Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AA | |
Entity Registrant Name | ALCOA CORP | |
Entity Central Index Key | 0001675149 | |
Entity File Number | 1-37816 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1789115 | |
Entity Address, Address Line One | 201 Isabella Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15212-5858 | |
City Area Code | 412 | |
Local Phone Number | 315-2900 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 185,929,586 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Statement of Consolidated Opera
Statement of Consolidated Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales (E) | $ 2,365 | $ 2,567 | $ 6,894 | $ 7,997 |
Cost of goods sold (exclusive of expenses below) | 2,038 | 2,120 | 5,995 | 6,489 |
Selling, general administrative, and other expenses | 47 | 66 | 151 | 218 |
Research and development expenses | 6 | 7 | 18 | 21 |
Provision for depreciation, depletion, and amortization | 161 | 184 | 483 | 530 |
Restructuring and other charges, net (D) | 5 | 185 | 44 | 668 |
Interest expense | 41 | 30 | 103 | 90 |
Other expenses (income), net (Q) | 45 | 27 | (36) | 118 |
Total costs and expenses | 2,343 | 2,619 | 6,758 | 8,134 |
Income (loss) before income taxes | 22 | (52) | 136 | (137) |
Provision for income taxes | 42 | 95 | 167 | 361 |
Net loss | (20) | (147) | (31) | (498) |
Less: Net income attributable to noncontrolling interest | 29 | 74 | 135 | 324 |
NET LOSS ATTRIBUTABLE TO ALCOA CORPORATION | $ (49) | $ (221) | $ (166) | $ (822) |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (F): | ||||
Basic | $ (0.26) | $ (1.19) | $ (0.89) | $ (4.43) |
Diluted | $ (0.26) | $ (1.19) | $ (0.89) | $ (4.43) |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS ATTRIBUTABLE TO ALCOA CORPORATION | $ (49) | $ (221) | $ (166) | $ (822) |
Net (loss) income, Noncontrolling interest | 29 | 74 | 135 | 324 |
Net (loss) income | (20) | (147) | (31) | (498) |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Alcoa Corporation | (32) | 19 | (121) | 70 |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Noncontrolling interest | (3) | (6) | (1) | (7) |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | (35) | 13 | (122) | 63 |
Foreign currency translation adjustments, Alcoa Corporation | 5 | (224) | (523) | (206) |
Foreign currency translation adjustments, Noncontrolling interest | 17 | (75) | (134) | (69) |
Foreign currency translation adjustments | 22 | (299) | (657) | (275) |
Net change in unrecognized gains/losses on cash flow hedges, Alcoa Corporation | (240) | 61 | 71 | (148) |
Net change in unrecognized gains/losses on cash flow hedges, Noncontrolling interest | (3) | (21) | 2 | |
Net change in unrecognized gains/losses on cash flow hedges | (240) | 58 | 50 | (146) |
Total Other comprehensive (loss) income, net of tax, Alcoa Corporation | (267) | (144) | (573) | (284) |
Total Other comprehensive (loss) income, net of tax, Noncontrolling interest | 14 | (84) | (156) | (74) |
Total Other comprehensive (loss) income, net of tax | (253) | (228) | (729) | (358) |
Comprehensive (loss) income, Alcoa Corporation | (316) | (365) | (739) | (1,106) |
Comprehensive (loss) income, Noncontrolling interest | 43 | (10) | (21) | 250 |
Comprehensive (loss) income | $ (273) | $ (375) | $ (760) | $ (856) |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents (M) | $ 1,736 | $ 879 |
Receivables from customers (I) | 516 | 546 |
Other receivables | 95 | 114 |
Inventories (J) | 1,398 | 1,644 |
Fair value of derivative instruments (M) | 11 | 59 |
Prepaid expenses and other current assets | 297 | 288 |
Total current assets | 4,053 | 3,530 |
Properties, plants, and equipment | 21,061 | 21,715 |
Less: accumulated depreciation, depletion, and amortization | 13,811 | 13,799 |
Properties, plants, and equipment, net | 7,250 | 7,916 |
Investments (H) | 1,034 | 1,113 |
Deferred income taxes | 540 | 642 |
Fair value of derivative instruments (M) | 1 | 18 |
Other noncurrent assets | 1,372 | 1,412 |
Total assets | 14,250 | 14,631 |
Current liabilities: | ||
Accounts payable, trade | 1,360 | 1,484 |
Accrued compensation and retirement costs | 408 | 413 |
Taxes, including income taxes | 57 | 104 |
Fair value of derivative instruments (M) | 61 | 67 |
Other current liabilities | 415 | 494 |
Long-term debt due within one year (K & M) | 2 | 1 |
Total current liabilities | 2,303 | 2,563 |
Long-term debt, less amount due within one year (K & M) | 2,538 | 1,799 |
Accrued pension benefits (L) | 1,566 | 1,505 |
Accrued other postretirement benefits (L) | 770 | 749 |
Asset retirement obligations | 553 | 606 |
Environmental remediation (P) | 289 | 296 |
Fair value of derivative instruments (M) | 475 | 581 |
Noncurrent income taxes | 244 | 276 |
Other noncurrent liabilities and deferred credits | 493 | 370 |
Total liabilities | 9,231 | 8,745 |
CONTINGENCIES AND COMMITMENTS (P) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock | 2 | 2 |
Additional capital | 9,661 | 9,639 |
Accumulated deficit | (721) | (555) |
Accumulated other comprehensive loss (G) | (5,547) | (4,974) |
Total Alcoa Corporation shareholders’ equity | 3,395 | 4,112 |
Noncontrolling interest | 1,624 | 1,774 |
Total equity | 5,019 | 5,886 |
Total liabilities and equity | $ 14,250 | $ 14,631 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FROM OPERATIONS | ||
Net loss | $ (31) | $ (498) |
Adjustments to reconcile net loss to cash from operations: | ||
Depreciation, depletion, and amortization | 483 | 530 |
Deferred income taxes | (12) | 59 |
Equity earnings, net of dividends | 19 | 12 |
Restructuring and other charges, net (D) | 44 | 668 |
Net gain from investing activities – asset sales (Q) | (174) | (6) |
Net periodic pension benefit cost (L) | 103 | 90 |
Stock-based compensation | 24 | 29 |
Provision for bad debt expense | 2 | 21 |
Other | 11 | 19 |
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments: | ||
Decrease in receivables | 26 | 127 |
Decrease in inventories | 221 | 111 |
Decrease in prepaid expenses and other current assets | 21 | 70 |
(Decrease) in accounts payable, trade | (87) | (199) |
(Decrease) in accrued expenses | (166) | (147) |
Increase (Decrease) in taxes, including income taxes | 95 | (344) |
Pension contributions (L) | (83) | (67) |
(Increase) in noncurrent assets | (64) | (24) |
(Decrease) in noncurrent liabilities | (76) | (27) |
CASH PROVIDED FROM OPERATIONS | 356 | 424 |
FINANCING ACTIVITIES | ||
Additions to debt (original maturities greater than three months) | 739 | |
Proceeds from the exercise of employee stock options | 2 | |
Financial contributions for the divestiture of businesses (D) | (30) | |
Contributions from noncontrolling interest | 24 | 41 |
Distributions to noncontrolling interest | (152) | (388) |
Other | (4) | (6) |
CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES | 577 | (351) |
INVESTING ACTIVITIES | ||
Capital expenditures | (242) | (245) |
Proceeds from the sale of assets | 198 | 23 |
Additions to investments | (6) | (112) |
CASH USED FOR INVESTING ACTIVITIES | (50) | (334) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (27) | (11) |
Net change in cash and cash equivalents and restricted cash | 856 | (272) |
Cash and cash equivalents and restricted cash at beginning of year | 883 | 1,116 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 1,739 | $ 844 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained (Deficit) Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Balance at Dec. 31, 2018 | $ 7,588 | $ 2 | $ 9,611 | $ 570 | $ (4,565) | $ 1,970 |
Net (loss) income | (498) | (822) | 324 | |||
Other comprehensive (loss) income (G) | (358) | (284) | (74) | |||
Stock-based compensation | 29 | 29 | ||||
Common stock issued: compensation plans | 2 | 2 | ||||
Contributions | 41 | 41 | ||||
Distributions | (388) | (388) | ||||
Other | (6) | (4) | (2) | |||
Balance at Sep. 30, 2019 | 6,410 | 2 | 9,638 | (252) | (4,849) | 1,871 |
Balance at Jun. 30, 2019 | 6,859 | 2 | 9,629 | (31) | (4,705) | 1,964 |
Net (loss) income | (147) | (221) | 74 | |||
Other comprehensive (loss) income (G) | (228) | (144) | (84) | |||
Stock-based compensation | 8 | 8 | ||||
Common stock issued: compensation plans | 1 | 1 | ||||
Contributions | 20 | 20 | ||||
Distributions | (102) | (102) | ||||
Other | (1) | (1) | ||||
Balance at Sep. 30, 2019 | 6,410 | 2 | 9,638 | (252) | (4,849) | 1,871 |
Balance at Dec. 31, 2019 | 5,886 | 2 | 9,639 | (555) | (4,974) | 1,774 |
Net (loss) income | (31) | (166) | 135 | |||
Other comprehensive (loss) income (G) | (729) | (573) | (156) | |||
Stock-based compensation | 24 | 24 | ||||
Contributions | 24 | 24 | ||||
Distributions | (152) | (152) | ||||
Other | (3) | (2) | (1) | |||
Balance at Sep. 30, 2020 | 5,019 | 2 | 9,661 | (721) | (5,547) | 1,624 |
Balance at Jun. 30, 2020 | 5,324 | 2 | 9,655 | (672) | (5,280) | 1,619 |
Net (loss) income | (20) | (49) | 29 | |||
Other comprehensive (loss) income (G) | (253) | (267) | 14 | |||
Stock-based compensation | 7 | 7 | ||||
Contributions | 8 | 8 | ||||
Distributions | (46) | (46) | ||||
Other | (1) | (1) | ||||
Balance at Sep. 30, 2020 | $ 5,019 | $ 2 | $ 9,661 | $ (721) | $ (5,547) | $ 1,624 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | A. – The interim Consolidated Financial Statements of Alcoa Corporation and its subsidiaries (Alcoa Corporation, Alcoa, or the Company) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2019 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which includes all disclosures required by GAAP. In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Management uses historical experience and all available information to make these estimates, including considerations for the impact of the coronavirus (COVID-19) pandemic on the macroeconomic environment. The Company has experienced certain negative impacts as a result of the COVID-19 pandemic to date; however, the ultimate magnitude and duration of the COVID-19 pandemic continues to be unknown, and the pandemic’s ultimate future impact on the Company’s business, financial condition, operating results, cash flows, and market capitalization is uncertain. In addition, the COVID-19 pandemic could adversely impact estimates made as of September 30, 2020 regarding future results, such as the recoverability of goodwill and long-lived assets and the realizability of deferred tax assets. Despite these inherent limitations, management believes that the amounts recorded in the financial statements related to these items are based on its best estimates and judgments using all relevant information available at the time. Management regularly evaluates the judgments and assumptions used in its estimates, and results could differ from those estimates upon future events and their effects or new information. References in these Notes to ParentCo refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries through October 31, 2016, at which time it was renamed Arconic Inc. (and since has been subsequently renamed Howmet Aerospace Inc.). On November 1, 2016 (the Separation Date), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic Inc. (the Separation Transaction). In connection with the Separation Transaction, as of October 31, 2016, the Company and Arconic Inc. entered into several agreements to effect the Separation Transaction, including a Separation and Distribution Agreement and a Tax Matters Agreement. See Note A 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, 2019 for additional information. Principles of Consolidation. The Consolidated Financial Statements of Alcoa Corporation include the accounts of Alcoa Corporation and companies in which Alcoa Corporation has a controlling interest, including those that comprise the Alcoa World Alumina & Chemicals (AWAC) joint venture (see below). Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa Corporation has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for 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, or have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and portions of the São Luís refinery and investment in Mineração Rio do Norte S.A., all in Brazil) and the Portland smelter in Australia within Alcoa Corporation’s Aluminum segment. Alcoa Corporation owns 60% and Alumina Limited owns 40% of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited (AofA), Alcoa World Alumina LLC (AWA), and Alcoa World Alumina Brasil Ltda. (AWAB). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | B. Recently Adopted and Recently Issued Accounting Guidance Adopted On January 1, 2020, the Company adopted the following Accounting Standard Updates (ASU) issued by the Financial Accounting Standard Board (FASB), none of which had a material impact on the Company’s Consolidated Financial Statements: • ASU No. 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606); • ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software; • ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20); • ASU No. 2018-13, Fair Value Measurement (Topic 820); and, • ASU No. 2016-13, Financial Instruments – Credit Losses. Issued In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) which is intended to simplify the accounting for income taxes by eliminating certain exceptions and simplifying certain requirements under Topic 740. Updates are related to intraperiod tax allocation, deferred tax liabilities for equity method investments, interim period tax calculations, tax laws or rate changes in interim periods, and income taxes related to employee stock ownership plans. The guidance for ASU No. 2019-12 becomes effective for Alcoa on January 1, 2021. The primary provision expected to impact the Company is related to intraperiod tax allocations, which have historically not had a significant impact on the Company. Upon adoption of this provision there will be no impact to the Consolidated Financial Statements. Once adopted, the provision will eliminate the requirement to make an intraperiod allocation if there is a loss in continuing operations and income outside of continuing operations. Management is currently evaluating the remaining provisions but does not expect a material impact to the Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04 to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Management is currently evaluating the impact of the replacement of the London Interbank Offered Rate (LIBOR) as well as the impact that the expected adoption of the applicable provisions within the optional guidance will have on the Consolidated Financial Statements. The adoption of the applicable provisions will coincide with the modifications of the affected contracts. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Divestitures | C. Divestitures – During the first quarter of 2020, the Company sold Elemental Environmental Solutions LLC (EES), a wholly-owned Alcoa subsidiary that operated the waste processing facility in Gum Springs, Arkansas, to a global environmental firm in a transaction valued at $250. At the close of the transaction the Company recorded a gain of $180 (pre- and after-tax; see Note Q) and received approximately $200 with another $50 held in escrow to be paid to Alcoa if certain post-closing conditions are satisfied, which would result in additional gain being recorded. During the second quarter of 2020, an additional $1 gain was recorded as a result of certain post-closing adjustments based on the terms of the agreement. Further post-closing adjustments may occur related to this transaction and are not expected to be significant. