Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | 187,103,147 | |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Sales (E) | $ 3,109 | $ 2,365 | $ 8,812 | $ 6,894 |
Cost of goods sold (exclusive of expenses below) | 2,322 | 2,038 | 6,770 | 5,995 |
Selling, general administrative, and other expenses | 53 | 47 | 159 | 151 |
Research and development expenses | 8 | 6 | 21 | 18 |
Provision for depreciation, depletion, and amortization | 156 | 161 | 499 | 483 |
Restructuring and other charges, net (D) | 33 | 5 | 73 | 44 |
Interest expense | 58 | 41 | 167 | 103 |
Other (income) expenses, net (Q) | (18) | 45 | (147) | (36) |
Total costs and expenses | 2,612 | 2,343 | 7,542 | 6,758 |
Income before income taxes | 497 | 22 | 1,270 | 136 |
Provision for income taxes | 127 | 42 | 331 | 167 |
Net income (loss) | 370 | (20) | 939 | (31) |
Less: Net income attributable to noncontrolling interest | 33 | 29 | 118 | 135 |
NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA CORPORATION | $ 337 | $ (49) | $ 821 | $ (166) |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (F): | ||||
Basic | $ 1.80 | $ (0.26) | $ 4.40 | $ (0.89) |
Diluted | $ 1.76 | $ (0.26) | $ 4.32 | $ (0.89) |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA CORPORATION | $ 337 | $ (49) | $ 821 | $ (166) |
Net income (loss), Noncontrolling interest | 33 | 29 | 118 | 135 |
Net income (loss) | 370 | (20) | 939 | (31) |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Alcoa Corporation | 72 | (32) | 456 | (121) |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Noncontrolling interest | 12 | (3) | 16 | (1) |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 84 | (35) | 472 | (122) |
Foreign currency translation adjustments, Alcoa Corporation | (202) | 5 | (174) | (523) |
Foreign currency translation adjustments, Noncontrolling interest | (78) | 17 | (87) | (134) |
Foreign currency translation adjustments | (280) | 22 | (261) | (657) |
Net change in unrecognized gains/losses on cash flow hedges, Alcoa Corporation | (111) | (240) | (581) | 71 |
Net change in unrecognized gains/losses on cash flow hedges, Noncontrolling interest | (2) | (21) | ||
Net change in unrecognized gains/losses on cash flow hedges | (113) | (240) | (581) | 50 |
Total Other comprehensive (loss) income, net of tax, Alcoa Corporation | (241) | (267) | (299) | (573) |
Total Other comprehensive (loss) income, net of tax, Noncontrolling interest | (68) | 14 | (71) | (156) |
Total Other comprehensive (loss) income, net of tax | (309) | (253) | (370) | (729) |
Comprehensive income (loss), Alcoa Corporation | 96 | (316) | 522 | (739) |
Comprehensive income (loss), Noncontrolling interest | (35) | 43 | 47 | (21) |
Comprehensive income (loss) | $ 61 | $ (273) | $ 569 | $ (760) |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents (M) | $ 1,452 | $ 1,607 |
Receivables from customers (I) | 769 | 471 |
Other receivables | 92 | 85 |
Inventories (J) | 1,702 | 1,398 |
Fair value of derivative instruments (M) | 19 | 21 |
Assets held for sale (C) | 648 | |
Prepaid expenses and other current assets | 251 | 290 |
Total current assets | 4,285 | 4,520 |
Properties, plants, and equipment | 20,111 | 20,522 |
Less: accumulated depreciation, depletion, and amortization | 13,432 | 13,332 |
Properties, plants, and equipment, net | 6,679 | 7,190 |
Investments (H) | 1,146 | 1,051 |
Deferred income taxes | 698 | 655 |
Fair value of derivative instruments (M) | 2 | |
Other noncurrent assets | 1,387 | 1,444 |
Total assets | 14,197 | 14,860 |
Current liabilities: | ||
Accounts payable, trade | 1,482 | 1,403 |
Accrued compensation and retirement costs | 378 | 395 |
Taxes, including income taxes | 218 | 91 |
Fair value of derivative instruments (M) | 299 | 103 |
Liabilities held for sale (C) | 242 | |
Other current liabilities | 551 | 525 |
Long-term debt due within one year (K & M) | 1 | 2 |
Total current liabilities | 2,929 | 2,761 |
Long-term debt, less amount due within one year (K & M) | 1,724 | 2,463 |
Accrued pension benefits (L) | 633 | 1,492 |
Accrued other postretirement benefits (L) | 652 | 744 |
Asset retirement obligations | 554 | 625 |
Environmental remediation (P) | 260 | 293 |
Fair value of derivative instruments (M) | 1,278 | 742 |
Noncurrent income taxes | 182 | 209 |
Other noncurrent liabilities and deferred credits | 524 | 515 |
Total liabilities | 8,736 | 9,844 |
CONTINGENCIES AND COMMITMENTS (P) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock | 2 | 2 |
Additional capital | 9,708 | 9,663 |
Retained earnings (deficit) | 96 | (725) |
Accumulated other comprehensive loss (G) | (5,928) | (5,629) |
Total Alcoa Corporation shareholders’ equity | 3,878 | 3,311 |
Noncontrolling interest | 1,583 | 1,705 |
Total equity | 5,461 | 5,016 |
Total liabilities and equity | $ 14,197 | $ 14,860 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
CASH FROM OPERATIONS | |||||
Net income (loss) | $ 370 | $ (20) | $ 939 | $ (31) | |
Adjustments to reconcile net income to cash from operations: | |||||
Provision for depreciation, depletion, and amortization | 156 | 161 | 499 | 483 | |
Deferred income taxes | 61 | (12) | |||
Equity earnings, net of dividends | (84) | 19 | |||
Restructuring and other charges, net (D) | 33 | 5 | 73 | 44 | |
Net gain from investing activities – asset sales (Q) | (132) | (174) | |||
Net periodic pension benefit cost (L) | 36 | 103 | |||
Stock-based compensation | 26 | 24 | |||
Provision for bad debt expense | 1 | 2 | |||
Premium paid on early redemption of debt | 43 | ||||
Other | 44 | 11 | |||
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments: | |||||
(Increase) Decrease in receivables | (408) | 26 | |||
(Increase) Decrease in inventories | (373) | 221 | |||
Decrease in prepaid expenses and other current assets | 39 | 21 | |||
Increase (Decrease) in accounts payable, trade | 153 | (87) | |||
(Decrease) in accrued expenses | (166) | ||||
Increase in taxes, including income taxes | 143 | 95 | |||
Pension contributions (L) | (575) | (83) | |||
(Increase) in noncurrent assets | (47) | (64) | |||
(Decrease) in noncurrent liabilities | (83) | (76) | |||
CASH PROVIDED FROM OPERATIONS | 355 | 356 | |||
FINANCING ACTIVITIES | |||||
Additions to debt (original maturities greater than three months) | 495 | 739 | |||
Payments on debt (original maturities greater than three months) | (1,294) | ||||
Proceeds from the exercise of employee stock options | 19 | ||||
Financial contributions for the divestiture of businesses (D) | (14) | (30) | |||
Contributions from noncontrolling interest | 8 | 24 | |||
Distributions to noncontrolling interest | (177) | (152) | |||
Other | (3) | (4) | |||
CASH (USED FOR) PROVIDED FROM FINANCING ACTIVITIES | (966) | 577 | |||
INVESTING ACTIVITIES | |||||
Capital expenditures | (237) | (242) | |||
Proceeds from the sale of assets | 715 | 198 | |||
Additions to investments | (7) | (6) | |||
CASH PROVIDED FROM (USED FOR) INVESTING ACTIVITIES | 471 | (50) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (11) | (27) | |||
Net change in cash and cash equivalents and restricted cash | (151) | 856 | |||
Cash and cash equivalents and restricted cash at beginning of year | 1,610 | 883 | $ 883 | ||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 1,459 | $ 1,739 | $ 1,459 | $ 1,739 | $ 1,610 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Balance at Dec. 31, 2019 | $ 5,886 | $ 2 | $ 9,639 | $ (555) | $ (4,974) | $ 1,774 |
Net income (loss) | (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 income (loss) | (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 |
Balance at Dec. 31, 2020 | 5,016 | 2 | 9,663 | (725) | (5,629) | 1,705 |
Net income (loss) | 939 | 821 | 118 | |||
Other comprehensive (loss) income (G) | (370) | (299) | (71) | |||
Stock-based compensation | 26 | 26 | ||||
Common stock issued: compensation plans | 19 | 19 | ||||
Contributions | 8 | 8 | ||||
Distributions | (177) | (177) | ||||
Balance at Sep. 30, 2021 | 5,461 | 2 | 9,708 | 96 | (5,928) | 1,583 |
Balance at Jun. 30, 2021 | 5,418 | 2 | 9,695 | (241) | (5,687) | 1,649 |
Net income (loss) | 370 | 337 | 33 | |||
Other comprehensive (loss) income (G) | (309) | (241) | (68) | |||
Stock-based compensation | 8 | 8 | ||||
Common stock issued: compensation plans | 5 | 5 | ||||
Contributions | 8 | 8 | ||||
Distributions | (40) | (40) | ||||
Other | 1 | 1 | ||||
Balance at Sep. 30, 2021 | $ 5,461 | $ 2 | $ 9,708 | $ 96 | $ (5,928) | $ 1,583 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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 2020 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, 2020, 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 COVID-19 pandemic could adversely impact estimates made as of September 30, 2021 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. (Arconic) 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). 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, 2020 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 using 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, 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 and Alumina Limited ultimately own 60% and 40%, respectively, of the AWAC 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, 2021 | |
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, 2021, 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. 2019-12, Income Taxes (Topic 740); and, • ASU No. 2020-03, Codification Improvements to Financial Instruments. Issued 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, 2021 | |
Business Combinations [Abstract] | |
Divestitures | C. Divestitures Eastalco Land Sale In June 2021, the Company completed the sale of the previously closed Eastalco Aluminum smelter site in the state of Maryland in a transaction valued at $100. Upon closing of the transaction, the Company received $94 in cash and recorded a gain of $90 in Other (income) expenses, net ($90 pre- and $89 after-tax; see Note Q) on the Statement of Consolidated Operations in the second quarter of 2021. Warrick Rolling Mill On November 30, 2020, Alcoa entered into an agreement to sell its rolling mill located at Warrick Operations (Warrick Rolling Mill), an integrated aluminum manufacturing site near Evansville, Indiana (Warrick Operations), to Kaiser Aluminum Corporation (Kaiser). At December 31, 2020, the Company had assets and liabilities held for sale of $648 and $242, respectively, related to the transaction. On March 31, 2021, Alcoa completed the sale for total consideration of approximately $670, which included the assumption of $66 in other postretirement benefit liabilities (after a post-closing adjustment that lowered the amount by $6 in the second quarter 2021). Additionally, as of March 31, 2021, the Company incurred transaction costs of $7. The Company recorded a gain of $27 in Other (income) expenses, net (pre- and after-tax) on the Statement of Consolidated Operations in the first quarter of 2021 (see Note Q). Further, the Company recorded estimated liabilities of approximately $70 in the first quarter of 2021 for future site separation commitments and remaining transaction costs associated with the sale agreement. During the second quarter of 2021, the Company recorded an additional net gain of $3 in Other (income) expenses, net related to working capital, other postretirement benefit liabilities, and site separation costs. Working capital was finalized in the third quarter of 2021 with no further changes to the gain. The overall gain could be adjusted further as estimates for completion of site-separation costs are refined. Alcoa entered into a market-based metal supply agreement with Kaiser in connection with the transaction. Alcoa also entered into a ground lease agreement with Kaiser for the Warrick Rolling Mill property, which Alcoa continues to own. Approximately 1,150 employees at Warrick Rolling Mill, which includes the casthouse, hot mill, cold mills, and coating and slitting lines, became employees of Kaiser as a result of the transaction. Alcoa continues to own and operate the site’s 269,000 metric ton per year aluminum smelter and the power plant, which together employ approximately 670 people. The remaining Warrick Operations site results are included within the Aluminum segment. Gum Springs Waste Treatment Business 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. During 2020, the Company received $200 in cash and recorded a total gain of $181 (pre- and after-tax; see Note Q). Further, an additional $50 is held in escrow to be paid to Alcoa if certain post-closing conditions are satisfied, which would result in an additional gain being recorded. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 9 Months Ended |
Sep. 30, 2021 | |
