Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 18, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'ALCOA INC | ' |
Entity Central Index Key | '0000004281 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,172,283,627 |
Statement_of_Consolidated_Oper
Statement of Consolidated Operations (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Sales (I) | $5,454 | $5,833 |
Cost of goods sold (exclusive of expenses below) | 4,495 | 4,847 |
Selling, general administrative, and other expenses | 236 | 251 |
Research and development expenses | 51 | 45 |
Provision for depreciation, depletion, and amortization | 340 | 361 |
Restructuring and other charges (D) | 461 | 7 |
Interest expense | 120 | 115 |
Other expenses (income), net (H) | 25 | -27 |
Total costs and expenses | 5,728 | 5,599 |
(Loss) income before income taxes | -274 | 234 |
(Benefit) provision for income taxes (K) | -77 | 64 |
Net (loss) income | -197 | 170 |
Less: Net (loss) income attributable to noncontrolling interests | -19 | 21 |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA | ($178) | $149 |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA COMMON SHAREHOLDERS (J): | ' | ' |
Basic | ($0.16) | $0.14 |
Diluted | ($0.16) | $0.13 |
Dividends paid per common share | $0.03 | $0.03 |
Statement_of_Consolidated_Comp
Statement of Consolidated Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net (loss) income | ($197) | $170 |
Other comprehensive income, net of tax (C): | ' | ' |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 77 | 96 |
Foreign currency translation adjustments | 336 | -100 |
Net change in unrealized gains on available-for-sale securities | ' | 1 |
Net change in unrecognized losses on derivatives | 34 | 115 |
Total Other comprehensive income, net of tax | 447 | 112 |
Comprehensive income | 250 | 282 |
Alcoa [Member] | ' | ' |
Net (loss) income | -178 | 149 |
Other comprehensive income, net of tax (C): | ' | ' |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 77 | 95 |
Foreign currency translation adjustments | 249 | -116 |
Net change in unrealized gains on available-for-sale securities | ' | 1 |
Net change in unrecognized losses on derivatives | 32 | 113 |
Total Other comprehensive income, net of tax | 358 | 93 |
Comprehensive income | 180 | 242 |
Noncontrolling Interests [Member] | ' | ' |
Net (loss) income | -19 | 21 |
Other comprehensive income, net of tax (C): | ' | ' |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | ' | 1 |
Foreign currency translation adjustments | 87 | 16 |
Net change in unrecognized losses on derivatives | 2 | 2 |
Total Other comprehensive income, net of tax | 89 | 19 |
Comprehensive income | $70 | $40 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $665 | $1,437 |
Receivables from customers, less allowances of $21 in 2014 and $20 in 2013 (L) | 1,379 | 1,221 |
Other receivables (L) | 662 | 597 |
Inventories (E) | 3,067 | 2,705 |
Prepaid expenses and other current assets | 992 | 1,009 |
Total current assets | 6,765 | 6,969 |
Properties, plants, and equipment | 37,405 | 36,866 |
Less: accumulated depreciation, depletion, and amortization | 19,792 | 19,227 |
Properties, plants, and equipment, net | 17,613 | 17,639 |
Goodwill | 3,423 | 3,415 |
Investments | 1,949 | 1,907 |
Deferred income taxes | 3,209 | 3,184 |
Other noncurrent assets | 2,646 | 2,628 |
Total assets | 35,605 | 35,742 |
Current liabilities: | ' | ' |
Short-term borrowings (F) | 53 | 57 |
Accounts payable, trade | 2,853 | 2,960 |
Accrued compensation and retirement costs | 879 | 1,013 |
Taxes, including income taxes | 310 | 376 |
Other current liabilities | 1,087 | 1,044 |
Long-term debt due within one year (F) | 85 | 655 |
Total current liabilities | 5,267 | 6,105 |
Long-term debt, less amount due within one year | 7,609 | 7,607 |
Accrued pension benefits | 3,082 | 3,183 |
Accrued other postretirement benefits | 2,333 | 2,354 |
Other noncurrent liabilities and deferred credits | 2,940 | 2,971 |
Total liabilities | 21,231 | 22,220 |
CONTINGENCIES AND COMMITMENTS (G) | ' | ' |
Alcoa shareholders' equity: | ' | ' |
Preferred stock | 55 | 55 |
Common stock (F) | 1,267 | 1,178 |
Additional capital (F) | 7,704 | 7,509 |
Retained earnings | 9,061 | 9,272 |
Treasury stock, at cost | -3,395 | -3,762 |
Accumulated other comprehensive loss (C) | -3,301 | -3,659 |
Total Alcoa shareholders' equity | 11,391 | 10,593 |
Noncontrolling interests | 2,983 | 2,929 |
Total equity | 14,374 | 13,522 |
Total liabilities and equity | $35,605 | $35,742 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Receivables from customers, allowance | $21 | $20 |
Statement_of_Consolidated_Cash
Statement of Consolidated Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FROM OPERATIONS | ' | ' |
Net (loss) income | ($197) | $170 |
Adjustments to reconcile net (loss) income to cash from operations: | ' | ' |
Depreciation, depletion, and amortization | 340 | 361 |
Deferred income taxes | -18 | -13 |
Equity income, net of dividends | 35 | 13 |
Restructuring and other charges (C) | 461 | 7 |
Net gain from investing activities - asset sales (G) | -27 | -5 |
Stock-based compensation | 25 | 23 |
Excess tax benefits from stock-based payment arrangements | -1 | ' |
Other | 44 | ' |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | ' | ' |
(Increase) in receivables | -255 | -321 |
(Increase) in inventories | -302 | -182 |
Decrease in prepaid expenses and other current assets | 13 | 25 |
(Decrease) increase in accounts payable, trade | -130 | 180 |
(Decrease) in accrued expenses | -381 | -372 |
(Decrease) increase in taxes, including income taxes | -120 | 61 |
Pension contributions | -91 | -83 |
(Increase) in noncurrent assets | ' | -26 |
Increase in noncurrent liabilities | 53 | 92 |
CASH USED FOR OPERATIONS | -551 | -70 |
FINANCING ACTIVITIES | ' | ' |
Net change in short-term borrowings (original maturities of three months or less) | -4 | ' |
Net change in commercial paper | ' | 104 |
Additions to debt (original maturities greater than three months) (E) | 621 | 625 |
Payments on debt (original maturities greater than three months) (E) | -631 | -639 |
Proceeds from exercise of employee stock options | 71 | ' |
Excess tax benefits from stock-based payment arrangements | 1 | ' |
Dividends paid to shareholders | -33 | -33 |
Distributions to noncontrolling interests | -35 | -25 |
Contributions from noncontrolling interests | 20 | 15 |
CASH PROVIDED FROM FINANCING ACTIVITIES | 10 | 47 |
INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -209 | -235 |
Proceeds from the sale of assets and businesses | ' | 2 |
Additions to investments | -62 | -121 |
Sales of investments | 30 | ' |
Net change in restricted cash | -7 | 59 |
Other | 8 | 10 |
CASH USED FOR INVESTING ACTIVITIES | -240 | -285 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 9 | 2 |
Net change in cash and cash equivalents | -772 | -306 |
Cash and cash equivalents at beginning of year | 1,437 | 1,861 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $665 | $1,555 |
Statement_of_Changes_in_Consol
Statement of Changes in Consolidated Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
In Millions, unless otherwise specified | ||||||||
Balance at Dec. 31, 2012 | $16,523 | $55 | $1,178 | $7,560 | $11,689 | ($3,881) | ($3,402) | $3,324 |
Net (loss) income | 170 | ' | ' | ' | 149 | ' | ' | 21 |
Other comprehensive income | 112 | ' | ' | ' | ' | ' | 93 | 19 |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred @ $0.9375 per share | -1 | ' | ' | ' | -1 | ' | ' | ' |
Common @ $0.03 per share | -32 | ' | ' | ' | -32 | ' | ' | ' |
Stock-based compensation | 23 | ' | ' | 23 | ' | ' | ' | ' |
Common stock issued: compensation plans | -10 | ' | ' | -75 | ' | 65 | ' | ' |
Distributions | -25 | ' | ' | ' | ' | ' | ' | -25 |
Contributions | 15 | ' | ' | ' | ' | ' | ' | 15 |
Other | -1 | ' | ' | ' | ' | ' | ' | -1 |
Balance at Mar. 31, 2013 | 16,774 | 55 | 1,178 | 7,508 | 11,805 | -3,816 | -3,309 | 3,353 |
Balance at Dec. 31, 2013 | 13,522 | 55 | 1,178 | 7,509 | 9,272 | -3,762 | -3,659 | 2,929 |
Net (loss) income | -197 | ' | ' | ' | -178 | ' | ' | -19 |
Other comprehensive income | 447 | ' | ' | ' | ' | ' | 358 | 89 |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred @ $0.9375 per share | -1 | ' | ' | ' | -1 | ' | ' | ' |
Common @ $0.03 per share | -32 | ' | ' | ' | -32 | ' | ' | ' |
Stock-based compensation | 25 | ' | ' | 25 | ' | ' | ' | ' |
Common stock issued: compensation plans | 51 | ' | ' | -316 | ' | 367 | ' | ' |
Issuance of common stock | 575 | ' | 89 | 486 | ' | ' | ' | ' |
Distributions | -35 | ' | ' | ' | ' | ' | ' | -35 |
Contributions | 20 | ' | ' | ' | ' | ' | ' | 20 |
Other | -1 | ' | ' | ' | ' | ' | ' | -1 |
Balance at Mar. 31, 2014 | $14,374 | $55 | $1,267 | $7,704 | $9,061 | ($3,395) | ($3,301) | $2,983 |
Statement_of_Changes_in_Consol1
Statement of Changes in Consolidated Equity (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement Of Stockholders Equity [Abstract] | ' | ' |
Preferred, dividends per share | $0.94 | $0.94 |
Common stock, dividends per share | $0.03 | $0.03 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
A. Basis of Presentation—The interim Consolidated Financial Statements of Alcoa Inc. and its subsidiaries (“Alcoa” or the “Company”) are unaudited. These Consolidated Financial Statements include all adjustments, consisting 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 2013 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 Form 10-Q report should be read in conjunction with Alcoa’s Annual Report on Form 10-K for the year ended December 31, 2013, which includes all disclosures required by GAAP. |
Recently_Adopted_and_Recently_
Recently Adopted and Recently Issued Accounting Guidance | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recently Adopted and Recently Issued Accounting Guidance | ' |
B. Recently Adopted and Recently Issued Accounting Guidance | |
Adopted | |
On January 1, 2014, Alcoa adopted changes issued by the Financial Accounting Standards Board (FASB) to the accounting for obligations resulting from joint and several liability arrangements. These changes require an entity to measure such obligations for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (ii) any additional amount the reporting entity expects to pay on behalf of its co-obligors. An entity will also be required to disclose the nature and amount of the obligation as well as other information about those obligations. Examples of obligations subject to these requirements are debt arrangements and settled litigation and judicial rulings. The adoption of these changes had no impact on the Consolidated Financial Statements, as Alcoa does not currently have any such arrangements. | |
On January 1, 2014, Alcoa adopted changes issued by the FASB to a parent entity’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. A parent entity is required to release any related cumulative foreign currency translation adjustment from accumulated other comprehensive income into net income in the following circumstances: (i) a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided; (ii) a partial sale of an equity method investment that is a foreign entity; (iii) a partial sale of an equity method investment that is not a foreign entity whereby the partial sale represents a complete or substantially complete liquidation of the foreign entity that held the equity method investment; and (iv) the sale of an investment in a foreign entity. The adoption of these changes had no impact on the Consolidated Financial Statements. This guidance will need to be considered in the event Alcoa initiates any of the transactions described above. | |
On January 1, 2014, Alcoa adopted changes issued by the FASB to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. These changes require an entity to present an unrecognized tax benefit as a liability in the financial statements if (i) a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or (ii) the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset to settle any additional income taxes that would result from the disallowance of a tax position. Otherwise, an unrecognized tax benefit is required to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Previously, there was diversity in practice as no explicit guidance existed. The adoption of these changes did not result in a significant impact on the Consolidated Financial Statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
C. Accumulated Other Comprehensive Loss | |||||||||||||||||
The following table details the activity of the four components that comprise Accumulated other comprehensive (loss) income for both Alcoa’s shareholders and noncontrolling interests: | |||||||||||||||||
Alcoa | Noncontrolling Interests | ||||||||||||||||
First quarter ended | First quarter ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Pension and other postretirement benefits | |||||||||||||||||
Balance at beginning of period | $ | (3,532 | ) | $ | (4,063 | ) | $ | (51 | ) | $ | (77 | ) | |||||
Other comprehensive income: | |||||||||||||||||
Unrecognized net actuarial loss and prior service cost/benefit | 17 | 11 | — | — | |||||||||||||
Tax expense | (3 | ) | (3 | ) | — | — | |||||||||||
Total Other comprehensive income before reclassifications, net of tax | 14 | 8 | — | — | |||||||||||||
Amortization of net actuarial loss and prior service cost/benefit(1) | 98 | 132 | 1 | 1 | |||||||||||||
Tax expense(2) | (35 | ) | (45 | ) | (1 | ) | — | ||||||||||
Total amount reclassified from Accumulated other comprehensive loss, net of tax(6) | 63 | 87 | — | 1 | |||||||||||||
Total Other comprehensive income | 77 | 95 | — | 1 | |||||||||||||
Balance at end of period | $ | (3,455 | ) | $ | (3,968 | ) | $ | (51 | ) | $ | (76 | ) | |||||
Foreign currency translation | |||||||||||||||||
Balance at beginning of period | $ | 179 | $ | 1,147 | $ | (110 | ) | $ | 257 | ||||||||
Other comprehensive income (loss)(3) | 249 | (116 | ) | 87 | 16 | ||||||||||||
Balance at end of period | $ | 428 | $ | 1,031 | $ | (23 | ) | $ | 273 | ||||||||
Available-for-sale securities | |||||||||||||||||
Balance at beginning of period | $ | 2 | $ | 3 | $ | — | $ | — | |||||||||
Other comprehensive income(4) | — | 1 | — | — | |||||||||||||
Balance at end of period | $ | 2 | $ | 4 | $ | — | $ | — | |||||||||
Cash flow hedges (N) | |||||||||||||||||
Balance at beginning of period | $ | (308 | ) | $ | (489 | ) | $ | (2 | ) | $ | (5 | ) | |||||
Other comprehensive income: | |||||||||||||||||