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges, Net | D. Restructuring and Other Charges, Net – In the third quarter and nine-month period of 2020, Alcoa Corporation recorded Restructuring and other charges, net, of $5 and $44, respectively. The third quarter and nine-month net charges were comprised of the following items: a reversal of $4 and a charge of $23, respectively, related to the curtailment of the Intalco (Washington) smelter, charges of $4 and $17, respectively, for additional contract costs related to the curtailed Wenatchee (Washington) smelter, $5 (both periods) related to settlements of certain pension benefits (see Note L), and several other insignificant items. In April 2020, as part of the Company’s portfolio review, Alcoa Corporation announced the curtailment of the remaining 230 kmt of uncompetitive smelting capacity at the Intalco (Washington) smelter amid declining market conditions. The full curtailment, which included 49 kmt of earlier-curtailed capacity, was completed during the third quarter of 2020. The $27 net restructuring charge recorded in the second quarter of 2020 was comprised of $17 for severance and employee termination costs from the separation of approximately 685 employees, $11 for contract termination costs, and a net curtailment gain of $1 related to the U.S. hourly defined benefit pension and retiree life plans (see Note L). Changes in the severance and employee termination cost reserve during the third quarter and nine-month period of 2020 included a reduction from cash payments of $8 and $10, respectively, and a reversal of $4 (both periods) resulting from changes in employee severance benefit elections. At September 30, 2020, approximately 590 of the 685 employees had been terminated with the remaining severance and employee termination costs expected to be paid primarily in the fourth quarter of 2020. During the third quarter and nine-month period of 2020, payments of $1 reduced the reserve for contract termination costs with the remaining contract termination costs expected to be paid through the third quarter of 2021. Additional contract termination costs related to take-or-pay agreements may recur during the curtailment period. In the third quarter and nine-month period of 2019, Alcoa Corporation recorded Restructuring and other charges, net, of $185 and $668, respectively, which were comprised of the following components: $134 and $242, respectively, for exit costs related to the curtailment and subsequent divestiture of the Avilés and La Coruña facilities in Spain (see below); $37 (both periods) for employee termination and severance costs related to the implementation of the new operating model (see below); $5 (both periods) related to settlements of certain pension benefits (see Note L); $38 (nine-month period only) related to the curtailment of certain pension benefits (see Note L); $319 (nine-month period only) related to the divestiture of Alcoa Corporation’s interest in the Ma’aden Rolling Company (MRC) (see below); $1 and $9, respectively, for closure costs related to a coal mine; and $8 and $18, respectively, for net charges related to various other items. Restructuring charges recorded in the first quarter of 2019 related to the Avilés and La Coruña smelter curtailments in Spain included asset impairments of $80, employee-related costs of $15, and contract termination costs of $8. Additional charges recorded in the first quarter of 2019 included a $ 15 write down of remaining inventories to their net realizable value, which was recorded in Cost of goods sold, and $ 2 in miscellaneous charges recorded in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Restructuring charges recorded in the second quarter of 2019 related to this process we re comprised of severance costs of $ 3 and other employee-related costs of $ 2 . During the third quarter of 2019 , Alcoa Corporation divested the Avilés and La Coruña facilities in Spain and recorded $ 134 in restructuring and other charges, net. The charges were comprised of financial contributions of up to $ 95 to the private equity investment firm that acquired the facilities and a charge of $ 39 to meet a working capital commitment and write-off the remaining net book value of the facilities ’ net assets. The $319 restructuring charge recorded in the second quarter of 2019 resulting from the MRC divestiture includes the write-off of Alcoa Corporation’s investment in MRC of $161, cash contributions of $100, and the write-off of Alcoa Corporation’s share of MRC’s delinquent payables due to Ma’aden Aluminum Company of $59 that were forgiven as part of this transaction, which were partially offset by a gain of $1 resulting from the write-off of the fair value of debt guarantee. Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Bauxite $ 1 $ 5 $ 1 $ 5 Alumina 3 15 5 16 Aluminum 1 147 40 607 Segment total 5 167 46 628 Corporate — 18 (2 ) 40 Total Restructuring and other charges, net $ 5 $ 185 $ 44 $ 668 During 2019, Alcoa Corporation announced and implemented a new operating model that resulted in a leaner, more integrated, operator-centric organization. As a result of the restructuring, a charge of $37 was recorded during the third quarter of 2019 and a Severance and other employee termination cost reserve of $27 remained at December 31, 2019. During the third quarter of 2020, changes to the reserve included cash payments of $2. During the nine-month period of 2020, changes to the reserve included additional net charges of $2, a reduction of $1 caused by foreign currency impacts, and a reduction from cash payments of $24. As of September 30, 2020, approximately 235 of the 260 employees expected to be terminated in connection with the implementation of the new operating model were separated. In addition to the employees separated under the program, the Company eliminated 60 positions as open roles or retirements were not replaced. In December 2019, Alcoa Corporation announced the closure of its Point Comfort (Texas) alumina refinery. As a result of the restructuring, a Severance and other employee termination cost reserve of $4 remained at December 31, 2019. During the nine-month period of 2020, payments of $2 were made against the reserve. At September 30, 2020, approximately 35 of the 40 employees expected to be terminated in connection with the closure were separated. Also during 2019, Alcoa Corporation curtailed and subsequently divested the aluminum facilities at Avilés and La Coruña (Spain). As a result of the divestitures, a restructuring reserve of $68 remained at December 31, 2019 relating to financial contributions to the private equity investment firm that acquired the facilities. In the third quarter and nine-month period of 2020, cash payments of $6 and $30, respectively, were made against the reserve. Payments against the remaining reserve of $38 could be made through the fourth quarter of 2021. In accordance with the terms of the agreement, a portion of the remaining payments could be offset by carbon emission credits monetized by the private equity investment firm that acquired the facilities. Activity and reserve balances for restructuring charges were as follows: Severance and employee termination costs Other costs Total Balance at December 31, 2018 $ 5 $ 42 $ 47 Restructuring and other charges, net 51 161 212 Cash payments (19 ) (99 ) (118 ) Reversals and other (2 ) (2 ) (4 ) Balance at December 31, 2019 35 102 137 Restructuring and other charges, net 16 28 44 Cash payments (38 ) (63 ) (101 ) Reversals and other (2 ) (3 ) (5 ) Balance at September 30, 2020 $ 11 $ 64 $ 75 T he activity and reserve balances include only Restructuring and other charges, net that impact the reserves for Severance and employee termination costs and Other costs. Restructuring and other charges, net that affected other liability accounts such as environmental obligations (see Note P), asset retirement obligations, and pension and other postretirement reserves (see Note L) are excluded from the above activity and balances. Reversals and other includes reversals of previously recorded liabilities and foreign currency translation impacts. The noncurrent portion of the reserve was $1 and $13 at and December 31, 2019, respectively. At December 31, 2019, $12 related to financial contributions to the private equity investment firm that acquired the aluminum facilities. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | E. Segment Information – The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Bauxite Alumina Aluminum Total Third quarter ended September 30, 2020 Sales: Third-party sales $ 56 $ 697 $ 1,607 $ 2,360 Intersegment sales 236 329 2 567 Total sales $ 292 $ 1,026 $ 1,609 $ 2,927 Segment Adjusted EBITDA $ 124 $ 119 $ 116 $ 359 Supplemental information: Depreciation, depletion, and amortization $ 33 $ 41 $ 80 $ 154 Equity loss $ — $ (4 ) $ (6 ) $ (10 ) Third quarter ended September 30, 2019 Sales: Third-party sales $ 100 $ 771 $ 1,677 $ 2,548 Intersegment sales 251 369 4 624 Total sales $ 351 $ 1,140 $ 1,681 $ 3,172 Segment Adjusted EBITDA $ 134 $ 223 $ 43 $ 400 Supplemental information: Depreciation, depletion, and amortization $ 35 $ 54 $ 88 $ 177 Equity loss $ — $ — $ (5 ) $ (5 ) Bauxite Alumina Aluminum Total Nine months ended September 30, 2020 Sales: Third-party sales $ 193 $ 2,007 $ 4,680 $ 6,880 Intersegment sales 716 954 7 1,677 Total sales $ 909 $ 2,961 $ 4,687 $ 8,557 Segment Adjusted EBITDA $ 375 $ 400 $ 144 $ 919 Supplemental information: Depreciation, depletion, and amortization $ 97 $ 127 $ 240 $ 464 Equity loss — (21 ) (13 ) (34 ) Nine months ended September 30, 2019 Sales: Third-party sales $ 232 $ 2,532 $ 5,169 $ 7,933 Intersegment sales 733 1,231 11 1,975 Total sales $ 965 $ 3,763 $ 5,180 $ 9,908 Segment Adjusted EBITDA $ 372 $ 964 $ (50 ) $ 1,286 Supplemental information: Depreciation, depletion, and amortization $ 90 $ 157 $ 262 $ 509 Equity income (loss) — 15 (44 ) (29 ) The following table reconciles total Segment Adjusted EBITDA to consolidated net loss attributable to Alcoa Corporation: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Total Segment Adjusted EBITDA $ 359 $ 400 $ 919 $ 1,286 Unallocated amounts: Transformation (1) (11 ) (6 ) (37 ) (1 ) Intersegment eliminations (35 ) 25 (13 ) 110 Corporate expenses (2) (24 ) (27 ) (72 ) (79 ) Provision for depreciation, depletion, and amortization (161 ) (184 ) (483 ) (530 ) Restructuring and other charges, net (D) (5 ) (185 ) (44 ) (668 ) Interest expense (41 ) (30 ) (103 ) (90 ) Other (expenses) income, net (Q) (45 ) (27 ) 36 (118 ) Other (3) (15 ) (18 ) (67 ) (47 ) Consolidated income (loss) before income taxes 22 (52 ) 136 (137 ) Provision for income taxes (42 ) (95 ) (167 ) (361 ) Net income attributable to noncontrolling interest (29 ) (74 ) (135 ) (324 ) Consolidated net loss attributable to Alcoa Corporation $ (49 ) $ (221 ) $ (166 ) $ (822 ) ( 1 ) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. ( 2 ) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. ( 3 ) Other includes certain items that 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. The following table details Alcoa Corporation’s Sales by product division: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Primary aluminum $ 1,311 $ 1,341 $ 3,810 $ 4,117 Alumina 697 770 2,004 2,529 Flat-rolled aluminum 284 294 827 933 Bauxite 50 95 170 216 Energy 26 71 100 225 Other (3 ) (4 ) (17 ) (23 ) $ 2,365 $ 2,567 $ 6,894 $ 7,997 Other primarily includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | F. Earnings Per Share – Basic earnings per share (EPS) amounts are computed by dividing earnings by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net loss attributable to Alcoa Corporation $ (49 ) $ (221 ) $ (166 ) $ (822 ) Average shares outstanding – basic 186 186 186 185 Effect of dilutive securities: Stock options — — — — Stock units — — — — Average shares outstanding – diluted 186 186 186 185 In the third quarter and nine-month period of 2020, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Had Alcoa generated net income in the third quarter or nine-month period of 2020, one million common share equivalents related to six million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the periods. Options to purchase two million shares of common stock outstanding at September 30, 2020 were excluded because they had a weighted average exercise price of $26.50 per share, which was greater than the average market price per share of Alcoa Corporation’s common stock. In the third quarter and nine-month period of 2019, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Had Alcoa generated net income in the third quarter or the nine-month period of 2019, one million common share equivalents related to five million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the periods. Options to purchase two million shares of common stock outstanding at September 30, 2019 were excluded because they had a weighted average exercise price of $32.82 per share, which was greater than the average market price per share of Alcoa Corporation’s common stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | G. Accumulated Other Comprehensive Loss The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest Third quarter ended September 30, Third quarter ended September 30, 2020 2019 2020 2019 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,371 ) $ (2,232 ) $ (54 ) $ (47 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (93 ) (38 ) (7 ) (11 ) Tax benefit 6 11 2 4 Total Other comprehensive loss before reclassifications, net of tax (87 ) (27 ) (5 ) (7 ) Amortization of net actuarial loss and prior service cost/benefit (1) 57 49 3 2 Tax expense (2) (2 ) (3 ) (1 ) (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 55 46 2 1 Total Other comprehensive (loss) income (32 ) 19 (3 ) (6 ) Balance at end of period $ (2,403 ) $ (2,213 ) $ (57 ) $ (53 ) Foreign currency translation Balance at beginning of period $ (2,688 ) $ (2,053 ) $ (985 ) $ (804 ) Other comprehensive income (loss) (3) 5 (224 ) 17 (75 ) Balance at end of period $ (2,683 ) $ (2,277 ) $ (968 ) $ (879 ) Cash flow hedges (M) Balance at beginning of period $ (221 ) $ (420 ) $ (1 ) $ 36 Other comprehensive (loss) income: Net change from periodic revaluations (333 ) 60 (1 ) 2 Tax benefit (expense) 66 (15 ) 1 (1 ) Total Other comprehensive (loss) income before reclassifications, net of tax (267 ) 45 — 1 Net amount reclassified to earnings: Aluminum contracts (4) 21 9 — — Financial contracts (5) 3 (4 ) 1 (6 ) Interest rate contracts (6) 2 4 — — Foreign exchange contracts (4) 3 4 — — Sub-total 29 13 1 (6 ) Tax (expense) benefit (2) (2 ) 3 (1 ) 2 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 27 16 — (4 ) Total Other comprehensive (loss) income (240 ) 61 — (3 ) Balance at end of period $ (461 ) $ (359 ) $ (1 ) $ 33 Total Accumulated other comprehensive loss $ (5,547 ) $ (4,849 ) $ (1,026 ) $ (899 ) Alcoa Corporation Noncontrolling interest Nine months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,282 ) $ (2,283 ) $ (56 ) $ (46 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (294 ) (120 ) (7 ) (14 ) Tax benefit 16 28 2 4 Total Other comprehensive loss before reclassifications, net of tax (278 ) (92 ) (5 ) (10 ) Amortization of net actuarial loss and prior service cost/benefit (1) 163 177 5 4 Tax expense (2) (6 ) (15 ) (1 ) (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 157 162 4 3 Total Other comprehensive (loss) income (121 ) 70 (1 ) (7 ) Balance at end of period $ (2,403 ) $ (2,213 ) $ (57 ) $ (53 ) Foreign currency translation Balance at beginning of period $ (2,160 ) $ (2,071 ) $ (834 ) $ (810 ) Other comprehensive loss (3) (523 ) (206 ) (134 ) (69 ) Balance at end of period $ (2,683 ) $ (2,277 ) $ (968 ) $ (879 ) Cash flow hedges (M) Balance at beginning of period $ (532 ) $ (211 ) $ 20 $ 31 Other comprehensive income (loss): Net change from periodic revaluations 6 (212 ) (31 ) 35 Tax benefit (expense) 3 39 9 (11 ) Total Other comprehensive income (loss) before reclassifications, net of tax 9 (173 ) (22 ) 24 Net amount reclassified to earnings: Aluminum contracts (4) 35 34 — — Financial contracts (5) 10 (36 ) 2 (31 ) Interest rate contracts (6) 4 4 — — Foreign exchange contracts (4) 18 12 — — Sub-total 67 14 2 (31 ) Tax (expense) benefit (2) (5 ) 11 (1 ) 9 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 62 25 1 (22 ) Total Other comprehensive income (loss) 71 (148 ) (21 ) 2 Balance at end of period $ (461 ) $ (359 ) $ (1 ) $ 33 Total Accumulated other comprehensive loss $ (5,547 ) $ (4,849 ) $ (1,026 ) $ (899 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note L). (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 primarily reported in Sales on the accompanying Statement of Consolidated Operations. (5) These amounts were reported in Cost of goods sold on the accompanying Statement of Consolidated Operations. ( 6 ) These amounts were reported in Other expenses (income), net of the accompanying Statement of Consolidated Operations. ( 7 ) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments | H. Investments – A summary of unaudited financial information for Alcoa Corporation’s equity investments is as follows (amounts represent 100% of investee financial information): Third quarter ended September 30, 2020 Saudi Arabia Joint Venture Mining Energy Other Sales $ 552 $ 195 $ 51 $ 72 Cost of goods sold 435 131 28 65 Net (loss) income (38 ) 16 28 (10 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (10 ) 5 11 (4 ) Other (1 ) — 1 3 Alcoa Corporation’s equity in net (loss) income of affiliated companies (11 ) 5 12 (1 ) Third quarter ended September 30, 2019 Sales $ 607 $ 233 $ 72 $ 47 Cost of goods sold 497 147 44 45 Net (loss) income (27 ) 23 23 (15 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (7 ) 7 9 (7 ) Other 1 — (1 ) 8 Alcoa Corporation’s equity in net (loss) income of affiliated companies (6 ) 7 8 1 Nine months ended September 30, 2020 Sales $ 1,644 $ 622 $ 157 $ 230 Cost of goods sold 1,343 409 78 207 Net (loss) income (126 ) 20 75 (25 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (32 ) 14 29 (11 ) Other (5 ) (1 ) — 13 Alcoa Corporation’s equity in net (loss) income of affiliated companies (37 ) 13 29 2 Nine months ended September 30, 2019 Sales $ 2,541 $ 648 $ 199 $ 86 Cost of goods sold 2,170 428 108 83 Net (loss) income (152 ) 23 77 (21 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (38 ) 15 30 (10 ) Other 5 6 — 10 Alcoa Corporation’s equity in net (loss) income of affiliated companies (33 ) 21 30 — During the second quarter of 2019, Alcoa Corporation and the Saudi Arabian Mining Company (Ma’aden) amended the joint venture agreement that governed the operations of each of the three companies that comprised the joint venture at that time. The amendment resulted in various changes including the divestiture of the Company’s investment in Ma’aden Rolling Company (MRC). As a result, Saudi Arabia Joint Venture includes MRC’s results for the nine-month period of 2019 only. The Company’s basis in the Elysis TM |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Receivables | I. Receivables On October 25, 2019, a wholly-owned subsidiary of the Company entered into a $120 three-year revolving credit facility agreement secured by certain customer receivables. On April 20, 2020, the Company amended this agreement converting it to a Receivables Purchase Agreement to sell up to $120 of the receivables previously secured by the credit facility without recourse on a revolving basis. The unsold portion of the specified receivable pool will be pledged as collateral to the purchasing bank to secure the sold receivables. During both the third quarter and nine-month period of 2020, no receivables were sold under this agreement. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | J. Inventories September 30, 2020 December 31, 2019 Finished goods $ 228 $ 305 Work-in-process 224 282 Bauxite and alumina 411 446 Purchased raw materials 373 453 Operating supplies 162 158 $ 1,398 $ 1,644 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | K. Debt Credit Facilities. Revolving Credit Facility On April 21, 2020, the Company and Alcoa Nederland Holding B.V. (ANHBV), a wholly-owned subsidiary of Alcoa Corporation, entered into Amendment No. 2 (Amendment No. 2) to the Revolving Credit Agreement (as amended, the Revolving Credit Agreement) that temporarily adjusts the Leverage Ratio requirement, calculated as Total Indebtedness divided by Consolidated EBITDA, to 3.00 to 1.00 from 2.50 to 1.00 for the next four consecutive fiscal quarters, beginning in the second quarter of 2020 (the Amendment Period). Leverage Ratio, Total Indebtedness, and Consolidated EBITDA are each defined terms in the Revolving Credit Agreement and may not be comparable to similarly titled measures used by the Company. The Leverage Ratio requirement will return to 2.50 to 1.00 starting in the second quarter of 2021. The temporary revision positively impacts the maximum indebtedness calculation for the Company during the Amendment Period. Additionally, during the Amendment Period, the Company, ANHBV, and any restricted subsidiaries will be restricted from making certain restricted payments or incurring incremental secured loans under the Revolving Credit Agreement. On June 24, 2020, the Company and ANHBV entered into an additional amendment to the Revolving Credit Agreement (Amendment No. 3) that (i) permanently adjusts the calculation of Consolidated EBITDA by allowing the add back of certain additional non-cash costs, and (ii) temporarily adjusts, for the remaining fiscal quarters in 2020, the manner in which Consolidated Cash Interest Expense (as defined in the Revolving Credit Agreement) and Total Indebtedness are calculated with respect to certain senior notes issuances during the fiscal year ending December 31, 2020, inclusive of the July 2020 issuance discussed below. ANHBV has the option to extend the periods under Amendment No. 3 to apply to either or both fiscal quarters ending March 31, 2021 and June 30, 2021. However, doing so would also reduce the borrowing availability under the Revolving Credit Facility during the respective fiscal quarters by one-third of the net proceeds of any note issuances during the fiscal year ending December 31, 2020. If ANHBV extends the temporary amendments, the 2027 Notes (as defined below) issued in July 2020 would reduce the aggregate amount of commitments under the Revolving Credit Facility by approximately $245 during the applicable fiscal quarters. At September 30, 2020, the maximum additional borrowing capacity available to the Company to remain in compliance with the covenant was approximately $1,230. The aggregate amount of commitments under the Revolving Credit Facility remains at $1,500, which the Company still has the ability to access through a combination of the borrowing capacity and issuances of letters of credit. Alcoa Norway ANS Credit Facility On October 2, 2019, Alcoa Norway ANS, a wholly-owned subsidiary of Alcoa Corporation, entered into a one-year, multicurrency revolving credit facility agreement for NOK 1.3 billion (approximately $137) which is fully and unconditionally guaranteed on an unsecured basis by Alcoa Corporation. On April 8, 2020, Alcoa Norway ANS drew $100 against this facility, and may do so from time to time in the future, in the ordinary course of business. Repayment of the drawn amount, including interest accrued at 2.93%, occurred upon maturity on June 29, 2020. On July 3, 2020, Alcoa Norway ANS amended the revolving credit facility agreement to align the terms of the agreement with Amendment No. 2 and Amendment No. 3 of the Revolving Credit Agreement discussed above. On September 30, 2020, Alcoa Norway ANS entered into an Amendment and Restatement Agreement (the A&R Agreement) to the multicurrency revolving credit facility agreement. The A&R Agreement extended the maturity one year from the original maturity date to October 2, 2021, unless further extended or terminated early in accordance with the provisions of the A&R Agreement. The A&R Agreement also amended certain financial ratio covenants, specifying calculations based upon the results of Alcoa Norway ANS rather than the calculations outlined in the Revolving Credit Agreement. As of September 30, 2020, Alcoa Norway ANS was in compliance with all such covenants. At September 30, 2020, there were no amounts outstanding under this facility. 144A Debt In July 2020, ANHBV, completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt issuance for $750 aggregate principal amount of 5.500% Senior Notes due 2027 (the 2027 Notes). The net proceeds of this issuance were approximately $736 reflecting a discount to the initial purchasers of the 2027 Notes as well as issuance costs. The Company intends to use the net proceeds for general corporate purposes, including adding cash to its balance sheet. 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 2027 Notes. Interest on the 2027 Notes is paid semi-annually in June and December, and will commence December 15, 2020. The indenture contains customary affirmative and negative covenants that are similar to those included in the indenture from the notes issued in May 2018, such as l imitations on liens, limitations on sale and leaseback transactions, and a prohibition on a reduction in the ownership of AWAC entities below an agreed level, and the calculation of certain financial ratios ANHBV has the option to redeem the 2027 Notes on at least 15 days, but not more than 60 days, prior notice to the holders of the 2027 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after June 15, 2023, at a redemption price specified in the indenture (up to 102.075% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2027 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 2027 Notes repurchased, plus any accrued and unpaid interest on the 2027 Notes repurchased. The 2027 Notes rank equally in right of payment with all of ANHBV’s existing and future senior unsecured indebtedness, including the Senior Notes with maturities in 2024, 2026, and 2028; 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 Revolving Credit Agreement, to the extent of the value of property and assets securing such indebtedness. See Note L to the Consolidated Financial Statements in Part II Item 8 of the 2019 Annual Report on Form 10-K for additional information related to ANHBV’s existing debt and related covenants. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | L. Pension and Other Postretirement Benefits – The components of net periodic benefit cost were as follows: Third quarter ended September 30, Nine months ended September 30, Pension benefits 2020 2019 2020 2019 Service cost $ 14 $ 12 $ 41 $ 36 Interest cost (1) 41 55 124 167 Expected return on plan assets (1) (73 ) (81 ) (220 ) (244 ) Recognized net actuarial loss (1) 54 43 158 127 Amortization of prior service cost (1) — 1 — 4 Settlements (2) 5 5 5 5 Curtailments (2) — — 4 38 Net periodic benefit cost $ 41 $ 35 $ 112 $ 133 Third quarter ended September 30, Nine months ended September 30, Other postretirement benefits 2020 2019 2020 2019 Service cost $ 1 $ 1 $ 3 $ 3 Interest cost (1) 5 10 15 28 Recognized net actuarial loss (1) 5 2 14 7 Amortization of prior service benefit (1) (4 ) — (11 ) — Curtailments (2) — — (2 ) — Net periodic benefit cost $ 7 $ 13 $ 19 $ 38 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note Q). (2) These amounts were reported in Restructuring and other charges , net on the accompanying Statement s of Consolidated Operations (see Note D ) and of Cash Flows . Plan Actions. In 2020, management initiated the following actions to certain pension plans: Action #1 – In February 2020, the Company entered into a new, six-year Action #2 – In February 2020, the Company notified all non-unionized hourly employees of Aluminerie de Deschambault, who are participants in one 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 430 employees, who will be transitioned to a replacement plan yet to be determined, where the funding risk is assumed by the employees. The Company will contribute a certain percentage of these participants’ eligible earnings to the new plan on an annual basis. Participants already collecting benefits or who terminated with a vested benefit under the defined benefit pension plan are not affected by these changes. Action #3 – In April 2020 as part of the Company’s portfolio review, Alcoa announced that it will curtail the remaining capacity at its Intalco smelter in Ferndale, Washington amid declining market conditions. The full curtailment was completed during the third quarter of 2020, and the workforce is being reduced by approximately 685 people. As a result, curtailment accounting was triggered in the U.S. hourly defined benefit pension and retiree life plans (3a and 3b in the below table, respectively). Action #4 – In September 2020, the Company and the United Steelworkers jointly notified certain U.S. retirees that their medical and prescription drug coverage will be provided through an insured group Medicare Advantage and Prescription Drug plan and will include an increase to participant contributions, effective January 1, 2021. These changes affect approximately 8,600 participants. Although the plan change and related remeasurement increased the other postretirement benefit liability by $74, the plan change lowers the Company’s expected cash requirements for the program over the next five years. The above actions caused the respective plans to be remeasured, including an update to the discount rates used to determine the 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 affected plan participants Weighted average discount rate as of December 31, 2019 Plan remeasurement date Weighted average discount rate as of plan remeasurement date Increase to accrued pension benefits liability Increase to accrued other postretirement benefits liability Curtailment charge (gain) (1) 1 ~20 3.15% January 31, 2020 2.75% $ 18 $ — $ 1 2 ~430 3.20% January 31, 2020 2.75% 28 — 2 3a ~300 3.25% April 30, 2020 2.92% 156 — 1 3b ~600 3.75% April 30, 2020 3.44% — — (2 ) 4 ~8,600 3.11% August 31, 2020 2.65% — 74 — $ 202 $ 74 $ 2 ( 1 ) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit and was reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations. Funding and Cash Flows. As permitted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Company is deferring approximately $200 of pension contributions, primarily for the U.S. plans, from 2020 to January 1, 2021. As a result, as of September 30, 2020, Alcoa’s minimum required contribution to defined benefit pension plans in 2020 is estimated to be approximately $95, of which approximately $49 and $34 was contributed to U.S. and non-U.S. plans, respectively, during the 2020 nine-month period. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Other Financial Instruments | M. Derivatives and Other Financial Instruments Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Derivatives Alcoa Corporation is exposed to certain risks relating to its ongoing business operations, including the risks of changing commodity prices, foreign currency exchange rates and interest rates. Alcoa Corporation’s commodity and derivative activities include aluminum, energy, foreign exchange, and interest rate contracts which are held for purposes other than trading. They are used 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. All of these contracts are designated as either fair value or cash flow hedging instruments. Alcoa Corporation also has several derivative instruments classified as Level 3 under the fair value hierarchy, which are either designated as cash flow hedges or undesignated. The following tables present the detail for Level 1, 2 and 3 derivatives (see additional Level 3 information in further tables below): September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Level 1 and 2 derivative instruments $ 10 $ 20 $ 3 $ 33 Level 3 derivative instruments 2 516 74 615 Total $ 12 $ 536 $ 77 $ 648 Less: Current 11 61 59 67 Noncurrent $ 1 $ 475 $ 18 $ 581 Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Third quarter ended September 30, 2020 2019 2020 2019 Level 1 and 2 derivative instruments $ 3 $ (21 ) $ (2 ) $ (12 ) Level 3 derivative instruments (338 ) 104 (26 ) 8 Noncontrolling and equity interest 2 (23 ) (1 ) (9 ) Total $ (333 ) $ 60 $ (29 ) $ (13 ) For the quarter ended September 30, 2020, the realized loss of $2 on Level 1 and 2 cash flow hedges was recognized in Cost of goods sold. For the quarter ended September 30, 2019, the realized loss of $12 on Level 1 and 2 cash flow hedges was comprised of a $5 loss recognized in Sales and a $7 loss recognized in Cost of goods sold. Unrealized gain (loss) recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Nine months ended September 30, 2020 2019 2020 2019 Level 1 and 2 derivative instruments $ (4 ) $ (24 ) $ (17 ) $ (24 ) Level 3 derivative instruments (7 ) (133 ) (48 ) 44 Noncontrolling and equity interest 17 (55 ) (2 ) (34 ) Total $ 6 $ (212 ) $ (67 ) $ (14 ) For the nine months ended September 30, 2020, the realized loss of $17 on Level 1 and 2 cash flow hedges was comprised of a $7 loss recognized in Sales and a $10 loss recognized in Cost of goods sold. For the nine months ended September 30, 2019, the realized loss of $24 on Level 1 and 2 cash flow hedges was comprised of a $13 loss recognized in Sales and a $11 loss recognized in Cost of goods sold. Additional Level 3 Disclosures The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh): September 30, 2020 Unobservable Input Unobservable Input Range Asset Derivatives Financial contract $ 2 Interrelationship of Electricity (per MWh) 2020: $31.42 forward energy price and the Consumer Price Index 2021: $31.42 Power contract — MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2020: $1,740 2020: $1,764 Midwest premium (per pound) 2020: $0.1245 2020: $0.1445 Electricity Rate of 2 million MWh per year Total Asset Derivatives $ 2 Liability Derivatives Power contract $ 185 MWh of energy needed LME (per mt) 2020: $1,740 to produce the forecasted 2027: $2,238 mt of aluminum Electricity Rate of 4 million MWh per year Power contracts 305 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2020: $1,740 2029: $2,346 2036: $2,642 Midwest premium (per pound) 2020: $0.1245 2029: $0.1445 2036: $0.1445 Electricity Rate of 11 million MWh per year Power contract (undesignated) 26 Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 3.92%: 30-year debt yield spread 6.62%: Alcoa (estimated) 2.70%: counterparty Total Liability Derivatives $ 516 The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2020 December 31, 2019 Derivatives designated as hedging instruments: Current—financial contract $ 2 $ 57 Noncurrent—financial contract — 17 Total derivatives designated as hedging instruments $ 2 $ 74 Total Asset Derivatives $ 2 $ 74 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 45 $ 47 Noncurrent—power contracts 445 551 Total derivatives designated as hedging instruments $ 490 $ 598 Derivatives not designated as hedging instruments: Current—power contracts $ 5 $ 3 Noncurrent—power contracts 21 14 Total derivatives not designated as hedging instruments $ 26 $ 17 Total Liability Derivatives $ 516 $ 615 Assuming market rates remain constant with the rates at September 30, 2020, a realized loss of $45 related to power contracts and a gain of $2 related to the financial contract are expected to be recognized in Sales and Cost of goods sold, respectively, over the next 12 months. At September 30, 2020 and December 31, 2019, the power contracts with embedded derivatives designated as cash flow hedges hedge forecasted aluminum sales of 2,187 kmt and 2,347 kmt, respectively. At September 30, 2020 and December 31, 2019, the financial contract hedges forecasted electricity purchases of 2,046,528 and 3,891,096 megawatt hours, respectively. The following tables present the reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Third quarter ended September 30, 2020 Power contracts Financial contract Power contracts Financial contract Embedded credit derivative July 1, 2020 $ 5 $ 4 $ 180 $ 2 $ 24 Total gains or losses included in: Sales (realized) (5 ) — (27 ) — — Cost of goods sold (realized) — 4 — — — Other expenses (income), net (unrealized/realized) — — — — 3 Other comprehensive (loss) income (unrealized) — (5 ) 335 (2 ) — Other — (1 ) 2 — (1 ) September 30, 2020 $ — $ 2 $ 490 $ — $ 26 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2020: Other expenses (income), net $ — $ — $ — $ — $ 4 Assets Liabilities Nine months ended September 30, 2020 Power contracts Financial contract Power contracts Financial contract Embedded credit derivative January 1, 2020 $ — $ 