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 2021, Alcoa Corporation recorded Restructuring and other charges, net, of $33 and $73, respectively, which were comprised of the following components: • A charge of $27 (both periods) related to the closure of the previously curtailed anode facility in Lake Charles (Louisiana) (see below); • A charge of $8 and $47, respectively, related to the settlement of certain pension benefits (see Note L); • A reversal of $6 (both periods) for a take or pay energy-related obligation at the Sao Luis smelter no longer required due to the announced restart; • C harge s of $ 2 and $ 11 , respectively, for additional take or pay energy contract costs related to the curtailed Wenatchee (Washington) and Intalco (Washington) smelters; • Reversals of $22 (nine-month period only) due to lower costs for demolition and remediation related to previously established reserves (see Note P); • A net charge of $9 (nine-month period only) related to the settlement and curtailment of certain other postretirement benefits resulting from the sale of the Warrick Rolling Mill (see Note L); • Net charges of $2 and $7, respectively, for several other insignificant items. On July 28, 2021, Alcoa made the decision to permanently close the previously curtailed anode facility in Lake Charles, Louisiana, United States. The anode facility within the Lake Charles site has been fully curtailed since 2015. The Company recorded restructuring and other charges of $27 in the third quarter of 2021, comprised of asset impairments of $22 and cash-based charges for closure and asset retirement obligations of $5. The closure is expected to take approximately one year. The decision to permanently close the facility was made as part of the Company’s on-going portfolio review. The Company’s petroleum coke calciner located at the same site in Lake Charles will remain in operation, unaffected by the closure of the anode facility. 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, and several other insignificant items. 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, 2021 2020 2021 2020 Bauxite $ — $ 1 $ — $ 1 Alumina — 3 — 5 Aluminum 23 1 41 40 Segment total 23 5 41 46 Corporate 10 — 32 (2 ) Total Restructuring and other charges, net $ 33 $ 5 $ 73 $ 44 During 2019, the Company completed the divestiture of the Avilés and La Coruña (Spain) aluminum facilities to PARTER Capital Group AG (PARTER) in a sale process endorsed by the Spanish government and supported by the workers’ representatives. In 2020, PARTER sold its majority stake in the facilities to an unrelated party. The Company had no knowledge of the subsequent transaction prior to its announcement, and has filed a lawsuit asserting that the sale was in breach of the sale agreement between Alcoa and PARTER (see Note P). A restructuring reserve of $30 remained at December 31, 2020 related to financial contributions to the divested Avilés and La Coruña entities pursuant to the sale agreement. In the nine-month period of 2021, cash payments of $13 were made against the reserve. In accordance with the terms of the agreement, payments to the divested entities to cover qualified capital expenditures through November 30, 2021 may be requested. If the divested entities do not have qualifying capital expenditures, the remaining reserve of $17 would be reversed in the fourth quarter of 2021. Activity and reserve balances for restructuring charges were as follows: Severance and employee termination costs Other costs Total Balance at December 31, 2019 $ 35 $ 102 $ 137 Restructuring and other charges, net 16 36 52 Cash payments (41 ) (79 ) (120 ) Reversals and other (4 ) (2 ) (6 ) Balance at December 31, 2020 6 57 63 Restructuring and other charges, net — 12 12 Cash payments (4 ) (23 ) (27 ) Reversals and other — (6 ) (6 ) Balance at September 30, 2021 $ 2 $ 40 $ 42 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 at both and December 31, 2020. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | E. Segment Information – Alcoa Corporation is a producer of bauxite, alumina, and aluminum products. The Company’s operations consist of three worldwide reportable segments: Bauxite, Alumina, and Aluminum. Segment performance under Alcoa Corporation’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) of each segment. The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; and Research and development expenses. Alcoa Corporation believes that the presentation of Adjusted EBITDA is useful to investors because such measure provides both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations. The presentation of Adjusted EBITDA is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Alcoa Corporation’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies. 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, 2021 Sales: Third-party sales $ 56 $ 756 $ 2,295 $ 3,107 Intersegment sales 172 349 8 529 Total sales $ 228 $ 1,105 $ 2,303 $ 3,636 Segment Adjusted EBITDA $ 23 $ 148 $ 613 $ 784 Supplemental information: Depreciation, depletion, and amortization $ 30 $ 47 $ 72 $ 149 Equity (loss) income $ — $ (1 ) $ 38 $ 37 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 ) Bauxite Alumina Aluminum Total Nine months ended September 30, 2021 Sales: Third-party sales $ 153 $ 2,204 $ 6,444 $ 8,801 Intersegment sales 536 1,056 13 1,605 Total sales $ 689 $ 3,260 $ 6,457 $ 10,406 Segment Adjusted EBITDA $ 123 $ 499 $ 1,356 $ 1,978 Supplemental information: Depreciation, depletion, and amortization $ 119 $ 143 $ 218 $ 480 Equity (loss) income — (7 ) 79 72 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 ) The following table reconciles total Segment Adjusted EBITDA to Consolidated net income (loss) attributable to Alcoa Corporation: Third quarter ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Total Segment Adjusted EBITDA $ 784 $ 359 $ 1,978 $ 919 Unallocated amounts: Transformation (1) (10 ) (11 ) (34 ) (37 ) Intersegment eliminations (8 ) (35 ) 20 (13 ) Corporate expenses (2) (30 ) (24 ) (84 ) (72 ) Provision for depreciation, depletion, and amortization (156 ) (161 ) (499 ) (483 ) Restructuring and other charges, net (D) (33 ) (5 ) (73 ) (44 ) Interest expense (58 ) (41 ) (167 ) (103 ) Other income (expenses), net (Q) 18 (45 ) 147 36 Other (3) (10 ) (15 ) (18 ) (67 ) Consolidated income before income taxes 497 22 1,270 136 Provision for income taxes (127 ) (42 ) (331 ) (167 ) Net income attributable to noncontrolling interest (33 ) (29 ) (118 ) (135 ) Consolidated net income (loss) attributable to Alcoa Corporation $ 337 $ (49 ) $ 821 $ (166 ) ( 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 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, 2021 2020 2021 2020 Primary aluminum $ 2,255 $ 1,311 $ 6,094 $ 3,810 Alumina 752 697 2,196 2,004 Flat-rolled aluminum (1) — 284 320 827 Energy 117 26 205 100 Bauxite 52 50 138 170 Other (2) (67 ) (3 ) (141 ) (17 ) $ 3,109 $ 2,365 $ 8,812 $ 6,894 (1) Flat-rolled aluminum represented sales of the Warrick Rolling Mill through the sale of the facility on March 31, 2021 (see Note C). (2) Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Net income (loss) attributable to Alcoa Corporation $ 337 $ (49 ) $ 821 $ (166 ) Average shares outstanding – basic 187 186 187 186 Effect of dilutive securities: Stock options — — — — Stock units 4 — 3 — Average shares outstanding – diluted 191 186 190 186 Options to purchase less than five 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 of Alcoa Corporation’s common stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,152 ) $ (2,371 ) $ (63 ) $ (54 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 26 (93 ) 14 (7 ) Tax (expense) benefit (9 ) 6 (4 ) 2 Total Other comprehensive income (loss) before reclassifications, net of tax 17 (87 ) 10 (5 ) Amortization of net actuarial loss and prior service cost/benefit (1) 56 57 2 3 Tax expense (2) (1 ) (2 ) — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 55 55 2 2 Total Other comprehensive income (loss) 72 (32 ) 12 (3 ) Balance at end of period $ (2,080 ) $ (2,403 ) $ (51 ) $ (57 ) Foreign currency translation Balance at beginning of period $ (2,357 ) $ (2,688 ) $ (853 ) $ (985 ) Other comprehensive (loss) income (3) (202 ) 5 (78 ) 17 Balance at end of period $ (2,559 ) $ (2,683 ) $ (931 ) $ (968 ) Cash flow hedges (M) Balance at beginning of period $ (1,178 ) $ (221 ) $ 1 $ (1 ) Other comprehensive (loss) income: Net change from periodic revaluations (222 ) (333 ) (1 ) (1 ) Tax benefit 38 66 1 1 Total Other comprehensive (loss) income before reclassifications, net of tax (184 ) (267 ) — — Net amount reclassified to earnings: Aluminum contracts (4) 82 21 — — Financial contracts (5) (3 ) 3 (3 ) 1 Interest rate contracts (6) 3 2 — — Foreign exchange contracts (4) — 3 — — Sub-total 82 29 (3 ) 1 Tax (expense) benefit (2) (9 ) (2 ) 1 (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 73 27 (2 ) — Total Other comprehensive loss (111 ) (240 ) (2 ) — Balance at end of period $ (1,289 ) $ (461 ) $ (1 ) (1 ) Total Accumulated other comprehensive loss $ (5,928 ) $ (5,547 ) $ (983 ) $ (1,026 ) Alcoa Corporation Noncontrolling interest Nine months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,536 ) $ (2,282 ) $ (67 ) $ (56 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 259 (294 ) 16 (7 ) Tax (expense) benefit (7 ) 16 (4 ) 2 Total Other comprehensive income (loss) before reclassifications, net of tax 252 (278 ) 12 (5 ) Amortization of net actuarial loss and prior service cost/benefit (1) 206 163 4 5 Tax expense (2) (2 ) (6 ) — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 204 157 4 4 Total Other comprehensive income (loss) 456 (121 ) 16 (1 ) Balance at end of period $ (2,080 ) $ (2,403 ) $ (51 ) $ (57 ) Foreign currency translation Balance at beginning of period $ (2,385 ) $ (2,160 ) $ (844 ) $ (834 ) Other comprehensive loss (3) (174 ) (523 ) (87 ) (134 ) Balance at end of period $ (2,559 ) $ (2,683 ) $ (931 ) $ (968 ) Cash flow hedges (M) Balance at beginning of period $ (708 ) $ (532 ) $ (1 ) $ 20 Other comprehensive (loss) income: Net change from periodic revaluations (922 ) 6 (2 ) (31 ) Tax benefit 169 3 1 9 Total Other comprehensive (loss) income before reclassifications, net of tax (753 ) 9 (1 ) (22 ) Net amount reclassified to earnings: Aluminum contracts (4) 195 35 — — Financial contracts (5) 2 10 1 2 Interest rate contracts (6) 7 4 — — Foreign exchange contracts (4) (3 ) 18 — — Sub-total 201 67 1 2 Tax expense (2) (29 ) (5 ) — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 172 62 1 1 Total Other comprehensive (loss) income (581 ) 71 — (21 ) Balance at end of period $ (1,289 ) $ (461 ) $ (1 ) $ (1 ) Total Accumulated other comprehensive loss $ (5,928 ) $ (5,547 ) $ (983 ) $ (1,026 ) (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 (income) expenses, 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, 2021 | |
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, 2021 Saudi Arabia Joint Venture Mining Energy Other Sales $ 776 $ 198 $ 73 $ 100 Cost of goods sold 479 145 51 90 Net income (loss) 152 11 22 (12 ) Equity in net income (loss) of affiliated companies, before reconciling adjustments 38 6 8 (5 ) Other (3 ) (1 ) — 4 Alcoa Corporation’s equity in net income (loss) of affiliated companies 35 5 8 (1 ) Third quarter ended September 30, 2020 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 ) Nine months ended September 30, 2021 Sales $ 2,199 $ 568 $ 188 $ 291 Cost of goods sold 1,490 414 108 261 Net income (loss) 299 31 74 (18 ) Equity in net income (loss) of affiliated companies, before reconciling adjustments 75 16 29 (8 ) Other (7 ) (2 ) — 15 Alcoa Corporation’s equity in net income of affiliated companies 68 14 29 7 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 The Company’s basis in the Elysis TM |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2021 | |
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 On October 8, 2021, the Company notified the counterparty that it will terminate the Receivables Purchase Agreement, effective November 8, 2021. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | J. Inventories September 30, 2021 December 31, 2020 Finished goods $ 377 $ 321 Work-in-process 194 112 Bauxite and alumina 460 412 Purchased raw materials 495 377 Operating supplies 176 176 $ 1,702 $ 1,398 Inventories related to the Warrick Rolling Mill were excluded from the December 31, 2020 balances in the above table due to the sale of the rolling mill and were classified as Assets held for sale (see Note C). |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | K. Debt Credit Facilities. Alcoa Norway ANS 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 $149) which is fully and unconditionally guaranteed on an unsecured basis by Alcoa Corporation. The maturity date of the facility was subsequently extended by one year. In September 2021, Revolving Credit Facility On March 4, 2021 (the Amendment No. 4 Effective Date), Alcoa Corporation and Alcoa Nederland Holding B.V. (ANHBV), a wholly-owned subsidiary of the Company, entered into an amendment (Amendment No. 4) to the Revolving Credit Facility (as amended, Revolving Credit Facility) that provides additional flexibility to the Company and ANHBV by (i) increasing the maximum leverage ratio from 2.50 to 1.00 to 2.75 to 1.00 as of the Amendment No. 4 Effective Date (which maximum leverage ratio had been temporarily increased to 3.00 to 1.00 prior to the Amendment No. 4 Effective Date), (ii) decreasing the minimum interest expense coverage ratio from 5.00 to 1.00 to 4.00 to 1.00 as of the Amendment No. 4 Effective Date, (iii) amending the definition of Total Indebtedness (as defined in the Revolving Credit Facility) to permit the Company to exclude the principal amount of new senior notes issued during 2021 from indebtedness for purposes of the calculation of the leverage ratio Amendment No. 4 also (i) provides additional debt capacity to permit the Company to issue up to $750 in aggregate principal amount of new senior notes prior to the end of fiscal year 2021 and (ii) a corresponding increase in the maximum leverage ratio commensurate with the increase in leverage resulting from the issuance of such notes up to the amount of pension obligations funded after the issuance of such notes but prior to December 31, 2021, which increase shall in any event not be in excess of the principal amount of such notes. Such additional increase in the maximum leverage ratio will be available beginning in the first quarter of 2022. The Revolving Credit Facility provides a $1,500 senior secured revolving credit facility to be used for working capital and/or other general corporate purposes of Alcoa Corporation and its subsidiaries. In the fourth quarter of 2020, ANHBV elected to extend the period under which temporary adjustments in Amendment No. 3 would apply, through March 31, 2021. The amendment temporarily adjusted the manner in which Consolidated Cash Interest Expense and Total Indebtedness (as defined in the Revolving Credit Facility) are calculated with respect to the 5.500% Senior Notes due 2027 issued in July 2020. In addition, this election to extend the temporary amendments resulted in a reduction of the aggregate amount of commitments under the Revolving Credit Facility by approximately $245 during the first quarter of 2021, to $1,255. This reduction ended at the end of the first quarter of 2021, and the aggregate amount of commitments returned to $1,500 as of April 1, 2021. At September 30, 2021, the maximum additional borrowing capacity available to the Company to remain in compliance with the maximum leverage ratio covenant in the Revolving Credit Facility was approximately $4,944. Therefore, the Company may access the entire amount of commitments under the Revolving Credit Facility. 144A Debt. In March 2021, ANHBV completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt issuance for $500 aggregate principal amount of 4.125% Senior Notes due 2029 (the 2029 Notes). The net proceeds of this issuance were approximately $493 reflecting a discount to the initial purchasers of the 2029 Notes, as well as issuance costs. The Company used the net proceeds, together with cash on hand, to contribute $500 to its U.S. defined benefit pension plans applicable to salaried and hourly employees on April 1, 2021, and to redeem in full $750 aggregate principal amount of the Company’s outstanding 6.75% Senior Notes due 2024 (the 2024 Notes) on April 7, 2021, and to pay transaction-related fees and expenses. The discount to the initial purchasers, as well as costs to complete the financing, were deferred and are being amortized to interest expense over the term of the 2029 Notes. Interest on the 2029 Notes is paid semi-annually in March and September, and interest payments commenced September 30, 2021. The indenture contains customary affirmative and negative covenants that are similar to those included in the indenture from the 5.500% Senior Notes due 2027 issued in July 2020, such as limitations on liens, limitations on sale and leaseback transactions, 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 2029 Notes on at least 10 days, but not more than 60 days, prior notice to the holders of the 2029 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after March 31, 2024, at a redemption price specified in the indenture (up to 102.