Net change from periodic revaluations | 36 | 136 | 3 | 3 | |||||||||||||
Tax expense | (8 | ) | (29 | ) | (1 | ) | (1 | ) | |||||||||
Total Other comprehensive income before reclassifications, net of tax | 28 | 107 | 2 | 2 | |||||||||||||
Net amount reclassified to earnings: | |||||||||||||||||
Aluminum contracts(5) | 5 | 7 | — | — | |||||||||||||
Sub-total | 5 | 7 | — | — | |||||||||||||
Tax expense(2) | (1 | ) | (1 | ) | — | — | |||||||||||
Total amount reclassified from Accumulated other comprehensive loss, net of tax(6) | 4 | 6 | — | — | |||||||||||||
Total Other comprehensive income | 32 | 113 | 2 | 2 | |||||||||||||
Balance at end of period | $ | (276 | ) | $ | (376 | ) | $ | — | $ | (3 | ) | ||||||
(1) | These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). | ||||||||||||||||
(2) | These amounts were included in (Benefit) 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) | In all periods presented, unrealized and realized gains and losses related to these securities were immaterial. Realized gains and losses were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations. | ||||||||||||||||
(5) | These amounts were included in Sales on the accompanying Statement of Consolidated Operations. | ||||||||||||||||
(6) | A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 5. |
Restructuring_and_Other_Charge
Restructuring and Other Charges | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Other Charges | ' | ||||||||||||
D. Restructuring and Other Charges – In the first quarter of 2014, Alcoa recorded Restructuring and other charges of $461 ($274 after-tax and noncontrolling interests), which were comprised of the following components: $336 ($189 after-tax and noncontrolling interest) for exit costs related to decisions to permanently shut down and demolish two smelters and two rolling mills (see below); $70 ($46 after-tax and noncontrolling interest) for the temporary curtailment of two smelters and a related production slowdown at one refinery (see below); $33 ($26 after-tax) for asset impairments related to prior capitalized costs for a modernization project at a smelter in Canada that is no longer being pursued; $13 ($8 after-tax) for layoff costs, including the separation of approximately 170 employees (110 in the Engineered Products and Solutions segment and 60 in Corporate); $15 ($9 after-tax) of charges for other miscellaneous items; and $6 ($4 after-tax and noncontrolling interests) for the reversal of a number of small layoff reserves related to prior periods. | |||||||||||||
In the 2014 first quarter, management approved the permanent shutdown and demolition of the remaining capacity (84,000 metric-tons-per-year) at the Massena East smelter in New York and the full capacity (190,000 metric-tons-per-year) at the Point Henry smelter in Australia. The capacity at Massena East was fully shut down by the end of the first quarter of 2014 and the Point Henry smelter is expected to be shut down in August 2014. Demolition and remediation activities related to the Massena East and Point Henry smelters will begin in the second quarter of 2014 and second half of 2014, respectively, and are expected to be completed by the end of 2020 and 2018, respectively. | |||||||||||||
The decisions on the Massena East and Point Henry smelters are part of a 15-month review of 460,000 metric tons of smelting capacity initiated by management in the 2013 second quarter for possible curtailment. Through this review, management determined that the remaining capacity of the Massena East smelter was no longer competitive and the Point Henry smelter has no prospect of becoming financially viable. Management also initiated the temporary curtailment of the remaining capacity (62,000 metric-tons-per-year) at the Poços de Caldas smelter and additional capacity (85,000 metric-tons-per-year) at the São Luís smelter, both in Brazil. These curtailments are expected to be complete by the end of May 2014. As a result of these curtailments, production at the Poços de Caldas refinery will be reduced, which began near the end of the 2014 first quarter. | |||||||||||||
Also in the 2014 first quarter, management approved the permanent shutdown of Alcoa’s two rolling mills in Australia, Point Henry and Yennora. This decision was made due to the significant impact of excess can sheet capacity in both Australia and Asia. The two rolling mills have a combined can sheet capacity of 200,000 metric-tons-per-year and will be closed by the end of 2014. Demolition and remediation activities related to the two rolling mills will begin in 2015 and are expected to be completed by the end of 2018. | |||||||||||||
In the first quarter of 2014, costs related to the shutdown and curtailment actions included $133 for the layoff of approximately 1,830 employees (1,230 in the Primary Metals segment, 470 in the Global Rolled Products segment, 90 in the Alumina segment, and 40 in Corporate); asset impairments of $91 representing the write-off of the remaining book value of all related properties, plants, and equipment; accelerated depreciation of $59 related to the three facilities in Australia as they continue to operate during 2014; and $123 in other exit costs. Additionally, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value resulting in a charge of $34 ($20 after-tax and noncontrolling interest), which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other exit costs of $123 represent $55 in asset retirement obligations and $38 in environmental remediation, both triggered by the decisions to permanently shut down and demolish the aforementioned structures in the U.S. and Australia, and $30 in supplier and customer contract-related costs. Additional charges of approximately $220 are expected to be recognized throughout 2014 related to these shutdown actions in Australia. | |||||||||||||
In the first quarter of 2013, Alcoa recorded Restructuring and other charges of $7 ($5 after-tax), which were comprised of the following components: $3 ($2 after-tax) for layoff costs, including a pension plan settlement charge related to previously separated employees (see Note M) and the voluntary separation of approximately 60 employees (Primary Metals segment), and a net charge of $4 ($3 after-tax) for other miscellaneous items. | |||||||||||||
Alcoa does not include Restructuring and other charges in the results of its reportable segments. The pretax impact of allocating such charges to segment results would have been as follows: | |||||||||||||
First quarter ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Alumina | $ | 7 | $ | — | |||||||||
Primary Metals | 331 | — | |||||||||||
Global Rolled Products | 90 | 3 | |||||||||||
Engineered Products and Solutions | 4 | 3 | |||||||||||
Segment total | 432 | 6 | |||||||||||
Corporate | 29 | 1 | |||||||||||
Total restructuring and other charges | $ | 461 | $ | 7 | |||||||||
As of March 31, 2014, approximately 15 of the 2,000 employees associated with 2014 restructuring programs and approximately 1,260 of the 1,660 employees associated with 2013 restructuring programs were separated. The remaining separations for the 2014 and 2013 restructuring programs are expected to be completed by the end of 2014. | |||||||||||||
In the 2014 first quarter, cash payments of $1 and $24 were made against the layoff reserves related to the 2014 and 2013 restructuring programs, respectively. | |||||||||||||
Activity and reserve balances for restructuring charges were as follows: | |||||||||||||
Layoff | Other | Total | |||||||||||
costs | exit costs | ||||||||||||
Reserve balances at December 31, 2012 | $ | 59 | $ | 52 | $ | 111 | |||||||
2013:00:00 | |||||||||||||
Cash payments | (63 | ) | (11 | ) | (74 | ) | |||||||
Restructuring charges | 201 | 85 | 286 | ||||||||||
Other* | (101 | ) | (84 | ) | (185 | ) | |||||||
Reserve balances at December 31, 2013 | 96 | 42 | 138 | ||||||||||
2014:00:00 | |||||||||||||
Cash payments | (29 | ) | (3 | ) | (32 | ) | |||||||
Restructuring charges | 146 | 130 | 276 | ||||||||||
Other* | (5 | ) | (129 | ) | (134 | ) | |||||||
Reserve balances at March 31, 2014 | $ | 208 | $ | 40 | $ | 248 | |||||||
* | Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In the 2014 three-month period, Other for other exit costs also included a reclassification of the following restructuring charges: $55 in asset retirement and $42 in environmental obligations, as these liabilities are included in Alcoa’s separate reserves for asset retirement obligations and environmental remediation (see Note G), respectively. In 2013, Other for layoff costs also included a reclassification of $92 in pension costs, as this obligation was included in Alcoa’s separate liability for pension obligations. Also in 2013, Other for other exit costs also included a reclassification of the following restructuring charges: $58 in asset retirement and $12 in environmental obligations, as these liabilities were included in Alcoa’s separate reserves for asset retirement obligations and environmental remediation, respectively. | ||||||||||||
The remaining reserves are expected to be paid in cash during 2014, with the exception of approximately $35 to $40, which is expected to be paid over the next several years for lease termination costs, ongoing site remediation work, and special separation benefit payments. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
E. Inventories | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 702 | $ | 578 | |||||
Work-in-process | 1,006 | 828 | |||||||
Bauxite and alumina | 597 | 581 | |||||||
Purchased raw materials | 528 | 474 | |||||||
Operating supplies | 234 | 244 | |||||||
$ | 3,067 | $ | 2,705 | ||||||
At March 31, 2014 and December 31, 2013, the total amount of inventories valued on a last in, first out (LIFO) basis was 37% and 34%, respectively. If valued on an average-cost basis, total inventories would have been $701 and $691 higher at March 31, 2014 and December 31, 2013, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
F. Debt – In the first quarter of 2014, holders of $575 principal amount of Alcoa’s 5.25% Convertible Notes due March 15, 2014 (the “Notes”) exercised their option to convert the Notes into 89 million shares of Alcoa common stock. The conversion rate for the Notes was 155.4908 shares of Alcoa’s common stock per $1,000 (in whole dollars) principal amount of notes, equivalent to a conversion price of $6.43 per share. The difference between the $575 principal amount of the Notes and the $89 par value of the issued shares increased Additional capital on the accompanying Consolidated Balance Sheet. This transaction was not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a noncash financing activity. | |
At the end of 2013, Alcoa had ten revolving credit facilities (excluding Alcoa’s Five-Year Revolving Credit Facility), each with a different financial institution, providing a combined capacity of $1,190 and expiration dates ranging from February 2014 through December 2015. A credit facility ($150 capacity) that was due to expire in February 2014 was extended to March 2015 in the first quarter of 2014. Another credit facility ($150 capacity) expired in March 2014 (a new agreement with the same financial institution was entered into in April 2014). Also in the first quarter of 2014, Alcoa entered into an eleventh revolving credit agreement, providing a $50 credit facility with an expiration date of February 2016. | |
The purpose of any borrowings under all eleven arrangements is to provide for working capital requirements and for other general corporate purposes. The covenants contained in all eleven arrangements are the same as Alcoa’s Five-Year Revolving Credit Agreement (see the Credit Facilities section of Note K to the Consolidated Financial Statements included in Alcoa’s 2013 Form 10-K). | |
During the first quarter of 2014, Alcoa borrowed and repaid $620 under these credit arrangements. The weighted-average interest rate and weighted-average days outstanding of the borrowings during the first quarter of 2014 were 1.53% and 49 days, respectively. |
Contingencies_and_Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies and Commitments | ' |
G. Contingencies and Commitments | |
Contingencies | |
Litigation | |
In November 2006, in Curtis v. Alcoa Inc., Civil Action No. 3:06cv448 (E.D. Tenn.), a class action was filed by plaintiffs representing approximately 13,000 retired former employees of Alcoa or Reynolds Metals Company and spouses and dependents of such retirees alleging violation of the Employee Retirement Income Security Act (ERISA) and the Labor-Management Relations Act by requiring plaintiffs, beginning January 1, 2007, to pay health insurance premiums and increased co-payments and co-insurance for certain medical procedures and prescription drugs. Plaintiffs alleged these changes to their retiree health care plans violated their rights to vested health care benefits. Plaintiffs additionally alleged that Alcoa had breached its fiduciary duty to plaintiffs under ERISA by misrepresenting to them that their health benefits would never change. Plaintiffs sought injunctive and declaratory relief, back payment of benefits, and attorneys’ fees. Alcoa had consented to treatment of plaintiffs’ claims as a class action. During the fourth quarter of 2007, following briefing and argument, the court ordered consolidation of the plaintiffs’ motion for preliminary injunction with trial, certified a plaintiff class, and bifurcated and stayed the plaintiffs’ breach of fiduciary duty claims. Trial in the matter was held over eight days commencing September 22, 2009 and ending on October 1, 2009 in federal court in Knoxville, TN before the Honorable Thomas Phillips, U.S. District Court Judge. | |
