||
Cost of goods sold | (6,000,000) | ||||
Energy Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cost of goods sold | $ 6,000,000 | ||||
Embedded Aluminum Derivative [Member] | Derivatives Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Aluminum forecast sales | kt | 2,508 | 2,859 | |||
Embedded Aluminum Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | $ 19,000,000 | $ (18,000,000) | (15,000,000) | ||
Financial Contracts [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Recognized an unrealized gain (loss) | 96,000,000 | ||||
Financial Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative instruments ineffectiveness | 3,000,000 | ||||
Net gain (loss) of derivative instruments | (7,000,000) | $ 3,000,000 | |||
Derivative [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of derivative contracts recorded as assets | 2,000,000 | 44,000,000 | |||
Fair value of derivative contracts recorded as liabilities | $ 54,000,000 | 117,000,000 | |||
Derivative D11 [Member] | Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Forecasted energy purchases in megawatt hours | MWh | 1,969,544 | ||||
Electricity purchases | In addition, in January 2017, Alcoa Corporation entered into a new financial contract that hedges the anticipated power requirements at this smelter for the period from August 2017 through July 2021 (see D11 above). At December 31, 2018 and 2017, this financial contract hedges forecasted electricity purchases of 6,348,276 and 8,805,456, respectively, megawatt hours. | ||||
Derivative D11 [Member] | Energy Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cost of goods sold | $ 70,000,000 | ||||
Other Expenses (Income) [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) | 22,000,000 | $ 1,000,000 | |||
Other Expenses (Income), Net [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | $ 23,000,000 | $ (22,000,000) | (17,000,000) | ||
Other Comprehensive Loss [Member] | Derivative D11 [Member] | Energy Contracts [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Forecasted energy purchases in megawatt hours | MWh | 6,348,276 | 8,805,456 | |||
Cash Flow Hedging [Member] | Embedded Aluminum Derivative [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) on derivatives | $ (100,000,000) | $ (113,000,000) | (7,000,000) | ||
Recognized an unrealized gain (loss) | 785,000,000 | (1,521,000,000) | (615,000,000) | ||
Cash Flow Hedging [Member] | Embedded Aluminum Derivative [Member] | Derivatives Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Amount of gain (loss) expected to be recognized into earnings over the next 12 months | (46,000,000) | ||||
Derivative instruments ineffectiveness | $ 0 | 0 | |||
Cash Flow Hedging [Member] | Other Comprehensive Loss [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) recognized | 24,000,000 | 92,000,000 | $ 2,000,000 | ||
Realized gain (loss) on derivatives | $ 14,000,000 | $ 15,000,000 | |||
Level 3 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of smelters | Smelter | 9 | ||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | ||||
Level 3 [Member] | Embedded Aluminum Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 1 |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)MWh$ / MWh$ / Metric_Ton$ / lb | Dec. 31, 2017USD ($) | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 153 | $ 197 |
Derivative Liabilities, Fair value | $ | 289 | $ 1,173 |
Derivative D11 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 112 | |
Derivative D11 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Price of electricity beyond forward curve | $ / MWh | 68.60 | |
Maturity date of electricity beyond forward curve | 2,019 | |
Derivative D11 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Price of electricity beyond forward curve | $ / MWh | 44.91 | |
Maturity date of electricity beyond forward curve | 2,021 | |
Derivative D3 Through D5 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 21 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 20 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [Member] | Average Price [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 2,426 | |
Maturity month and year of future aluminum price | 2029-04 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [Member] | Average Price [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 2,458 | |
Maturity month and year of future aluminum price | 2029-12 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [Member] | Midwest Premium [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1900 | |
Midwest Premium expected year | 2,019 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [Member] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1800 | |
Midwest Premium expected year | 2,029 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | One Contract [Member] | Average Price [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 2,756 | |
Maturity year of future aluminum price | 2,036 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | One Contract [Member] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium expected year | 2,036 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum One [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 234 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Megawatt hours per year | MWh | 4,000,000 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 1,823 | |
Maturity year of future aluminum price | 2,019 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 2,350 | |
Maturity year of future aluminum price | 2,027 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum One [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 5 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Megawatt hours per year | MWh | 2,000,000 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 1,823 | |