74 $ 598 $ — $ 17 Total gains or losses included in: Sales (realized) — — (42 ) — — Cost of goods sold (realized) — 6 — — — Other expenses (income), net (unrealized/realized) — — — — 12 Other comprehensive (loss) income (unrealized) — (73 ) (66 ) — — Other — (5 ) — — (3 ) September 30, 2020 $ — $ 2 $ 490 $ — $ 26 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2020: Other expenses (income), net $ — $ — $ — $ — $ 15 There were no purchases, sales or settlements of Level 3 derivative instruments in the periods presented. Other Financial Instruments The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: September 30, 2020 December 31, 2019 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,736 $ 1,736 $ 879 $ 879 Restricted cash 3 3 4 4 Long-term debt due within one year 2 2 1 1 Long-term debt, less amount due within one year 2,538 2,681 1,799 1,961 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 | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | N. Income Taxes – Alcoa Corporation’s estimated annualized effective tax rate (AETR) for 2020 as of September 30, 2020 differs from the U.S. federal statutory rate of 21% primarily due to losses in countries with full valuation reserves resulting in no tax benefit, as well as foreign income taxed in higher rate jurisdictions. Nine months ended September 30, 2020 2019 Income (loss) before income taxes $ 136 $ (137 ) Estimated annualized effective tax rate 136.4 % (686.2 ) % Income tax expense $ 185 $ 942 Favorable tax impact related to losses in jurisdictions with no tax benefit (17 ) (590 ) Discrete tax (benefit) expense (1 ) 9 Provision for income taxes $ 167 $ 361 Deferred Income Taxes Deferred taxes are recorded for future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. These future tax consequences result from differences between the financial and tax bases of Alcoa’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. The future realization of net deferred tax assets is reviewed quarterly, or more frequently if there are changes in the positive and negative evidence used in management’s assessments, and is 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. Management’s forecasted taxable income 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, alumina, caustic soda, calcined petroleum coke, liquid pitch, 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. Additionally, uncertainty and changes in the macroeconomic environment and the economy in Alcoa’s operating locations may arise as a result of the COVID-19 pandemic. Adverse effects from these changes may impact the assumptions utilized to develop the forecasted taxable income and may result in the need for a valuation allowance on certain deferred tax assets. 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 applies judgment in assessing all available positive and negative evidence and 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. 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’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. At December 31, 2019, Alcoa Canada Company was in a three-year cumulative loss position without a valuation allowance where, in management’s judgment, the weight of the positive evidence more than offset the negative evidence of the cumulative losses. At September 30, 2020, in management’s judgment, the positive evidence continued to more than offset the negative evidence of the cumulative losses. Upon changes in facts and circumstances, management may conclude that Alcoa Canada Company’s deferred tax assets may not be realized, resulting in a future charge to establish a valuation allowance. Alcoa Canada Company’s net deferred tax assets were $ 114 and $ 137 at September 30 , 2020 and December 31, 2019, respectively. The majority of the Alcoa Canada Company net deferred tax assets relate to pension obligations and derivatives. |
Leasing
Leasing | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leasing | O. Leasing Management records a right-of-use asset and lease liability for several types of operating leases, including land and buildings, alumina refinery process control technology, plant equipment, vehicles, and computer equipment. The leases have remaining terms of one to 37 years. The discount rate applied to these leases is the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate implicit in the lease agreement. The Company does not have material financing leases. Lease expense and operating cash flows include: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Costs from operating leases $ 19 $ 21 $ 57 $ 60 Variable lease payments $ 2 $ 4 $ 7 $ 12 Short-term rental expense $ 1 $ — $ 2 $ 4 The weighted average lease term and weighted average discount rate as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Weighted average lease term for operating leases (years) 4.4 4.6 Weighted average discount rate for operating leases 5.2% 5.4% The following represents the aggregate right-of use assets and related lease obligations recognized in the Consolidated Balance Sheet at: September 30, 2020 December 31, 2019 Properties, plants and equipment, net $ 147 $ 154 Other current liabilities $ 60 $ 61 Other noncurrent liabilities and deferred credits 92 100 Total operating lease liabilities $ 152 $ 161 New leases of $16 and $41 were added during the third quarter and nine-month period of 2020, respectively. The future cash flows related to the operating lease obligations as of September 30, 2020 were as follows: 2020 (excluding the nine months ended September 30) $ 18 2021 64 2022 32 2023 20 2024 13 Thereafter 28 Total lease payments (undiscounted) 175 Less: discount to net present value (23 ) Total $ 152 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | P. Contingencies Environmental Matters Alcoa Corporation participates in environmental assessments and cleanups at several locations. These include currently or previously owned or operated facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. 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 technolog y advancements . Alcoa Corporation’s environmental remediation reserve balance reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2018 $ 280 Liabilities incurred 73 Cash payments (17 ) Reversals of previously recorded liabilities (1 ) Balance at December 31, 2019 335 Liabilities incurred 6 Cash payments (14 ) Foreign currency translation and other (6 ) Balance at September 30, 2020 $ 321 At September 30, 2020 and December 31, 2019, the current portion of Alcoa Corporation’s environmental remediation reserve balance was $32 and $39, respectively. In the third quarter and nine-month period of 2020, the Company incurred liabilities of $4 and $6, respectively, due to charges related to increases for ongoing monitoring and maintenance and environmental consulting work for a remediation project at the Fusina (Italy) site. These charges are primarily recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. In the third quarter and nine-month period of 2019, the Company incurred liabilities of $2 and $4, respectively, due to charges related to increases for ongoing monitoring and maintenance The estimated timing of cash outflows on the environmental remediation reserve at September 30, 2020 is as follows: 2020 (excluding the nine months ended September 30, 2020) $ 9 2021 - 2025 197 Thereafter 115 Total $ 321 Reserve balances at September 30, 2020 and December 31, 2019, associated with significant sites with active remediation underway or for future remediation were $260 and $274, respectively. In management’s judgment, the Company’s reserves are sufficient to satisfy the provisions of the respective action plans. Upon changes in facts or circumstances, a change to the reserve may be required. The Company’s significant sites include: Poços de Caldas, Brazil —The reserve associated with the 2015 closure of the Alcoa Alumínio S.A. smelter in Poços de Caldas, Brazil, is for remediation of historic spent potlining storage and disposal areas. The final remediation plan is currently under review; such review could require the reserve balance to be adjusted. Fusina and Portovesme, Italy —Alcoa Corporation’s subsidiary Alcoa Trasformazioni S.r.l. has remediation projects underway for its closed smelter sites at Fusina and Portovesme which have been approved by the Italian Ministry of Environment and Protection of Land and Sea (MOE). Work is ongoing for soil remediation at both sites with expected completion in 2022 for Fusina and 2020 for Portovesme. Additionally, annual payments are made to MOE over a 10-year period through 2022 for groundwater emergency containment and natural resource damages at the Fusina site. A groundwater remediation project at Portovesme will have a final remedial design completed in 2020 which may result in a change to the existing reserve. Suriname —The reserve associated with the 2017 closure of the Suralco refinery and bauxite mine is for treatment and disposal of refinery waste and soil remediation. The work began in 2017 and is expected to be completed at the end of 2025. Hurricane Creek, Arkansas —The reserve associated with the 1990 closure of two mining areas and refineries near Hurricane Creek, Arkansas is for ongoing monitoring and maintenance for water quality surrounding the mine areas and residue disposal areas. Massena, New York —The reserve associated with the 2015 closure of the Massena East smelter by the Company’s subsidiary, Reynolds Metals Company, is for subsurface soil remediation to be performed after demolition of the structures. Remediation work is expected to commence in 2021 and will take four to eight years to complete. Point Comfort, Texas —The reserve associated with the 2019 closure of the Point Comfort alumina refinery is for disposal of industrial wastes contained at the site, subsurface remediation, and post-closure monitoring and maintenance. The final remediation plan is currently under review, which may result in a change to the existing reserve. Sherwin, Texas —In connection with the 2018 settlement of a dispute related to the previously-owned Sherwin alumina refinery, the Company’s subsidiary, Copano Enterprises LLC, accepted responsibility for the final closure of four bauxite residue waste disposal areas (known as the Copano facility). Work commenced on the first residue disposal area in 2018 and will take eight to twelve years to complete, depending on the nature of its potential re-use. Work on the next three areas has not commenced but is expected to be completed by 2048, depending on its potential re-use. Longview, Washington —In connection with a 2018 Consent Decree and Cleanup Action Plan with the Washington State Department of Ecology, the Company’s subsidiary, Northwest Alloys, accepted certain responsibilities for future remediation of contaminated soil and sediments at the site located near Longview, Washington. Other Sites —The Company is in the process of decommissioning various other plants and remediating sites in several countries for potential redevelopment or to return the land to a natural state. In aggregate, there are approximately 35 remediation projects at these other sites that are planned or underway. These activities will be completed at various times in the future with the latest expected to be in 2026, after which ongoing monitoring and other activities may be required. At September 30, 2020 and December 31, 2019, the reserve balance associated with these activities was $61. Tax Spain — In July 2013, following a corporate income tax audit covering the 2006 through 2009 tax years, an assessment was received from Spain’s tax authorities disallowing certain interest deductions claimed by ParentCo’s Spanish consolidated tax group. In 2015, ParentCo filed an appeal of this assessment to Spain’s Central Tax Administrative Court which was denied. Two months later, ParentCo filed an appeal in Spain’s National Court (the National Court). The amount of this assessment, including interest, was $152 (€131) as of June 30, 2018. In July 2018, the National Court denied ParentCo’s appeal of the assessment; however, it required Spain’s tax authorities to 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. Subsequently, Arconic Inc. and Alcoa Corporation (collectively, the Companies) estimated the amount of the new assessment, including applicable interest, 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, unfavorable tax outcomes are split by Arconic Inc. and Alcoa Corporation 51% and 49%, respectively. Based on a review of the basis on which the National Court decided this matter, Alcoa Corporation management no longer believed that the Companies were more likely than not (greater than 50%) to prevail in this matter. Accordingly, in the third quarter of 2018, Alcoa Corporation recorded a charge of $30 (€26) in Provision for income taxes to establish a liability for its 49% share of the estimated loss in this matter, representing management’s best estimate at the time. On November 8, 2018, the Companies filed a petition for appeal to the Supreme Court of Spain, which was accepted in March 2019 and an appeal was submitted on May 6, 2019. On June 18, 2019 the State Attorney filed its opposition to the appeal. During the third quarter of 2020, the Companies were notified that the Supreme Court of Spain would meet to rule on the case, which was scheduled to occur on October 13, 2020. The Companies do not anticipate receiving the ruling for several weeks. 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 for these matters is $0 to $39 (R$220). It is management’s opinion that the allegations have no basis; however, at this time, the Company is unable to reasonably predict an outcome for this matter. Australia (AofA) — In December 2019, AofA received a statement of audit position (SOAP) from the Australian Taxation Office (ATO) related to the pricing of certain historic third-party alumina sales. The SOAP proposed adjustments that would result in additional income tax payable by AofA. During 2020, the SOAP was the subject of an independent review process within the ATO. At the conclusion of this process, the ATO determined to continue with the proposed adjustments and issued Notices of Assessment (the Notices) that were received by AofA on July 7, 2020. The Notices asserted claims for income tax payable by AofA of approximately $152 (A$214). The Notices also include claims for compounded interest on the tax amount totaling approximately $502 (A$707). On September 17, 2020, the ATO issued a position paper with its preliminary view on the imposition of administrative penalties related to the tax assessment issued to AofA. This paper proposed penalties of approximately $91 (A$128). AofA disagrees with the ATO’s proposed position on penalties and plans to respond. Thereafter, the ATO could issue a penalty assessment. The Company does not agree with the ATO’s positions, and AofA will continue to defend this matter and pursue all available dispute resolution methods, up to and including the filing of proceedings in the Australian Courts, a process which could last several years and could involve significant expenses. The Company maintains that the sales subject to the ATO’s review, which were ultimately sold to Aluminium Bahrain B.S.C., were the result of arm’s length transactions by AofA over two decades and were made at arm’s length prices consistent with the prices paid by other third-party alumina customers. In accordance with the ATO’s dispute resolution practices, AofA paid of the assessed income tax amount exclusive of interest and any penalties, or approximately $74 (A$107), during the third quarter 2020, and the ATO is not expected to seek further payment prior to final resolution of the matter. If AofA is ultimately successful, any amounts paid to the ATO as part of the payment would be refunded. AofA funded the payment with cash on hand and recorded the payment as a noncurrent prepaid tax asset. Further interest on the unpaid amounts will continue to accrue during the dispute. The initial interest assessment and the additional interest accrued are deductible against taxable income by AofA but would be taxable as income in the year the dispute is resolved if AofA is ultimately successful. AofA applied this deduction in the third quarter of 2020, which has reduced the current year cash tax payments by approximately $156 (A$219), of which a corresponding noncurrent liability of $153 (A$215) has been recorded as of September 30, 2020. The Company continues to believe it is more likely than not that AofA’s tax position will be sustained and therefore is not recognizing any tax expense in relation to this matter. However, because the ultimate resolution of this matter is uncertain at this time, the Company cannot predict the potential loss or range of loss associated with the outcome, which may materially affect its results of operations and financial condition AofA is part of the Company’s joint venture with Alumina Limited, an Australian public company listed on the Australian Securities Exchange. The Company and Alumina Limited own 60% and 40%, respectively, of the joint venture entities, including AofA. General In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Alcoa Corporation, including those pertaining to environmental, safety and health, commercial, tax, product liability, intellectual property infringement, employment, and employee and retiree benefit matters, and other actions and claims arising out of the normal course of business. While the amounts claimed in these other matters may be substantial, the ultimate liability is not readily determinable because of the considerable uncertainties that exist. Accordingly, it is possible that the Company’s liquidity or results of operations in a particular period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company. |