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2029 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 2029 Notes repurchased, plus any accrued and unpaid interest on the 2029 Notes repurchased. The 2029 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 (redeemed on April 7, 2021), 2026 (redeemed on September 30, 2021), 2027 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 M to the Consolidated Financial Statements in Part II Item 8 of the 2020 Annual Report on Form 10-K for additional information related to ANHBV’s existing debt and related covenants. Redemption The issuance of the 2029 Notes and the redemption of the 2024 Notes were determined to be an issuance of new debt and an extinguishment of existing debt. As a result, the Company recorded a loss of $32 on the extinguishment of debt in the second quarter of 2021 in Interest expense, which was comprised of the redemption premium and the write-off of deferred financing fees and unamortized debt issuance costs. The cash flows related to the transaction are classified as financing cash flows. On September 30, 2021, |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 2021 2020 Service cost $ 6 $ 14 $ 16 $ 41 Interest cost (1) 30 41 88 124 Expected return on plan assets (1) (71 ) (73 ) (217 ) (220 ) Recognized net actuarial loss (1) 48 54 149 158 Settlements (2) 8 5 47 5 Curtailments (2) — — — 4 Net periodic benefit cost $ 21 $ 41 $ 83 $ 112 Third quarter ended September 30, Nine months ended September 30, Other postretirement benefits 2021 2020 2021 2020 Service cost $ — $ 1 $ 3 $ 3 Interest cost (1) 4 5 12 15 Recognized net actuarial loss (1) 5 5 16 14 Amortization of prior service benefit (1) (3 ) (4 ) (11 ) (11 ) Settlements (2) — — 26 — Curtailments (2) — — (17 ) (2 ) Net periodic benefit cost $ 6 $ 7 $ 29 $ 19 (1) These amounts were reported in Other (income) expenses, 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 Statements of Consolidated Operations (see Note D) and of Cash Flows. Plan Actions. In 2021, management initiated the following actions to certain pension and other postretirement benefit plans: Action #1 – On March 31, 2021, Alcoa completed the sale of the Warrick Rolling Mill to Kaiser Aluminum Corporation for total consideration of $670, which included the assumption of $66 in other postretirement benefit liabilities (after a post-closing adjustment that lowered the amount by $6 in the second quarter of 2021). The consideration amount is subject to further customary post-closing adjustments. Approximately 1,150 employees at the rolling operations, which includes the casthouse, hot mill, cold mills, and coating and slitting lines, became employees of Kaiser. As a result, the affected plan was remeasured, including an update to the discount rate used to determine the benefit obligation of the plan. Accrued other postretirement benefits reflects a decrease of $40 related to the remeasurement in addition to the $66 assumed by Kaiser. Further, Alcoa recognized a curtailment gain of $17 and a settlement charge of $26. Action #2 – In the second quarter of 2021, settlement accounting and a related plan remeasurement was triggered within Alcoa’s U.S. salaried pension plan as a result of a high number of participants electing lump sum payments. This includes former employees of the Warrick Rolling Mill, as well as other Alcoa employees making this election at retirement. Alcoa recorded a $90 decrease to Accrued pension benefits related to this remeasurement and recognized a settlement charge of $39. Action #3 – In the third quarter of 2021, settlement accounting and a related plan remeasurement was triggered within Alcoa’s U.S. salaried pension plan as a result of participants electing lump sum payments. Alcoa recorded a $7 increase to Accrued pension benefits related to this remeasurement and recognized a settlement charge of $7. Action #4 – In the third quarter of 2021, settlement accounting and a related plan remeasurement was triggered within Alcoa’s Australian pension plan as a result of participants electing lump sum payments. Alcoa recorded a $38 decrease to Accrued pension benefits related to this remeasurement and recognized a settlement charge of $1. The following table presents certain information and the financial impacts of this action on the accompanying Consolidated Financial Statements: Action # Number of affected plan participants Weighted average discount rate as of prior plan remeasurement date Plan remeasurement date Weighted average discount rate as of plan remeasurement date Increase (decrease) to accrued pension benefits liability Decrease to accrued other postretirement benefits liability Curtailment gain (1) Settlement charge (1) 1 ~840 2.45% March 31, 2021 3.06% $ — $ (106 ) $ (17 ) $ 26 2 ~120 2.38% June 30, 2021 2.71% $ (90 ) $ — $ — $ 39 3 ~20 2.71% September 30, 2021 2.74% $ 7 $ — $ — $ 7 4 ~20 1.34% September 30, 2021 1.53% $ (38 ) $ — $ — $ 1 ( 1 ) These amounts represent the accelerated amortization of a portion of the existing prior service benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations. Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in applicable country benefits laws and tax laws, including ERISA for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate. On April 1, 2021, Alcoa made $500 in unscheduled contributions to certain U.S. defined benefit pension plans. The additional contributions were discretionary in nature and were funded with net proceeds from a March 2021 debt issuance (see Note K) plus available cash on hand. Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years. In the second and third quarters of 2021, management made such elections related to the Company’s U.S. plans. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2021 is estimated to be approximately $80. In the third quarter of 2021, $6 was contributed to non-U.S. plans. In the nine-month period of 2021, $49 and $26 were contributed to U.S. and non-U.S. plans, respectively. In the third quarter of 2020, $10 and $15 were contributed to U.S. and non-U.S. plans, respectively. In the nine-month period of 2020, approximately $49 and $34 were contributed to U.S. and non-U.S. plans, respectively. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
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. While Alcoa does not generally enter into derivative contracts to mitigate the risk associated with changes in aluminum price, the Company may do so in isolated cases to address discrete commercial or operational conditions. Alcoa is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities. 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 and 3 derivatives (see additional Level 3 information in further tables below): September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Level 1 derivative instruments $ 21 $ 22 $ 21 $ 7 Level 3 derivative instruments — 1,555 — 838 Total $ 21 $ 1,577 $ 21 $ 845 Less: Current 19 299 21 103 Noncurrent $ 2 $ 1,278 $ — $ 742 2021 2020 Third quarter ended September 30, Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Level 1 and 2 derivative instruments $ (9 ) $ (4 ) $ 3 $ (2 ) Level 3 derivative instruments (214 ) (73 ) (338 ) (26 ) Noncontrolling and equity interest 1 (5 ) 2 (1 ) Total $ (222 ) $ (82 ) $ (333 ) $ (29 ) For the quarter ended September 30, 2021, the realized loss of $4 on Level 1 cash flow hedges 2021 2020 Nine months ended September 30, Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Unrealized gain (loss) recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Level 1 and 2 derivative instruments $ (17 ) $ (7 ) $ (4 ) $ (17 ) Level 3 derivative instruments (908 ) (188 ) (7 ) (48 ) Noncontrolling and equity interest 3 (6 ) 17 (2 ) Total $ (922 ) $ (201 ) $ 6 $ (67 ) For the nine months ended September 30, 2021, the realized loss of $7 on Level 1 cash flow hedges was comprised of a $6 loss recognized in Sales and a $1 loss recognized in Cost of goods sold. 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. Alcoa Corporation had a financial contract that hedged the anticipated power requirements at one of its smelters that expired in July 2021. In March 2021, Alcoa entered into four new financial contracts (Financial contracts (undesignated), below) with three counterparties to hedge the anticipated power requirements at this smelter for the period from August 2021 through July 2026. Two of these financial contracts include LME-linked pricing components and do not qualify for hedge accounting treatment. Management elected not to apply hedge accounting treatment for the other two financial contracts as the value of these contracts is not significant. Significant increases or decreases in the power market or the LME may result in a higher or lower fair value measurement of the financial contracts. Lower prices in the power market or higher LME prices would cause a decrease in the derivative asset or an increase in the derivative liability. Unrealized and realized gains and losses on these financial contracts are included in Other (income) expenses, net on the accompanying Statement of Consolidated Operations. 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, 2021 Unobservable Input Unobservable Input Range Liability Derivatives Power contract $ 319 MWh of energy needed LME (per mt) 2021: $2,850 to produce the forecasted 2027: $2,425 mt of aluminum Electricity Rate of 4 million MWh per year Power contracts 1,211 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2021: $2,850 2029: $2,502 2036: $2,798 Midwest premium (per pound) 2021: $0.3485 2029: $0.3185 2036: $0.3185 Electricity Rate of 17 million MWh per year Power contract (undesignated) 17 Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 2.31%: 30-year debt yield spread 5.24%: Alcoa (estimated) 2.93%: counterparty Financial contracts 8 Interrelationship of Electricity (per MWh) 2021: $33.13 (undesignated) forward energy price, LME 2022: $41.11 forward price and the LME (per mt) 2021: $2,850 Consumer Price Index 2022: $2,844 Total Liability Derivatives $ 1,555 The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2021 December 31, 2020 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 273 $ 94 Current—financial contract — 1 Noncurrent—power contracts 1,257 720 Total derivatives designated as hedging instruments $ 1,530 $ 815 Derivatives not designated as hedging instruments: Current—embedded credit derivative $ 3 $ 4 Current—financial contract $ 8 Noncurrent—embedded credit derivative 14 19 Total derivatives not designated as hedging instruments $ 25 $ 23 Total Liability Derivatives $ 1,555 $ 838 Assuming market rates remain constant with the rates at September 30, 2021, a realized loss of $273 related to power contracts is At September 30, 2021 and December 31, 2020, the power contracts with embedded derivatives designated as cash flow hedges hedge forecasted aluminum sales of 1,962 kmt and 2,130 kmt, respectively. The following tables present the reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Third quarter ended September 30, 2021 Financial contract Power contracts Financial contract Embedded credit derivative July 1, 2021 $ 5 $ 1,397 $ — $ 18 Total gains or losses included in: Sales (realized) — (79 ) — — Cost of goods sold (realized) (6 ) — — — Other income, net (unrealized/realized) (3 ) — 7 (1 ) Other comprehensive (loss) income (unrealized) (2 ) 212 — — Other 6 — 1 — September 30, 2021 $ — $ 1,530 $ 8 $ 17 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2021: Other income, net $ (3 ) $ — $ 8 $ (1 ) Assets Liabilities Nine months ended September 30, 2021 Financial contract Power contracts Financial contract Embedded credit derivative January 1, 2021 $ — $ 814 $ 1 $ 23 Total gains or losses included in: Sales (realized) — (186 ) — — Cost of goods sold (realized) (6 ) — (8 ) — Other expenses (income), net (unrealized/realized) — — 6 (6 ) Other comprehensive (loss) income (unrealized) — 902 6 — Other 6 — 3 — September 30, 2021 $ — $ 1,530 $ 8 $ 17 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2021: Other expenses (income), net $ — $ — $ 7 $ (5 ) 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, 2021 December 31, 2020 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,452 $ 1,452 $ 1,607 $ 1,607 Restricted cash 7 7 3 3 Short-term borrowings 77 77 77 77 Long-term debt due within one year 1 1 2 2 Long-term debt, less amount due within one year 1,724 1,876 2,463 2,692 The following methods were used to estimate the fair values of other financial instruments: Cash and cash equivalents and Restricted cash. The carrying amounts approximate fair value because of the short maturity of the instruments. The fair value amounts for Cash and cash equivalents and Restricted cash were classified in Level 1 of the fair value hierarchy. Short-term borrowings and Long-term debt, including amounts due within one year. The fair value 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, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | N. Income Taxes – Alcoa Corporation’s estimated annualized effective tax rate (AETR) for 2021 as of September 30, 2021 differs from the U.S. federal statutory rate of 21% primarily due to foreign jurisdictions with higher statutory tax rates partially offset by income in certain jurisdictions with full valuation allowances resulting in no additional tax expense. Nine months ended September 30, 2021 2020 Income before income taxes $ 1,270 $ 136 Estimated annualized effective tax rate 26.7 % 136.4 % Income tax expense $ 339 $ 185 Favorable tax impact related to losses in jurisdictions with no tax benefit (7 ) (17 ) Discrete tax benefit (1 ) (1 ) Provision for income taxes $ 331 $ 167 Alúmina Española, S.A. (Española) has incurred recent operating losses that may result in a three-year cumulative loss position later in 2021. Despite recent favorable increases in the sales price for alumina from Española’s sole operating asset, the San Ciprián refinery, the high energy costs in Spain, as well as the workers’ strike that resumed on September 27, 2021, are challenging profitability for the entity. At this point in time, management concluded that Española’s net deferred tax assets will more likely than not be realized and a valuation allowance has not been recorded against deferred tax assets, but Española’s operating results will continue to be monitored. Upon changes in facts and circumstances, or a continuation of current energy cost trends, management may conclude that Española’s deferred tax assets may not be realized, resulting in a future charge to establish a valuation allowance. Española’s net deferred tax assets were $105 at September 30, 2021. The majority of Española’s net deferred tax assets relate to prior net operating losses; the related credits are not subject to an expiration period. |