Maturity month and year of future aluminum price | 2019-01 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 1,848 | |
Maturity month and year of future aluminum price | 2019-03 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Midwest Premium [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1900 | |
Midwest Premium expected year and month | 2019-01 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1900 | |
Midwest Premium expected year and month | 2019-03 | |
Derivative D2 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 9 | |
Derivative D2 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | Average Price [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 1,946 | |
Maturity month and year of future aluminum price | 2019-01 | |
Derivative D2 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | Average Price [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | $ / Metric_Ton | 1,907 | |
Maturity month and year of future aluminum price | 2019-12 | |
Derivative D9 [Member] | Energy Contracts [Member] | Estimated Difference In Credit Spread Of Each Of Alcoa Corporation And Counterparty, And Negotiated Multiplier [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 20 | |
Percentage of credit spread | 3.11% | |
Derivative D9 [Member] | Energy Contracts [Member] | Estimated Difference In Credit Spread Of Each Of Alcoa Corporation And Counterparty, And Negotiated Multiplier [Member] | Level 3 [Member] | Counterparty [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 4.36% | |
Derivative D9 [Member] | Energy Contracts [Member] | Estimated Difference In Credit Spread Of Each Of Alcoa Corporation And Counterparty, And Negotiated Multiplier [Member] | Level 3 [Member] | Alcoa Corporation [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 7.47% |
Derivatives and Other Financi_5
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets, fair value | $ 153 | $ 197 |
Derivative D3 Through D5 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets, fair value | $ 21 |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | $ 153 | $ 197 |
Fair value liability derivatives | 289 | 1,173 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 153 | 197 |
Fair value liability derivatives | 264 | 1,112 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Financial Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 70 | 96 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Financial Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 42 | 101 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 41 | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 46 | 120 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 218 | 992 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 25 | 61 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 5 | 28 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 4 | 4 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 6 | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | $ 16 | $ 23 |
Derivatives and Other Financi_7
Derivatives and Other Financial Instruments - Schedule of Net Fair Values of Level 3 Derivative Instruments and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Embedded Aluminum Derivative [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Fair value asset/(liability) | $ (228) |
Index change of + / -10% | 343 |
Embedded Credit Derivative [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Fair value asset/(liability) | (20) |
Index change of + / -10% | 2 |
Financial Contracts [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Fair value asset/(liability) | 112 |
Index change of + / -10% | $ 35 |
Derivatives and Other Financi_8
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Embedded Aluminum Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | $ 497 | |
Fair value measurement, Assets, Other comprehensive income | $ 40 | (499) |
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | 0 | 0 |
Fair value measurement, Assets, Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Assets, Other | 1 | (2) |
Fair value measurement, Assets, Ending balance | 41 | |
Fair value measurement, Assets, Sales | 0 | 0 |
Fair value measurement, Assets, Cost of goods sold | 0 | 0 |
Fair value measurement, Liabilities, Beginning balance | 1,146 | 232 |
Fair value measurement, Liabilities, Other comprehensive income | (745) | (1,022) |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | 0 |
Fair value measurement, Liabilities,Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Liabilities, Other | (13) | (16) |
Fair value measurement, Liabilities, Ending balance | 269 | 1,146 |
Fair value measurement, Liabilities, Sales | 0 | 0 |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 |
Fair value measurement, Liabilities, Other income, net | (19) | 18 |
Fair value measurement, Liabilities, Other comprehensive income | 745 | 1,022 |
Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | 197 | 17 |
Fair value measurement, Assets, Other comprehensive income | (11) | 88 |
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | 0 | 119 |
Fair value measurement, Assets, Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Assets, Other | (12) | 11 |
Fair value measurement, Assets, Ending balance | 112 | 197 |
Fair value measurement, Assets, Sales | 0 | 0 |
Fair value measurement, Assets, Cost of goods sold | 0 | 0 |
Embedded Credit Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 27 | 35 |
Fair value measurement, Liabilities, Cost of goods sold | (3) | (5) |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | 0 |
Fair value measurement, Liabilities,Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Liabilities, Ending balance | 20 | 27 |
Fair value measurement, Liabilities, Sales | 0 | 0 |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 |