On March 9, 2011, the court issued a judgment order dismissing plaintiffs’ lawsuit in its entirety with prejudice for the reasons stated in its Findings of Fact and Conclusions of Law. On March 23, 2011, plaintiffs filed a motion for clarification and/or amendment of the judgment order, which sought, among other things, a declaration that plaintiffs’ retiree benefits are vested subject to an annual cap and an injunction preventing Alcoa, prior to 2017, from modifying the plan design to which plaintiffs are subject or changing the premiums and deductibles that plaintiffs must pay. Also on March 23, 2011, plaintiffs filed a motion for award of attorneys’ fees and expenses. On June 11, 2012, the court issued its memorandum and order denying plaintiffs’ motion for clarification and/or amendment to the original judgment order. On July 6, 2012, plaintiffs filed a notice of appeal of the court’s March 9, 2011 judgment. On July 12, 2012, the trial court stayed Alcoa’s motion for assessment of costs pending resolution of plaintiffs’ appeal. The appeal was docketed in the United States Court of Appeals for the Sixth Circuit as case number 12-5801. On August 29, 2012, the trial court dismissed plaintiffs’ motion for attorneys’ fees without prejudice to refiling the motion following the resolution of the appeal at the Sixth Circuit Court of Appeals. On May 9, 2013, the Sixth Circuit Court of Appeals issued an opinion affirming the trial court’s denial of plaintiffs’ claims for lifetime, uncapped retiree healthcare benefits. Plaintiffs filed a petition for rehearing on May 22, 2013 to which Alcoa filed a response on June 7, 2013. On September 12, 2013, the Sixth Circuit Court of Appeals denied plaintiffs’ petition for rehearing. The trial court is now considering Alcoa’s request for an award of costs, which had been stayed pending resolution of the appeal, and the plaintiffs’ request for attorneys’ fees, which had been dismissed without prejudice to refiling following resolution of the appeal. On December 17, 2013 the United States Supreme Court docketed the plaintiffs’ petition for writ of certiorari to the Sixth Circuit Court of Appeals as Charles Curtis, et al., Individually and on Behalf of All Others Similarly Situated, Petitioners v. Alcoa Inc., et al., Docket No.13-728. Alcoa’s opposition to this petition was filed on January 16, 2014 and Petitioners filed their reply on January 29, 2014. | |
On February 24, 2014, the Supreme Court denied plaintiffs’ petition. The Supreme Court’s refusal to hear the matter ends the substantive litigation and affirms Alcoa’s collectively bargained cap on the company’s contributions to union retiree medical costs. There remain certain attorney fee petitions at the trial court. | |
Before 2002, Alcoa purchased power in Italy in the regulated energy market and received a drawback of a portion of the price of power under a special tariff in an amount calculated in accordance with a published resolution of the Italian Energy Authority, Energy Authority Resolution n. 204/1999 (“204/1999”). In 2001, the Energy Authority published another resolution, which clarified that the drawback would be calculated in the same manner, and in the same amount, in either the regulated or unregulated market. At the beginning of 2002, Alcoa left the regulated energy market to purchase energy in the unregulated market. Subsequently, in 2004, the Energy Authority introduced regulation no. 148/2004 which set forth a different method for calculating the special tariff that would result in a different drawback for the regulated and unregulated markets. Alcoa challenged the new regulation in the Administrative Court of Milan and received a favorable judgment in 2006. Following this ruling, Alcoa continued to receive the power price drawback in accordance with the original calculation method, through 2009, when the European Commission declared all such special tariffs to be impermissible “state aid.” In 2010, the Energy Authority appealed the 2006 ruling to the Consiglio di Stato (final court of appeal). On December 2, 2011, the Consiglio di Stato ruled in favor of the Energy Authority and against Alcoa, thus presenting the opportunity for the energy regulators to seek reimbursement from Alcoa of an amount equal to the difference between the actual drawback amounts received over the relevant time period, and the drawback as it would have been calculated in accordance with regulation 148/2004. On February 23, 2012, Alcoa filed its appeal of the decision of the Consiglio di Stato (this appeal was subsequently withdrawn in March 2013). On March 26, 2012, Alcoa received a letter from the agency (Cassa Conguaglio per il Settore Eletrico (CCSE)) responsible for making and collecting payments on behalf of the Energy Authority demanding payment in the amount of approximately $110 (€85), including interest. By letter dated April 5, 2012, Alcoa informed CCSE that it disputes the payment demand of CCSE since (i) CCSE was not authorized by the Consiglio di Stato decisions to seek payment of any amount, (ii) the decision of the Consiglio di Stato has been appealed (see above), and (iii) in any event, no interest should be payable. On April 29, 2012, Law No. 44 of 2012 (“44/2012”) came into effect, changing the method to calculate the drawback. On February 21, 2013, Alcoa received a revised request letter from CSSE demanding Alcoa’s subsidiary, Alcoa Trasformazioni S.r.l., make a payment in the amount of $97 (€76), including interest, which reflects a revised calculation methodology by CCSE and represents the high end of the range of reasonably possible loss associated with this matter of $0 to $97 (€76). Alcoa has rejected that demand and has formally challenged it through an appeal before the Administrative Court on April 5, 2013. The Administrative Court scheduled a hearing for December 19, 2013, which was subsequently postponed until April 17, 2014, and now has been postponed until June 19, 2014. At this time, the Company is unable to reasonably predict an outcome for this matter. | |
European Commission Matters | |
In July 2006, the European Commission (EC) announced that it had opened an investigation to establish whether an extension of the regulated electricity tariff granted by Italy to some energy-intensive industries complied with European Union (EU) state aid rules. The Italian power tariff extended the tariff that was in force until December 31, 2005 through November 19, 2009 (Alcoa had been incurring higher power costs at its smelters in Italy subsequent to the tariff end date through the end of 2012). The extension was originally through 2010, but the date was changed by legislation adopted by the Italian Parliament effective on August 15, 2009. Prior to expiration of the tariff in 2005, Alcoa had been operating in Italy for more than 10 years under a power supply structure approved by the EC in 1996. That measure provided a competitive power supply to the primary aluminum industry and was not considered state aid from the Italian Government. The EC’s announcement expressed concerns about whether Italy’s extension of the tariff beyond 2005 was compatible with EU legislation and potentially distorted competition in the European market of primary aluminum, where energy is an important part of the production costs. | |
On November 19, 2009, the EC announced a decision in this matter stating that the extension of the tariff by Italy constituted unlawful state aid, in part, and, therefore, the Italian Government is to recover a portion of the benefit Alcoa received since January 2006 (including interest). The amount of this recovery was to be based on a calculation prepared by the Italian Government (see below). In late 2009, after discussions with legal counsel and reviewing the bases on which the EC decided, including the different considerations cited in the EC decision regarding Alcoa’s two smelters in Italy, Alcoa recorded a charge of $250 (€173), which included $20 (€14) to write off a receivable from the Italian Government for amounts due under the now expired tariff structure and $230 (€159) to establish a reserve. On April 19, 2010, Alcoa filed an appeal of this decision with the General Court of the EU. Alcoa will pursue all substantive and procedural legal steps available to annul the EC’s decision. Prior to 2012, Alcoa was involved in other legal proceedings related to this matter that sought the annulment of the EC’s July 2006 decision to open an investigation alleging that such decision did not follow the applicable procedural rules and requested injunctive relief to suspend the effectiveness of the EC’s November 19, 2009 decision. However, the decisions by the General Court, and subsequent appeals to the European Court of Justice, resulted in the denial of these remedies. | |
In June 2012, Alcoa received formal notification from the Italian Government with a calculated recovery amount of $375 (€303); this amount was reduced by $65 (€53) for amounts owed by the Italian Government to Alcoa, resulting in a net payment request of $310 (€250). In a notice published in the Official Journal of the European Union on September 22, 2012, the EC announced that it had filed an action against the Italian Government on July 18, 2012 to compel it to collect the recovery amount, and on October 17, 2013, the ECJ ordered Italy to so collect. On September 27, 2012, Alcoa received a request for payment in full of the $310 (€250) by October 31, 2012. Following discussions with the Italian Government regarding the timing of such payment, Alcoa paid the requested amount in five quarterly installments of $69 (€50) beginning in October 2012 through December 2013. Notwithstanding the payments made, Alcoa’s estimate of the most probable loss of the ultimate outcome of this matter and the low end of the range of reasonably possible loss, which is $218 (€159) to $417 (€303), remains the $218 (€159) recorded in 2009 (the U.S. dollar amount reflects the effects of foreign currency movements since 2009). Alcoa no longer has a reserve for this matter; instead, Alcoa has a noncurrent asset reflecting the excess of the total of the five payments made to the Italian Government over the reserve recorded in 2009. At March 31, 2014, the noncurrent asset was $126 (€91). The full extent of the loss will not be known until the final judicial determination, which could be a period of several years. | |
As a result of the EC’s November 19, 2009 decision, management had contemplated ceasing operations at its Italian smelters due to uneconomical power costs. In February 2010, management agreed to continue to operate its smelters in Italy for up to six months while a long-term solution to address increased power costs could be negotiated. Over a portion of this time, a long-term solution was not able to be reached related to the Fusina smelter, therefore, in May 2010, Alcoa and the Italian Government agreed to a temporary idling of the Fusina smelter. As of June 30, 2010, the Fusina smelter was fully curtailed (44,000 metric-tons-per-year). For the Portovesme smelter, Alcoa executed a new power agreement effective September 1, 2010 through December 31, 2012, replacing the short-term, market-based power contract that was in effect since early 2010. This new agreement along with interruptibility rights (i.e. compensation for power interruptions when grids are overloaded) granted to Alcoa for the Portovesme smelter provided additional time to negotiate a long-term solution (the EC had previously determined that the interruptibility rights were not considered state aid). | |
At the end of 2011, as part of a restructuring of Alcoa’s global smelting system, management decided to curtail operations at the Portovesme smelter during 2012 due to the uncertain prospects for viable, long-term power, along with rising raw materials costs and falling global aluminum prices (mid-2011 to late 2011). As of December 31, 2012, the Portovesme smelter was fully curtailed (150,000 metric-tons-per-year). This curtailment may lead to the permanent closure of the facility; however, Alcoa will keep the smelter in restart condition through June 2014. | |
In June 2013, Alcoa decided to permanently shut down and demolish the Fusina smelter due to persistent uneconomical conditions. | |
In January 2007, the EC announced that it had opened an investigation to establish whether the regulated electricity tariffs granted by Spain comply with EU state aid rules. At the time the EC opened its investigation, Alcoa had been operating in Spain for more than nine years under a power supply structure approved by the Spanish Government in 1986, an equivalent tariff having been granted in 1983. The investigation is limited to the year 2005 and is focused both on the energy-intensive consumers and the distribution companies. The investigation provided 30 days to any interested party to submit observations and comments to the EC. With respect to the energy-intensive consumers, the EC opened the investigation on the assumption that prices paid under the tariff in 2005 were lower than a pool price mechanism, therefore being, in principle, artificially below market conditions. Alcoa submitted comments in which the company provided evidence that prices paid by energy-intensive consumers were in line with the market, in addition to various legal arguments defending the legality of the Spanish tariff system. It is Alcoa’s understanding that the Spanish tariff system for electricity is in conformity with all applicable laws and regulations, and therefore no state aid is present in the tariff system. While Alcoa does not believe that an unfavorable decision is probable, management has estimated that the total potential impact from an unfavorable decision could be approximately $95 (€70) pretax. Also, while Alcoa believes that any additional cost would only be assessed for the year 2005, it is possible that the EC could extend its investigation to later years. If the EC’s investigation concludes that the regulated electricity tariffs for industries are unlawful, Alcoa will have an opportunity to challenge the decision in the EU courts. | |
On February 4, 2014, the EC announced a decision in this matter stating that the electricity tariffs granted by Spain for year 2005 do not constitute unlawful state aid. | |
Environmental Matters | |
Alcoa participates in environmental assessments and cleanups at more than 100 locations. These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. | |
As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, and technological changes, among others. | |
Alcoa’s remediation reserve balance was $565 and $509 at March 31, 2014 and December 31, 2013 (of which $73 and $48 was classified as a current liability), respectively, and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. | |
In the 2014 first quarter, the remediation reserve was increased by $47 due to a charge of $38 related to the planned demolition of certain structures at the Massena East, NY and Point Henry and Yennora, Australia locations (see Note D) and a net charge of $9 associated with a number of other sites. Of the changes to the remediation reserve, $42 was recorded in Restructuring and other charges, including the aforementioned $38, while the remainder was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. | |