Leasing
Leasing | 9 Months Ended |
Sep. 30, 2021 | |
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 less than Lease expense and operating cash flows include: Third quarter ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Costs from operating leases $ 16 $ 19 $ 54 $ 57 Variable lease payments 4 2 9 7 Short-term rental expense 1 1 2 2 The weighted average lease term and weighted average discount rate as of September 30, 2021 September 30, 2021 December 31, 2020 Weighted average lease term for operating leases (years) 4.9 4.4 Weighted average discount rate for operating leases 5.1% 5.2% The following represents the aggregate right-of use assets and related lease obligations recognized in the Consolidated Balance Sheet at: September 30, 2021 December 31, 2020 Properties, plants and equipment, net $ 108 $ 137 Other current liabilities $ 42 $ 60 Other noncurrent liabilities and deferred credits 69 82 Total operating lease liabilities $ 111 $ 142 Right-of-use assets and lease liabilities related to the Warrick Rolling Mill were excluded from the December 31, 2020 balances in the above table due to the sale of the rolling mill and were classified as Assets held for sale (see Note C). The future cash flows related to the operating lease obligations as of September 30, 2021 were as follows: 2021 (excluding the nine months ended September 30) $ 17 2022 38 2023 24 2024 15 2025 10 Thereafter 24 Total lease payments (undiscounted) 128 Less: discount to net present value (17 ) Total $ 111 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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 technology 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, 2019 $ 335 Liabilities incurred 7 Cash payments (19 ) Foreign currency translation and other (1 ) Balance at December 31, 2020 322 Liabilities incurred 8 Cash payments (14 ) Reversals of previously recorded liabilities (17 ) Foreign currency translation and other (2 ) Balance at September 30, 2021 $ 297 At September 30, 2021 and December 31, 2020, the current portion of Alcoa Corporation’s environmental remediation reserve balance was $37 and $29, respectively. The Company incurred liabilities of $4 and $8 in the third quarter and nine-month period of 2021, respectively, primarily related to environmental activities at the Point Comfort site in Texas, closure of the anode plant at the Lake Charles site in Louisiana, and wetlands mitigation at the Longview site in Washington, as well as other increases for ongoing monitoring and maintenance at various sites. These charges are primarily recorded in Cost of goods sold and Restructuring and other charges, net on the accompanying Statement of Consolidated Operations. • $5 (nine-month period only) due to lower costs for waste treatment at a previously closed Suriname site; • $5 (nine-month period only) due to lower costs for site remediation related to a previously closed site in Brazil; and, • $7 (nine-month period only) due to the determination that previously estimated site remediation is not required at the previously closed Tennessee site. The Company incurred liabilities of $4 and $6 in the third quarter and nine-month period of 2020, respectively, due to charges related to increases for ongoing monitoring and maintenance and environmental consulting work for a remediation project at the Fusina site in Italy. These charges are primarily recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. Payments related to remediation expenses applied against the reserve were $5 and $14 in the third quarter and nine-month period of 2020, respectively. These amounts include mandated expenditures as well as those not required by any regulatory authority or third party. The reserve also reflects a decrease of $6 in the nine-month period of 2020, due to the effects of foreign currency translation. The estimated timing of cash outflows on the environmental remediation reserve at September 30, 2021 is as follows: 2021 (excluding the nine months ended September 30, 2021) $ 6 2022 - 2026 176 Thereafter 115 Total $ 297 Reserve balances at September 30, 2021 and December 31, 2020 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 for Ecologic Transition (MET), formerly the Italian Ministry of Environment and Protection of Land and Sea (MOE). Work is ongoing for soil remediation at the Fusina site with expected completion by the end of 2023 and at the Portovesme site with expected completion in the second half of 2021. Additionally, annual payments are made to MET over a 10-year period through 2022 for groundwater emergency containment and natural resource damages at the Fusina site. The final remedial design for the groundwater remediation project at Portovesme was completed in 2020 and is awaiting approval from the MET. Suriname —The reserve associated with the 2017 closure of the Suralco refinery and bauxite mine is for treatment and disposal of refinery waste and soil remediation. The work began in 2017 and is expected to be completed at the end of 2025. Hurricane Creek, Arkansas —The reserve associated with the 1990 closure of two mining areas and refineries near Hurricane Creek, Arkansas is for ongoing monitoring and maintenance for water quality surrounding the mine areas and residue disposal areas. Massena, New York —The reserve associated with the 2015 closure of the Massena East smelter by the Company’s subsidiary, Reynolds Metals Company, is for subsurface soil remediation to be performed after demolition of the structures. Remediation work commenced in 2021 and will take four to eight years to complete. Point Comfort, Texas —The reserve associated with the 2019 closure of the Point Comfort alumina refinery is for disposal of industrial wastes contained at the site, subsurface remediation, and post-closure monitoring and maintenance. The final remediation plan is currently 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 ten 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 State of Washington Department of Ecology, the Company’s subsidiary, Northwest Alloys as landowner, accepted certain responsibilities for future remediation of contaminated soil and sediments at the site located near Longview, Washington. In December 2020, the lessee of the land, who is a partner in the remediation of the site, filed for bankruptcy. As of September 30, 2021, the reserve related to the site is deemed to be sufficient. 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, 2021 and December 31, 2020 , the reserve balance associated with these activities was $ and $ 63 , respectively . 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. Through various stages of subsequent appeal, denial, and re-assessment through the third quarter of 2018, Alcoa Corporation management came to believe that it was no longer 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 portion of the estimated loss in this matter, representing management’s best estimate at the time. On November 8, 2018, Alcoa filed a petition for appeal to the Supreme Court of Spain. During the fourth quarter of 2020, the Supreme Court of Spain met and ruled in favor of Alcoa on the 2006 through 2009 tax year assessment. The ruling is final and cannot be further appealed. As a result of the final ruling, in the fourth quarter of 2020 Alcoa reversed the $32 (€26) reserve that was established in 2018 and the matter is now considered closed. Additionally, a lien secured with the San Ciprián smelter to Spain’s tax authorities that was provided in relation to this matter has been released. 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, a new tax law was enacted repealing the provisions in the tax code that were the basis for the RFB assessing a 50% penalty in this matter. As such, the estimated range of reasonably possible loss for these matters is $0 to $41 (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 $154 (A$214). The Notices also included claims for compounded interest on the tax amount totaling approximately $509 (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 $92 (A$128). AofA disagrees with the ATO’s proposed position on penalties and submitted a response to the position paper in the fourth quarter of 2020. After the ATO completes its review of AofA’s response, 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 within Other noncurrent assets as a tax assessment deposit; the related September 30, 2021 balance is $77 (A$107). Further interest on the unpaid tax and interest 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 beginning in the third quarter of 2020 which reduced cash tax payments by approximately $158 (A$219) in 2020 and $3 (A$4) and $10 (A$14), respectively, in the third quarter and nine-month period of 2021. This amount has been reflected within Other noncurrent liabilities and deferred credits as a noncurrent accrued tax liability; the related September 30, 2021 balance is $ (A$ ). 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. Other Spain — During 2019, the Company completed the divestiture of the Avilés and La Coruña (Spain) aluminum facilities to PARTER Capital Group AG (PARTER) in a sale process endorsed by the Spanish government and supported by the workers’ representatives following a collective dismissal process. In connection with the divestiture, Alcoa committed to make financial contributions to the buyer of up to $95; $78 has been paid to date. In 2020, PARTER sold its majority stake in the facilities to an unrelated party. Alcoa had no knowledge of the subsequent transaction prior to its announcement and on August 28, 2020, Alcoa filed a lawsuit with the Court of First Instance in Madrid, Spain asserting that the sale was in breach of the sale agreement between Alcoa and PARTER. Related to this divestiture, certain claims and investigations have been initiated by or at the request of the employees of the facilities against their current employers, the owners of the current employers, and Alcoa, alleging that the agreements of the collective dismissal process remain in force and that Alcoa remains liable for related social benefits to the employees. One of the claims is a collective case before the Spanish National Court, filed on November 10, 2020, where the workers’ representatives and employees are seeking for the terms of the Collective Dismissal Agreement signed with the workers in January 2019 to be fulfilled or, alternatively, payment of severance corresponding to an unfair dismissal. On June 15, 2021, the Spanish National Court ruled that the collective dismissal agreement for the divested Avilés and La Coruña aluminum facilities is still in effect and that Alcoa is liable for related employee severance. Alcoa has not recorded a reserve related to the matter, has filed an appeal with the Spanish Supreme Court and will continue to defend this matter and pursue all available legal resolution methods. At this time, Alcoa Corporation is unable to reasonably predict the ultimate outcome or range of loss associated with the outcome of this matter, which may materially affect its results of operations. Alcoa continues to believe it acted in good faith, in full compliance with the law and with all of the terms that it committed to in the contract for the sale of the Avilés and Coruña facilities to PARTER and in the agreements that it entered into with the representatives of the workers of both facilities. 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 (Income) Expenses, Net
Other (Income) Expenses, Net | 9 Months Ended |
Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other (Income) Expenses, Net | Q. Other (Income) Expenses, Net Third quarter ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Equity (gain) loss $ (30 ) $ 14 $ (61 ) $ 43 Foreign currency (gains) losses, net (4 ) (5 ) 2 8 Net (gain) loss from asset sales (8 ) 2 (132 ) (174 ) Net loss on mark-to-market derivative instruments (M) 9 3 2 12 Non-service costs – Pension & OPEB (L) 13 28 37 80 Other 2 3 5 (5 ) $ (18 ) $ 45 $ (147 ) $ (36 ) Net (gain) loss from asset sales for the nine months ended September 30, 2021 included a net gain of $120 related to the sales of the former Eastalco site and the Warrick Rolling Mill (see Note C). Net (gain) loss from asset sales for the nine months ended September 30, 2020 included a net gain of $181 related to the sale of EES (see Note C). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | R. Subsequent Events In October 2021, the Company signed a group annuity contract to transfer the obligation to pay the remaining retirement benefits of approximately 800 retirees and deferred vested participants from one of its Suriname pension plans to an insurance company. The transfer of $55 in both plan obligations and plan assets was completed on October 19, 2021. As a result, a $63 settlement loss will be recorded in Restructuring and other charges, net on the Statement of Consolidated Operations in the fourth quarter of 2021. On October 14, 2021, the Company announced the initiation of a quarterly cash dividend on its common stock. The Board of Directors declared the first quarterly cash dividend of $0.10 per share of the Company’s common stock, to be paid on November 19, 2021 to stockholders of record as of the close of business on October 29, 2021. On October 14, 2021, the Company announced that its Board of Directors approved a new $500 share repurchase program. The Company is authorized to repurchase up to a total of $650 of its outstanding shares of common stock, which includes $500 under the newly authorized share repurchase program and a remaining $150 under the Company’s previously authorized share repurchase program. As of October 22, 2021, the Company had 187,103,147 issued and outstanding shares of common stock. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 2020 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, 2020, 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 COVID-19 pandemic could adversely impact estimates made as of September 30, 2021 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. (Arconic) 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). 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, 2020 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 using 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, 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 and Alumina Limited ultimately own 60% and 40%, respectively, of the AWAC 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. |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Bauxite $ — $ 1 $ — $ 1 Alumina — 3 — 5 Aluminum 23 1 41 40 Segment total 23 5 41 46 Corporate 10 — 32 (2 ) Total Restructuring and other charges, net $ 33 $ 5 $ 73 $ 44 |