Other Expenses (Income), Net
Other Expenses (Income), Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Expenses (Income), Net | Q. Other Expenses (Income), Net Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Equity loss $ 14 $ 7 $ 43 $ 34 Foreign currency (gains) losses, net (5 ) (1 ) 8 16 Net loss (gain) from asset sales 2 (5 ) (174 ) (6 ) Net loss on mark-to-market derivative instruments (M) 3 — 12 — Non-service costs – Pension & OPEB (L) 28 30 80 89 Other 3 (4 ) (5 ) (15 ) $ 45 $ 27 $ (36 ) $ 118 Net gain from asset sales for the nine months ended September 30, 2020 include a net gain of $181 related to the sale of EES (see Note C). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | R. Subsequent Events On October 8, 2020, the Company made the decision to curtail the 228,000 metric tons of uncompetitive annual smelting capacity at the San Ciprián smelter in Spain. The decision followed a four-month consultation process with the Spanish Works Council and unsuccessful negotiations during a potential sale process. After the completion of the curtailment, which is expected during the first quarter of 2021, Alcoa’s total curtailed smelting capacity will be 1,059,000 metric tons, or approximately 35 percent of its total global smelting capacity. The Company expects to record cash-based restructuring charges of approximately $35 to $40 (pre- and after-tax) in the fourth quarter of 2020 associated with the curtailment, for employee-related costs, which are expected to be paid primarily in the first half of 2021. The San Ciprián facility employs approximately 630 people, and the workforce will be significantly reduced due to the curtailment. Approximately 100 employees will remain to operate a portion of the casthouse. Following Alcoa’s announcement to curtail the San Ciprián smelter in Spain, the workers’ representatives filed a lawsuit requesting the court to issue an injunction ordering Alcoa to cease the curtailment and collective dismissal actions. The court hearing on the injunction was held on October 28, 2020; Alcoa expects to receive the court’s ruling within five business days after the conclusion of the hearing. Concurrently, the workers’ representatives have stated publicly that they intend to challenge the collective dismissal process in a legal proceeding within 20 business days of Company’s announced decision. Alcoa intends to defend its actions. The eventual outcome could impact the timing and amount of the charges discussed above. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | A. – The interim Consolidated Financial Statements of Alcoa Corporation and its subsidiaries (Alcoa Corporation, Alcoa, or the Company) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2019 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which includes all disclosures required by GAAP. In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Management uses historical experience and all available information to make these estimates, including considerations for the impact of the coronavirus (COVID-19) pandemic on the macroeconomic environment. The Company has experienced certain negative impacts as a result of the COVID-19 pandemic to date; however, the ultimate magnitude and duration of the COVID-19 pandemic continues to be unknown, and the pandemic’s ultimate future impact on the Company’s business, financial condition, operating results, cash flows, and market capitalization is uncertain. In addition, the COVID-19 pandemic could adversely impact estimates made as of September 30, 2020 regarding future results, such as the recoverability of goodwill and long-lived assets and the realizability of deferred tax assets. Despite these inherent limitations, management believes that the amounts recorded in the financial statements related to these items are based on its best estimates and judgments using all relevant information available at the time. Management regularly evaluates the judgments and assumptions used in its estimates, and results could differ from those estimates upon future events and their effects or new information. References in these Notes to ParentCo refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries through October 31, 2016, at which time it was renamed Arconic Inc. (and since has been subsequently renamed Howmet Aerospace Inc.). On November 1, 2016 (the Separation Date), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic Inc. (the Separation Transaction). In connection with the Separation Transaction, as of October 31, 2016, the Company and Arconic Inc. entered into several agreements to effect the Separation Transaction, including a Separation and Distribution Agreement and a Tax Matters Agreement. See Note A 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, 2019 for additional information. |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements of Alcoa Corporation include the accounts of Alcoa Corporation and companies in which Alcoa Corporation has a controlling interest, including those that comprise the Alcoa World Alumina & Chemicals (AWAC) joint venture (see below). Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa Corporation has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for 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, or have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and portions of the São Luís refinery and investment in Mineração Rio do Norte S.A., all in Brazil) and the Portland smelter in Australia within Alcoa Corporation’s Aluminum segment. Alcoa Corporation owns 60% and Alumina Limited owns 40% of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited (AofA), Alcoa World Alumina LLC (AWA), and Alcoa World Alumina Brasil Ltda. (AWAB). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Income Taxes | Deferred taxes are recorded for future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. These future tax consequences result from differences between the financial and tax bases of Alcoa’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. The future realization of net deferred tax assets is reviewed quarterly, or more frequently if there are changes in the positive and negative evidence used in management’s assessments, and is 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. Management’s forecasted taxable income 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, alumina, caustic soda, calcined petroleum coke, liquid pitch, 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. Additionally, uncertainty and changes in the macroeconomic environment and the economy in Alcoa’s operating locations may arise as a result of the COVID-19 pandemic. Adverse effects from these changes may impact the assumptions utilized to develop the forecasted taxable income and may result in the need for a valuation allowance on certain deferred tax assets. 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 applies judgment in assessing all available positive and negative evidence and 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. 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’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. |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges, Net by Reportable Segments, Pretax | Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Bauxite $ 1 $ 5 $ 1 $ 5 Alumina 3 15 5 16 Aluminum 1 147 40 607 Segment total 5 167 46 628 Corporate — 18 (2 ) 40 Total Restructuring and other charges, net $ 5 $ 185 $ 44 $ 668 |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Severance and employee termination costs Other costs Total Balance at December 31, 2018 $ 5 $ 42 $ 47 Restructuring and other charges, net 51 161 212 Cash payments (19 ) (99 ) (118 ) Reversals and other (2 ) (2 ) (4 ) Balance at December 31, 2019 35 102 137 Restructuring and other charges, net 16 28 44 Cash payments (38 ) (63 ) (101 ) Reversals and other (2 ) (3 ) (5 ) Balance at September 30, 2020 $ 11 $ 64 $ 75 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results of Alcoa's Reportable Segments | The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Bauxite Alumina Aluminum Total Third quarter ended September 30, 2020 Sales: Third-party sales $ 56 $ 697 $ 1,607 $ 2,360 Intersegment sales 236 329 2 567 Total sales $ 292 $ 1,026 $ 1,609 $ 2,927 Segment Adjusted EBITDA $ 124 $ 119 $ 116 $ 359 Supplemental information: Depreciation, depletion, and amortization $ 33 $ 41 $ 80 $ 154 Equity loss $ — $ (4 ) $ (6 ) $ (10 ) Third quarter ended September 30, 2019 Sales: Third-party sales $ 100 $ 771 $ 1,677 $ 2,548 Intersegment sales 251 369 4 624 Total sales $ 351 $ 1,140 $ 1,681 $ 3,172 Segment Adjusted EBITDA $ 134 $ 223 $ 43 $ 400 Supplemental information: Depreciation, depletion, and amortization $ 35 $ 54 $ 88 $ 177 Equity loss $ — $ — $ (5 ) $ (5 ) Bauxite Alumina Aluminum Total Nine months ended September 30, 2020 Sales: Third-party sales $ 193 $ 2,007 $ 4,680 $ 6,880 Intersegment sales 716 954 7 1,677 Total sales $ 909 $ 2,961 $ 4,687 $ 8,557 Segment Adjusted EBITDA $ 375 $ 400 $ 144 $ 919 Supplemental information: Depreciation, depletion, and amortization $ 97 $ 127 $ 240 $ 464 Equity loss — (21 ) (13 ) (34 ) Nine months ended September 30, 2019 Sales: Third-party sales $ 232 $ 2,532 $ 5,169 $ 7,933 Intersegment sales 733 1,231 11 1,975 Total sales $ 965 $ 3,763 $ 5,180 $ 9,908 Segment Adjusted EBITDA $ 372 $ 964 $ (50 ) $ 1,286 Supplemental information: Depreciation, depletion, and amortization $ 90 $ 157 $ 262 $ 509 Equity income (loss) — 15 (44 ) (29 ) |
Schedule of Segment Adjusted EBITDA to Consolidated Net Loss Attributable to Alco Corporation | The following table reconciles total Segment Adjusted EBITDA to consolidated net loss attributable to Alcoa Corporation: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Total Segment Adjusted EBITDA $ 359 $ 400 $ 919 $ 1,286 Unallocated amounts: Transformation (1) (11 ) (6 ) (37 ) (1 ) Intersegment eliminations (35 ) 25 (13 ) 110 Corporate expenses (2) (24 ) (27 ) (72 ) (79 ) Provision for depreciation, depletion, and amortization (161 ) (184 ) (483 ) (530 ) Restructuring and other charges, net (D) (5 ) (185 ) (44 ) (668 ) Interest expense (41 ) (30 ) (103 ) (90 ) Other (expenses) income, net (Q) (45 ) (27 ) 36 (118 ) Other (3) (15 ) (18 ) (67 ) (47 ) Consolidated income (loss) before income taxes 22 (52 ) 136 (137 ) Provision for income taxes (42 ) (95 ) (167 ) (361 ) Net income attributable to noncontrolling interest (29 ) (74 ) (135 ) (324 ) Consolidated net loss attributable to Alcoa Corporation $ (49 ) $ (221 ) $ (166 ) $ (822 ) ( 1 ) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. ( 2 ) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. ( 3 ) Other includes certain items that 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 Sales by Product Division | The following table details Alcoa Corporation’s Sales by product division: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Primary aluminum $ 1,311 $ 1,341 $ 3,810 $ 4,117 Alumina 697 770 2,004 2,529 Flat-rolled aluminum 284 294 827 933 Bauxite 50 95 170 216 Energy 26 71 100 225 Other (3 ) (4 ) (17 ) (23 ) $ 2,365 $ 2,567 $ 6,894 $ 7,997 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders | The information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net loss attributable to Alcoa Corporation $ (49 ) $ (221 ) $ (166 ) $ (822 ) Average shares outstanding – basic 186 186 186 185 Effect of dilutive securities: Stock options — — — — Stock units — — — — Average shares outstanding – diluted 186 186 186 185 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest Third quarter ended September 30, Third quarter ended September 30, 2020 2019 2020 2019 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,371 ) $ (2,232 ) $ (54 ) $ (47 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (93 ) (38 ) (7 ) (11 ) Tax benefit 6 11 2 4 Total Other comprehensive loss before reclassifications, net of tax (87 ) (27 ) (5 ) (7 ) Amortization of net actuarial loss and prior service cost/benefit (1) 57 49 3 2 Tax expense (2) (2 ) (3 ) (1 ) (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 55 46 2 1 Total Other comprehensive (loss) income (32 ) 19 (3 ) (6 ) Balance at end of period $ (2,403 ) $ (2,213 ) $ (57 ) $ (53 ) Foreign currency translation Balance at beginning of period $ (2,688 ) $ (2,053 ) $ (985 ) $ (804 ) Other comprehensive income (loss) (3) 5 (224 ) 17 (75 ) Balance at end of period $ (2,683 ) $ (2,277 ) $ (968 ) $ (879 ) Cash flow hedges (M) Balance at beginning of period $ (221 ) $ (420 ) $ (1 ) $ 36 Other comprehensive (loss) income: Net change from periodic revaluations (333 ) 60 (1 ) 2 Tax benefit (expense) 66 (15 ) 1 (1 ) Total Other comprehensive (loss) income before reclassifications, net of tax (267 ) 45 — 1 Net amount reclassified to earnings: Aluminum contracts (4) 21 9 — — Financial contracts (5) 3 (4 ) 1 (6 ) Interest rate contracts (6) 2 4 — — Foreign exchange contracts (4) 3 4 — — Sub-total 29 13 1 (6 ) Tax (expense) benefit (2) (2 ) 3 (1 ) 2 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 27 16 — (4 ) Total Other comprehensive (loss) income (240 ) 61 — (3 ) Balance at end of period $ (461 ) $ (359 ) $ (1 ) $ 33 Total Accumulated other comprehensive loss $ (5,547 ) $ (4,849 ) $ (1,026 ) $ (899 ) Alcoa Corporation Noncontrolling interest Nine months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,282 ) $ (2,283 ) $ (56 ) $ (46 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (294 ) (120 ) (7 ) (14 ) Tax benefit 16 28 2 4 Total Other comprehensive loss before reclassifications, net of tax (278 ) (92 ) (5 ) (10 ) Amortization of net actuarial loss and prior service cost/benefit (1) 163 177 5 4 Tax expense (2) (6 ) (15 ) (1 ) (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 157 162 4 3 Total Other comprehensive (loss) income (121 ) 70 (1 ) (7 ) Balance at end of period $ (2,403 ) $ (2,213 ) $ (57 ) $ (53 ) Foreign currency translation Balance at beginning of period $ (2,160 ) $ (2,071 ) $ (834 ) $ (810 ) Other comprehensive loss (3) (523 ) (206 ) (134 ) (69 ) Balance at end of period $ (2,683 ) $ (2,277 ) $ (968 ) $ (879 ) Cash flow hedges (M) Balance at beginning of period $ (532 ) $ (211 ) $ 20 $ 31 Other comprehensive income (loss): Net change from periodic revaluations 6 (212 ) (31 ) 35 Tax benefit (expense) 3 39 9 (11 ) Total Other comprehensive income (loss) before reclassifications, net of tax 9 (173 ) (22 ) 24 Net amount reclassified to earnings: Aluminum contracts (4) 35 34 — — Financial contracts (5) 10 (36 ) 2 (31 ) Interest rate contracts (6) 4 4 — — Foreign exchange contracts (4) 18 12 — — Sub-total 67 14 2 (31 ) Tax (expense) benefit (2) (5 ) 11 (1 ) 9 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 62 25 1 (22 ) Total Other comprehensive income (loss) 71 (148 ) (21 ) 2 Balance at end of period $ (461 ) $ (359 ) $ (1 ) $ 33 Total Accumulated other comprehensive loss $ (5,547 ) $ (4,849 ) $ (1,026 ) $ (899 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note L). (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 primarily reported in Sales on the accompanying Statement of Consolidated Operations. (5) These amounts were reported in Cost of goods sold on the accompanying Statement of Consolidated Operations. ( 6 ) These amounts were reported in Other expenses (income), net of the accompanying Statement of Consolidated Operations. ( 7 ) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments | A summary of unaudited financial information for Alcoa Corporation’s equity investments is as follows (amounts represent 100% of investee financial information): Third quarter ended September 30, 2020 Saudi Arabia Joint Venture Mining Energy Other Sales $ 552 $ 195 $ 51 $ 72 Cost of goods sold 435 131 28 65 Net (loss) income (38 ) 16 28 (10 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (10 ) 5 11 (4 ) Other (1 ) — 1 3 Alcoa Corporation’s equity in net (loss) income of affiliated companies (11 ) 5 12 (1 ) Third quarter ended September 30, 2019 Sales $ 607 $ 233 $ 72 $ 47 Cost of goods sold 497 147 44 45 Net (loss) income (27 ) 23 23 (15 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (7 ) 7 9 (7 ) Other 1 — (1 ) 8 Alcoa Corporation’s equity in net (loss) income of affiliated companies (6 ) 7 8 1 Nine months ended September 30, 2020 Sales $ 1,644 $ 622 $ 157 $ 230 Cost of goods sold 1,343 409 78 207 Net (loss) income (126 ) 20 75 (25 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (32 ) 14 29 (11 ) Other (5 ) (1 ) — 13 Alcoa Corporation’s equity in net (loss) income of affiliated companies (37 ) 13 29 2 Nine months ended September 30, 2019 Sales $ 2,541 $ 648 $ 199 $ 86 Cost of goods sold 2,170 428 108 83 Net (loss) income (152 ) 23 77 (21 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (38 ) 15 30 (10 ) Other 5 6 — 10 Alcoa Corporation’s equity in net (loss) income of affiliated companies (33 ) 21 30 — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | September 30, 2020 December 31, 2019 Finished goods $ 228 $ 305 Work-in-process 224 282 Bauxite and alumina 411 446 Purchased raw materials 373 453 Operating supplies 162 158 $ 1,398 $ 1,644 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: Third quarter ended September 30, Nine months ended September 30, Pension benefits 2020 2019 2020 2019 Service cost $ 14 $ 12 $ 41 $ 36 Interest cost (1) 41 55 124 167 Expected return on plan assets (1) (73 ) (81 ) (220 ) (244 ) Recognized net actuarial loss (1) 54 43 158 127 Amortization of prior service cost (1) — 1 — 4 Settlements (2) 5 5 5 5 Curtailments (2) — — 4 38 Net periodic benefit cost $ 41 $ 35 $ 112 $ 133 Third quarter ended September 30, Nine months ended September 30, Other postretirement benefits 2020 2019 2020 2019 Service cost $ 1 $ 1 $ 3 $ 3 Interest cost (1) 5 10 15 28 Recognized net actuarial loss (1) 5 2 14 7 Amortization of prior service benefit (1) (4 ) — (11 ) — Curtailments (2) — — (2 ) — Net periodic benefit cost $ 7 $ 13 $ 19 $ 38 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note Q). (2) These amounts were reported in Restructuring and other charges , net on the accompanying Statement s of Consolidated Operations (see Note D ) and of Cash Flows . |
Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans | The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action # Number of affected plan participants Weighted average discount rate as of December 31, 2019 Plan remeasurement date Weighted average discount rate as of plan remeasurement date Increase to accrued pension benefits liability Increase to accrued other postretirement benefits liability Curtailment charge (gain) (1) 1 ~20 3.15% January 31, 2020 2.75% $ 18 $ — $ 1 2 ~430 3.20% January 31, 2020 2.75% 28 — 2 3a ~300 3.25% April 30, 2020 2.92% 156 — 1 3b ~600 3.75% April 30, 2020 3.44% — — (2 ) 4 ~8,600 3.11% August 31, 2020 2.65% — 74 — $ 202 $ 74 $ 2 ( 1 ) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit and was reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations. |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Detail for Level 1, 2 and 3 Derivatives | The following tables present the detail for Level 1, 2 and 3 derivatives (see additional Level 3 information in further tables below): September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Level 1 and 2 derivative instruments $ 10 $ 20 $ 3 $ 33 Level 3 derivative instruments 2 516 74 615 Total $ 12 $ 536 $ 77 $ 648 Less: Current 11 61 59 67 Noncurrent $ 1 $ 475 $ 18 $ 581 Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Third quarter ended September 30, 2020 2019 2020 2019 Level 1 and 2 derivative instruments $ 3 $ (21 ) $ (2 ) $ (12 ) Level 3 derivative instruments (338 ) 104 (26 ) 8 Noncontrolling and equity interest 2 (23 ) (1 ) (9 ) Total $ (333 ) $ 60 $ (29 ) $ (13 ) Unrealized gain (loss) recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Nine months ended September 30, 2020 2019 2020 2019 Level 1 and 2 derivative instruments $ (4 ) $ (24 ) $ (17 ) $ (24 ) Level 3 derivative instruments (7 ) (133 ) (48 ) 44 Noncontrolling and equity interest 17 (55 ) (2 ) (34 ) Total $ 6 $ (212 ) $ (67 ) $ (14 ) |
Schedule of Quantitative Information for Level 3 Derivative Contracts | The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh): September 30, 2020 Unobservable Input Unobservable Input Range Asset Derivatives Financial contract $ 2 Interrelationship of Electricity (per MWh) 2020: $31.42 forward energy price and the Consumer Price Index 2021: $31.42 Power contract — MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2020: $1,740 2020: $1,764 Midwest premium (per pound) 2020: $0.1245 2020: $0.1445 Electricity Rate of 2 million MWh per year Total Asset Derivatives $ 2 Liability Derivatives Power contract $ 185 MWh of energy needed LME (per mt) 2020: $1,740 to produce the forecasted 2027: $2,238 mt of aluminum Electricity Rate of 4 million MWh per year Power contracts 305 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2020: $1,740 2029: $2,346 2036: $2,642 Midwest premium (per pound) 2020: $0.1245 2029: $0.1445 2036: $0.1445 Electricity Rate of 11 million MWh per year Power contract (undesignated) 26 Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 3.92%: 30-year debt yield spread 6.62%: Alcoa (estimated) 2.70%: counterparty Total Liability Derivatives $ 516 |
Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities | The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2020 December 31, 2019 Derivatives designated as hedging instruments: Current—financial contract $ 2 $ 57 Noncurrent—financial contract — 17 Total derivatives designated as hedging instruments $ 2 $ 74 Total Asset Derivatives $ 2 $ 74 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 45 $ 47 Noncurrent—power contracts 445 551 Total derivatives designated as hedging instruments $ 490 $ 598 Derivatives not designated as hedging instruments: Current—power contracts $ 5 $ 3 Noncurrent—power contracts 21 14 Total derivatives not designated as hedging instruments $ 26 $ 17 Total Liability Derivatives $ 516 $ 615 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present the reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Third quarter ended September 30, 2020 Power contracts Financial contract Power contracts Financial contract Embedded credit derivative July 1, 2020 $ 5 $ 4 $ 180 $ 2 $ 24 Total gains or losses included in: Sales (realized) (5 ) — (27 ) — — Cost of goods sold (realized) — 4 — — — Other expenses (income), net (unrealized/realized) — — — — 3 Other comprehensive (loss) income (unrealized) — (5 ) 335 (2 ) — Other — (1 ) 2 — (1 ) September 30, 2020 $ — $ 2 $ 490 $ — $ 26 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2020: Other expenses (income), net $ — $ — $ — $ — $ 4 Assets Liabilities Nine months ended September 30, 2020 Power contracts Financial contract Power contracts Financial contract Embedded credit derivative January 1, 2020 $ — $ 74 $ 598 $ — $ 17 Total gains or losses included in: Sales (realized) — — (42 ) — — Cost of goods sold (realized) — 6 — — — Other expenses (income), net (unrealized/realized) — — — — 12 Other comprehensive (loss) income (unrealized) — (73 ) (66 ) — — Other — (5 ) — — (3 ) September 30, 2020 $ — $ 2 $ 490 $ — $ 26 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2020: Other expenses (income), net $ — $ — $ — $ — $ 15 |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: September 30, 2020 December 31, 2019 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,736 $ 1,736 $ 879 $ 879 Restricted cash 3 3 4 4 Long-term debt due within one year 2 2 1 1 Long-term debt, less amount due within one year 2,538 2,681 1,799 1,961 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Nine months ended September 30, 2020 2019 Income (loss) before income taxes $ 136 $ (137 ) Estimated annualized effective tax rate 136.4 % (686.2 ) % Income tax expense $ 185 $ 942 Favorable tax impact related to losses in jurisdictions with no tax benefit (17 ) (590 ) Discrete tax (benefit) expense (1 ) 9 Provision for income taxes $ 167 $ 361 |
Leasing (Tables)
Leasing (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expense and Operating Cash Flows | Lease expense and operating cash flows include: Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Costs from operating leases $ 19 $ 21 $ 57 $ 60 Variable lease payments $ 2 $ 4 $ 7 $ 12 Short-term rental expense $ 1 $ — $ 2 $ 4 |
Schedule of Weighted Average Lease Term and Weighted Average Discount Rate | The weighted average lease term and weighted average discount rate as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Weighted average lease term for operating leases (years) 4.4 4.6 Weighted average discount rate for operating leases 5.2% 5.4% |
Schedule of Aggregate Right-of Use Assets and Related Lease Obligations | The following represents the aggregate right-of use assets and related lease obligations recognized in the Consolidated Balance Sheet at: September 30, 2020 December 31, 2019 Properties, plants and equipment, net $ 147 $ 154 Other current liabilities $ 60 $ 61 Other noncurrent liabilities and deferred credits 92 100 Total operating lease liabilities $ 152 $ 161 |
Schedule of Future Cash Flows Related to Operating Lease Obligations | The future cash flows related to the operating lease obligations as of September 30, 2020 were as follows: 2020 (excluding the nine months ended September 30) $ 18 2021 64 2022 32 2023 20 2024 13 Thereafter 28 Total lease payments (undiscounted) 175 Less: discount to net present value (23 ) Total $ 152 |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Recorded Environmental Remediation Reserves | The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2018 $ 280 Liabilities incurred 73 Cash payments (17 ) Reversals of previously recorded liabilities (1 ) Balance at December 31, 2019 335 Liabilities incurred 6 Cash payments (14 ) Foreign currency translation and other (6 ) Balance at September 30, 2020 $ 321 |
Schedule of Estimate Timing of Cash Outflows on Environmental Reserves | The estimated timing of cash outflows on the environmental remediation reserve at September 30, 2020 is as follows: 2020 (excluding the nine months ended September 30, 2020) $ 9 2021 - 2025 197 Thereafter 115 Total $ 321 |
Other Expenses (Income), Net (T
Other Expenses (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Expenses (Income), Net | Third quarter ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Equity loss $ 14 $ 7 $ 43 $ 34 Foreign currency (gains) losses, net (5 ) (1 ) 8 16 Net loss (gain) from asset sales 2 (5 ) (174 ) (6 ) Net loss on mark-to-market derivative instruments (M) 3 — 12 — Non-service costs – Pension & OPEB (L) 28 30 80 89 Other 3 (4 ) (5 ) (15 ) $ 45 $ 27 $ (36 ) $ 118 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - AWAC [Member] | Sep. 30, 2020 | Dec. 31, 2019 |
Alumina Limited [Member] | ||
Basis Of Presentation [Line Items] | ||
Non-controlling interest, ownership percentage | 40.00% | 40.00% |
Alcoa Corporation [Member] | ||
Basis Of Presentation [Line Items] | ||
Ownership interest percentage | 60.00% | 60.00% |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance - Additional Information (Detail) | Jan. 01, 2020 |
Accounting Standards Update 2019-08 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2018-15 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2018-14 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2018-13 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Disposition [Line Items] | ||||||
Net gain from asset sales | $ (2) | $ 5 | $ 174 | $ 6 | ||
Elemental Environmental Solutions LLC [Member] | ||||||
Business Disposition [Line Items] | ||||||
Sale transaction value of waste processing | $ 250 | |||||
Net gain from asset sales | $ 1 | 180 | ||||
Net cash received | 200 | |||||
Escrow to be received for divestitures | $ 50 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Additional Information (Detail) | Apr. 22, 2020kt | Jun. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)Employee | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | $ 5,000,000 | $ 185,000,000 | $ 44,000,000 | $ 668,000,000 | |||||||
Settlements of pension benefits | (5,000,000) | (5,000,000) | (5,000,000) | (5,000,000) | |||||||
Net curtailment gain | (2,000,000) | (38,000,000) | |||||||||
Payments for restructuring | 101,000,000 | $ 118,000,000 | |||||||||
Employee termination and severance costs | 37,000,000 | 37,000,000 | |||||||||
Restructuring reserve balance | 75,000,000 | 75,000,000 | 137,000,000 | $ 47,000,000 | |||||||
Noncurrent portion of the reserve | 1,000,000 | 1,000,000 | 13,000,000 | ||||||||
Aviles and La Coruna Smelters [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Payments for restructuring | 6,000,000 | 30,000,000 | |||||||||
Restructuring reserve balance | 38,000,000 | 38,000,000 | 68,000,000 | ||||||||
Aviles and La Coruna Smelters [Member] | Spain [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | 134,000,000 | ||||||||||
Charge for working capital commitment and write-off remaining net book value of plants assets | 39,000,000 | ||||||||||
2019 Restructuring Plan Action [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | 37,000,000 | 2,000,000 | |||||||||
Payments for restructuring | 2,000,000 | $ 24,000,000 | |||||||||
Number of affected employees associated with employee termination and severance costs | Employee | 260 | ||||||||||
Number of separated employees associated with employee termination and severance costs | Employee | 235 | ||||||||||
Increase (reduction) in foreign currency | $ (1,000,000) | ||||||||||
Restructuring and related cost number of eliminated positions were not replaced | Employee | 60 | ||||||||||
The Point Comfort alumina refinery {Member] | Texas [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Payments for restructuring | $ 2,000,000 | ||||||||||
Number of affected employees associated with employee termination and severance costs | Employee | 40 | ||||||||||
Restructuring and related cost number of positions expected to be eliminated | Employee | 35 | ||||||||||
Alcoa Corporation [Member] | Cost of Goods Sold [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Write down of remaining inventories | $ 15,000,000 | ||||||||||
Alcoa Corporation [Member] | Restructuring And Other Charges [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Contract termination costs | 8,000,000 | ||||||||||
Asset impairment | 80,000,000 | ||||||||||
Severance costs excluding employee related cost | $ 3,000,000 | ||||||||||
Employee related expenses excluding severance costs | 2,000,000 | 15,000,000 | |||||||||
Alcoa Corporation [Member] | Restructuring And Other Charges [Member] | Selling, General Administrative, and Other Expenses [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Miscellaneous charges | $ 2,000,000 | ||||||||||
PARTER Capital Group AG [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Noncurrent portion of the reserve | 12,000,000 | ||||||||||
PARTER Capital Group AG [Member] | Aviles and La Coruna Smelters [Member] | Spain [Member] | Maximum [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Financial contributions | 95,000,000 | ||||||||||
Intalco [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | $ 27,000,000 | ||||||||||
Restructuring and other charges (reversal) | (4,000,000) | $ (4,000,000) | |||||||||
Curtailment of smelting capacity | kt | 230 | ||||||||||
Curtailed smelting capacity | kt | 49 | ||||||||||
Contract termination costs | 11,000,000 | ||||||||||
Net curtailment gain | 1,000,000 | ||||||||||
Payments for restructuring | 8,000,000 | $ 10,000,000 | |||||||||
Number of affected employees associated with employee termination and severance costs | Employee | 685 | ||||||||||
Number of separated employees associated with employee termination and severance costs | Employee | 590 | ||||||||||
Payment of contract termination cost | 1,000,000 | $ 1,000,000 | |||||||||
Severance and Exit Costs [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (reversal) | (4,000,000) | 23,000,000 | |||||||||
Contract Termination [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | 4,000,000 | 17,000,000 | |||||||||
Severance and Other Employee Termination Costs [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Payments for restructuring | 38,000,000 | 19,000,000 | |||||||||
Restructuring reserve balance | $ 11,000,000 | $ 11,000,000 | 35,000,000 | $ 5,000,000 | |||||||
Severance and Other Employee Termination Costs [Member] | 2019 Restructuring Plan Action [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring reserve balance | 27,000,000 | ||||||||||
Severance and Other Employee Termination Costs [Member] | The Point Comfort alumina refinery {Member] | Texas [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring reserve balance | $ 4,000,000 | ||||||||||
Severance and Other Employee Termination Costs [Member] | Intalco [Member] | Alcoa Corporation [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | $ 17,000,000 | ||||||||||
Exit Cost [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | 134,000,000 | 242,000,000 | |||||||||
Divesture of MRC [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | $ 319,000,000 | 319,000,000 | |||||||||
Divesture of MRC [Member] | Alcoa Corporation [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Write off of investment | $ 161,000,000 | ||||||||||
Cash contribution to an equity method investment | 100,000,000 | ||||||||||
Gain from write off of the fair value of debt guarantee | 1,000,000 | ||||||||||
Write off delinquent payables due, forgiven | $ 59,000,000 | ||||||||||
Closure Cost [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | 1,000,000 | 9,000,000 | |||||||||
Other Items Charges [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges | $ 8,000,000 | $ 18,000,000 |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | $ 5 | $ 185 | $ 44 | $ 668 |
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 5 | 167 | 46 | 628 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 18 | (2) | 40 | |
Bauxite [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 1 | 5 | 1 | 5 |
Alumina [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 3 | 15 | 5 | 16 |
Aluminum Segment [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | $ 1 | $ 147 | $ 40 | $ 607 |
Restructuring and Other Charg_5
Restructuring and Other Charges, Net - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 137 | $ 47 |
Restructuring and other charges, net | 44 | 212 |