Payments related to remediation expenses applied against the reserve were $6 in the 2014 first quarter. This amount includes expenditures currently mandated, as well as those not required by any regulatory authority or third party. In the 2014 first quarter, the change in the reserve also reflects an increase of $15 due to a reclassification of amounts included in other reserves within Other noncurrent liabilities and deferred credits on Alcoa’s Consolidated Balance Sheet as of December 31, 2013. | |
Included in annual operating expenses are the recurring costs of managing hazardous substances and environmental programs. These costs are estimated to be approximately 2% of cost of goods sold. | |
The following discussion provides details regarding the current status of certain significant reserves related to current or former Alcoa sites. | |
Massena West, NY—Alcoa has an ongoing remediation project related to the Grasse River, which is adjacent to Alcoa’s Massena plant site. Many years ago, it was determined that sediments and fish in the river contain varying levels of polychlorinated biphenyls (PCBs). The project, which was selected by the U.S. Environmental Protection Agency (EPA) in a Record of Decision (ROD) issued in April 2013, is aimed at capping PCB contaminated sediments with concentration in excess of one part per million in the main channel of the river and dredging PCB contaminated sediments in the near-shore areas where total PCBs exceed one part per million. At March 31, 2014, the reserve balance associated with this matter was $241. Alcoa is in the planning and design phase, which is expected to take approximately two to three years from mid-2013, followed by the actual remediation fieldwork that is expected to take approximately four years. The majority of the project funding is expected to be spent between 2016 and 2020. | |
Sherwin, TX—In connection with the sale of the Sherwin alumina refinery, which was required to be divested as part of the Reynolds merger in 2000, Alcoa agreed to retain responsibility for the remediation of the then existing environmental conditions, as well as a pro rata share of the final closure of the active bauxite residue waste disposal areas (known as the Copano facility). Alcoa’s share of the closure costs is proportional to the total period of operation of the active waste disposal areas. At March 31, 2014, the reserve balance associated with Sherwin was $34. Approximately half of the project funding is expected to be spent between 2014 and 2019. The remainder is not expected to be spent in the foreseeable future as it is dependent upon the operating life of the active waste disposal areas. | |
East St. Louis, IL—Alcoa has an ongoing remediation project related to an area used for the disposal of bauxite residue from former alumina refining operations. The project, which was selected by the EPA in a ROD issued in July 2012, is aimed at implementing a soil cover over the affected area. On November 1, 2013, the Department of Justice lodged a consent decree on behalf of the EPA for Alcoa to conduct the work outlined in the ROD. This consent decree was entered as final in February 2014 by the Department of Justice. As a result, Alcoa began construction in March 2014; this project is expected to be completed by mid-2015. At March 31, 2014, the reserve balance associated with this matter was $24. The majority of the project funding is expected to be spent between 2014 and 2015. | |
Fusina and Portovesme, Italy—In 1996, Alcoa acquired the Fusina smelter and rolling operations and the Portovesme smelter, both of which are owned by Alcoa’s subsidiary Alcoa Trasformazioni S.r.l. (“Trasformazioni”), from Alumix, an entity owned by the Italian Government. At the time of the acquisition, Alumix indemnified Alcoa for pre-existing environmental contamination at the sites. In 2004, the Italian Ministry of Environment and Protection of Land and Sea (MOE) issued orders to Trasformazioni and Alumix for the development of a clean-up plan related to soil contamination in excess of allowable limits under legislative decree and to institute emergency actions and pay natural resource damages. Trasformazioni appealed the orders and filed suit against Alumix, among others, seeking indemnification for these liabilities under the provisions of the acquisition agreement. In 2009, Ligestra S.r.l. (“Ligestra”), Alumix’s successor, and Trasformazioni agreed to a stay of the court proceedings while investigations were conducted and negotiations advanced towards a possible settlement. | |
In December 2009, Trasformazioni and Ligestra reached an initial agreement for settlement of the liabilities related to Fusina while negotiations continued related to Portovesme. The agreement outlined an allocation of payments to the MOE for emergency action and natural resource damages and the scope and costs for a proposed soil remediation project, which was formally presented to the MOE in mid-2010. The agreement is contingent upon final acceptance of the remediation project by the MOE. As a result of entering into this agreement, Alcoa increased the reserve by $12 in 2009 for Fusina. Based on comments received from the MOE and local and regional environmental authorities, Trasformazioni submitted a revised remediation plan in the first half of 2012; however, such revisions did not require any change to the existing reserve. In October 2013, the MOE approved the project submitted by Alcoa, resulting in no adjustment to the reserve. | |
In January 2014, in anticipation of Alcoa reaching a final administrative agreement with the MOE, Alcoa and Ligestra entered into a final agreement related to Fusina for allocation of payments to the MOE for emergency action and natural resource damages and the costs for the approved soil remediation project. The agreement resulted in Ligestra assuming 50% to 80% of all payments and remediation costs. On February 27, 2014, Alcoa and the MOE reached a final administrative agreement for conduct of work. The agreement includes both a soil and groundwater remediation project estimated to cost $33 (€24) and requires payments of $25 (€18) to the MOE for emergency action and natural resource damages. The remediation projects are slated to begin in the second half of 2014 and continue through the end of 2015. Based on the final agreement with Ligestra, Alcoa’s share of all costs and payments is $17 (€12), of which $9 (€6) related to the damages will be paid annually over a 10-year period beginning in April 2014, and was previously fully reserved. | |
Separately, due to additional information derived from the site investigations conducted at Portovesme, Alcoa increased the reserve by $3 in 2009. In November 2011, Trasformazioni and Ligestra reached an agreement for settlement of the liabilities related to Portovesme, similar to the one for Fusina. A proposed soil remediation project for Portovesme was formally presented to the MOE in June 2012. Neither the agreement with Ligestra nor the proposal to the MOE resulted in a change to the reserve for Portovesme. In November 2013, the MOE rejected the proposed soil remediation project and requested a revised project be submitted in the first quarter of 2014. In March 2014, Trasformazioni requested an extension of time to submit the revised project in the second quarter of 2014. It is possible that the revised project may result in a change to the existing reserve for Portovesme. | |
Baie Comeau, Quebec, Canada—In August 2012, Alcoa presented an analysis of remediation alternatives to the Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks (MDDEP), in response to a previous request, related to known PCBs and polycyclic aromatic hydrocarbons (PAHs) contained in sediments of the Anse du Moulin bay. As such, Alcoa increased the reserve for Baie Comeau by $25 in 2012 to reflect the estimated cost of Alcoa’s recommended alternative, consisting of both dredging and capping of the contaminated sediments. In July 2013, Alcoa submitted the Environmental Impact Assessment for the project to the MDDEP and this document is currently in the regulatory review process. The ultimate selection of a remedy may result in additional liability at the time the MDDEP issues a final decision. | |
Mosjøen, Norway—In September 2012, Alcoa presented an analysis of remediation alternatives to the Norwegian Environmental Agency (NEA) (formerly the Norwegian Climate and Pollution Agency, or “Klif”), in response to a previous request, related to known PAHs in the sediments located in the harbor and extending out into the fjord. As such, Alcoa increased the reserve for Mosjøen by $20 in 2012 to reflect the estimated cost of the baseline alternative for dredging of the contaminated sediments. The ultimate selection of a remedy may result in additional liability at the time the NEA issues a final decision. | |
Other | |
In September 2010, following a corporate income tax audit covering the 2003 through 2005 tax years, an assessment was received as a result of Spain’s tax authorities disallowing certain interest deductions claimed by a Spanish consolidated tax group owned by the Company. An appeal of this assessment in Spain’s Central Tax Administrative Court by the Company was denied in October 2013. In December 2013, the Company filed an appeal of the assessment in Spain’s National Court. | |
Additionally, following a corporate income tax audit of the same Spanish tax group for the 2006 through 2009 tax years, Spain’s tax authorities issued an assessment in July 2013 similarly disallowing certain interest deductions. In August 2013, the Company filed an appeal of this second assessment in Spain’s Central Tax Administrative Court. | |
The combined assessments total $333 (€242). The Company believes it has meritorious arguments to support its tax position and intends to vigorously litigate the assessments through Spain’s court system. However, in the event the Company is unsuccessful, a portion of the assessments may be offset with existing net operating losses available to the Spanish consolidated tax group. Additionally, it is possible that the Company may receive similar assessments for tax years subsequent to 2009. At this time, the Company is unable to reasonably predict an outcome for this matter. | |
In March 2013, Alcoa’s subsidiary, Alcoa World Alumina Brasil (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. The assessment is currently in the administrative process, which could take approximately two years to complete. AWAB presented defense of its claim to the RFB on April 8, 2013. If AWAB is successful in the administrative process, the RFB would have no further recourse. If unsuccessful in this process, AWAB has the option to litigate at a judicial level. The estimated range of reasonably possible loss is $0 to $70 ($R155), whereby the maximum end of the range represents the sum of the portion of the disallowed credits applicable to the export sales and a 50% penalty of the gross amount disallowed. Additionally, the estimated range of disallowed credits related to AWAB’s fixed assets is $0 to $80 (R$175), which would increase the net carrying value of AWAB’s fixed assets if ultimately disallowed. It is management’s opinion that the allegations have no basis; however, at this time, management is unable to reasonably predict an outcome for this matter. | |
Between 2000 and 2002, Alcoa Alumínio (Alumínio) sold approximately 2,000 metric tons of metal per month from its Poços de Caldas facility, located in the State of Minas Gerais (the “State”), to Alfio, a customer also located in the State. Sales in the State were exempted from value-added tax (VAT) requirements. Alfio subsequently sold metal to customers outside of the State, but did not pay the required VAT on those transactions. In July 2002, Alumínio received an assessment from State auditors on the theory that Alumínio should be jointly and severally liable with Alfio for the unpaid VAT. In June 2003, the administrative tribunal found Alumínio liable, and Alumínio filed a judicial case in the State in February 2004 contesting the finding. In May 2005, the Court of First Instance found Alumínio solely liable, and a panel of a State appeals court confirmed this finding in April 2006. Alumínio filed a special appeal to the Superior Tribunal of Justice (STJ) in Brasilia (the federal capital of Brazil) later in 2006. In 2011, the STJ (through one of its judges) reversed the judgment of the lower courts, finding that Alumínio should neither be solely nor jointly and severally liable with Alfio for the VAT, which ruling was then appealed by the State. In June 2012, the STJ agreed to have the case reheard before a five-judge panel. A decision from this panel is pending, but additional appeals are likely. At March 31, 2014, the assessment totaled $55 (R$125), including penalties and interest. While the Company believes it has meritorious defenses, the Company is unable to reasonably predict an outcome. | |
In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Alcoa, including those pertaining to environmental, product liability, safety and health, and tax matters. While the amounts claimed in these other matters may be substantial, the ultimate liability cannot now be determined because of the considerable uncertainties that exist. Therefore, 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. | |
Commitments | |
Investments | |
Alcoa has an investment in a joint venture for the development, construction, ownership, and operation of an integrated aluminum complex (bauxite mine, alumina refinery, aluminum smelter, and rolling mill) in Saudi Arabia. The joint venture is owned 74.9% by the Saudi Arabian Mining Company (known as “Ma’aden”) and 25.1% by Alcoa and consists of three separate companies as follows: one each for the mine and refinery, the smelter, and the rolling mill. Alcoa accounts for its investment in the joint venture under the equity method. Capital investment in the project is expected to total approximately $10,800 (SAR 40.5 billion). Alcoa’s equity investment in the joint venture will be approximately $1,100, and Alcoa will be responsible for its pro rata share of the joint venture’s project financing. Alcoa has contributed $886, including $54 in the 2014 first quarter, towards the $1,100 commitment. As of March 31, 2014 and December 31, 2013, the carrying value of Alcoa’s investment in this project was $967 and $951, respectively. | |