Fair value measurement, Liabilities, Other income, net | (4) | (3) |
Sales [Member] | Embedded Aluminum Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | 3 |
Fair value measurement, Liabilities | (100) | (110) |
Sales [Member] | Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | |
Cost of Goods Sold [Member] | Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (62) | (31) |
Other Expense [Member] | Embedded Aluminum Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | 1 |
Fair value measurement, Liabilities | (19) | 18 |
Other Expense [Member] | Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | (7) |
Other Expense [Member] | Embedded Credit Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | $ (4) | $ (3) |
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,113 | $ 1,358 |
Restricted cash | 3 | 7 |
Long-term debt due within one year | 1 | 16 |
Long-term debt, less amount due within one year | 1,801 | 1,388 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,113 | 1,358 |
Restricted cash | 3 | 7 |
Long-term debt due within one year | 1 | 16 |
Long-term debt, less amount due within one year | $ 1,863 | $ 1,555 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (771) | $ (712) | $ (688) |
Foreign | 2,368 | 1,871 | 526 |
Income (Loss) before income taxes | $ 1,597 | $ 1,159 | $ (162) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes on Income from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 5 | $ 3 | $ 9 |
Foreign | 757 | 421 | 221 |
Current provision for income taxes, total | 762 | 424 | 230 |
Deferred: | |||
Federal | (21) | 24 | |
Foreign | (15) | 152 | (46) |
Deferred provision for income taxes, total | (36) | 176 | (46) |
Provision for income taxes | $ 726 | $ 600 | $ 184 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% |
Taxes on foreign operations—rate differential | 12.80% | (10.80%) | 44.30% |
Global intangible low-taxed income | 10.00% | ||
Changes in valuation allowances | 3.40% | 25.80% | (1.90%) |
Tax holidays | (3.20%) | 0.40% | 11.20% |
Unrecognized tax benefits | 1.90% | (1.00%) | (1.10%) |
Other taxes related to foreign operations | 1.10% | 1.30% | (19.50%) |
Noncontrolling interest | 1.00% | 1.40% | (7.30%) |
Statutory tax rate and law changes | 0.10% | 0.10% | (0.60%) |
Impact of U.S. Tax Cuts and Jobs Act of 2017 | 1.90% | ||
Losses and credits with no tax benefit | (0.20%) | (163.20%) | |
Nondeductible costs related to the Separation Transaction | (9.60%) | ||
Other | (2.60%) | (2.10%) | (0.90%) |
Effective tax rate | 45.50% | 51.80% | (113.60%) |
Benefit from tax holiday rates | $ 46 | $ 20 | |
Income tax benefit per share | $ 0.24 | $ 0.11 | |
Increase (decrease) in deferred tax asset resulting from tax holiday | $ 5 | $ (26) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2018USD ($)Filer | Dec. 31, 2018EUR (€)Filer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Taxes [Line Items] | |||||||
Corporate income tax rate | 21.00% | 21.00% | 35.00% | 35.00% | |||
Increase (decrease) in deferred tax asset due to tax holiday | $ 5 | $ (26) | |||||
Deferred income taxes | 301 | ||||||
Deferred tax assets | 2,556 | 3,112 | |||||
Deferred tax assets, valuation allowance | 1,684 | $ 1,927 | $ 1,755 | $ 712 | |||
Foreign undistributed net earnings for which no deferred taxes have been provided | 1,010 | ||||||
Earnings generated during 2018 and 2017 deemed to be permanently reinvested | $ 230 | ||||||
Percentage of the effect of unrecognized tax benefit, if recorded | 2.00% | 2.00% | 1.00% | 10.00% | |||
Interest and penalties recognized | $ 10 | $ 1 | $ 1 | ||||
Income related to accrued interest and penalties | 1 | 6 | $ 2 | ||||
Amount accrued for payment of interest and penalties | $ 12 | $ 2 | |||||
Net operating losses carry forward period | 20 years | ||||||
Net operating losses carryback period | 2 years | ||||||
Percentage of taxable income related to net operating losses carry forward and carryback period | 80.00% | 80.00% | 100.00% | ||||
Discrete income tax charge resulting from preliminary analysis of provisions of TCJA | $ 22 | ||||||
Change in deferred tax assets related to TCJA | (506) | ||||||
Change in valuation allowance related to TCJA | (433) | ||||||
Change in deferred tax liabilities related to TCJA | $ (51) | ||||||
Threshold percentage related to Tax Cuts and Jobs Act of 2017 | 3.00% | ||||||
Elysis Limited Partnership [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets, valuation allowance | $ 86 | ||||||
Initial cash investment | $ 5 | ||||||
Minimum [Member] | |||||||
Income Taxes [Line Items] | |||||||
One-time deemed repatriation of foreign undistributed net earnings, percentage | 8.00% | ||||||
Income tax rate on global intangible low tax income (GILTI) | 10.50% | ||||||
Tax rate on base erosion payments | 5.00% | 5.00% | |||||
Percentage of deductible expenses | 3.00% | ||||||
Maximum [Member] | |||||||
Income Taxes [Line Items] | |||||||
One-time deemed repatriation of foreign undistributed net earnings, percentage | 15.50% | ||||||
Income tax rate on global intangible low tax income (GILTI) | 21.00% | ||||||
Tax rate on base erosion payments | 10.00% | 10.00% | |||||
Iceland [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets, valuation allowance | $ 94 | ||||||
Discrete income tax charge charge | 60 | ||||||
Tax charge to Accumulated other comprehensive loss | $ 34 | ||||||
Iceland [Member] | Minimum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets related to tax loss carryforwards expiration year | 2,017 | ||||||
Iceland [Member] | Maximum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets related to tax loss carryforwards expiration year | 2,026 | ||||||
Secretariat of the Federal Revenue Bureau of Brazil [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax credit carryforward, limitations on use | 30.00% | 30.00% | |||||