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, 2019 $ 35 $ 102 $ 137 Restructuring and other charges, net 16 36 52 Cash payments (41 ) (79 ) (120 ) Reversals and other (4 ) (2 ) (6 ) Balance at December 31, 2020 6 57 63 Restructuring and other charges, net — 12 12 Cash payments (4 ) (23 ) (27 ) Reversals and other — (6 ) (6 ) Balance at September 30, 2021 $ 2 $ 40 $ 42 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 Sales: Third-party sales $ 56 $ 756 $ 2,295 $ 3,107 Intersegment sales 172 349 8 529 Total sales $ 228 $ 1,105 $ 2,303 $ 3,636 Segment Adjusted EBITDA $ 23 $ 148 $ 613 $ 784 Supplemental information: Depreciation, depletion, and amortization $ 30 $ 47 $ 72 $ 149 Equity (loss) income $ — $ (1 ) $ 38 $ 37 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 ) Bauxite Alumina Aluminum Total Nine months ended September 30, 2021 Sales: Third-party sales $ 153 $ 2,204 $ 6,444 $ 8,801 Intersegment sales 536 1,056 13 1,605 Total sales $ 689 $ 3,260 $ 6,457 $ 10,406 Segment Adjusted EBITDA $ 123 $ 499 $ 1,356 $ 1,978 Supplemental information: Depreciation, depletion, and amortization $ 119 $ 143 $ 218 $ 480 Equity (loss) income — (7 ) 79 72 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 ) |
Schedule of Segment Adjusted EBITDA to Consolidated Net Income (Loss) Attributable to Alcoa Corporation | The following table reconciles total Segment Adjusted EBITDA to Consolidated net income (loss) attributable to Alcoa Corporation: Third quarter ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Total Segment Adjusted EBITDA $ 784 $ 359 $ 1,978 $ 919 Unallocated amounts: Transformation (1) (10 ) (11 ) (34 ) (37 ) Intersegment eliminations (8 ) (35 ) 20 (13 ) Corporate expenses (2) (30 ) (24 ) (84 ) (72 ) Provision for depreciation, depletion, and amortization (156 ) (161 ) (499 ) (483 ) Restructuring and other charges, net (D) (33 ) (5 ) (73 ) (44 ) Interest expense (58 ) (41 ) (167 ) (103 ) Other income (expenses), net (Q) 18 (45 ) 147 36 Other (3) (10 ) (15 ) (18 ) (67 ) Consolidated income before income taxes 497 22 1,270 136 Provision for income taxes (127 ) (42 ) (331 ) (167 ) Net income attributable to noncontrolling interest (33 ) (29 ) (118 ) (135 ) Consolidated net income (loss) attributable to Alcoa Corporation $ 337 $ (49 ) $ 821 $ (166 ) ( 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 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, 2021 2020 2021 2020 Primary aluminum $ 2,255 $ 1,311 $ 6,094 $ 3,810 Alumina 752 697 2,196 2,004 Flat-rolled aluminum (1) — 284 320 827 Energy 117 26 205 100 Bauxite 52 50 138 170 Other (2) (67 ) (3 ) (141 ) (17 ) $ 3,109 $ 2,365 $ 8,812 $ 6,894 (1) Flat-rolled aluminum represented sales of the Warrick Rolling Mill through the sale of the facility on March 31, 2021 (see Note C). (2) Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Net income (loss) attributable to Alcoa Corporation $ 337 $ (49 ) $ 821 $ (166 ) Average shares outstanding – basic 187 186 187 186 Effect of dilutive securities: Stock options — — — — Stock units 4 — 3 — Average shares outstanding – diluted 191 186 190 186 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,152 ) $ (2,371 ) $ (63 ) $ (54 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 26 (93 ) 14 (7 ) Tax (expense) benefit (9 ) 6 (4 ) 2 Total Other comprehensive income (loss) before reclassifications, net of tax 17 (87 ) 10 (5 ) Amortization of net actuarial loss and prior service cost/benefit (1) 56 57 2 3 Tax expense (2) (1 ) (2 ) — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 55 55 2 2 Total Other comprehensive income (loss) 72 (32 ) 12 (3 ) Balance at end of period $ (2,080 ) $ (2,403 ) $ (51 ) $ (57 ) Foreign currency translation Balance at beginning of period $ (2,357 ) $ (2,688 ) $ (853 ) $ (985 ) Other comprehensive (loss) income (3) (202 ) 5 (78 ) 17 Balance at end of period $ (2,559 ) $ (2,683 ) $ (931 ) $ (968 ) Cash flow hedges (M) Balance at beginning of period $ (1,178 ) $ (221 ) $ 1 $ (1 ) Other comprehensive (loss) income: Net change from periodic revaluations (222 ) (333 ) (1 ) (1 ) Tax benefit 38 66 1 1 Total Other comprehensive (loss) income before reclassifications, net of tax (184 ) (267 ) — — Net amount reclassified to earnings: Aluminum contracts (4) 82 21 — — Financial contracts (5) (3 ) 3 (3 ) 1 Interest rate contracts (6) 3 2 — — Foreign exchange contracts (4) — 3 — — Sub-total 82 29 (3 ) 1 Tax (expense) benefit (2) (9 ) (2 ) 1 (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 73 27 (2 ) — Total Other comprehensive loss (111 ) (240 ) (2 ) — Balance at end of period $ (1,289 ) $ (461 ) $ (1 ) (1 ) Total Accumulated other comprehensive loss $ (5,928 ) $ (5,547 ) $ (983 ) $ (1,026 ) Alcoa Corporation Noncontrolling interest Nine months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Pension and other postretirement benefits (L) Balance at beginning of period $ (2,536 ) $ (2,282 ) $ (67 ) $ (56 ) Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 259 (294 ) 16 (7 ) Tax (expense) benefit (7 ) 16 (4 ) 2 Total Other comprehensive income (loss) before reclassifications, net of tax 252 (278 ) 12 (5 ) Amortization of net actuarial loss and prior service cost/benefit (1) 206 163 4 5 Tax expense (2) (2 ) (6 ) — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 204 157 4 4 Total Other comprehensive income (loss) 456 (121 ) 16 (1 ) Balance at end of period $ (2,080 ) $ (2,403 ) $ (51 ) $ (57 ) Foreign currency translation Balance at beginning of period $ (2,385 ) $ (2,160 ) $ (844 ) $ (834 ) Other comprehensive loss (3) (174 ) (523 ) (87 ) (134 ) Balance at end of period $ (2,559 ) $ (2,683 ) $ (931 ) $ (968 ) Cash flow hedges (M) Balance at beginning of period $ (708 ) $ (532 ) $ (1 ) $ 20 Other comprehensive (loss) income: Net change from periodic revaluations (922 ) 6 (2 ) (31 ) Tax benefit 169 3 1 9 Total Other comprehensive (loss) income before reclassifications, net of tax (753 ) 9 (1 ) (22 ) Net amount reclassified to earnings: Aluminum contracts (4) 195 35 — — Financial contracts (5) 2 10 1 2 Interest rate contracts (6) 7 4 — — Foreign exchange contracts (4) (3 ) 18 — — Sub-total 201 67 1 2 Tax expense (2) (29 ) (5 ) — (1 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 172 62 1 1 Total Other comprehensive (loss) income (581 ) 71 — (21 ) Balance at end of period $ (1,289 ) $ (461 ) $ (1 ) $ (1 ) Total Accumulated other comprehensive loss $ (5,928 ) $ (5,547 ) $ (983 ) $ (1,026 ) (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 (income) expenses, 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, 2021 | |
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, 2021 Saudi Arabia Joint Venture Mining Energy Other Sales $ 776 $ 198 $ 73 $ 100 Cost of goods sold 479 145 51 90 Net income (loss) 152 11 22 (12 ) Equity in net income (loss) of affiliated companies, before reconciling adjustments 38 6 8 (5 ) Other (3 ) (1 ) — 4 Alcoa Corporation’s equity in net income (loss) of affiliated companies 35 5 8 (1 ) Third quarter ended September 30, 2020 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 ) Nine months ended September 30, 2021 Sales $ 2,199 $ 568 $ 188 $ 291 Cost of goods sold 1,490 414 108 261 Net income (loss) 299 31 74 (18 ) Equity in net income (loss) of affiliated companies, before reconciling adjustments 75 16 29 (8 ) Other (7 ) (2 ) — 15 Alcoa Corporation’s equity in net income of affiliated companies 68 14 29 7 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 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | September 30, 2021 December 31, 2020 Finished goods $ 377 $ 321 Work-in-process 194 112 Bauxite and alumina 460 412 Purchased raw materials 495 377 Operating supplies 176 176 $ 1,702 $ 1,398 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 2021 2020 Service cost $ 6 $ 14 $ 16 $ 41 Interest cost (1) 30 41 88 124 Expected return on plan assets (1) (71 ) (73 ) (217 ) (220 ) Recognized net actuarial loss (1) 48 54 149 158 Settlements (2) 8 5 47 5 Curtailments (2) — — — 4 Net periodic benefit cost $ 21 $ 41 $ 83 $ 112 Third quarter ended September 30, Nine months ended September 30, Other postretirement benefits 2021 2020 2021 2020 Service cost $ — $ 1 $ 3 $ 3 Interest cost (1) 4 5 12 15 Recognized net actuarial loss (1) 5 5 16 14 Amortization of prior service benefit (1) (3 ) (4 ) (11 ) (11 ) Settlements (2) — — 26 — Curtailments (2) — — (17 ) (2 ) Net periodic benefit cost $ 6 $ 7 $ 29 $ 19 (1) These amounts were reported in Other (income) expenses, 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 Statements 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 this action on the accompanying Consolidated Financial Statements: Action # Number of affected plan participants Weighted average discount rate as of prior plan remeasurement date Plan remeasurement date Weighted average discount rate as of plan remeasurement date Increase (decrease) to accrued pension benefits liability Decrease to accrued other postretirement benefits liability Curtailment gain (1) Settlement charge (1) 1 ~840 2.45% March 31, 2021 3.06% $ — $ (106 ) $ (17 ) $ 26 2 ~120 2.38% June 30, 2021 2.71% $ (90 ) $ — $ — $ 39 3 ~20 2.71% September 30, 2021 2.74% $ 7 $ — $ — $ 7 4 ~20 1.34% September 30, 2021 1.53% $ (38 ) $ — $ — $ 1 ( 1 ) These amounts represent the accelerated amortization of a portion of the existing prior service benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations. |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Detail for Level 1 and 3 Derivatives | The following tables present the detail for Level 1 and 3 derivatives (see additional Level 3 information in further tables below): September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Level 1 derivative instruments $ 21 $ 22 $ 21 $ 7 Level 3 derivative instruments — 1,555 — 838 Total $ 21 $ 1,577 $ 21 $ 845 Less: Current 19 299 21 103 Noncurrent $ 2 $ 1,278 $ — $ 742 2021 2020 Third quarter ended September 30, Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Level 1 and 2 derivative instruments $ (9 ) $ (4 ) $ 3 $ (2 ) Level 3 derivative instruments (214 ) (73 ) (338 ) (26 ) Noncontrolling and equity interest 1 (5 ) 2 (1 ) Total $ (222 ) $ (82 ) $ (333 ) $ (29 ) 2021 2020 Nine months ended September 30, Unrealized (loss) gain recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Unrealized gain (loss) recognized in Other comprehensive (loss) income Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings Level 1 and 2 derivative instruments $ (17 ) $ (7 ) $ (4 ) $ (17 ) Level 3 derivative instruments (908 ) (188 ) (7 ) (48 ) Noncontrolling and equity interest 3 (6 ) 17 (2 ) Total $ (922 ) $ (201 ) $ 6 $ (67 ) |
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, 2021 Unobservable Input Unobservable Input Range Liability Derivatives Power contract $ 319 MWh of energy needed LME (per mt) 2021: $2,850 to produce the forecasted 2027: $2,425 mt of aluminum Electricity Rate of 4 million MWh per year Power contracts 1,211 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2021: $2,850 2029: $2,502 2036: $2,798 Midwest premium (per pound) 2021: $0.3485 2029: $0.3185 2036: $0.3185 Electricity Rate of 17 million MWh per year Power contract (undesignated) 17 Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 2.31%: 30-year debt yield spread 5.24%: Alcoa (estimated) 2.93%: counterparty Financial contracts 8 Interrelationship of Electricity (per MWh) 2021: $33.13 (undesignated) forward energy price, LME 2022: $41.11 forward price and the LME (per mt) 2021: $2,850 Consumer Price Index 2022: $2,844 Total Liability Derivatives $ 1,555 |
Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Liabilities | The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2021 December 31, 2020 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 273 $ 94 Current—financial contract — 1 Noncurrent—power contracts 1,257 720 Total derivatives designated as hedging instruments $ 1,530 $ 815 Derivatives not designated as hedging instruments: Current—embedded credit derivative $ 3 $ 4 Current—financial contract $ 8 Noncurrent—embedded credit derivative 14 19 Total derivatives not designated as hedging instruments $ 25 $ 23 Total Liability Derivatives $ 1,555 $ 838 |
Fair Value Assets Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Text Block | The following tables present the reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Third quarter ended September 30, 2021 Financial contract Power contracts Financial contract Embedded credit derivative July 1, 2021 $ 5 $ 1,397 $ — $ 18 Total gains or losses included in: Sales (realized) — (79 ) — — Cost of goods sold (realized) (6 ) — — — Other income, net (unrealized/realized) (3 ) — 7 (1 ) Other comprehensive (loss) income (unrealized) (2 ) 212 — — Other 6 — 1 — September 30, 2021 $ — $ 1,530 $ 8 $ 17 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2021: Other income, net $ (3 ) $ — $ 8 $ (1 ) Assets Liabilities Nine months ended September 30, 2021 Financial contract Power contracts Financial contract Embedded credit derivative January 1, 2021 $ — $ 814 $ 1 $ 23 Total gains or losses included in: Sales (realized) — (186 ) — — Cost of goods sold (realized) (6 ) — (8 ) — Other expenses (income), net (unrealized/realized) — — 6 (6 ) Other comprehensive (loss) income (unrealized) — 902 6 — Other 6 — 3 — September 30, 2021 $ — $ 1,530 $ 8 $ 17 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2021: Other expenses (income), net $ — $ — $ 7 $ (5 ) |
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, 2021 December 31, 2020 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,452 $ 1,452 $ 1,607 $ 1,607 Restricted cash 7 7 3 3 Short-term borrowings 77 77 77 77 Long-term debt due within one year 1 1 2 2 Long-term debt, less amount due within one year 1,724 1,876 2,463 2,692 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Nine months ended September 30, 2021 2020 Income before income taxes $ 1,270 $ 136 Estimated annualized effective tax rate 26.7 % 136.4 % Income tax expense $ 339 $ 185 Favorable tax impact related to losses in jurisdictions with no tax benefit (7 ) (17 ) Discrete tax benefit (1 ) (1 ) Provision for income taxes $ 331 $ 167 |
Leasing (Tables)
Leasing (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Costs from operating leases $ 16 $ 19 $ 54 $ 57 Variable lease payments 4 2 9 7 Short-term rental expense 1 1 2 2 |