The smelting and rolling mill companies have project financing totaling $4,515, of which $1,133 represents Alcoa’s share (the equivalent of Alcoa’s 25.1% interest in the smelting and rolling mill companies). In conjunction with the financings, Alcoa issued guarantees on behalf of the smelting and rolling mill companies to the lenders in the event that such companies default on their debt service requirements through June 2017 and December 2018, respectively, (Ma’aden issued similar guarantees for its 74.9% interest). Alcoa’s guarantees for the smelting and rolling mill companies cover total debt service requirements of $121 in principal and up to a maximum of approximately $60 in interest per year (based on projected interest rates). At March 31, 2014 and December 31, 2013, the combined fair value of the guarantees was $8 and $10, respectively, and was included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. | |
The mining and refining company has project financing totaling $1,992, of which $500 represents Alcoa World Alumina and Chemical’s (AWAC) 25.1% interest in the mining and refining company. Also, in January 2014, the mining and refining company entered into additional project financing totaling $240, of which $60 represents AWAC’s share. In conjunction with the financings, Alcoa, on behalf of AWAC, issued guarantees to the lenders in the event that the mining and refining company defaults on its debt service requirements through June 2019 (Ma’aden issued similar guarantees for its 74.9% interest). Alcoa’s guarantees for the mining and refining company cover total debt service requirements of $67 in principal and up to a maximum of approximately $30 in interest per year (based on projected interest rates). At March 31, 2014 and December 31, 2013, the combined fair value of the guarantees was $3 and $4, respectively, and was included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. In the event Alcoa would be required to make payments under the guarantees, 40% of such amount would be contributed to Alcoa by Alumina Limited, consistent with its ownership interest in AWAC. | |
Under the project financings for both the smelting and rolling mill companies and the mining and refining company, a downgrade of Alcoa’s credit ratings below investment grade by at least two agencies would require Alcoa to provide a letter of credit or fund an escrow account for a portion or all of Alcoa’s remaining equity commitment to the joint venture project in Saudi Arabia. This requirement would be effective only if at the time of the second downgrade in Alcoa’s credit ratings below investment grade, Alcoa’s equity investment was below 67% of its equity commitment in any of the three joint venture companies (a second downgrade in Alcoa’s credit ratings occurred on April 11, 2014). As of March 31, 2014, Alcoa has contributed more than 67% of its equity commitment in each of the three joint venture companies. | |
Alumínio, a wholly-owned subsidiary of Alcoa, is a participant in four consortia that each owns a hydroelectric power project in Brazil. One of these projects is known as Estreito, which reached full capacity in March 2013. Alumínio’s investment in this project is 25.49%, which entitles Alumínio to approximately 150 megawatts of assured power. The Estreito consortium is an unincorporated joint venture, and, therefore, Alumínio’s share of the assets and liabilities of the consortium are reflected in the respective lines on the accompanying Consolidated Balance Sheet. Total estimated project costs are approximately $2,290 (R$5,170) and Alumínio’s share is approximately $580 (R$1,320). As of December 31, 2013, approximately $560 (R$1,270) of Alumínio’s commitment was expended on the project. | |
In 2004, Alcoa acquired a 20% interest in a consortium, which subsequently purchased the Dampier to Bunbury Natural Gas Pipeline (DBNGP) in Western Australia, in exchange for an initial cash investment of $17 (A$24). The investment in the DBNGP, which is classified as an equity investment, was made in order to secure a competitively priced long-term supply of natural gas to Alcoa’s refineries in Western Australia. Alcoa has made additional contributions of $141 (A$176) for its share of the pipeline capacity expansion and other operational purposes of the consortium through September 2011. No further expansion of the pipeline’s capacity is planned at this time. In late 2011, the consortium initiated a three-year equity call plan to improve its capitalization structure. This plan requires Alcoa to contribute $40 (A$40), of which $31 (A$31) was made through March 31, 2014, including $2 (A$2) in the 2014 first quarter. In addition to its equity ownership, Alcoa has an agreement to purchase gas transmission services from the DBNGP. At March 31, 2014, Alcoa has an asset of $327 (A$355) representing prepayments made under the agreement for future gas transmission services. Alcoa’s maximum exposure to loss on the investment and the related contract is approximately $460 (A$500) as of March 31, 2014. |
Other_Expenses_Income_Net
Other Expenses (Income), Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income And Expenses [Abstract] | ' | ||||||||
Other Expenses (Income), Net | ' | ||||||||
H. Other Expenses (Income), Net | |||||||||
First quarter ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Equity loss | $ | 38 | $ | 12 | |||||
Interest income | (4 | ) | (4 | ) | |||||
Foreign currency losses (gains), net | 8 | (6 | ) | ||||||
Net gain from asset sales | (27 | ) | (5 | ) | |||||
Net loss (gain) on mark-to-market derivative contracts (N) | 5 | (17 | ) | ||||||
Other, net | 5 | (7 | ) | ||||||
$ | 25 | $ | (27 | ) | |||||
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
I. Segment Information—The operating results of Alcoa’s reportable segments were as follows (differences between segment totals and consolidated totals are in Corporate): | |||||||||||||||||||||
Alumina | Primary | Global | Engineered | Total | |||||||||||||||||
Metals | Rolled | Products | |||||||||||||||||||
Products | and | ||||||||||||||||||||
Solutions | |||||||||||||||||||||
First quarter ended March 31, 2014 | |||||||||||||||||||||
Sales: | |||||||||||||||||||||
Third-party sales | $ | 845 | $ | 1,424 | $ | 1,677 | $ | 1,443 | $ | 5,389 | |||||||||||
Intersegment sales | 510 | 734 | 43 | — | 1,287 | ||||||||||||||||
Total sales | $ | 1,355 | $ | 2,158 | $ | 1,720 | $ | 1,443 | $ | 6,676 | |||||||||||
Profit and loss: | |||||||||||||||||||||
Equity loss | $ | (5 | ) | $ | (28 | ) | $ | (5 | ) | $ | — | $ | (38 | ) | |||||||
Depreciation, depletion, and amortization | 97 | 124 | 58 | 40 | 319 | ||||||||||||||||
Income taxes | 40 | (11 | ) | 34 | 91 | 154 | |||||||||||||||
After-tax operating income (ATOI) | 92 | (15 | ) | 59 | 189 | 325 | |||||||||||||||
First quarter ended March 31, 2013 | |||||||||||||||||||||
Sales: | |||||||||||||||||||||
Third-party sales | $ | 826 | $ | 1,758 | $ | 1,779 | $ | 1,423 | $ | 5,786 | |||||||||||
Intersegment sales | 595 | 727 | 51 | — | 1,373 | ||||||||||||||||
Total sales | $ | 1,421 | $ | 2,485 | $ | 1,830 | $ | 1,423 | $ | 7,159 | |||||||||||
Profit and loss: | |||||||||||||||||||||
Equity income (loss) | $ | 1 | $ | (9 | ) | $ | (4 | ) | $ | — | $ | (12 | ) | ||||||||
Depreciation, depletion, and amortization | 109 | 135 | 57 | 40 | 341 | ||||||||||||||||
Income taxes | 14 | 1 | 39 | 84 | 138 | ||||||||||||||||
ATOI | 58 | 39 | 81 | 173 | 351 | ||||||||||||||||
The following table reconciles total segment ATOI to consolidated net (loss) income attributable to Alcoa: | |||||||||||||||||||||
First quarter ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Total segment ATOI | $ | 325 | $ | 351 | |||||||||||||||||
Unallocated amounts (net of tax): | |||||||||||||||||||||
Impact of LIFO | (7 | ) | (2 | ) | |||||||||||||||||
Interest expense | (78 | ) | (75 | ) | |||||||||||||||||
Noncontrolling interests | 19 | (21 | ) | ||||||||||||||||||
Corporate expense | (67 | ) | (67 | ) | |||||||||||||||||
Restructuring and other charges | (321 | ) | (5 | ) | |||||||||||||||||
Other | (49 | ) | (32 | ) | |||||||||||||||||
Consolidated net (loss) income attributable to Alcoa | $ | (178 | ) | $ | 149 | ||||||||||||||||
Items required to reconcile total segment ATOI to consolidated net (loss) income attributable to Alcoa include: the impact of LIFO inventory accounting; interest expense; noncontrolling interests; corporate expense (general administrative and selling expenses of operating the corporate headquarters and other global administrative facilities, along with depreciation and amortization on corporate-owned assets); restructuring and other charges; discontinued operations; and other items, including intersegment profit eliminations, differences between tax rates applicable to the segments and the consolidated effective tax rate, the results of the soft alloy extrusions business in Brazil, and other nonoperating items such as foreign currency transaction gains/losses and interest income. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
J. Earnings Per Share—Basic earnings per share (EPS) amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared, 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 common shareholders was as follows (shares in millions): | |||||||||
First quarter ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net (loss) income attributable to Alcoa common shareholders | $ | (178 | ) | $ | 149 | ||||
Less: preferred stock dividends declared | 1 | 1 | |||||||
Net (loss) income available to Alcoa common shareholders – basic | (179 | ) | 148 | ||||||
Add: interest expense related to convertible notes | — | 8 | |||||||
Net (loss) income available to Alcoa common shareholders – diluted | $ | (179 | ) | $ | 156 | ||||
Average shares outstanding – basic | 1,101 | 1,069 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | — | 3 | |||||||
Stock and performance awards | — | 8 | |||||||
Convertible notes | — | 89 | |||||||
Average shares outstanding – diluted | 1,101 | 1,169 | |||||||
In the 2014 first quarter, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive since Alcoa generated a net loss. As a result, 66 million share equivalents related to convertible notes (see below), 18 million stock awards, and 31 million stock options were not included in the computation of diluted EPS. Had Alcoa generated sufficient net income in the first quarter of 2014, 66 million, 10 million, and 5 million potential shares of common stock related to the convertible notes, stock awards, and stock options, respectively, would have been included in diluted average shares outstanding. | |||||||||
In the first quarter of 2014, holders of the convertible notes exercised their option to convert the notes into 89 million shares of Alcoa common stock (see Note F). As a result, these 89 million shares were outstanding for a portion of the 2014 first quarter equivalent to a weighted average of 23 million shares. The 23 million shares were included in both basic and diluted average shares outstanding for the first quarter of 2014. For the portion of the 2014 first quarter that the notes were still outstanding debt, a weighted average of the 89 million share equivalents (66 million) would have been included only in the diluted average shares outstanding if their effect was dilutive. | |||||||||
Options to purchase 10 million and 31 million shares of common stock at a weighted average exercise price of $14.53 and $12.20 per share were outstanding as of March 31, 2014 and 2013, respectively, but were not included in the computation of diluted EPS because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of Alcoa’s common stock. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
K. Income Taxes – The effective tax rate for the first quarter of 2014 and 2013 was 28.1% (benefit on a loss) and 27.4% (provision on income), respectively. | |
The rate for the 2014 first quarter differs from the U.S. federal statutory rate of 35% primarily due to a $56 unfavorable impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized (impact is expected to reverse by the end of 2014), partially offset by the U.S. tax impact of deemed distributions from otherwise lower tax rate foreign jurisdictions. | |
The rate for the 2013 first quarter differs from the U.S. federal statutory rate of 35% primarily due to a $19 discrete income tax benefit related to new U.S. tax legislation. | |
On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law and reinstated various expired or expiring temporary business tax provisions through 2013. Two specific temporary business tax provisions that expired in 2011 and impacted Alcoa are the look-through rule for payments between related controlled foreign corporations and the research and experimentation credit. The expiration of these two provisions resulted in Alcoa recognizing a higher income tax provision of $19 in 2012. As tax law changes are accounted for in the period of enactment, Alcoa recognized the previously mentioned discrete income tax benefit in the 2013 first quarter related to the 2012 tax year to reflect the extension of these provisions. |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2014 | |
Transfers And Servicing [Abstract] | ' |
Receivables | ' |
L. Receivables—Alcoa has an arrangement with three financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables is completed through the use of a bankruptcy remote special purpose entity, which is a consolidated subsidiary of Alcoa. This arrangement provides for minimum funding of $50 up to a maximum of $500 for receivables sold. The initial sale of receivables in March 2012 resulted in the setup of a deferred purchase price of $254. Alcoa has received net cash funding of $310 ($698 in draws and $388 in repayments) since the program’s inception, including $100 in the 2014 first quarter. As of March 31, 2014, the deferred purchase price receivable was $315, which was included in Other receivables on the accompanying Consolidated Balance Sheet. The deferred purchase price receivable is reduced as collections of the underlying receivables occur; however, as this is a revolving program, the sale of new receivables will result in an increase in the deferred purchase price receivable. The net change in the deferred purchase price receivable was reflected in the (Increase) in receivables line item on the accompanying Statement of Consolidated Cash Flows. This activity is reflected as an operating cash flow because the related customer receivables are the result of an operating activity with an insignificant, short-term interest rate risk. The gross amount of receivables sold and total cash collected under this program since its inception was $12,064 and $11,439, respectively. Alcoa services the customer receivables for the financial institutions at market rates; therefore, no servicing asset or liability was recorded. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension and Other Postretirement Benefits | ' | ||||||||||||||||