Tax Authority, Spain [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax credit carryforward, limitations on use | 25.00% | 25.00% | |||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30 | € 26 | $ 30 | € 26 | |||
Interest recorded in provision for income taxes to establish liability for estimated loss | $ 10 | € 9 | |||||
Percentage of share of the estimated loss | 49.00% | 49.00% | 49.00% | 49.00% | |||
Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred income taxes | $ 291 | ||||||
Percentage of net deferred tax asset relates to four of Alcoa Corporation’s income tax filers | 80.00% | 80.00% | |||||
Number of Alcoa Corporation’s income tax filers | Filer | 4 | 4 | |||||
Deferred tax assets | $ 1,665 | ||||||
Deferred tax assets, valuation allowance | 905 | ||||||
Foreign [Member] | AofA [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets | $ 220 | ||||||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax return, year under examination | 2,006 | 2,006 | |||||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax return, year under examination | 2,017 | 2,017 | |||||
Alcoa World Alumina Brasil [Member] | |||||||
Income Taxes [Line Items] | |||||||
Corporate income tax rate | 15.25% | 34.00% | |||||
Tax holiday period | 10 years | ||||||
Increase (decrease) in deferred tax asset due to tax holiday | $ 5 | $ (26) | |||||
Increase (decrease) in discrete income tax charge and benefit due tax holiday | 5 | (26) | |||||
Increase (decrease) in deferred tax asset due to tax holiday after noncontrolling interest | 3 | (15) | |||||
Increase (decrease) in discrete income tax charge and benefit due to tax holiday after noncontrolling interest | 3 | $ (15) | |||||
Alcoa World Alumina Brasil [Member] | Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets | 140 | ||||||
Alcoa Aluminio [Member] | Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets | 209 | ||||||
Espanola [Member] | Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax assets | $ 94 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Tax loss carryforwards | $ 1,231 | $ 1,185 | ||
Deferred tax assets, Employee benefits | 683 | 949 | ||
Deferred tax assets, Loss provisions | 212 | 246 | ||
Investment basis differences | 162 | 72 | ||
Deferred tax assets, Depreciation | 91 | 141 | ||
Deferred tax assets, Derivatives and hedging activities | 53 | 287 | ||
Deferred tax assets, Tax credit carryforwards | 27 | 193 | ||
Deferred tax assets, Deferred income/expense | 10 | 11 | ||
Deferred tax assets, Other | 87 | 28 | ||
Deferred tax assets, Gross | 2,556 | 3,112 | ||
Deferred tax assets, Valuation allowance | (1,684) | (1,927) | $ (1,755) | $ (712) |
Deferred tax assets, net | 872 | 1,185 | ||
Deferred tax liabilities, Tax loss carryforwards | 0 | 0 | ||
Deferred tax liabilities, Employee benefits | 0 | 0 | ||
Deferred tax liabilities, Loss provisions | 0 | 0 | ||
Investment basis differences | 0 | 0 | ||
Deferred tax liabilities, Depreciation | 428 | 432 | ||
Deferred tax liabilities, Derivatives and hedging activities | 39 | 70 | ||
Deferred tax liabilities, Tax credit carryforwards | 0 | 0 | ||
Deferred tax liabilities, Deferred income/expense | 103 | 109 | ||
Deferred tax liabilities, Other | 1 | 57 | ||
Deferred tax liabilities, Gross | 571 | 668 | ||
Deferred tax liabilities, Valuation allowance | 0 | 0 | ||
Deferred tax liabilities, Net | $ 571 | $ 668 |
Income Taxes - Schedule of Expi
Income Taxes - Schedule of Expiration Periods of Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | $ 1,231 | |||
Tax credit carryforwards | 27 | $ 193 | ||
Other | 1,298 | |||
Valuation allowance | (1,684) | (1,927) | $ (1,755) | $ (712) |
Deferred tax assets, net | 872 | $ 1,185 | ||
Expires Within 10 Years [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 307 | |||
Tax credit carryforwards | 18 | |||
Valuation allowance | (325) | |||
Expires Within 11-20 Years [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 254 | |||
Tax credit carryforwards | 9 | |||
Valuation allowance | (263) | |||
No Expiration [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 670 | |||
Other | 305 | |||
Valuation allowance | (370) | |||
Deferred tax assets, net | 605 | |||
Other [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Other | 993 | |||
Valuation allowance | (726) | |||
Deferred tax assets, net | $ 267 |
Income Taxes - Composition of N
Income Taxes - Composition of Net Deferred Tax Asset by Jurisdiction (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets | $ 2,556 | $ 3,112 | ||
Valuation allowance | (1,684) | $ (1,927) | $ (1,755) | $ (712) |
Deferred tax liabilities | (571) | |||
Total deferred tax asset | 301 | |||
Domestic [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets | 891 | |||
Valuation allowance | (779) | |||
Deferred tax liabilities | (102) | |||
Total deferred tax asset | 10 | |||
Foreign [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets | 1,665 | |||
Valuation allowance | (905) | |||
Deferred tax liabilities | (469) | |||
Total deferred tax asset | $ 291 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Valuation Allowance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ (1,927) | $ (1,755) | $ (712) |
Establishment of new allowances | (86) | (94) | |
Net change to existing allowances | 312 | (33) | (1,056) |
Foreign currency translation | 17 | (45) | 13 |
Balance at end of year | $ (1,684) | $ (1,927) | $ (1,755) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 10 | $ 23 | $ 22 |
Additions for tax positions of the current year | 1 | 1 | 3 |
Additions for tax positions of prior years | 20 | 1 | |
Reductions for tax positions of prior years | (5) | (2) | |
Settlements with tax authorities | (6) | (2) | |
Expiration of the statute of limitations | (3) | ||
Foreign currency translation | (1) | 1 | |