Cash payments | (101) | (118) |
Reversals and other | (5) | (4) |
Restructuring reserve ending balance | 75 | 137 |
Severance and Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 35 | 5 |
Restructuring and other charges, net | 16 | 51 |
Cash payments | (38) | (19) |
Reversals and other | (2) | (2) |
Restructuring reserve ending balance | 11 | 35 |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 102 | 42 |
Restructuring and other charges, net | 28 | 161 |
Cash payments | (63) | (99) |
Reversals and other | (3) | (2) |
Restructuring reserve ending balance | $ 64 | $ 102 |
Segment Information - Schedule
Segment Information - Schedule of Operating Results of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 359 | $ 400 | $ 919 | $ 1,286 |
Depreciation, depletion, and amortization | 154 | 177 | 464 | 509 |
Equity income (loss) | (10) | (5) | (34) | (29) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 2,927 | 3,172 | 8,557 | 9,908 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 567 | 624 | 1,677 | 1,975 |
Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 2,360 | 2,548 | 6,880 | 7,933 |
Bauxite [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 124 | 134 | 375 | 372 |
Depreciation, depletion, and amortization | 33 | 35 | 97 | 90 |
Bauxite [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 292 | 351 | 909 | 965 |
Bauxite [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 236 | 251 | 716 | 733 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 56 | 100 | 193 | 232 |
Alumina [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 119 | 223 | 400 | 964 |
Depreciation, depletion, and amortization | 41 | 54 | 127 | 157 |
Equity income (loss) | (4) | (21) | 15 | |
Alumina [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,026 | 1,140 | 2,961 | 3,763 |
Alumina [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 329 | 369 | 954 | 1,231 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 697 | 771 | 2,007 | 2,532 |
Aluminum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 116 | 43 | 144 | (50) |
Depreciation, depletion, and amortization | 80 | 88 | 240 | 262 |
Equity income (loss) | (6) | (5) | (13) | (44) |
Aluminum [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,609 | 1,681 | 4,687 | 5,180 |
Aluminum [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 2 | 4 | 7 | 11 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | $ 1,607 | $ 1,677 | $ 4,680 | $ 5,169 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Adjusted EBITDA to Consolidated Net Loss Attributable to Alcoa Corporation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total Segment Adjusted EBITDA | $ 359 | $ 400 | $ 919 | $ 1,286 |
Transformation | (11) | (6) | (37) | (1) |
Intersegment eliminations | (35) | 25 | (13) | 110 |
Corporate expenses | (24) | (27) | (72) | (79) |
Provision for depreciation, depletion, and amortization | (161) | (184) | (483) | (530) |
Restructuring and other charges, net (D) | (5) | (185) | (44) | (668) |
Interest expense | (41) | (30) | (103) | (90) |
Other (expenses) income, net (Q) | (45) | (27) | 36 | (118) |
Consolidated income (loss) before income taxes | 22 | (52) | 136 | (137) |
Provision for income taxes | (42) | (95) | (167) | (361) |
Net income attributable to noncontrolling interest | (29) | (74) | (135) | (324) |
Consolidated net loss attributable to Alcoa Corporation | (49) | (221) | (166) | (822) |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges, net (D) | (5) | (185) | (44) | (668) |
Interest expense | (41) | (30) | (103) | (90) |
Other | $ (15) | $ (18) | $ (67) | $ (47) |
Segment Information - Schedul_3
Segment Information - Schedule of Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 2,365 | $ 2,567 | $ 6,894 | $ 7,997 |
Primary Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 1,311 | 1,341 | 3,810 | 4,117 |
Alumina [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 697 | 770 | 2,004 | 2,529 |
Flat-Rolled Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 284 | 294 | 827 | 933 |
Bauxite [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 50 | 95 | 170 | 216 |
Energy [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 26 | 71 | 100 | 225 |
Other Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ (3) | $ (4) | $ (17) | $ (23) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Alcoa Corporation | $ (49) | $ (221) | $ (166) | $ (822) |
Average shares outstanding – basic | 186 | 186 | 186 | 185 |
Effect of dilutive securities: | ||||
Average shares outstanding – diluted | 186 | 186 | 186 | 185 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Awards and Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive securities | 6 | 5 | 6 | 5 |
Common shares equivalents that would have been included in diluted average shares outstanding | 1 | 1 | 1 | 1 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive securities | 2 | 2 | 2 | 2 |
Weighted average exercise price of options | $ 26.50 | $ 32.82 | $ 26.50 | $ 32.82 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Pension and other postretirement benefits (L) | |||||
Total Other comprehensive (loss) income | $ 35 | $ (13) | $ 122 | $ (63) | |
Foreign currency translation | |||||
Other comprehensive income (loss) | 22 | (299) | (657) | (275) | |
Cash flow hedges (M) | |||||
Net change from periodic revaluations | (333) | 60 | 6 | (212) | |
Net amount reclassified to earnings | 29 | 13 | 67 | 14 | |
Total Accumulated other comprehensive loss | (5,547) | (5,547) | $ (4,974) | ||
Alcoa Corporation [Member] | |||||
Pension and other postretirement benefits (L) | |||||
Balance at beginning of period | (2,371) | (2,232) | (2,282) | (2,283) | |
Unrecognized net actuarial loss and prior service cost/benefit | (93) | (38) | (294) | (120) | |
Tax benefit (expense) | 6 | 11 | 16 | 28 | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (87) | (27) | (278) | (92) | |
Amortization of net actuarial loss and prior service cost/benefit | 57 | 49 | 163 | 177 | |
Tax expense | (2) | (3) | (6) | (15) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 55 | 46 | 157 | 162 | |
Total Other comprehensive (loss) income | (32) | 19 | (121) | 70 | |
Balance at end of period | (2,403) | (2,213) | (2,403) | (2,213) | |
Foreign currency translation | |||||
Balance at beginning of period | (2,688) | (2,053) | (2,160) | (2,071) | |
Other comprehensive income (loss) | 5 | (224) | (523) | (206) | |
Balance at end of period | (2,683) | (2,277) | (2,683) | (2,277) | |
Cash flow hedges (M) | |||||
Balance at beginning of period | (221) | (420) | (532) | (211) | |
Net change from periodic revaluations | (333) | 60 | 6 | (212) | |
Tax benefit (expense) | 66 | (15) | 3 | 39 | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (267) | 45 | 9 | (173) | |
Net amount reclassified to earnings | 29 | 13 | 67 | 14 | |
Tax (expense) benefit | (2) | 3 | (5) | 11 | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 27 | 16 | 62 | 25 | |
Total Other comprehensive (loss) income | (240) | 61 | 71 | (148) | |
Balance at end of period | (461) | (359) | (461) | (359) | |
Total Accumulated other comprehensive loss | (5,547) | (4,849) | (5,547) | (4,849) | |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 21 | 9 | 35 | 34 | |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 3 | (4) | 10 | (36) | |
Alcoa Corporation [Member] | Interest Rate Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 2 | 4 | 4 | 4 | |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 3 | 4 | 18 | 12 | |
Non-controlling Interest [Member] | |||||
Pension and other postretirement benefits (L) | |||||
Balance at beginning of period | (54) | (47) | (56) | (46) | |
Unrecognized net actuarial loss and prior service cost/benefit | (7) | (11) | (7) | (14) | |
Tax benefit (expense) | 2 | 4 | 2 | 4 | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (5) | (7) | (5) | (10) | |
Amortization of net actuarial loss and prior service cost/benefit | 3 | 2 | 5 | 4 | |
Tax expense | (1) | (1) | (1) | (1) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 2 | 1 | 4 | 3 | |
Total Other comprehensive (loss) income | (3) | (6) | (1) | (7) | |
Balance at end of period | (57) | (53) | (57) | (53) | |
Foreign currency translation | |||||
Balance at beginning of period | (985) | (804) | (834) | (810) | |
Other comprehensive income (loss) | 17 | (75) | (134) | (69) | |
Balance at end of period | (968) | (879) | (968) | (879) | |
Cash flow hedges (M) | |||||
Balance at beginning of period | (1) | 36 | 20 | 31 | |
Net change from periodic revaluations | (1) | 2 | (31) | 35 | |
Tax benefit (expense) | 1 | (1) | 9 | (11) | |
Total Other comprehensive (loss) income before reclassifications, net of tax | 1 | (22) | 24 | ||
Net amount reclassified to earnings | 1 | (6) | 2 | (31) | |
Tax (expense) benefit | (1) | 2 | (1) | 9 | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | (4) | 1 | (22) | ||
Total Other comprehensive (loss) income | (3) | (21) | 2 | ||
Balance at end of period | (1) | 33 | (1) | 33 | |
Total Accumulated other comprehensive loss | (1,026) | (899) | (1,026) | (899) | |
Non-controlling Interest [Member] | Financial Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | $ 1 | $ (6) | $ 2 | $ (31) |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net (loss) income | $ (20) | $ (147) | $ (31) | $ (498) |
Ma'aden Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net (loss) income of affiliated companies, before reconciling adjustments | (10) | (7) | (32) | (38) |
Other | (1) | 1 | (5) | 5 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | (11) | (6) | (37) | (33) |
Ma'aden Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 552 | 607 | 1,644 | 2,541 |
Cost of goods sold | 435 | 497 | 1,343 | 2,170 |
Net (loss) income | (38) | (27) | (126) | (152) |
Mining [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net (loss) income of affiliated companies, before reconciling adjustments | 5 | 7 | 14 | 15 |
Other | (1) | 6 | ||
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 5 | 7 | 13 | 21 |
Mining [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 195 | 233 | 622 | 648 |
Cost of goods sold | 131 | 147 | 409 | 428 |
Net (loss) income | 16 | 23 | 20 | 23 |
Energy [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net (loss) income of affiliated companies, before reconciling adjustments | 11 | 9 | 29 | 30 |
Other | 1 | (1) | ||
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 12 | 8 | 29 | 30 |
Energy [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 51 | 72 | 157 | 199 |
Cost of goods sold | 28 | 44 | 78 | 108 |
Net (loss) income | 28 | 23 | 75 | 77 |
Other [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net (loss) income of affiliated companies, before reconciling adjustments | (4) | (7) | (11) | (10) |
Other | 3 | 8 | 13 | 10 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | (1) | 1 | 2 | |
Other [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 72 | 47 | 230 | 86 |
Cost of goods sold | 65 | 45 | 207 | 83 |
Net (loss) income | $ (10) | $ (15) | $ (25) | $ (21) |
Investments - Additional Inform
Investments - Additional Information (Detail) - Elysis TM Limited Partnership [Member] $ in Millions | Sep. 30, 2020USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Basis in investment, due to share of losses | $ 0 |
Unrecognized losses | $ 31 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Apr. 20, 2020 | Oct. 25, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Sale of customer receivables | $ 0 | $ 0 | ||
Receivables Purchase Agreement [Member] | Maximum [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Receivables previously secured by credit facility | $ 120,000,000 | |||
Revolving Credit Facility [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Principal amount of debt | $ 1,500,000,000 | $ 1,500,000,000 | ||
Revolving Credit Facility [Member] | Three-year Agreement [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Principal amount of debt | $ 120,000,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 228 | $ 305 |
Work-in-process | 224 | 282 |
Bauxite and alumina | 411 | 446 |
Purchased raw materials | 373 | 453 |
Operating supplies | 162 | 158 |
Inventories, total | $ 1,398 | $ 1,644 |
Debt - Additional Information (
Debt - Additional Information (Detail) kr in Billions | Apr. 08, 2020USD ($) | Jul. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 02, 2019USD ($) | Oct. 02, 2019NOK (kr) |
5.500% Senior Notes due 2027 [Member] | Alcoa Nederland Holding BV [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 750,000,000 | |||||||
Senior notes, interest percentage | 5.50% | |||||||
Debt instrument maturity date | 2027 | |||||||
Proceeds from issuance of debt | $ 736,000,000 | |||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||
Debt instrument, date of first required payment | Dec. 15, 2020 | |||||||
Debt redemption description | ANHBV has the option to redeem the 2027 Notes on at least 15 days, but not more than 60 days, prior notice to the holders of the 2027 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after June 15, 2023, at a redemption price specified in the indenture (up to 102.075% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2027 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 2027 Notes repurchased, plus any accrued and unpaid interest on the 2027 Notes repurchased. | |||||||
5.500% Senior Notes due 2027 [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | After June 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument redemption period | 15 days | |||||||
5.500% Senior Notes due 2027 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | After June 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument redemption period | 60 days | |||||||
Debt instrument redemption price percentage | 102.075% | |||||||
5.500% Senior Notes due 2027 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument redemption price percentage | 101.00% | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio, indebtedness to EBITDA | 3 | 2.50 | ||||||
Leverage ratio, indebtedness to EBITDA in next year | 2.50 | |||||||
Line of credit facility, maximum additional borrowings | $ 1,230,000,000 | |||||||
Principal amount of debt | 1,500,000,000 | |||||||
Line of credit facility, outstanding borrowings | 0 | |||||||
Amounts borrowed under the credit facility | 0 | |||||||
Revolving Credit Facility [Member] | One-year, Multicurrency Agreement [Member] | Alcoa Norway ANS [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 137,000,000 | kr 1.3 | ||||||
Line of credit facility, outstanding borrowings | $ 100,000,000 | $ 0 | ||||||
Line of credit facility, interest rate at period end | 2.93% | |||||||
Line of credit facility repayment due date | Jun. 29, 2020 | |||||||
Debt instrument, term | 1 year | |||||||
Debt instrument extended maturity | Oct. 2, 2021 | |||||||
Revolving Credit Facility [Member] | Scenario Forecast [Member] | 5.500% Senior Notes due 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, decrease in aggregate amount of commitments | $ 245,000,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements | $ 5 | $ 5 | $ 5 | $ 5 |
Curtailments | 2 | 38 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 14 | 12 | 41 | 36 |
Interest cost | 41 | 55 | 124 | 167 |
Expected return on plan assets | (73) | (81) | (220) | (244) |
Recognized net actuarial loss | 54 | 43 | 158 | 127 |
Amortization of prior service cost (benefit) | 1 | 4 | ||
Settlements | 5 | 5 | 5 | 5 |
Curtailments | 4 | 38 | ||
Net periodic benefit cost | 41 | 35 | 112 | 133 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 5 | 10 | 15 | 28 |
Recognized net actuarial loss | 5 | 2 | 14 | 7 |
Amortization of prior service cost (benefit) | (4) | (11) | ||
Curtailments | (2) | |||
Net periodic benefit cost | $ 7 | $ 13 | $ 19 | $ 38 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($)Employee | Sep. 30, 2020USD ($)Employee | |
Defined Benefit Plan Disclosure [Line Items] | ||
Increase in other postretirement benefit liability | $ 74 | |
Deferral of pension contributions, CARES Act | $ 200 | 200 |
Minimum required cash contribution to pension plans | 95 | |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum required cash contribution to pension plans | 49 | |
Non-U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum required cash contribution to pension plans | $ 34 | |
Action# 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Collective bargaining agreement term | 6 years | |
Number of employees affected the change in defined benefit plans | Employee | 20 | 20 |
Percentage of employers contribution in defined benefit plans | 12.00% | |
Action# 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of employees affected the change in defined benefit plans | Employee | 430 | 430 |
Action# 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of employees reduced | Employee | 685 | |
Action# 4 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of employees affected the change in defined benefit plans | Employee | 8,600 | 8,600 |
Increase in other postretirement benefit liability | $ 74 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans (Detail) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2020USD ($)Employee | Sep. 30, 2019USD ($) | Aug. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Increase to accrued pension benefits liability | $ 202 | |||||
Increase to accrued other postretirement benefits liability | 74 | |||||