M. Pension and Other Postretirement Benefits—The components of net periodic benefit cost were as follows: | |||||||||||||||||
Pension benefits | Other postretirement | ||||||||||||||||
benefits | |||||||||||||||||
First quarter ended March 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 41 | $ | 51 | $ | 4 | $ | 4 | |||||||||
Interest cost | 160 | 152 | 29 | 28 | |||||||||||||
Expected return on plan assets | (193 | ) | (198 | ) | — | — | |||||||||||
Recognized net actuarial loss | 97 | 123 | 3 | 9 | |||||||||||||
Amortization of prior service cost (benefit) | 4 | 5 | (5 | ) | (4 | ) | |||||||||||
Settlement* | — | 2 | — | — | |||||||||||||
Net periodic benefit cost | $ | 109 | $ | 135 | $ | 31 | $ | 37 | |||||||||
* | This amount was recorded in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). |
Derivatives_and_Other_Financia
Derivatives and Other Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivatives and Other Financial Instruments | ' | ||||||||||||||||||||||||||||
N. Derivatives and Other Financial Instruments | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Alcoa is exposed to certain risks relating to its ongoing business operations, including financial, market, political, and economic risks. The following discussion provides information regarding Alcoa’s exposure to the risks of changing commodity prices, interest rates, and foreign currency exchange rates. | |||||||||||||||||||||||||||||
Alcoa’s commodity and derivative activities are subject to the management, direction, and control of the Strategic Risk Management Committee (SRMC), which is composed of the chief executive officer, the chief financial officer, and other officers and employees that the chief executive officer selects. The SRMC meets on a periodic basis to review derivative positions and strategy and reports to Alcoa’s Board of Directors on the scope of its activities. | |||||||||||||||||||||||||||||
The aluminum, energy, interest rate, and foreign exchange contracts are held for purposes other than trading. They are used primarily to mitigate uncertainty and volatility, and to cover underlying exposures. Alcoa is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities. | |||||||||||||||||||||||||||||
The fair values and corresponding classifications under the appropriate level of the fair value hierarchy of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet were as follows: | |||||||||||||||||||||||||||||
Asset Derivatives | Level | March 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 2 | $ | 4 | ||||||||||||||||||||||||
Aluminum contracts | 3 | 10 | 9 | ||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 5 | 2 | ||||||||||||||||||||||||||
Interest rate contracts | 2 | 6 | 9 | ||||||||||||||||||||||||||
Other noncurrent assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 3 | 24 | 16 | ||||||||||||||||||||||||||
Energy contracts | 3 | 11 | 6 | ||||||||||||||||||||||||||
Interest rate contracts | 2 | 25 | 23 | ||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 83 | $ | 69 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments*: | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 3 | $ | 133 | $ | 149 | ||||||||||||||||||||||||
Other noncurrent assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 3 | 159 | 175 | ||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 292 | $ | 324 | |||||||||||||||||||||||||
Less margin held**: | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||
Interest rate contracts | 2 | $ | 4 | $ | 3 | ||||||||||||||||||||||||
Total Asset Derivatives | $ | 371 | $ | 390 | |||||||||||||||||||||||||
* | See the “Other” section within Note N for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies. | ||||||||||||||||||||||||||||
** | All margin held is in the form of cash and is valued under a Level 1 technique. The levels that correspond to the margin held in the table above reference the level of the corresponding asset for which it is held. Alcoa elected to net the margin held against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements. | ||||||||||||||||||||||||||||
The fair values and corresponding classifications under the appropriate level of the fair value hierarchy of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet were as follows: | |||||||||||||||||||||||||||||
Liability Derivatives | Level | March 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 41 | $ | 45 | ||||||||||||||||||||||||
Aluminum contracts | 3 | 22 | 23 | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | 13 | 14 | ||||||||||||||||||||||||||
Aluminum contracts | 3 | 362 | 387 | ||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 438 | $ | 469 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments*: | |||||||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 5 | $ | 4 | ||||||||||||||||||||||||
Embedded credit derivative | 3 | 2 | 2 | ||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 4 | 3 | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits: | |||||||||||||||||||||||||||||
Embedded credit derivative | 3 | 18 | 19 | ||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 29 | $ | 28 | |||||||||||||||||||||||||
Less margin posted**: | |||||||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 21 | $ | 18 | ||||||||||||||||||||||||
Foreign exchange contracts | 1 | 2 | — | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | 4 | — | ||||||||||||||||||||||||||
Sub-total | $ | 27 | $ | 18 | |||||||||||||||||||||||||
Total Liability Derivatives | $ | 440 | $ | 479 | |||||||||||||||||||||||||
* | See the “Other” section within Note N for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies. | ||||||||||||||||||||||||||||
** | All margin posted is in the form of cash and is valued under a Level 1 technique. The levels that correspond to the margin posted in the table above reference the level of the corresponding liability for which it is posted. Alcoa elected to net the margin posted against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements. | ||||||||||||||||||||||||||||
The gross amounts of recognized derivative assets and liabilities and gross amounts offset in the accompanying Consolidated Balance Sheet were as follows: | |||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Gross amounts recognized: | |||||||||||||||||||||||||||||
Aluminum contracts | $ | 49 | $ | 40 | $ | 79 | $ | 81 | |||||||||||||||||||||
Interest rate contracts | 31 | 32 | 4 | 3 | |||||||||||||||||||||||||
$ | 80 | $ | 72 | $ | 83 | $ | 84 | ||||||||||||||||||||||
Gross amounts offset: | |||||||||||||||||||||||||||||
Aluminum contracts* | $ | (47 | ) | $ | (36 | ) | $ | (47 | ) | $ | (36 | ) | |||||||||||||||||
Interest rate contracts** | (4 | ) | (3 | ) | (4 | ) | (3 | ) | |||||||||||||||||||||
$ | (51 | ) | $ | (39 | ) | $ | (51 | ) | $ | (39 | ) | ||||||||||||||||||
Net amounts presented in the Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Aluminum contracts | $ | 2 | $ | 4 | $ | 32 | $ | 45 | |||||||||||||||||||||
Interest rate contracts | 27 | 29 | — | — | |||||||||||||||||||||||||
$ | 29 | $ | 33 | $ | 32 | $ | 45 | ||||||||||||||||||||||
* | The amounts under Assets and Liabilities as of March 31, 2014 include $25 of margin posted with counterparties. The amounts under Assets and Liabilities as of December 31, 2013 include $18 of margin posted from counterparties. | ||||||||||||||||||||||||||||
** | The amounts under Assets and Liabilities as of March 31, 2014 and December 31, 2013 represent margin held from the counterparty. | ||||||||||||||||||||||||||||
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 (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) 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. | ||||||||||||||||||||||||||||
The following section describes the valuation methodologies used by Alcoa to measure derivative contracts at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate, the description includes details of the valuation models, the key inputs to those models, and any significant assumptions. These valuation models are reviewed and tested at least on an annual basis. | |||||||||||||||||||||||||||||
Derivative contracts are valued using quoted market prices and significant other observable and unobservable inputs. Such financial instruments consist of aluminum, energy, interest rate, and foreign exchange contracts. The fair values for the majority of these derivative contracts are based upon current quoted market prices. These financial instruments are typically exchange-traded and are generally classified within Level 1 or Level 2 of the fair value hierarchy depending on whether the exchange is deemed to be an active market or not. | |||||||||||||||||||||||||||||
For certain derivative contracts whose fair values are based upon trades in liquid markets, such as interest rate swaps, valuation model inputs can generally be verified through over-the-counter markets and valuation techniques do not involve significant management judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||||||
Alcoa has other derivative contracts that do not have observable market quotes. For these financial instruments, management uses significant other observable inputs (e.g., information concerning time premiums and volatilities for certain option type embedded derivatives and regional premiums for aluminum contracts). For periods beyond the term of quoted market prices for aluminum, Alcoa uses a model that estimates the long-term price of aluminum by extrapolating the 10-year London Metal Exchange (LME) forward curve. For periods beyond the term of quoted market prices for energy, management has developed a forward curve based on independent consultant market research. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence (Level 2). In the absence of such evidence, management’s best estimate is used (Level 3). If a significant input that is unobservable in one period becomes observable in a subsequent period, the related asset or liability would be transferred to the appropriate level classification (1 or 2) in the period of such change. | |||||||||||||||||||||||||||||
The following table presents Alcoa’s derivative contract assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy (there were no transfers in or out of Levels 1 and 2 during the periods presented): | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Level 1 | $ | 7 | $ | 6 | |||||||||||||||||||||||||
Level 2 | 31 | 32 | |||||||||||||||||||||||||||
Level 3 | 337 | 355 | |||||||||||||||||||||||||||
Margin held | (4 | ) | (3 | ) | |||||||||||||||||||||||||
Total | $ | 371 | $ | 390 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Level 1 | $ | 63 | $ | 66 | |||||||||||||||||||||||||
Level 2 | — | — | |||||||||||||||||||||||||||
Level 3 | 404 | 431 | |||||||||||||||||||||||||||
Margin posted | (27 | ) | (18 | ) | |||||||||||||||||||||||||
Total | $ | 440 | $ | 479 | |||||||||||||||||||||||||
Financial instruments classified as Level 3 in the fair value hierarchy represent derivative contracts in which management has used at least one significant unobservable input in the valuation model. The following tables present a reconciliation of activity for such derivative contracts: | |||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||
First quarter ended March 31, 2014 | Aluminum | Energy | Aluminum | Embedded | |||||||||||||||||||||||||
contracts | contracts | contracts | credit | ||||||||||||||||||||||||||
derivative | |||||||||||||||||||||||||||||
Opening balance – January 1, 2014 | $ | 349 | $ | 6 | $ | 410 | $ | 21 | |||||||||||||||||||||
Total gains or losses (realized and unrealized) included in: | |||||||||||||||||||||||||||||
Sales | — | — | (5 | ) | — | ||||||||||||||||||||||||
Cost of goods sold | (58 | ) | — | — | — | ||||||||||||||||||||||||
Other expenses, net | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
Other comprehensive income | 9 | 5 | (21 | ) | — | ||||||||||||||||||||||||
Purchases, sales, issuances, and settlements* | — | — | — | — | |||||||||||||||||||||||||
Transfers into and/or out of Level 3* | — | — | — | — | |||||||||||||||||||||||||
Foreign currency translation | 27 | — | — | — | |||||||||||||||||||||||||
Closing balance – March 31, 2014 | $ | 326 | $ | 11 | $ | 384 | $ | 20 | |||||||||||||||||||||
Change in unrealized gains or losses included in earnings for derivative contracts held at March 31, 2014: | |||||||||||||||||||||||||||||
Sales | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Cost of goods sold | — | — | — | — | |||||||||||||||||||||||||
Other expenses, net | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
* | There were no purchases, sales, issuances or settlements of Level 3 financial instruments. Additionally, there were no transfers of financial instruments into or out of Level 3. | ||||||||||||||||||||||||||||
As reflected in the table above, the net unrealized loss on derivative contracts using Level 3 valuation techniques was $67 as of March 31, 2014. The unrealized loss related to aluminum contracts recognized as liabilities was mainly attributed to embedded derivatives in power contracts that index the price of power to the LME price of aluminum. These embedded derivatives are primarily valued using observable market prices; however, due to the length of the contracts, the valuation model also requires management to estimate the long-term price of aluminum based upon an extrapolation of the 10-year LME forward curve. Significant increases or decreases in the actual LME price beyond 10 years would result in a higher or lower fair value measurement. An increase of actual LME price over the inputs used in the valuation model will result in a higher cost of power and a corresponding increase to the liability. The embedded derivatives have been designated as hedges of forward sales of aluminum and related realized gains and losses were included in Sales on the accompanying Statement of Consolidated Operations. | |||||||||||||||||||||||||||||