Balance at end of year | $ 30 | $ 10 | $ 23 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Structure | Dec. 31, 2017USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Estimated CARO ranges per structure, minimum | $ 3,000,000 | |
Estimated CARO ranges per structure, maximum | $ 28,000,000 | |
Number of structures required to demolish | Structure | 24 | |
Current liability | $ 122,000,000 | $ 108,000,000 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Schedule of Carrying Value of Recorded AROs by Major Category (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Mine reclamation | $ 198 | $ 221 | |
Closure of bauxite residue areas | 231 | 238 | |
Spent pot lining disposal | 113 | 125 | |
Demolition | 76 | 113 | |
Landfill closure | 33 | 27 | |
Other | 1 | ||
Asset retirement obligation, total | $ 651 | $ 725 | $ 708 |
Asset Retirement Obligations _3
Asset Retirement Obligations - Schedule of Changes in Carrying Value of Recorded AROs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 725 | $ 708 |
Accretion expense | 17 | 17 |
Payments | (80) | (69) |
Liabilities incurred | 63 | 70 |
Reversals of previously recorded liabilities | (37) | (27) |
Foreign currency translation and other | (37) | 26 |
Balance at end of year | $ 651 | $ 725 |
Asset Retirement Obligations _4
Asset Retirement Obligations - Schedule of Changes in Carrying Value of Recorded AROs (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Portovesme (Italy) | ||
Asset Retirement Obligations [Line Items] | ||
Reversals of previously recorded liabilities | $ 36 | |
Warrick (Indiana) smelters [Member] | ||
Asset Retirement Obligations [Line Items] | ||
Reversals of previously recorded liabilities | $ 20 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2018USD ($) | Feb. 28, 2018EUR (€) | Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Jun. 30, 2018USD ($)Installment | Jun. 30, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||||||||||
Management estimate for maximum exposure from class action | $ 97 | € 76 | |||||||||
Partial reserve | $ 37 | € 34 | |||||||||
Litigation settlement | $ 18 | € 15 | 8 | ||||||||
Reduction in restructuring and other charges reserve | $ 22 | € 19 | |||||||||
Accrued environmental reserves | $ 280 | $ 294 | |||||||||
Invitalia [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Cash payment | $ 23 | € 20 | |||||||||
Number of installments, litigation payment | Installment | 3 | ||||||||||
Installment amount | $ 8 | € 7 | |||||||||
Net benefit in Restructuring and other charges | 15 | ||||||||||
Reversal of previously accrued asset retirement obligations and environmental reserves | 38 | ||||||||||
Accrued asset retirement obligations | 36 | ||||||||||
Accrued environmental reserves | 2 | ||||||||||
Charge to establish a liability for planned cash payment to Invitalia | $ 23 |
Contingencies and Commitments_2
Contingencies and Commitments - Additional Information - 1 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 04, 2016 | |
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | $ 280 | $ 294 | |||
Remediation reserve balance, classified as a current liability | 44 | 36 | |||
Increase (decrease) in remediation reserve | 16 | ||||
Payments related to remediation expenses applied against the reserve | 25 | 48 | $ 32 | ||
Increase (Decrease) in reserves due to effects of foreign currency translation | 6 | 11 | 5 | ||
Reclassification of obligation transferred on separation | 6 | 17 | 60 | ||
Reclassification of amounts included in asset retirement obligations | 1 | 5 | |||
Reclassification of amounts included in other reserves | $ 17 | ||||
Cost of Goods Sold [Member] | |||||
Loss Contingencies [Line Items] | |||||
Increase (decrease) in remediation reserve | 7 | ||||
Restructuring and Other Charges [Member] | |||||
Loss Contingencies [Line Items] | |||||
Changes to the remediation reserve due to charges | 2 | ||||
Remediation reserve balance, revision | 2 | ||||
Rockdale Smelter Curtailment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Increase (decrease) in remediation reserve | 1 | ||||
Remediation reserve adjustment | 8 | ||||
Baie Comeau and Mosjen [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve adjustment | 6 | ||||
Warrick Smelter, Wenatchee Smelter and Point Comfort [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve adjustment | 4 | ||||
Other Sites [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve adjustment | 3 | 13 | |||
Changes to the remediation reserve due to charges | 9 | ||||
Suriname Refinery and Permanent Closure [Member] | |||||
Loss Contingencies [Line Items] | |||||
Increase (decrease) in remediation reserve | 39 | ||||
Remediation reserve adjustment | 26 | ||||
Sherwin [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | 38 | $ 29 | |||
Changes to the remediation reserve due to charges | 9 | ||||
Portovesme Italy [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance, revision | 2 | ||||
Several Sites [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | 132 | 150 | |||
''Sherwin, TX Site [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | 38 | 29 | |||
Increase (decrease) in remediation reserve | $ 9 | ||||
Alcoa Corporation [Member] | Warrick Smelter, Wenatchee Smelter and Point Comfort [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve adjustment | $ 4 | $ 26 |
Contingencies and Commitments_3
Contingencies and Commitments - Additional Information - 2 (Detail) $ in Millions | Dec. 31, 2018USD ($) | Jul. 06, 2018USD ($) | Jun. 06, 2018USD ($) | Jun. 05, 2018USD ($) | Dec. 16, 2016USD ($)Claim | Apr. 08, 2015USD ($)RefineryInstallment | Apr. 08, 2013USD ($) | Apr. 08, 2013BRL (R$) | Feb. 28, 2018USD ($)Claim | Apr. 30, 2016USD ($)Refinery | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2002t | Dec. 31, 2018AUD ($) | Jul. 06, 2018EUR (€) | Jun. 30, 2018EUR (€) | Dec. 31, 2017AUD ($) | Dec. 31, 2017BRL (R$) | Aug. 31, 2017USD ($) | Oct. 04, 2016USD ($) | Jun. 30, 2015USD ($) | Apr. 08, 2013BRL (R$) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Remediation reserve balance | $ 280,000,000 | $ 280,000,000 | $ 294,000,000 | |||||||||||||||||||||||||||