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, 2021 September 30, 2021 December 31, 2020 Weighted average lease term for operating leases (years) 4.9 4.4 Weighted average discount rate for operating leases 5.1% 5.2% |
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, 2021 December 31, 2020 Properties, plants and equipment, net $ 108 $ 137 Other current liabilities $ 42 $ 60 Other noncurrent liabilities and deferred credits 69 82 Total operating lease liabilities $ 111 $ 142 |
Schedule of Future Cash Flows Related to Operating Lease Obligations | The future cash flows related to the operating lease obligations as of September 30, 2021 were as follows: 2021 (excluding the nine months ended September 30) $ 17 2022 38 2023 24 2024 15 2025 10 Thereafter 24 Total lease payments (undiscounted) 128 Less: discount to net present value (17 ) Total $ 111 |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2019 $ 335 Liabilities incurred 7 Cash payments (19 ) Foreign currency translation and other (1 ) Balance at December 31, 2020 322 Liabilities incurred 8 Cash payments (14 ) Reversals of previously recorded liabilities (17 ) Foreign currency translation and other (2 ) Balance at September 30, 2021 $ 297 |
Schedule of Estimate Timing of Cash Outflows on Environmental Reserves | The estimated timing of cash outflows on the environmental remediation reserve at September 30, 2021 is as follows: 2021 (excluding the nine months ended September 30, 2021) $ 6 2022 - 2026 176 Thereafter 115 Total $ 297 |
Other (Income) Expenses, Net (T
Other (Income) Expenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other (Income) Expenses, Net | Third quarter ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Equity (gain) loss $ (30 ) $ 14 $ (61 ) $ 43 Foreign currency (gains) losses, net (4 ) (5 ) 2 8 Net (gain) loss from asset sales (8 ) 2 (132 ) (174 ) Net loss on mark-to-market derivative instruments (M) 9 3 2 12 Non-service costs – Pension & OPEB (L) 13 28 37 80 Other 2 3 5 (5 ) $ (18 ) $ 45 $ (147 ) $ (36 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - AWAC [Member] | Sep. 30, 2021 |
Alumina Limited [Member] | |
Basis Of Presentation [Line Items] | |
Non-controlling interest, ownership percentage | 40.00% |
Alcoa Corporation [Member] | |
Basis Of Presentation [Line Items] | |
Ownership interest percentage | 60.00% |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance - Additional Information (Detail) | Jan. 01, 2021 |
Accounting Standards Update 2019-12 [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, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2020-03 [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, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)Employeet | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Business Disposition [Line Items] | ||||||
Net gain from asset sales | $ 132 | $ 174 | ||||
Eastalco Aluminum Smelter Site [Member] | Maryland [Member] | ||||||
Business Disposition [Line Items] | ||||||
Total consideration | $ 100 | |||||
Net gain from asset sales | 90 | |||||
Net cash received | 94 | |||||
Net gain from asset sales after tax | 89 | |||||
Warrick Rolling Mill [Member] | Held for Sale [Member] | ||||||
Business Disposition [Line Items] | ||||||
Total consideration | $ 670 | |||||
Net gain from asset sales | 3 | 27 | ||||
Assets held for sale | $ 648 | |||||
Liabilities held for sale | 242 | |||||
Assumption of other postretirement benefit liabilities | 66 | |||||
Decrease in other postretirement benefit liabilities after post closing adjustment | $ 6 | |||||
Transaction Costs | 7 | |||||
Estimated liabilities recorded | $ 70 | |||||
Number of employees | Employee | 1,150 | |||||
Production of aluminum smelter and power plants (metric ton per year) | t | 269,000 | |||||
Number of employees | Employee | 670 | |||||
Elemental Environmental Solutions LLC [Member] | ||||||
Business Disposition [Line Items] | ||||||
Total consideration | $ 250 | |||||
Net gain from asset sales | 181 | |||||
Net cash received | 200 | |||||
Escrow to be received for divestitures | $ 50 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | $ 33 | $ 5 | $ 73 | $ 44 | ||
Restructuring reserve balance | 42 | 42 | $ 63 | $ 137 | ||
Payments for restructuring | 27 | 120 | ||||
Noncurrent portion of the reserve | 1 | 1 | 1 | |||
Aviles and La Coruna Smelters [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve balance | 17 | 17 | $ 30 | |||
Payments for restructuring | 13 | |||||
Sao Luis Smelters [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | (6) | (6) | ||||
Intalco (Washington) [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Curtailment of certain pension benefits | (4) | 23 | ||||
Wenatchee (Washington) [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Curtailment of certain pension benefits | 4 | 17 | ||||
Contract Termination [Member] | Wenatchee (Washington) and Intalco (Washington) [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 2 | 11 | ||||
Permanent Close [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges (reversal) | (22) | |||||
Other Item Charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 2 | 7 | ||||
Pension Benefits [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 5 | 5 | ||||
Settlement of certain other postretirement benefits | 8 | $ 5 | 47 | 5 | ||
Curtailment of certain pension benefits | $ (4) | |||||
Curtailed Anode Facility [Member] | Lake Charles, Louisiana, United States [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges, net (D) | 27 | 27 | ||||
Asset impairment | 22 | |||||
Asset retirement obligation | $ 5 | 5 | ||||
Warrick Rolling Mill [Member] | Severance and Exit Costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Settlement and curtailment of certain other postretirement benefits | $ 9 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | $ 33 | $ 5 | $ 73 | $ 44 |
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 23 | 5 | 41 | 46 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 10 | 32 | (2) | |
Bauxite [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 1 | 1 | ||
Alumina [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | 3 | 5 | ||
Aluminum Segment [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges, net (D) | $ 23 | $ 1 | $ 41 | $ 40 |
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, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 63 | $ 137 |
Restructuring and other charges, net | 12 | 52 |
Cash payments | (27) | (120) |
Reversals and other | (6) | (6) |
Restructuring reserve ending balance | 42 | 63 |
Severance and Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 6 | 35 |
Restructuring and other charges, net | 16 | |
Cash payments | (4) | (41) |
Reversals and other | (4) | |
Restructuring reserve ending balance | 2 | 6 |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 57 | 102 |
Restructuring and other charges, net | 12 | 36 |
Cash payments | (23) | (79) |
Reversals and other | (6) | (2) |
Restructuring reserve ending balance | $ 40 | $ 57 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 784 | $ 359 | $ 1,978 | $ 919 |
Depreciation, depletion, and amortization | 149 | 154 | 480 | 464 |
Equity (loss) income | 37 | (10) | 72 | (34) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 3,636 | 2,927 | 10,406 | 8,557 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 529 | 567 | 1,605 | 1,677 |
Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 3,107 | 2,360 | 8,801 | 6,880 |
Bauxite [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 23 | 124 | 123 | 375 |
Depreciation, depletion, and amortization | 30 | 33 | 119 | 97 |
Bauxite [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 228 | 292 | 689 | 909 |
Bauxite [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 172 | 236 | 536 | 716 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 56 | 56 | 153 | 193 |
Alumina [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 148 | 119 | 499 | 400 |
Depreciation, depletion, and amortization | 47 | 41 | 143 | 127 |
Equity (loss) income | (1) | (4) | (7) | (21) |
Alumina [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,105 | 1,026 | 3,260 | 2,961 |
Alumina [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 349 | 329 | 1,056 | 954 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 756 | 697 | 2,204 | 2,007 |
Aluminum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 613 | 116 | 1,356 | 144 |
Depreciation, depletion, and amortization | 72 | 80 | 218 | 240 |
Equity (loss) income | 38 | (6) | 79 | (13) |
Aluminum [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 2,303 | 1,609 | 6,457 | 4,687 |
Aluminum [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 8 | 2 | 13 | 7 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | $ 2,295 | $ 1,607 | $ 6,444 | $ 4,680 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Adjusted EBITDA to Consolidated Net Income (Loss) Attributable to Alcoa Corporation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total Segment Adjusted EBITDA | $ 784 | $ 359 | $ 1,978 | $ 919 |
Transformation | (10) | (11) | (34) | (37) |
Intersegment eliminations | (8) | (35) | 20 | (13) |
Corporate expenses | (30) | (24) | (84) | (72) |
Provision for depreciation, depletion, and amortization | (156) | (161) | (499) | (483) |
Restructuring and other charges, net (D) | (33) | (5) | (73) | (44) |
Interest expense | (58) | (41) | (167) | (103) |
Other income (expenses), net (Q) | 18 | (45) | 147 | 36 |
Income before income taxes | 497 | 22 | 1,270 | 136 |
Provision for income taxes | (127) | (42) | (331) | (167) |
Net income attributable to noncontrolling interest | (33) | (29) | (118) | (135) |
NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA CORPORATION | 337 | (49) | 821 | (166) |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges, net (D) | (33) | (5) | (73) | (44) |
Other | $ (10) | $ (15) | $ (18) | $ (67) |
Segment Information - Schedul_3
Segment Information - Schedule of Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 3,109 | $ 2,365 | $ 8,812 | $ 6,894 |
Primary Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 2,255 | 1,311 | 6,094 | 3,810 |
Alumina [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 752 | 697 | 2,196 | 2,004 |
Flat-Rolled Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 284 | 320 | 827 | |
Energy [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 117 | 26 | 205 | 100 |
Bauxite [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 52 | 50 | 138 | 170 |
Other Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ (67) | $ (3) | $ (141) | $ (17) |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Alcoa Corporation | $ 337 | $ (49) | $ 821 | $ (166) |
Average shares outstanding – basic | 187 | 186 | 187 | 186 |
Effect of dilutive securities: | ||||
Stock units | 4 | 3 | ||
Average shares outstanding – diluted | 191 | 186 | 190 | 186 |
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, 2021 | Sep. 30, 2020 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 2 | 2 | |
Weighted average exercise price of options | $ 26.50 | $ 53.30 | $ 26.50 |
Stock Awards and Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 6 | 6 | |
Common shares equivalents that would have been included in diluted average shares outstanding | 1 | 1 | |
Maximum [Member] | Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 0.5 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Pension and other postretirement benefits (L) | |||||
Total Other comprehensive income (loss) | $ (84) | $ 35 | $ (472) | $ 122 | |
Foreign currency translation | |||||
Other comprehensive (loss) income | (280) | 22 | (261) | (657) | |
Cash flow hedges (M) | |||||
Net change from periodic revaluations | (222) | (333) | (922) | 6 | |
Net amount reclassified to earnings | 82 | 29 | 201 | 67 | |
Total Accumulated other comprehensive loss | (5,928) | (5,928) | $ (5,629) | ||
Alcoa Corporation [Member] | |||||
Pension and other postretirement benefits (L) | |||||
Balance at beginning of period | (2,152) | (2,371) | (2,536) | (2,282) | |
Unrecognized net actuarial loss and prior service cost/benefit | 26 | (93) | 259 | (294) | |
Tax (expense) benefit | (9) | 6 | (7) | 16 | |
Total Other comprehensive income (loss) before reclassifications, net of tax | 17 | (87) | 252 | (278) | |
Amortization of net actuarial loss and prior service cost/benefit | 56 | 57 | 206 | 163 | |
Tax expense | (1) | (2) | (2) | (6) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 55 | 55 | 204 | 157 | |
Total Other comprehensive income (loss) | 72 | (32) | 456 | (121) | |
Balance at end of period | (2,080) | (2,403) | (2,080) | (2,403) | |
Foreign currency translation | |||||
Balance at beginning of period | (2,357) | (2,688) | (2,385) | (2,160) | |
Other comprehensive (loss) income | (202) | 5 | (174) | (523) | |
Balance at end of period | (2,559) | (2,683) | (2,559) | (2,683) | |
Cash flow hedges (M) | |||||
Balance at beginning of period | (1,178) | (221) | (708) | (532) | |
Net change from periodic revaluations | (222) | (333) | (922) | 6 | |
Tax benefit | 38 | 66 | 169 | 3 | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (184) | (267) | (753) | 9 | |
Net amount reclassified to earnings | 82 | 29 | 201 | 67 | |
Tax (expense) benefit | (9) | (2) | (29) | (5) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 73 | 27 | 172 | 62 | |
Total Other comprehensive loss | (111) | (240) | (581) | 71 | |
Balance at end of period | (1,289) | (461) | (1,289) | (461) | |
Total Accumulated other comprehensive loss | (5,928) | (5,547) | (5,928) | (5,547) | |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 82 | 21 | 195 | 35 | |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | (3) | 3 | 2 | 10 | |
Alcoa Corporation [Member] | Interest Rate Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 3 | 2 | 7 | 4 | |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | 3 | (3) | 18 | ||
Non-controlling Interest [Member] | |||||
Pension and other postretirement benefits (L) | |||||
Balance at beginning of period | (63) | (54) | (67) | (56) | |
Unrecognized net actuarial loss and prior service cost/benefit | 14 | (7) | 16 | (7) | |
Tax (expense) benefit | (4) | 2 | (4) | 2 | |
Total Other comprehensive income (loss) before reclassifications, net of tax | 10 | (5) | 12 | (5) | |
Amortization of net actuarial loss and prior service cost/benefit | 2 | 3 | 4 | 5 | |
Tax expense | (1) | (1) | |||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 2 | 2 | 4 | 4 | |
Total Other comprehensive income (loss) | 12 | (3) | 16 | (1) | |
Balance at end of period | (51) | (57) | (51) | (57) | |
Foreign currency translation | |||||
Balance at beginning of period | (853) | (985) | (844) | (834) | |