In July 2012, as provided for in the arrangements, management elected to modify the pricing for two existing power contracts, which end in 2014 and 2016 (see directly below), for Alcoa’s two smelters in Australia and the Point Henry rolling mill in Australia. These contracts contain an LME-linked embedded derivative, which previously was not recorded as an asset in Alcoa’s Consolidated Balance Sheet. Beginning on January 1, 2001, all derivative contracts were required to be measured and recorded at fair value on an entity’s balance sheet under GAAP; however, an exception existed for embedded derivatives upon meeting certain criteria. The LME-linked embedded derivative in these two contracts met such criteria at that time. Management’s election to modify the pricing of these contracts qualifies as a significant change to the contracts thereby requiring that the contracts now be evaluated under derivative accounting as if they were new contracts. As a result, Alcoa recorded a derivative asset in the amount of $596 with an offsetting liability (deferred credit) recorded in Other current and noncurrent liabilities. Unrealized gains and losses from the embedded derivative were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations, while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases are made under the contracts. The deferred credit is recognized in Other expenses (income), net on the accompanying Statement of Consolidated Operations as power is received over the life of the contracts. The embedded derivative is valued using the probability and interrelationship of future LME prices, Australian dollar to U.S. dollar exchange rates, and the U.S. consumer price index. Significant increases or decreases in the LME price would result in a higher or lower fair value measurement. An increase in actual LME price over the inputs used in the valuation model will result in a higher cost of power and a decrease to the embedded derivative asset. | |||||||||||||||||||||||||||||
Also, included within Level 3 measurements is a derivative contract that will hedge the anticipated power requirements at Alcoa’s Portland smelter in Australia once the existing contract expires in 2016. This derivative hedges forecasted power purchases through December 2036. Beyond the term where market information is available, management has developed a forward curve, for valuation purposes, based on independent consultant market research. The effective portion of gains and losses on this contract was recorded in Other comprehensive income on the accompanying Consolidated Balance Sheet until the designated hedge period begins in 2016. Once the hedge period begins, realized gains and losses will be recorded in Cost of goods sold. Significant increases or decreases in the power market may result in a higher or lower fair value measurement. Higher prices in the power market would cause the derivative asset to increase in value. Alcoa had a similar contract for its Point Henry smelter in Australia once the existing contract expires in 2014, but elected to terminate the new contract in early 2013. This election was available to Alcoa under the terms of the contract and was made due to a projection that suggested the contract would be uneconomical. Prior to termination, the new contract was accounted for in the same manner as the contract for the Portland smelter. | |||||||||||||||||||||||||||||
Additionally, Alcoa has a six-year natural gas supply contract, which has an LME-linked ceiling. This contract is valued using probabilities of future LME aluminum prices and the price of Brent crude oil (priced on Platts), including the interrelationships between the two commodities subject to the ceiling. Any change in the interrelationship would result in a higher or lower fair value measurement. An LME ceiling was embedded into the contract price to protect against an increase in the price of oil without a corresponding increase in the price of LME. An increase in oil prices with no similar increase in the LME price would limit the increase of the price paid for natural gas. Unrealized gains and losses from this contract were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations, while realized gains and losses will be included in Cost of goods sold on the accompanying Statement of Consolidated Operations as gas purchases are made under the contract. | |||||||||||||||||||||||||||||
Furthermore, an embedded derivative in a power contract that indexes the difference between the long-term debt ratings of Alcoa and the counterparty from any of the three major credit rating agencies is included in Level 3. Management uses market prices, historical relationships, and forecast services to determine fair value. Significant increases or decreases in any of these inputs would result in a lower or higher fair value measurement. A wider credit spread between Alcoa and the counterparty would result in an increase of the future liability and a higher cost of power. Realized gains and losses for this embedded derivative were included in Cost of goods sold on the accompanying Statement of Consolidated Operations and unrealized gains and losses were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations. | |||||||||||||||||||||||||||||
The following table presents quantitative information for Level 3 derivative contracts: | |||||||||||||||||||||||||||||
Fair value at | Valuation | Unobservable | Range | ||||||||||||||||||||||||||
March 31, | technique | input | ($ in full amounts) | ||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Aluminum contract | $ | — | Discounted cash flow | Interrelationship of future aluminum and oil prices | Aluminum: $1,705 per metric ton in 2014 to $2,066 per metric ton in 2018 | ||||||||||||||||||||||||
Oil: $108 per barrel in 2014 to $93 per barrel in 2018 | |||||||||||||||||||||||||||||
Aluminum contract | 292 | Discounted cash flow | Interrelationship of future aluminum prices, foreign currency exchange rates, and the U.S. consumer price index (CPI) | Aluminum: $1,724 per metric ton in 2014 to $1,958 per metric ton in 2016 | |||||||||||||||||||||||||
Foreign currency: A$1 =0.92 in 2014 to $0.87 in 2016 | |||||||||||||||||||||||||||||
CPI: 1982 base year of 100 and 232 in 2014 to 246 in 2016 | |||||||||||||||||||||||||||||
Aluminum contract | 34 | Discounted cash flow | Interrelationship of LME price to overall energy price | Aluminum: $1,806 per metric ton in 2014 to $2,143 per metric ton in 2019 | |||||||||||||||||||||||||
Energy contracts | 11 | Discounted cash flow | Price of electricity beyond forward curve | $82 per megawatt hour in 2014 to $154 per megawatt hour in 2036 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 384 | Discounted cash flow | Price of aluminum beyond forward curve | $2,401 per metric ton in 2023 to $2,554 per metric ton in 2027 | |||||||||||||||||||||||||
Embedded credit derivative | 20 | Discounted cash flow | Credit spread between Alcoa and counterparty | 0.57% to 1.88% | |||||||||||||||||||||||||
(1.23% median) | |||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. The gain or loss on the hedged items are included in the same line items as the loss or gain on the related derivative contracts as follows (there were no contracts that ceased to qualify as a fair value hedge in any of the periods presented): | |||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
or (Loss) | Recognized in Earnings on Derivatives | ||||||||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||||||||
Earnings on | First quarter ended | ||||||||||||||||||||||||||||
Derivatives | March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts* | Sales | $ | (20 | ) | $ | (71 | ) | ||||||||||||||||||||||
Interest rate contracts | Interest expense | 3 | 3 | ||||||||||||||||||||||||||
Total | $ | (17 | ) | $ | (68 | ) | |||||||||||||||||||||||
Hedged Items in Fair Value Hedging Relationships | Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
or (Loss) | Recognized in Earnings on Hedged Items | ||||||||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||||||||
Earnings on | First quarter ended | ||||||||||||||||||||||||||||
Hedged Items | March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts | Sales | $ | — | $ | 71 | ||||||||||||||||||||||||
Interest rate contracts | Interest expense | (3 | ) | (3 | ) | ||||||||||||||||||||||||
Total | $ | (3 | ) | $ | 68 | ||||||||||||||||||||||||
* | In the first quarter ended March 31, 2014, the $20 loss recognized in earnings represents the ineffective portion of the hedging relationships. | ||||||||||||||||||||||||||||
Aluminum. Alcoa is a leading global producer of primary aluminum and fabricated aluminum products. As a condition of sale, customers often require Alcoa to enter into long-term, fixed-price commitments. These commitments expose Alcoa to the risk of fluctuating aluminum prices between the time the order is committed and the time that the order is shipped. Alcoa’s aluminum commodity risk management policy is to manage, principally through the use of futures and contracts, the aluminum price risk associated with a portion of its firm commitments. These contracts cover known exposures, generally within three years. As of March 31, 2014, Alcoa had 347,000 metric tons of aluminum futures designated as fair value hedges. The effects of this hedging activity will be recognized over the designated hedge periods in 2014 to 2018. | |||||||||||||||||||||||||||||
Interest Rates. Alcoa uses interest rate swaps to help maintain a strategic balance between fixed- and floating-rate debt and to manage overall financing costs. As of March 31, 2014, the Company had pay floating, receive fixed interest rate swaps that were designated as fair value hedges. These hedges effectively convert the interest rate from fixed to floating on $200 of debt through 2018. | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging | Amount of Gain or (Loss) | Location of | Amount of Gain or (Loss) | Location of | |||||||||||||||||||||||||
Relationships | Recognized in OCI on | Gain or | Reclassified from | Gain or | Amount of Gain or (Loss) | ||||||||||||||||||||||||
Derivatives (Effective | (Loss) | Accumulated OCI into | (Loss) | Recognized in Earnings on | |||||||||||||||||||||||||
Portion) | Reclassified | Earnings (Effective Portion)* | Recognized | Derivatives (Ineffective | |||||||||||||||||||||||||
from | in Earnings | Portion and Amount | |||||||||||||||||||||||||||
Accumulated | on | Excluded from Effectiveness | |||||||||||||||||||||||||||
OCI into | Derivatives | Testing)** | |||||||||||||||||||||||||||
Earnings | (Ineffective | ||||||||||||||||||||||||||||
(Effective | Portion and | ||||||||||||||||||||||||||||
Portion) | Amount | ||||||||||||||||||||||||||||
Excluded | |||||||||||||||||||||||||||||
from | |||||||||||||||||||||||||||||
First quarter | First quarter | Effectiveness | First quarter | ||||||||||||||||||||||||||
ended | ended | Testing) | ended | ||||||||||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Aluminum contracts | $ | 23 | $ | 104 | Sales | $ | (4 | ) | $ | (6 | ) | Other expenses (income), net | $ | — | $ | — | |||||||||||||
Energy contracts | 2 | 2 | Cost of goods sold | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Foreign exchange contracts | 2 | — | Sales | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Interest rate contracts | — | — | Interest expense | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Interest rate contracts | 1 | 1 | Other expenses (income), net | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Total | $ | 28 | $ | 107 | $ | (4 | ) | $ | (6 | ) | $ | — | $ | — | |||||||||||||||
* | Assuming market rates remain constant with the rates at March 31, 2014, a loss of $10 is expected to be recognized in earnings over the next 12 months. | ||||||||||||||||||||||||||||
** | For the first quarter ended March 31, 2014, there was no ineffectiveness related to the derivatives in cash flow hedging relationships. For the first quarter ended March 31, 2013, the amount of gain or (loss) recognized in earnings includes an insignificant amount related to the ineffective portion of the hedging relationships. | ||||||||||||||||||||||||||||
Aluminum and Energy. Alcoa anticipates the continued requirement to purchase aluminum and other commodities, such as electricity and natural gas, for its operations. Alcoa enters into forwards, futures, and options contracts to reduce volatility in the price of these commodities. Alcoa has also entered into power supply and other contracts that contain pricing provisions related to the LME aluminum price. The LME-linked pricing features are considered embedded derivatives. A majority of these embedded derivatives have been designated as cash flow hedges of future sales of aluminum. | |||||||||||||||||||||||||||||
Also, Alcoa has a contract to hedge the anticipated power requirements at its Portland smelter in Australia. This derivative hedges forecasted power purchases through December 2036. Prior to 2013, Alcoa had a similar contract for its Point Henry smelter in Australia but elected to terminate it under the terms of the contract (see additional information in description of Level 3 derivative contracts above). | |||||||||||||||||||||||||||||
Interest Rates. Alcoa had no outstanding cash flow hedges of interest rate exposures as of March 31, 2014. An investment accounted for on the equity method by Alcoa has entered into interest rate contracts, which are designated as cash flow hedges. Alcoa’s share of the activity of these cash flow hedges is reflected in the table above. | |||||||||||||||||||||||||||||
Foreign Exchange. Alcoa is subject to exposure from fluctuations in foreign currency exchange rates. Contracts may be used from time to time to hedge the variability in cash flows from the forecasted payment or receipt of currencies other than the functional currency. These contracts cover periods consistent with known or expected exposures through 2015. | |||||||||||||||||||||||||||||
Alcoa had the following outstanding forward contracts that were entered into to hedge forecasted transactions: | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts (000 metric tons) | 742 | 841 | |||||||||||||||||||||||||||