Increase (decrease) in remediation reserve | 16,000,000 | |||||||||||||||||||||||||||||
Value added tax receivable | 107,000,000 | |||||||||||||||||||||||||||||
Estimated fair value of land and other assets | $ 16,000,000 | |||||||||||||||||||||||||||||
Description of closure of Copano facility | A portion of the Copano facility must be closed within 10 years and the remaining portion must be closed within 30 years. | |||||||||||||||||||||||||||||
Maximum period of submitting groundwater assessment report and a drinking water survey report related to Copano facility from effective date | 180 days | |||||||||||||||||||||||||||||
Properties, plants, and equipment recognized | $ 16,000,000 | |||||||||||||||||||||||||||||
Environmental remediation liabilities recognized | 9,000,000 | |||||||||||||||||||||||||||||
Other related liabilities recognized | 7,000,000 | |||||||||||||||||||||||||||||
Financial assurance paid to trust managed by state of Texas | $ 12,000,000 | |||||||||||||||||||||||||||||
Purchase obligations due in 2019 | $ 151,000,000 | 151,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2020 | 209,000,000 | 209,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2021 | 213,000,000 | 213,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2022 | 217,000,000 | 217,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2023 | 223,000,000 | 223,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due thereafter | 2,718,000,000 | 2,718,000,000 | ||||||||||||||||||||||||||||
Purchase obligations expenditures | 169,000,000 | 199,000,000 | $ 181,000,000 | |||||||||||||||||||||||||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | |||||||||||||||||||||||||||||
Asset included in other noncurrent assets | 458,000,000 | 458,000,000 | 510,000,000 | |||||||||||||||||||||||||||
Operating leases, expense | 102,000,000 | 101,000,000 | $ 90,000,000 | |||||||||||||||||||||||||||
Long-term operating leases, minimum annual lease payments (undiscounted) due in 2019 | 74,000,000 | 74,000,000 | ||||||||||||||||||||||||||||
Long-term operating leases, minimum annual lease payments (undiscounted) due in 2020 | 56,000,000 | 56,000,000 | ||||||||||||||||||||||||||||
Long-term operating leases, minimum annual lease payments (undiscounted) due in 2021 | 42,000,000 | 42,000,000 | ||||||||||||||||||||||||||||
Long-term operating leases, minimum annual lease payments (undiscounted) due in 2022 | 11,000,000 | 11,000,000 | ||||||||||||||||||||||||||||
Long-term operating leases, minimum annual lease payments (undiscounted) due in 2023 | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||||||
Long-term operating leases, minimum annual lease payments (undiscounted) due thereafter | 21,000,000 | 21,000,000 | ||||||||||||||||||||||||||||
Guarantees of third party related to project financing | 60,000,000 | $ 60,000,000 | ||||||||||||||||||||||||||||
Line of credit renew or expire starting year | 2,019 | 2,019 | ||||||||||||||||||||||||||||
Line of credit renew or expire ending year | 2,022 | 2,022 | ||||||||||||||||||||||||||||
Letters of credit, total amount committed | 373,000,000 | $ 373,000,000 | ||||||||||||||||||||||||||||
Outstanding bank guarantees and letters of credit | $ 29,000,000 | |||||||||||||||||||||||||||||
Letter of credit agreement, expiration date | Aug. 17, 2019 | Aug. 17, 2019 | ||||||||||||||||||||||||||||
Total amount committed under outstanding surety bonds | 40,000,000 | $ 40,000,000 | ||||||||||||||||||||||||||||
Surety bonds, expiration date | 2,019 | 2,019 | ||||||||||||||||||||||||||||
Alcoa Corporation [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total amount committed under outstanding surety bonds | 16,000,000 | $ 16,000,000 | ||||||||||||||||||||||||||||
Arconic Inc [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total amount committed under outstanding surety bonds | 2,000,000 | 2,000,000 | ||||||||||||||||||||||||||||
Letter of Credit [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Letters of credit | 136,000,000 | 136,000,000 | ||||||||||||||||||||||||||||
Standby Letter of Credit Agreement [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, outstanding borrowings | $ 150,000,000 | |||||||||||||||||||||||||||||
AofA [Member] | Service Agreements [Member] | Alcoa Corporation [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | |||||||||||||||||||||||||||||
Number of installments | Installment | 2 | |||||||||||||||||||||||||||||
Gas supply agreement prepayment amount | $ 500,000,000 | |||||||||||||||||||||||||||||
AofA [Member] | Service Agreements [Member] | First Installment [Member] | Alcoa Corporation [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Gas supply agreement prepayment amount | $ 300,000,000 | |||||||||||||||||||||||||||||
Asset included in other noncurrent assets | 458,000,000 | 458,000,000 | 510,000,000 | $ 654 | $ 654 | |||||||||||||||||||||||||
AofA [Member] | Service Agreements [Member] | Second Installment [Member] | Alcoa Corporation [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Gas supply agreement prepayment amount | $ 200,000,000 | |||||||||||||||||||||||||||||
Energy Raw Materials And Other Goods And Services [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Purchase obligations due in 2019 | 1,886,000,000 | 1,886,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2020 | 1,312,000,000 | 1,312,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2021 | 1,229,000,000 | 1,229,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2022 | 1,313,000,000 | 1,313,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due in 2023 | 1,315,000,000 | 1,315,000,000 | ||||||||||||||||||||||||||||