Other comprehensive (loss) income | (78) | 17 | (87) | (134) | |
Balance at end of period | (931) | (968) | (931) | (968) | |
Cash flow hedges (M) | |||||
Balance at beginning of period | 1 | (1) | (1) | 20 | |
Net change from periodic revaluations | (1) | (1) | (2) | (31) | |
Tax benefit | 1 | 1 | 1 | 9 | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (1) | (22) | |||
Net amount reclassified to earnings | (3) | 1 | 1 | 2 | |
Tax (expense) benefit | 1 | (1) | (1) | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | (2) | 1 | 1 | ||
Total Other comprehensive loss | (2) | (21) | |||
Balance at end of period | (1) | (1) | (1) | (1) | |
Total Accumulated other comprehensive loss | (983) | (1,026) | (983) | (1,026) | |
Non-controlling Interest [Member] | Financial Contracts [Member] | |||||
Cash flow hedges (M) | |||||
Net amount reclassified to earnings | $ (3) | $ 1 | $ 1 | $ 2 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | $ 370 | $ (20) | $ 939 | $ (31) |
Ma'aden Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | 38 | (10) | 75 | (32) |
Other | (3) | (1) | (7) | (5) |
Alcoa Corporation’s equity in net income (loss) of affiliated companies | 35 | (11) | 68 | (37) |
Ma'aden Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 776 | 552 | 2,199 | 1,644 |
Cost of goods sold | 479 | 435 | 1,490 | 1,343 |
Net income (loss) | 152 | (38) | 299 | (126) |
Mining [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | 6 | 5 | 16 | 14 |
Other | (1) | (2) | (1) | |
Alcoa Corporation’s equity in net income (loss) of affiliated companies | 5 | 5 | 14 | 13 |
Mining [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 198 | 195 | 568 | 622 |
Cost of goods sold | 145 | 131 | 414 | 409 |
Net income (loss) | 11 | 16 | 31 | 20 |
Energy [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | 8 | 11 | 29 | 29 |
Other | 1 | |||
Alcoa Corporation’s equity in net income (loss) of affiliated companies | 8 | 12 | 29 | 29 |
Energy [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 73 | 51 | 188 | 157 |
Cost of goods sold | 51 | 28 | 108 | 78 |
Net income (loss) | 22 | 28 | 74 | 75 |
Other [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliated companies, before reconciling adjustments | (5) | (4) | (8) | (11) |
Other | 4 | 3 | 15 | 13 |
Alcoa Corporation’s equity in net income (loss) of affiliated companies | (1) | (1) | 7 | 2 |
Other [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | 100 | 72 | 291 | 230 |
Cost of goods sold | 90 | 65 | 261 | 207 |
Net income (loss) | $ (12) | $ (10) | $ (18) | $ (25) |
Investments - Additional Inform
Investments - Additional Information (Detail) - Elysis TM Limited Partnership [Member] | Sep. 30, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Basis in investment, due to share of losses | $ 0 |
Unrecognized losses | $ 44,000,000 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Apr. 20, 2020 | Oct. 25, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Sale of customer receivables | $ 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] | 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, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 377 | $ 321 |
Work-in-process | 194 | 112 |
Bauxite and alumina | 460 | 412 |
Purchased raw materials | 495 | 377 |
Operating supplies | 176 | 176 |
Inventories, total | $ 1,702 | $ 1,398 |
Debt - Additional Information (
Debt - Additional Information (Detail) kr in Billions | Apr. 07, 2021USD ($) | Apr. 01, 2021USD ($) | Mar. 04, 2021USD ($) | Mar. 03, 2021 | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Oct. 02, 2019NOK (kr) |
Debt Instrument [Line Items] | ||||||||||
U.S. defined benefit pension plans, company's contribution | $ 500,000,000 | |||||||||
Premium paid on early redemption of debt | $ 43,000,000 | |||||||||
4.125% Senior Notes due 2029 [Member] | Alcoa Nederland Holding BV [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes, interest percentage | 4.125% | 4.125% | ||||||||
Debt instrument maturity date | 2029 | |||||||||
Principal amount of debt | $ 500,000,000 | $ 500,000,000 | ||||||||
Proceeds from issuance of debt | $ 493,000,000 | |||||||||
U.S. defined benefit pension plans, company's contribution | 500,000,000 | |||||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||||
Debt instrument, date of first required payment | Sep. 30, 2021 | |||||||||
6.75% Notes, due 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity date | 2024 | |||||||||
Redemption of senior note | $ 750,000,000 | |||||||||
Premium paid on early redemption of debt | $ 32,000,000 | |||||||||
6.75% Notes, due 2024 [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price percentage | 103.375% | |||||||||
6.75% Notes, due 2024 [Member] | Alcoa Nederland Holding BV [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes, interest percentage | 6.75% | 6.75% | ||||||||
Debt instrument maturity date | 2024 | |||||||||
Principal amount of debt | $ 750,000,000 | $ 750,000,000 | ||||||||
5.500% Senior Notes due 2029 [Member] | Alcoa Nederland Holding BV [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt redemption description | ANHBV has the option to redeem the 2029 Notes on at least 10 days, but not more than 60 days, prior notice to the holders of the 2029 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after March 31, 2024, at a redemption price specified in the indenture (up to 102.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2029 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 2029 Notes repurchased, plus any accrued and unpaid interest on the 2029 Notes repurchased. | |||||||||
5.500% Senior Notes due 2029 [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 | 102.063% | |||||||||
5.500% Senior Notes due 2029 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price percentage | 101.00% | |||||||||
5.500% Senior Notes due 2029 [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | After June 15, 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption period | 10 days | |||||||||
7.00% Notes, due 2026 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes, interest percentage | 7.00% | 7.00% | ||||||||
Debt instrument maturity date | 2026 | |||||||||
Redemption of senior note | $ 500,000,000 | |||||||||
Premium paid on early redemption of debt | $ 22,000,000 | |||||||||
7.00% Notes, due 2026 [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price percentage | 103.50% | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 1 year | |||||||||
Line of credit facility, current outstanding | $ 1,500,000,000 | 0 | $ 0 | |||||||
Line of credit facility, maximum additional borrowings | $ 750,000,000 | 4,944,000,000 | 4,944,000,000 | |||||||
Amounts borrowed under the credit facility | 0 | 0 | ||||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Leverage ratio | 275.00% | 250.00% | ||||||||
Leverage ratio, maximum possible increase | 300.00% | |||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense coverage ratio required to be maintained | 4 | 5 | ||||||||
Revolving Credit Facility [Member] | One-year, Multicurrency Agreement [Member] | Alcoa Norway ANS [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum outstanding borrowings | 149,000,000 | $ 149,000,000 | kr 1.3 | |||||||
Debt instrument expiration date | Oct. 4, 2021 | |||||||||
Line of credit facility, current outstanding | $ 0 | $ 0 | ||||||||
Revolving Credit Facility [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 | |||||||||
Line of credit facility, aggregate amount of commitments | $ 1,500,000,000 | $ 1,255,000,000 | ||||||||
Senior notes, interest percentage | 5.50% | 5.50% | ||||||||
Debt instrument maturity date | 2027 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6 | $ 14 | $ 16 | $ 41 |
Interest cost | 30 | 41 | 88 | 124 |
Expected return on plan assets | (71) | (73) | (217) | (220) |
Recognized net actuarial loss | 48 | 54 | 149 | 158 |
Settlements | 8 | 5 | 47 | 5 |
Curtailments | 4 | |||
Net periodic benefit cost | 21 | 41 | 83 | 112 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 3 | 3 | |
Interest cost | 4 | 5 | 12 | 15 |
Recognized net actuarial loss | 5 | 5 | 16 | 14 |
Amortization of prior service cost (benefit) | (3) | (4) | (11) | (11) |
Settlements | 26 | |||
Curtailments | (17) | (2) | ||
Net periodic benefit cost | $ 6 | $ 7 | $ 29 | $ 19 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Millions | Apr. 01, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)Employee | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Company's contribution | $ 500 | ||||||
Minimum required cash contribution to pension plans reminder of 2021 | $ 80 | $ 80 | |||||
United States [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Minimum required cash contribution to pension plans | $ 10 | 49 | $ 49 | ||||
Non-U.S. [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Minimum required cash contribution to pension plans | 6 | $ 15 | 26 | $ 34 | |||
Warrick Rolling Mill [Member] | Held for Sale [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Sale transaction value of waste processing | $ 670 | ||||||
Assumption of other postretirement benefit liabilities | $ 66 | ||||||
Decrease in other postretirement benefit liabilities after post closing adjustment | 6 | ||||||
Number of employees | Employee | 1,150 | ||||||
Action# 1 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Decrease to accrued other postretirement benefits liability | (106) | ||||||
Curtailment gain | 17 | ||||||
Settlement charge | 26 | ||||||
Action# 1 [Member] | Warrick Rolling Mill [Member] | Held for Sale [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Sale transaction value of waste processing | $ 670 | ||||||
Assumption of other postretirement benefit liabilities | 66 | ||||||
Decrease in other postretirement benefit liabilities after post closing adjustment | 6 | ||||||
Number of employees | Employee | 1,150 | ||||||
Decrease to accrued other postretirement benefits liability | $ 40 | ||||||
Remeasurement to accrued other postretirement benefits liability | 66 | ||||||
Curtailment gain | 17 | ||||||
Settlement charge | $ 26 | ||||||
Action# 2 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement charge | 39 | ||||||
Increase (decrease) to accrued other pension benefits liability | (90) | ||||||
Action# 2 [Member] | Warrick Rolling Mill [Member] | Held for Sale [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement charge | 39 | ||||||
Increase (decrease) to accrued other pension benefits liability | $ (90) | ||||||
Action# 3 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement charge | 7 | 7 | |||||
Increase (decrease) to accrued other pension benefits liability | 7 | 7 | |||||
Action# 4 [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement charge | 1 | 1 | |||||
Increase (decrease) to accrued other pension benefits liability | $ (38) | $ (38) |
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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)Employee | Sep. 30, 2021USD ($)Employee | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Action# 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of affected plan participants | Employee | 840 | 840 | |||
Weighted average discount rate | 3.06% | 2.45% | |||
Plan remeasurement date | Mar. 31, 2021 | ||||
Decrease to accrued other postretirement benefits liability | $ (106) | ||||
Curtailment gain | (17) | ||||
Settlement charge | $ 26 | ||||
Action# 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of affected plan participants | Employee | 120 | 120 | |||
Weighted average discount rate | 2.71% | 2.38% | |||
Plan remeasurement date | Jun. 30, 2021 | ||||
Increase (decrease) to accrued other pension benefits liability | $ (90) | ||||
Settlement charge | $ 39 | ||||
Action# 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of affected plan participants | Employee | 20 | 20 | |||
Weighted average discount rate | 2.74% | 2.74% | 2.71% | ||
Plan remeasurement date | Sep. 30, 2021 | ||||
Increase (decrease) to accrued other pension benefits liability | $ 7 | $ 7 | |||
Settlement charge | $ 7 | $ 7 | |||
Action# 4 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of affected plan participants | Employee | 20 | 20 | |||
Weighted average discount rate | 1.53% | 1.53% | 1.34% | ||
Plan remeasurement date | Sep. 30, 2021 | ||||
Increase (decrease) to accrued other pension benefits liability | $ (38) | $ (38) | |||
Settlement charge | $ 1 | $ 1 |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Schedule of Detail for Level 1 and 3 Derivatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets Current | $ 19 | $ 19 | $ 21 | ||
Derivative Liabilities Current | 299 | 299 | 103 | ||
Derivative Assets Noncurrent | 2 | 2 | |||
Derivative Liabilities Noncurrent | 1,278 | 1,278 | 742 | ||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | (222) | $ (333) | (922) | $ 6 | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (82) | (29) | (201) | (67) | |
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 | 1 | 2 | 3 | 17 | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (5) | (1) | (6) | (2) | |
Level 1 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 21 | 21 | 21 | ||
Derivative Liabilities | 22 | 22 | 7 | ||
Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | (9) | 3 | (17) | (4) | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (4) | (2) | (7) | (17) | |
Level 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Liabilities | 1,555 | 1,555 | 838 | ||
Unrealized (loss) gain recognized in Other comprehensive (loss) income | (214) | (338) | (908) | (7) | |
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (73) | $ (26) | (188) | $ (48) | |
Level 1 and 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative Assets | 21 | 21 | 21 | ||
Derivative Liabilities | 1,577 | 1,577 | 845 | ||
Derivative Assets Current | 19 | 19 | 21 | ||
Derivative Liabilities Current | 299 | 299 | 103 | ||
Derivative Assets Noncurrent | 2 | 2 | |||
Derivative Liabilities Noncurrent | $ 1,278 | $ 1,278 | $ 742 |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Additional Information (Detail) kt in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($)kt | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)kt | Sep. 30, 2020USD ($) | Mar. 31, 2021Contract | Dec. 31, 2020kt | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | $ (82) | $ (29) | $ (201) | $ (67) | ||
Level 1 and 2 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | $ (4) | (2) | (7) | (17) | ||
Derivatives Designated as Hedging Instruments [Member] | Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | $ (7) | |||||
Derivatives Designated as Hedging Instruments [Member] | Level 1 and 2 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | (17) | |||||