Curtailments | $ 2 | $ 38 | ||||
Action# 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of affected plan participants | Employee | 20 | |||||
Weighted average discount rate | 2.75% | 3.15% | ||||
Plan remeasurement date | Jan. 31, 2020 | |||||
Increase to accrued pension benefits liability | $ 18 | |||||
Curtailments | $ 1 | |||||
Action# 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of affected plan participants | Employee | 430 | |||||
Weighted average discount rate | 2.75% | 3.20% | ||||
Plan remeasurement date | Jan. 31, 2020 | |||||
Increase to accrued pension benefits liability | $ 28 | |||||
Curtailments | $ 2 | |||||
Action# 3a [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of affected plan participants | Employee | 300 | |||||
Weighted average discount rate | 2.92% | 3.25% | ||||
Plan remeasurement date | Apr. 30, 2020 | |||||
Increase to accrued pension benefits liability | $ 156 | |||||
Curtailments | $ 1 | |||||
Action# 3b [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of affected plan participants | Employee | 600 | |||||
Weighted average discount rate | 3.44% | 3.75% | ||||
Plan remeasurement date | Apr. 30, 2020 | |||||
Curtailments | $ (2) | |||||
Action# 4 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of affected plan participants | Employee | 8,600 | |||||
Weighted average discount rate | 2.65% | 3.11% | ||||
Plan remeasurement date | Aug. 31, 2020 | |||||
Increase to accrued other postretirement benefits liability | $ 74 |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Schedule of Detail for Level 1, 2 and 3 Derivatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets Current | $ 11 | $ 11 | $ 59 | ||
Derivative Liabilities Current | 61 | 61 | 67 | ||
Derivative Assets Noncurrent | 1 | 1 | 18 | ||
Derivative Liabilities Noncurrent | 475 | 475 | 581 | ||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | (333) | $ 60 | 6 | $ (212) | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (29) | (13) | (67) | (14) | |
Non-controlling and Equity Interest [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | 2 | (23) | 17 | (55) | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (1) | (9) | (2) | (34) | |
Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 10 | 10 | 3 | ||
Derivative Liabilities | 20 | 20 | 33 | ||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | 3 | (21) | (4) | (24) | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (2) | (12) | (17) | (24) | |
Level 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 2 | 2 | 74 | ||
Derivative Liabilities | 516 | 516 | 615 | ||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | (338) | 104 | (7) | (133) | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (26) | $ 8 | (48) | $ 44 | |
Level 1, 2 and 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 12 | 12 | 77 | ||
Derivative Liabilities | 536 | 536 | 648 | ||
Derivative Assets Current | 11 | 11 | 59 | ||
Derivative Liabilities Current | 61 | 61 | 67 | ||
Derivative Assets Noncurrent | 1 | 1 | 18 | ||
Derivative Liabilities Noncurrent | $ 475 | $ 475 | $ 581 |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Additional Information (Detail) kt in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)MWhkt | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)MWhkt | Sep. 30, 2019USD ($) | Dec. 31, 2019MWhkt | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (29) | $ (13) | $ (67) | $ (14) | |
Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (2) | (12) | $ (17) | (24) | |
Energy Contracts [Member] | Other Comprehensive Loss [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Forecasted energy purchases in megawatt hours | MWh | 2,046,528 | 2,046,528 | 3,891,096 | ||
Derivatives Designated as Hedging Instruments [Member] | Power Related Derivative [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Aluminum forecast sales | kt | 2,187 | 2,187 | 2,347 | ||
Derivatives Designated as Hedging Instruments [Member] | Power Related Derivative [Member] | Cash Flow Hedging [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Amount of (loss) gain expected to be recognized into earnings over the next 12 months | $ (45) | ||||
Derivatives Designated as Hedging Instruments [Member] | Financial Contracts [Member] | Cash Flow Hedging [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Amount of (loss) gain expected to be recognized into earnings over the next 12 months | 2 | ||||
Derivatives Designated as Hedging Instruments [Member] | Cost of Goods Sold [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (2) | (7) | (10) | (11) | |
Derivatives Designated as Hedging Instruments [Member] | Sales [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (5) | $ (7) | $ (13) |
Derivatives and Other Financi_5
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) - Level 3 [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ 2 | $ 74 |
Derivative Liabilities, Fair value | 516 | $ 615 |
Energy Contracts [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | 2 | |
Derivative Liabilities, Fair value | 516 | |
Financial Contracts [Member] | Energy Contracts [Member] | Interrelationship Of Forward Energy Price And Consumer Price Index [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | 2 | |
Power Related Derivative [Member] | Energy Contracts [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 4 Million MWh Per Year [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | 185 | |
Power Related Derivative [Member] | Energy Contracts [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 11 Million MWh Per Year [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | 305 | |
Power Related Derivative [Member] | Energy Contracts [Member] | Estimated Spread Between The Respective 30-Year Debt Yield Of Alcoa Corporation And The Counterparty [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ 26 |
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) - Level 3 [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | $ 2 | $ 74 |
Fair value liability derivatives | 516 | 615 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 2 | 74 |
Fair value liability derivatives | 490 | 598 |
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 | 2 | 57 |
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 | 17 | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Power Related Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 45 | 47 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Power Related Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 445 | 551 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 26 | 17 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Power Related Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 5 | 3 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Power Related Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | $ 21 | $ 14 |
Derivatives and Other Financi_7
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Power Related Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | $ 5 | |
Fair value measurement, Assets, Ending balance | 0 | $ 0 |
Fair value measurement, Liabilities, Beginning balance | 180 | 598 |
Other comprehensive (loss) income (unrealized) | 335 | (66) |
Fair value measurement, Liabilities, Other | 2 | |
Fair value measurement, Liabilities, Ending balance | 490 | 490 |
Power Related Derivative [Member] | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (5) | |
Fair value measurement, Liabilities | (27) | (42) |
Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | 4 | 74 |
Other comprehensive (loss) income (unrealized) | (5) | (73) |
Fair value measurement, Assets, Other | (1) | (5) |
Fair value measurement, Assets, Ending balance | 2 | 2 |
Fair value measurement, Liabilities, Beginning balance | 2 | |
Other comprehensive (loss) income (unrealized) | (2) | |
Financial Contracts [Member] | Cost of Goods Sold [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 4 | 6 |
Embedded Credit Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 24 | 17 |
Fair value measurement, Liabilities, Other | (1) | (3) |
Fair value measurement, Liabilities, Ending balance | 26 | 26 |
Embedded Credit Derivative [Member] | Other Expenses (Income), Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | 3 | 12 |
Fair value measurement, Liabilities, Other expenses (income) , net | $ 4 | $ 15 |
Derivatives and Other Financi_8
Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,736 | $ 879 |
Restricted cash | 3 | 4 |
Long-term debt due within one year | 2 | 1 |
Long-term debt, less amount due within one year | 2,538 | 1,799 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,736 | 879 |
Restricted cash | 3 | 4 |
Long-term debt due within one year | 2 | 1 |
Long-term debt, less amount due within one year | $ 2,681 | $ 1,961 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Effective federal statutory tax rate | 21.00% | |
Income tax expense benefits on losses valuation reserves | $ 0 | |
Alcoa Canada Company [Member] | ||
Income Taxes [Line Items] | ||
Net deferred tax assets | $ 114,000,000 | $ 137,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 22 | $ (52) | $ 136 | $ (137) |
Estimated annualized effective tax rate | 136.40% | (686.20%) | ||
Income tax expense | $ 185 | $ 942 | ||
Favorable tax impact related to losses in jurisdictions with no tax benefit | (17) | (590) | ||
Discrete tax (benefit) expense | (1) | 9 | ||
Provision for income taxes | $ 42 | $ 95 | $ 167 | $ 361 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Leases [Line Items] | ||
New leases | $ 16 | $ 41 |
Minimum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 1 year | 1 year |
Maximum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 37 years | 37 years |
Leasing - Schedule of Lease Exp
Leasing - Schedule of Lease Expense and Operating Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Costs from operating leases | $ 19 | $ 21 | $ 57 | $ 60 |
Variable lease payments | 2 | $ 4 | 7 | 12 |
Short-term rental expense | $ 1 | $ 2 | $ 4 |
Leasing - Schedule of Weighted
Leasing - Schedule of Weighted Average Lease Term and Weighted Average Discount Rate (Detail) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average lease term for operating leases (years) | 4 years 4 months 24 days | 4 years 7 months 6 days |
Weighted average discount rate for operating leases | 5.20% | 5.40% |
Leasing - Schedule of Aggregate
Leasing - Schedule of Aggregate Right-of Use Assets and Related Lease Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Properties, plants and equipment, net | $ 147 | $ 154 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Other current liabilities | $ 60 | $ 61 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Other noncurrent liabilities and deferred credits | $ 92 | $ 100 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:DeferredCreditsAndOtherLiabilitiesNoncurrent | us-gaap:DeferredCreditsAndOtherLiabilitiesNoncurrent |
Total operating lease liabilities | $ 152 | $ 161 |
Leasing - Schedule of Future Ca
Leasing - Schedule of Future Cash Flows Related to Operating Lease Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (excluding the nine months ended September 30) | $ 18 | |
2021 | 64 | |
2022 | 32 | |
2023 | 20 | |
2024 | 13 | |
Thereafter | 28 | |
Total lease payments (undiscounted) | 175 | |
Less: discount to net present value | (23) | |
Total | $ 152 | $ 161 |
Contingencies - Changes in Carr
Contingencies - Changes in Carrying Value of Recorded Environmental Remediation Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Beginning balance | $ 335 | $ 280 | $ 280 | ||
Liabilities incurred | $ 4 | $ 2 | 6 | 4 | 73 |
Cash payments | (5) | $ (2) | (14) | $ (12) | (17) |
Reversals of previously recorded liabilities | (1) | ||||
Foreign currency translation and other | (6) | ||||
Ending balance | $ 321 | $ 321 | $ 335 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Project | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | ||||||
Environmental remediation reserve balance, current | $ 32 | $ 32 | $ 39 | |||
Liabilities incurred | 4 | $ 2 | 6 | $ 4 | 73 | |
Payments related to remediation expenses applied against the reserve | 5 | 2 | 14 | 12 | 17 | |
Decrease in reserves due to effects of foreign currency translation | $ 2 | 6 | $ 2 | |||
Active or future remediation for significant sites | 260 | 260 | 274 | |||
Accrued environmental reserves | 321 | $ 321 | 335 | $ 280 | ||
Massena, New York [Member] | Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation work completion period | 4 years | |||||
Massena, New York [Member] | Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation work completion period | 8 years | |||||
Sherwin, Texas [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Beginning of expected term for reuse of residue bed | 8 years | |||||
Ending of expected term for reuse of residue bed | 12 years | |||||
Other Sites [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of remediation projects | Project | 35 | |||||
Accrued environmental reserves | $ 61 | $ 61 | $ 61 |
Contingencies - Estimate Timing
Contingencies - Estimate Timing of Cash Outflows on Environmental Reserves (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | |||
2020 (excluding the nine months ended September 30, 2020) | $ 9 | ||
2021 - 2025 | 197 | ||
Thereafter | 115 | ||
Total | $ 321 | $ 335 | $ 280 |
Contingencies - Additional In_2
Contingencies - Additional Information - 1 (Detail) $ in Millions | Sep. 17, 2020USD ($) | Sep. 17, 2020AUD ($) | Jul. 06, 2018USD ($) | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Sep. 30, 2020USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020BRL (R$) | Sep. 30, 2020AUD ($) | Sep. 30, 2020AUD ($) | Jul. 07, 2020USD ($) | Jul. 07, 2020AUD ($) | Dec. 31, 2019USD ($) | Jul. 06, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | ||||||||||||||||||||
Noncurrent income taxes | $ 244,000,000 | $ 244,000,000 | $ 276,000,000 | |||||||||||||||||
AWAC [Member] | Alumina Limited [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Non-controlling interest, ownership percentage | 40.00% | 40.00% | 40.00% | 40.00% | ||||||||||||||||
Alcoa Corporation [Member] | AWAC [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Ownership interest percentage | 60.00% | 60.00% | 60.00% | 60.00% | ||||||||||||||||
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 | ||||||||||||||||||
Percentage of share of the estimated loss | 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] | Maximum [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | 39,000,000 | R$ 220000000 | ||||||||||||||||||
Australian Taxation Office [Member] | Foreign Jurisdiction [Member] | AofA [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Additional income tax payable, exclusive of interest and penalties | $ 152,000,000 | $ 214 | ||||||||||||||||||
Notices include claims for compounded interest on the tax amount | $ 502,000,000 | $ 707 | ||||||||||||||||||
Proposed administrative penalties | $ 91,000,000 | $ 128 | ||||||||||||||||||
Payment of dispute resolution practices income tax percentage | 50.00% | |||||||||||||||||||
Assessed income tax amount exclusive of interest and penalties | $ 74,000,000 | 74,000,000 | $ 107 | |||||||||||||||||
Payment amount refund percentage | 50.00% | |||||||||||||||||||
Reduction in current year cash tax payment | 156,000,000 | $ 219 | ||||||||||||||||||
Noncurrent income taxes | $ 153,000,000 | $ 153,000,000 | $ 215 | |||||||||||||||||
Tax Year 2006 Through 2009 [Member] | Tax Authority, Spain [Member] | ||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||
Total combined assessments | $ 152,000,000 | € 131,000,000 |
Other Expenses (Income), Net -
Other Expenses (Income), Net - Schedule of Other (Income) Expenses, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | ||||
Equity loss | $ 14 | $ 7 | $ 43 | $ 34 |
Foreign currency (gains) losses, net | (5) | (1) | 8 | 16 |
Net loss (gain) from asset sales | 2 | (5) | (174) | (6) |
Net loss on mark-to-market derivative instruments (M) | 3 | 12 | ||
Non-service costs – Pension & OPEB (L) | 28 | 30 | 80 | 89 |
Other | 3 | (4) | (5) | (15) |
Other (income) expenses, net | $ 45 | $ 27 | $ (36) | $ 118 |
Other Expenses (Income), Net _2
Other Expenses (Income), Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Non Operating Income Expense [Line Items] | ||||
Net gain from asset sales | $ (2) | $ 5 | $ 174 | $ 6 |
Gum Springs | ||||
Other Non Operating Income Expense [Line Items] | ||||
Net gain from asset sales | $ 181 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Oct. 08, 2020kt | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Employeekt | Sep. 30, 2019USD ($) |
Subsequent Event [Line Items] | ||||||
Total curtailed global smelting capacity | kt | 1,059,000 | |||||
Curtailed percentage of global smelting capacity | 35.00% | |||||
Restructuring and other charges, net (D) | $ 5 | $ 185 | $ 44 | $ 668 | ||
Expected number of people to be employed | Employee | 630 | |||||
Number of employees will remain to operate | Employee | 100 | |||||
Scenario Forecast [Member] | Minimum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring and other charges, net (D) | $ 35 | |||||
Scenario Forecast [Member] | Maximum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring and other charges, net (D) | $ 40 | |||||
San Ciprian Facility [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Curtailment of smelting capacity | kt | 228,000 |