Purchase obligations due thereafter | 11,302,000,000 | 11,302,000,000 | ||||||||||||||||||||||||||||
Cost of Goods Sold [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Increase (decrease) in remediation reserve | $ 7,000,000 | |||||||||||||||||||||||||||||
Contract for Mining Services [Member] | Boskalis Binding Arbitration Proceeding [Member] | Suralco [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Claims sought | $ 47,000,000 | |||||||||||||||||||||||||||||
Litigation filing date | December 16, 2016 | |||||||||||||||||||||||||||||
Number of claims | Claim | 4 | |||||||||||||||||||||||||||||
Number of claims settled | Claim | 2 | |||||||||||||||||||||||||||||
Number of claims dismissed | Claim | 2 | |||||||||||||||||||||||||||||
Amount awarded for the damages | $ 29,000,000 | |||||||||||||||||||||||||||||
Amount awarded including prejudgment interest | 3,000,000 | |||||||||||||||||||||||||||||
Cash payment for damages | $ 29,000,000 | |||||||||||||||||||||||||||||
Cash payment for damages after noncontrolling interest | 17,000,000 | |||||||||||||||||||||||||||||
Contract for Mining Services [Member] | Boskalis Binding Arbitration Proceeding [Member] | Suralco [Member] | Cost of Goods Sold [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Cash payment for damages | 26,000,000 | |||||||||||||||||||||||||||||
Contract for Mining Services [Member] | Boskalis Binding Arbitration Proceeding [Member] | Suralco [Member] | Interest Expense | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Cash payment for damages | $ 3,000,000 | |||||||||||||||||||||||||||||
State and Local Jurisdiction [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total combined assessments | 46,000,000 | R$ 145000000 | ||||||||||||||||||||||||||||
Income tax settled | 8,000,000 | R$ 25000000 | ||||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Expiration date of unconditional purchase obligations for energy | 2,028 | 2,028 | ||||||||||||||||||||||||||||
Guarantees, expiration date | 2,018 | 2,018 | ||||||||||||||||||||||||||||
Minimum [Member] | Boskalis Binding Arbitration Proceeding [Member] | Suralco [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Unfavorable decision probability percentage | 25.00% | 25.00% | ||||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Expiration date of unconditional purchase obligations for energy | 2,037 | 2,037 | ||||||||||||||||||||||||||||
Guarantees, expiration date | 2,021 | 2,021 | ||||||||||||||||||||||||||||
Arconic Inc [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Outstanding bank guarantees and letters of credit | $ 15,000,000 | |||||||||||||||||||||||||||||
Alcoa Aluminio [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Metal sold per month | t | 2,000 | |||||||||||||||||||||||||||||
Tax Authority, Spain [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30,000,000 | € 26,000,000 | $ 30,000,000 | € 26,000,000 | ||||||||||||||||||||||||||
Percentage of share of the estimated loss | 49.00% | 49.00% | 49.00% | 49.00% | ||||||||||||||||||||||||||
Tax Authority, Spain [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total combined assessments | $ 25,000,000 | € 21,000,000 | ||||||||||||||||||||||||||||
Tax Authority, Spain [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total combined assessments | $ 61,000,000 | € 53,000,000 | ||||||||||||||||||||||||||||
Tax Authority, Spain [Member] | Arconic Inc [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Tax matters agreement, contribution percentage | 51.00% | |||||||||||||||||||||||||||||
Tax Authority, Spain [Member] | Alcoa Corporation [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Tax matters agreement, contribution percentage | 49.00% | |||||||||||||||||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Disallowed tax credits | $ 110,000,000 | R$ 220000000 | ||||||||||||||||||||||||||||
Percentage of penalty of the gross disallowed amount | 50.00% | |||||||||||||||||||||||||||||
Value added tax receivable | $ 41,000,000 | R$ 82000000 | ||||||||||||||||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 0 | |||||||||||||||||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Minimum [Member] | Fixed Assets [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Disallowed tax credits | 0 | |||||||||||||||||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | 27,000,000 | R$ 103000000 | ||||||||||||||||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Maximum [Member] | Fixed Assets [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Disallowed tax credits | $ 30,000,000 | R$ 117000000 | ||||||||||||||||||||||||||||
Tax Year 2006 Through 2009 [Member] | Tax Authority, Spain [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total combined assessments | $ 152,000,000 | € 131,000,000 | ||||||||||||||||||||||||||||
Baie Comeau [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Remediation reserve balance | 3,000,000 | $ 3,000,000 | 5,000,000 | |||||||||||||||||||||||||||
Payments related to remediation expenses applied against the reserve | (4,000,000) | |||||||||||||||||||||||||||||
Fusina Site [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Remediation reserve balance | 5,000,000 | 5,000,000 | 8,000,000 | |||||||||||||||||||||||||||
Portovesme [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Increase (decrease) in remediation reserve | 12,000,000 | 16,000,000 | ||||||||||||||||||||||||||||
Mosjoen [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Remediation reserve balance | 2,000,000 | |||||||||||||||||||||||||||||
Increase (decrease) in remediation reserve | (2,000,000) | |||||||||||||||||||||||||||||