Derivatives Designated as Hedging Instruments [Member] | Power Contract [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Aluminum forecast sales | kt | 1,962 | 1,962 | 2,130 | |||
Derivatives Designated as Hedging Instruments [Member] | Power Contract [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Amount of (loss) gain expected to be recognized into earnings over the next 12 months | $ (273) | |||||
Derivatives Designated as Hedging Instruments [Member] | Sales [Member] | Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | $ (4) | (6) | ||||
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 (loss) gain reclassed from Other comprehensive (loss) income to earnings | (7) | |||||
Derivatives Designated as Hedging Instruments [Member] | Cost of Goods Sold [Member] | Level 1 Derivative Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Realized (loss) gain reclassed from Other comprehensive (loss) income to earnings | $ (1) | |||||
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 (loss) gain reclassed from Other comprehensive (loss) income to earnings | $ (2) | $ (10) | ||||
Derivatives Not Designated as Hedging Instruments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Number of new financial contracts | Contract | 4 |
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, 2021 | Dec. 31, 2020 |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ 1,555 | $ 838 |
Energy Contracts [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | 1,555 | |
Power Contract [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 | 319 | |
Power Contract [Member] | Energy Contracts [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 17 Million MWh Per Year [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | 1,211 | |
Power Contract [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 | 17 | |
Financial Contracts [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price, LME Forward Price and Consumer Price Index [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ 8 |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Liabilities (Detail) - Level 3 [Member] - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | $ 1,555 | $ 838 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 1,530 | 815 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Power Contract [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 273 | 94 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Financial Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 1 | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Power Contract [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 1,257 | 720 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 25 | 23 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 3 | 4 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Financial Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 8 | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | $ 14 | $ 19 |
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, 2021 | Sep. 30, 2021 | |
Power Contract [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | $ 1,397 | $ 814 |
Other comprehensive (loss) income (unrealized) | 212 | 902 |
Fair value measurement, Liabilities, Ending balance | 1,530 | 1,530 |
Power Contract [Member] | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (79) | (186) |
Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 1 | |
Fair value measurement, Liabilities, Cost of goods sold | (8) | |
Other comprehensive (loss) income (unrealized) | 6 | |
Fair value measurement, Liabilities, Other | 1 | 3 |
Fair value measurement, Liabilities, Ending balance | 8 | 8 |
Fair value measurement, Assets, Beginning balance | 5 | |
Other comprehensive (loss) income (unrealized) | (2) | |
Fair value measurement, assets, Other | 6 | 6 |
Financial Contracts [Member] | Cost of Goods Sold [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (6) | (6) |
Financial Contracts [Member] | Other Expense (Income), Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | 7 | 6 |
Fair value measurement, Assets | (3) | |
Financial Contracts [Member] | Other Income, Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Other income, net | 8 | 7 |
Fair value measurement, Assets, Other income, net | (3) | |
Embedded Credit Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 18 | 23 |
Fair value measurement, Liabilities, Ending balance | 17 | 17 |
Embedded Credit Derivative [Member] | Other Expense (Income), Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (1) | (6) |
Embedded Credit Derivative [Member] | Other Income, Net [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Other income, net | $ (1) | $ (5) |
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, 2021 | Dec. 31, 2020 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,452 | $ 1,607 |
Restricted cash | 7 | 3 |
Short-term borrowings | 77 | 77 |
Long-term debt due within one year | 1 | 2 |
Long-term debt, less amount due within one year | 1,724 | 2,463 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,452 | 1,607 |
Restricted cash | 7 | 3 |
Short-term borrowings | 77 | 77 |
Long-term debt due within one year | 1 | 2 |
Long-term debt, less amount due within one year | $ 1,876 | $ 2,692 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Income Taxes [Line Items] | |
Effective federal statutory tax rate | 21.00% |
Income tax expense benefits on losses valuation reserves | $ 0 |
Espanola [Member] | |
Income Taxes [Line Items] | |
Net deferred tax assets | $ 105,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 497 | $ 22 | $ 1,270 | $ 136 |
Estimated annualized effective tax rate | 26.70% | 136.40% | ||
Income tax expense | $ 339 | $ 185 | ||
Favorable tax impact related to losses in jurisdictions with no tax benefit | (7) | (17) | ||
Discrete tax benefit | (1) | (1) | ||
Provision for income taxes | $ 127 | $ 42 | $ 331 | $ 167 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Leases [Line Items] | ||
Remaining lease term | less than one | |
New leases | $ 3 | $ 15 |
Maximum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 36 years | 36 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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Costs from operating leases | $ 16 | $ 19 | $ 54 | $ 57 |
Variable lease payments | 4 | 2 | 9 | 7 |
Short-term rental expense | $ 1 | $ 1 | $ 2 | $ 2 |
Leasing - Schedule of Weighted
Leasing - Schedule of Weighted Average Lease Term and Weighted Average Discount Rate (Detail) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted average lease term for operating leases (years) | 4 years 10 months 24 days | 4 years 4 months 24 days |
Weighted average discount rate for operating leases | 5.10% | 5.20% |
Leasing - Schedule of Aggregate
Leasing - Schedule of Aggregate Right-of Use Assets and Related Lease Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Properties, plants and equipment, net | $ 108 | $ 137 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Other current liabilities | $ 42 | $ 60 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other noncurrent liabilities and deferred credits | $ 69 | $ 82 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Total operating lease liabilities | $ 111 | $ 142 |
Leasing - Schedule of Future Ca
Leasing - Schedule of Future Cash Flows Related to Operating Lease Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (excluding the nine months ended September 30) | $ 17 | |
2022 | 38 | |
2023 | 24 | |
2024 | 15 | |
2025 | 10 | |
Thereafter | 24 | |
Total lease payments (undiscounted) | 128 | |
Less: discount to net present value | (17) | |
Total | $ 111 | $ 142 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Beginning balance | $ 322 | $ 335 | $ 335 | ||
Liabilities incurred | $ 4 | $ 4 | 8 | 6 | 7 |
Cash payments | (3) | $ (5) | (14) | $ (14) | (19) |
Reversals of previously recorded liabilities | (17) | ||||
Foreign currency translation and other | (2) | (1) | |||
Ending balance | $ 297 | $ 297 | $ 322 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Project | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | ||||||
Environmental remediation reserve balance, current | $ 37 | $ 37 | $ 29 | |||
Liabilities incurred | 4 | $ 4 | 8 | $ 6 | 7 | |
Payments related to remediation expenses applied against the reserve | 3 | $ 5 | 14 | 14 | 19 | |
Reversals of previously recorded liabilities | 17 | |||||
Decrease in reserves due to effects of foreign currency translation | $ 6 | |||||
Active or future remediation for significant sites | 241 | 241 | 259 | |||
Accrued environmental reserves | 297 | $ 297 | 322 | $ 335 | ||
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 | 10 years | |||||
Other Sites [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of remediation projects | Project | 35 | |||||
Accrued environmental reserves | $ 56 | $ 56 | $ 63 | |||
Closed Suriname Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Reversals of previously recorded liabilities | 5 | |||||
Closed Site in Brazil [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Reversals of previously recorded liabilities | 5 | |||||
Closed Tennessee Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Reversals of previously recorded liabilities | $ 7 |
Contingencies - Estimate Timing
Contingencies - Estimate Timing of Cash Outflows on Environmental Reserves (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | |||
2021 (excluding the nine months ended September 30, 2021) | $ 6 | ||
2022 - 2026 | 176 | ||
Thereafter | 115 | ||
Total | $ 297 | $ 322 | $ 335 |
Contingencies - Additional In_2
Contingencies - Additional Information - 1 (Detail) € in Millions, $ in Millions | Sep. 17, 2020USD ($) | Sep. 17, 2020AUD ($) | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Sep. 30, 2021USD ($) | Sep. 30, 2021AUD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020AUD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2021USD ($) | Sep. 30, 2021BRL (R$) | Sep. 30, 2021AUD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021AUD ($) | Sep. 30, 2020AUD ($) | Jul. 07, 2020USD ($) | Jul. 07, 2020AUD ($) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Other noncurrent liabilities and deferred credits | $ 524,000,000 | $ 515,000,000 | $ 524,000,000 | $ 524,000,000 | |||||||||||||||||||
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% | |||||||||||||||||||
Maximum [Member] | PARTER Capital Group AG [Member] | Spain [Member] | Aviles and La Coruna Smelters [Member] | Avilés and La Coruña Aluminum Facilities [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Financial contributions | $ 95,000,000 | ||||||||||||||||||||||
Financial contributions paid to buyer in relation to divestiture | $ 78,000,000 | ||||||||||||||||||||||
Tax Authority, Spain [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30,000,000 | € 26 | |||||||||||||||||||||
Reversal of reserve recorded in provision for income taxes to establish liability for estimated loss | $ 32,000,000 | € 26 | |||||||||||||||||||||
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] | Minimum [Member] | Alcoa World Alumina Brasil [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 0 | ||||||||||||||||||||||
Brazilian Federal Revenue Office [Member] | Maximum [Member] | Alcoa World Alumina Brasil [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | 41,000,000 | R$ 220000000 | |||||||||||||||||||||
Australian Taxation Office [Member] | Foreign Jurisdiction [Member] | AofA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Additional income tax payable, exclusive of interest and penalties | $ 154,000,000 | $ 214 | |||||||||||||||||||||
Notices include claims for compounded interest on the tax amount | $ 509,000,000 | $ 707 | |||||||||||||||||||||
Proposed administrative penalties | $ 92,000,000 | $ 128 | |||||||||||||||||||||
Payment of dispute resolution practices income tax percentage | 50.00% | 50.00% | |||||||||||||||||||||
Assessed income tax amount exclusive of interest and penalties | $ 74,000,000 | $ 107 | |||||||||||||||||||||
Payment amount refund percentage | 50.00% | 50.00% | |||||||||||||||||||||
Reduction in current year cash tax payment | $ 3,000,000 | $ 4 | $ 158,000,000 | $ 219 | 10,000,000 | $ 14 | |||||||||||||||||
Other noncurrent liabilities and deferred credits | 168,000,000 | 168,000,000 | 168,000,000 | $ 233 | |||||||||||||||||||
Tax assessment deposit | $ 77,000,000 | $ 77,000,000 | $ 77,000,000 | $ 107 |
Other (Income) Expenses, Net -
Other (Income) Expenses, Net - Schedule of Other (Income) Expenses, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | ||||
Equity (gain) loss | $ (30) | $ 14 | $ (61) | $ 43 |
Foreign currency (gains) losses, net | (4) | (5) | 2 | 8 |
Net (gain) loss from asset sales | (8) | 2 | (132) | (174) |
Net loss on mark-to-market derivative instruments (M) | 9 | 3 | 2 | 12 |
Non-service costs – Pension & OPEB (L) | 13 | 28 | 37 | 80 |
Other | 2 | 3 | 5 | (5) |
Other (Income) Expenses, Net | $ (18) | $ 45 | $ (147) | $ (36) |
Other (Income) Expenses, Net _2
Other (Income) Expenses, Net - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Other Non Operating Income Expense [Line Items] | ||
Net (gain) loss from asset sales | $ (132) | $ (174) |
Former Eastalco Site Sale And Warrick Rolling Mill [Member] | ||
Other Non Operating Income Expense [Line Items] | ||
Net (gain) loss from asset sales | $ (120) | |
Gum Springs [Member] | ||
Other Non Operating Income Expense [Line Items] | ||
Net (gain) loss from asset sales | $ (181) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Oct. 19, 2021USD ($) | Oct. 14, 2021USD ($)$ / shares | Oct. 31, 2021Retiree | Dec. 31, 2021USD ($) | Oct. 22, 2021shares |
Scenario Forecast [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of retirees | Retiree | 800 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Plan obligations | $ 55,000,000 | ||||
Plan assets | $ 55,000,000 | ||||
Common stock shares issued | shares | 187,103,147 | ||||
Common stock shares outstanding | shares | 187,103,147 | ||||
Subsequent Event [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program authorized amount | $ 650,000,000 | ||||
Subsequent Event [Member] | New Share Repurchase Program [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program authorized amount | 500,000,000 | ||||
Subsequent Event [Member] | Previously Authorized Share Repurchase Program [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program remaining authorized amount | $ 150,000,000 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividend, declared date | Oct. 14, 2021 | ||||
Quarterly cash dividend declared per share | $ / shares | $ 0.10 | ||||
Dividend, payable date | Nov. 19, 2021 | ||||
Dividend, record date | Oct. 29, 2021 | ||||
Restructuring and Other Charges [Member] | Scenario Forecast [Member] | |||||
Subsequent Event [Line Items] | |||||
Settlement loss | $ 63,000,000 |