East St. Louis, IL Site [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Remediation reserve balance | 3,000,000 | $ 3,000,000 | $ 4,000,000 | |||||||||||||||||||||||||||
Long-term inspection, maintenance, and monitoring program period in years | 30 years | 30 years | ||||||||||||||||||||||||||||
Sherwin [Member] | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Remediation reserve balance | $ 38,000,000 | $ 38,000,000 | $ 29,000,000 |
Other Financial Information - S
Other Financial Information - Schedule of Interest Cost Components (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Financial Information [Abstract] | |||
Amount charged to expense | $ 122 | $ 104 | $ 243 |
Amount capitalized | 14 | 17 | 23 |
Interest costs, total | $ 136 | $ 121 | $ 266 |
Other Financial Information -_2
Other Financial Information - Schedule of Other Expenses (Income), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |||
Equity loss | $ 17 | $ 28 | $ 70 |
Foreign currency (gains) losses, net | (57) | 8 | 8 |
Net gain from asset sales | (116) | (164) | |
Net (gain) loss on mark-to-market derivative instruments | (25) | 24 | 9 |
Non-service costs – Pension & OPEB | 139 | 85 | 24 |
Other, net | (10) | (2) | (12) |
Other (income) expenses, net | $ 64 | $ 27 | $ (65) |
Other Financial Information - A
Other Financial Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Subsidiary | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other Non operating Income Expense [Line Items] | |||||
Net gain from asset sales | $ 116 | $ 164 | |||
Restructuring and other charges (D) | $ 138 | $ 297 | $ 527 | 309 | 318 |
Brazil [Member] | Alcoa World Alumina Brazil and Alcoa Alumínio [Member] | |||||
Other Non operating Income Expense [Line Items] | |||||
Number of subsidiaries | Subsidiary | 2 | ||||
Restructuring and other charges (D) | $ 107 | ||||
Disposal of Land [Member] | |||||
Other Non operating Income Expense [Line Items] | |||||
Net gain from asset sales | 118 | ||||
Disposal of Equity Interests [Member] | |||||
Other Non operating Income Expense [Line Items] | |||||
Net gain from asset sales | $ 27 | ||||
Yadkin [Member] | |||||
Other Non operating Income Expense [Line Items] | |||||
Net gain from asset sales | $ 122 |
Other Financial Information -_3
Other Financial Information - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Financial Information [Abstract] | ||
Gas supply prepayment | $ 458 | $ 510 |
Prepaid gas transmission contract | 275 | 300 |
Value-added tax credits | 210 | 340 |
Goodwill | 151 | 154 |
Deferred mining costs, net | 123 | 139 |
Prepaid pension benefit | 63 | 72 |
Intangibles, net | 57 | 62 |
Other | 138 | 142 |
Other assets, noncurrent, total | $ 1,475 | $ 1,719 |
Other Financial Information -_4
Other Financial Information - Schedule of Other Noncurrent Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Financial Information [Abstract] | ||
Accrued compensation and retirement costs | $ 107 | $ 127 |
Deferred alumina sales revenue | 61 | 68 |
Other | 54 | 84 |
Other noncurrent liabilities and deferred credits, total | $ 222 | $ 279 |
Other Financial Information -_5
Other Financial Information - Schedule of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents (O) | $ 1,113 | $ 1,358 | ||
Restricted cash | 3 | 7 | ||
Cash and cash equivalents and restricted cash, total | $ 1,116 | $ 1,365 | $ 859 | $ 557 |
Other Financial Information -_6
Other Financial Information - Schedule of Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Financial Information [Abstract] | |||
Interest, net of amount capitalized | $ 111 | $ 100 | $ 226 |
Income taxes, net of amount refunded | $ 507 | $ 363 | $ 265 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Millions | Feb. 14, 2019Smelterkt | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019 | Jun. 30, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | ||||||||
Restructuring-related charges, pre-tax | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 | |||
Scenario Forecast [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Restructuring-related charges, pre-tax | $ 215 | |||||||
Restructuring-related charges, after-tax | $ 250 | |||||||
Restructuring-related charges non-cash percentage | 40.00% | |||||||
Restructuring-related charges cash percentage | 60.00% | |||||||
Scenario Forecast [Member] | Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Restructuring-related charges expected per diluted share | $ / shares | $ 1.14 | |||||||
Scenario Forecast [Member] | Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Restructuring-related charges expected per diluted share | $ / shares | $ 1.35 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of smelters | Smelter | 2 | |||||||
Combined operating capacity | kt | 124 |
Quarterly Data - Schedule of Qu
Quarterly Data - Schedule of Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 3,174 | $ 2,964 | $ 2,859 | $ 2,655 | $ 13,403 | $ 11,652 | $ 9,318 |
Net income (loss) | 212 | 155 | 230 | 274 | (56) | 169 | 138 | 308 | 871 | 559 | (346) |
Net income (loss) attributable to Alcoa Corporation | $ 43 | $ (41) | $ 75 | $ 150 | $ (196) | $ 113 | $ 75 | $ 225 | $ 227 | $ 217 | $ (400) |
Earnings per share attributable to Alcoa Corporation common shareholders(1): | |||||||||||
Basic | $ 0.23 | $ (0.22) | $ 0.40 | $ 0.81 | $ (1.06) | $ 0.61 | $ 0.41 | $ 1.23 | $ 1.22 | $ 1.18 | $ (2.19) |
Diluted | $ 0.23 | $ (0.22) | $ 0.39 | $ 0.80 | $ (1.06) | $ 0.60 | $ 0.40 | $ 1.21 | $ 1.20 | $ 1.16 | $ (2.19) |
Quarterly Data - Schedule of _2
Quarterly Data - Schedule of Quarterly Data (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Restructuring-related charges, pre-tax | $ 138 | $ 297 | $ 527 | $ 309 | $ 318 |
Discrete income tax charges for a valuation allowance | $ 98 | ||||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% |