Energy contracts: | |||||||||||||||||||||||||||||
Electricity (megawatt hours) | 59,409,328 | 59,409,328 | |||||||||||||||||||||||||||
Natural gas (million British thermal units) | 20,440,000 | 19,980,000 | |||||||||||||||||||||||||||
Foreign exchange contracts | $ | 308 | $ | 335 | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Alcoa has certain derivative contracts that do not qualify for hedge accounting treatment and, therefore, the fair value gains and losses on these contracts are recorded in earnings as follows: | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
or (Loss) | Recognized in Earnings on Derivatives | ||||||||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||||||||
Earnings on | First quarter ended | ||||||||||||||||||||||||||||
Derivatives | March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts | Sales | $ | (5 | ) | $ | (4 | ) | ||||||||||||||||||||||
Aluminum contracts | Other expenses (income), net | — | 22 | ||||||||||||||||||||||||||
Embedded credit derivative | Other expenses (income), net | 1 | (2 | ) | |||||||||||||||||||||||||
Foreign exchange contracts | Other expenses (income), net | (6 | ) | (3 | ) | ||||||||||||||||||||||||
Total | $ | (10 | ) | $ | 13 | ||||||||||||||||||||||||
The aluminum contracts relate to derivatives (recognized in Sales) and embedded derivatives (recognized in Other expenses (income), net) entered into to minimize Alcoa’s price risk related to other customer sales and certain pricing arrangements. | |||||||||||||||||||||||||||||
The embedded credit derivative relates to a power contract that indexes the difference between the long-term debt ratings of Alcoa and the counterparty from any of the three major credit rating agencies. If the counterparty’s lowest credit rating is greater than one rating category above Alcoa’s credit ratings, an independent investment banker would be consulted to determine a hypothetical interest rate for both parties. The two interest rates would be netted and the resulting difference would be multiplied by Alcoa’s equivalent percentage of the outstanding principal of the counterparty’s debt obligation as of December 31 of the year preceding the calculation date. This differential would be added to the cost of power in the period following the calculation date. | |||||||||||||||||||||||||||||
Alcoa has a forward contract to purchase $53 (C$58) to mitigate the foreign currency risk related to a Canadian-denominated loan due in 2014. Also, in December 2013, Alcoa entered into a forward contract to purchase $231 (R$543) to mitigate the foreign currency risk associated with a potential future transaction denominated in Brazilian reais. This contract expired on March 31, 2014 and a loss of $4 was recognized in the 2014 first quarter. All other foreign exchange contracts were entered into and settled within each of the periods presented. | |||||||||||||||||||||||||||||
Material Limitations | |||||||||||||||||||||||||||||
The disclosures with respect to commodity prices, interest rates, and foreign currency exchange risk do not take into account the underlying commitments or anticipated transactions. If the underlying items were included in the analysis, the gains or losses on the futures contracts may be offset. Actual results will be determined by a number of factors that are not under Alcoa’s control and could vary significantly from those factors disclosed. | |||||||||||||||||||||||||||||
Alcoa is exposed to credit loss in the event of nonperformance by counterparties on the above instruments, as well as credit or performance risk with respect to its hedged customers’ commitments. Although nonperformance is possible, Alcoa does not anticipate nonperformance by any of these parties. Contracts are with creditworthy counterparties and are further supported by cash, treasury bills, or irrevocable letters of credit issued by carefully chosen banks. In addition, various master netting arrangements are in place with counterparties to facilitate settlement of gains and losses on these contracts. | |||||||||||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||||||
The carrying values and fair values of Alcoa’s other financial instruments were as follows: | |||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||
value | value | value | value | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 665 | $ | 665 | $ | 1,437 | $ | 1,437 | |||||||||||||||||||||
Restricted cash | 24 | 24 | 18 | 18 | |||||||||||||||||||||||||
Noncurrent receivables | 19 | 19 | 19 | 19 | |||||||||||||||||||||||||
Available-for-sale securities | 120 | 120 | 119 | 119 | |||||||||||||||||||||||||
Short-term borrowings | 53 | 53 | 57 | 57 | |||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||
Long-term debt due within one year | 85 | 85 | 655 | 1,040 | |||||||||||||||||||||||||
Long-term debt, less amount due within one year | 7,609 | 8,128 | 7,607 | 7,863 | |||||||||||||||||||||||||
The following methods were used to estimate the fair values of other financial instruments: | |||||||||||||||||||||||||||||
Cash and cash equivalents, Restricted cash, Short-term borrowings, and Commercial paper. The carrying amounts approximate fair value because of the short maturity of the instruments. The fair value amounts for Cash and cash equivalents, Restricted cash, and Commercial paper were classified in Level 1, and Short-term borrowings were classified in Level 2. | |||||||||||||||||||||||||||||
Noncurrent receivables. The fair value of noncurrent receivables was based on anticipated cash flows, which approximates carrying value, and was classified in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||||||
Available-for-sale securities. The fair value of such securities was based on quoted market prices. These financial instruments consist of exchange-traded fixed income and equity securities, which are carried at fair value and were classified in Level 1 of the fair value hierarchy. | |||||||||||||||||||||||||||||
Long-term debt due within one year and Long-term debt, less amount due within one year. The fair value was based on quoted market prices for public debt and on interest rates that are currently available to Alcoa 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. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
O. Subsequent Events—Management evaluated all activity of Alcoa and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||||||
The following table details the activity of the four components that comprise Accumulated other comprehensive (loss) income for both Alcoa’s shareholders and noncontrolling interests: | |||||||||||||||||
Alcoa | Noncontrolling Interests | ||||||||||||||||
First quarter ended | First quarter ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Pension and other postretirement benefits | |||||||||||||||||
Balance at beginning of period | $ | (3,532 | ) | $ | (4,063 | ) | $ | (51 | ) | $ | (77 | ) | |||||
Other comprehensive income: | |||||||||||||||||
Unrecognized net actuarial loss and prior service cost/benefit | 17 | 11 | — | — | |||||||||||||
Tax expense | (3 | ) | (3 | ) | — | — | |||||||||||
Total Other comprehensive income before reclassifications, net of tax | 14 | 8 | — | — | |||||||||||||
Amortization of net actuarial loss and prior service cost/benefit(1) | 98 | 132 | 1 | 1 | |||||||||||||
Tax expense(2) | (35 | ) | (45 | ) | (1 | ) | — | ||||||||||
Total amount reclassified from Accumulated other comprehensive loss, net of tax(6) | 63 | 87 | — | 1 | |||||||||||||
Total Other comprehensive income | 77 | 95 | — | 1 | |||||||||||||
Balance at end of period | $ | (3,455 | ) | $ | (3,968 | ) | $ | (51 | ) | $ | (76 | ) | |||||
Foreign currency translation | |||||||||||||||||
Balance at beginning of period | $ | 179 | $ | 1,147 | $ | (110 | ) | $ | 257 | ||||||||
Other comprehensive income (loss)(3) | 249 | (116 | ) | 87 | 16 | ||||||||||||
Balance at end of period | $ | 428 | $ | 1,031 | $ | (23 | ) | $ | 273 | ||||||||
Available-for-sale securities | |||||||||||||||||
Balance at beginning of period | $ | 2 | $ | 3 | $ | — | $ | — | |||||||||
Other comprehensive income(4) | — | 1 | — | — | |||||||||||||
Balance at end of period | $ | 2 | $ | 4 | $ | — | $ | — | |||||||||
Cash flow hedges (N) | |||||||||||||||||
Balance at beginning of period | $ | (308 | ) | $ | (489 | ) | $ | (2 | ) | $ | (5 | ) | |||||
Other comprehensive income: | |||||||||||||||||
Net change from periodic revaluations | 36 | 136 | 3 | 3 | |||||||||||||
Tax expense | (8 | ) | (29 | ) | (1 | ) | (1 | ) | |||||||||
Total Other comprehensive income before reclassifications, net of tax | 28 | 107 | 2 | 2 | |||||||||||||
Net amount reclassified to earnings: | |||||||||||||||||
Aluminum contracts(5) | 5 | 7 | — | — | |||||||||||||
Sub-total | 5 | 7 | — | — | |||||||||||||
Tax expense(2) | (1 | ) | (1 | ) | — | — | |||||||||||
Total amount reclassified from Accumulated other comprehensive loss, net of tax(6) | 4 | 6 | — | — | |||||||||||||
Total Other comprehensive income | 32 | 113 | 2 | 2 | |||||||||||||
Balance at end of period | $ | (276 | ) | $ | (376 | ) | $ | — | $ | (3 | ) | ||||||
(1) | These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). | ||||||||||||||||
(2) | These amounts were included in (Benefit) 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) | In all periods presented, unrealized and realized gains and losses related to these securities were immaterial. Realized gains and losses were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations. | ||||||||||||||||
(5) | These amounts were included in Sales on the accompanying Statement of Consolidated Operations. | ||||||||||||||||
(6) | A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 5. |
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||
Schedule of Restructuring and Other Charges by Reportable Segments, Pretax | ' | ||||||||||||
The pretax impact of allocating such charges to segment results would have been as follows: | |||||||||||||
First quarter ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Alumina | $ | 7 | $ | — | |||||||||
Primary Metals | 331 | — | |||||||||||
Global Rolled Products | 90 | 3 | |||||||||||
Engineered Products and Solutions | 4 | 3 | |||||||||||
Segment total | 432 | 6 | |||||||||||
Corporate | 29 | 1 | |||||||||||
Total restructuring and other charges | $ | 461 | $ | 7 | |||||||||
Activity and Reserve Balances for Restructuring Charges | ' | ||||||||||||
Activity and reserve balances for restructuring charges were as follows: | |||||||||||||
Layoff | Other | Total | |||||||||||
costs | exit costs | ||||||||||||
Reserve balances at December 31, 2012 | $ | 59 | $ | 52 | $ | 111 | |||||||
2013:00:00 | |||||||||||||
Cash payments | (63 | ) | (11 | ) | (74 | ) | |||||||
Restructuring charges | 201 | 85 | 286 | ||||||||||
Other* | (101 | ) | (84 | ) | (185 | ) | |||||||
Reserve balances at December 31, 2013 | 96 | 42 | 138 | ||||||||||
2014:00:00 | |||||||||||||
Cash payments | (29 | ) | (3 | ) | (32 | ) | |||||||
Restructuring charges | 146 | 130 | 276 | ||||||||||
Other* | (5 | ) | (129 | ) | (134 | ) | |||||||
Reserve balances at March 31, 2014 | $ | 208 | $ | 40 | $ | 248 | |||||||
* | Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In the 2014 three-month period, Other for other exit costs also included a reclassification of the following restructuring charges: $55 in asset retirement and $42 in environmental obligations, as these liabilities are included in Alcoa’s separate reserves for asset retirement obligations and environmental remediation (see Note G), respectively. In 2013, Other for layoff costs also included a reclassification of $92 in pension costs, as this obligation was included in Alcoa’s separate liability for pension obligations. Also in 2013, Other for other exit costs also included a reclassification of the following restructuring charges: $58 in asset retirement and $12 in environmental obligations, as these liabilities were included in Alcoa’s separate reserves for asset retirement obligations and environmental remediation, respectively. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory Components | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 702 | $ | 578 | |||||
Work-in-process | 1,006 | 828 | |||||||
Bauxite and alumina | 597 | 581 | |||||||
Purchased raw materials | 528 | 474 | |||||||
Operating supplies | 234 | 244 | |||||||
$ | 3,067 | $ | 2,705 | ||||||
Other_Expenses_Income_Net_Tabl
Other Expenses (Income), Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income And Expenses [Abstract] | ' | ||||||||
Schedule of Other Expenses (Income), Net | ' | ||||||||
Other Expenses (Income), Net | |||||||||
First quarter ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Equity loss | $ | 38 | $ | 12 | |||||
Interest income | (4 | ) | (4 | ) | |||||
Foreign currency losses (gains), net | 8 | (6 | ) | ||||||
Net gain from asset sales | (27 | ) | (5 | ) | |||||
Net loss (gain) on mark-to-market derivative contracts (N) | 5 | (17 | ) | ||||||
Other, net | 5 | (7 | ) | ||||||
$ | 25 | $ | (27 | ) |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of Operating Results of Alcoa's Reportable Segments | ' | ||||||||||||||||||||
The operating results of Alcoa’s reportable segments were as follows (differences between segment totals and consolidated totals are in Corporate): | |||||||||||||||||||||
Alumina | Primary | Global | Engineered | Total | |||||||||||||||||
Metals | Rolled | Products | |||||||||||||||||||
Products | and | ||||||||||||||||||||
Solutions | |||||||||||||||||||||
First quarter ended March 31, 2014 | |||||||||||||||||||||
Sales: | |||||||||||||||||||||
Third-party sales | $ | 845 | $ | 1,424 | $ | 1,677 | $ | 1,443 | $ | 5,389 | |||||||||||
Intersegment sales | 510 | 734 | 43 | — | 1,287 | ||||||||||||||||
Total sales | $ | 1,355 | $ | 2,158 | $ | 1,720 | $ | 1,443 | $ | 6,676 | |||||||||||
Profit and loss: | |||||||||||||||||||||
Equity loss | $ | (5 | ) | $ | (28 | ) | $ | (5 | ) | $ | — | $ | (38 | ) | |||||||
Depreciation, depletion, and amortization | 97 | 124 | 58 | 40 | 319 | ||||||||||||||||
Income taxes | 40 | (11 | ) | 34 | 91 | 154 | |||||||||||||||
After-tax operating income (ATOI) | 92 | (15 | ) | 59 | 189 | 325 | |||||||||||||||
First quarter ended March 31, 2013 | |||||||||||||||||||||
Sales: | |||||||||||||||||||||
Third-party sales | $ | 826 | $ | 1,758 | $ | 1,779 | $ | 1,423 | $ | 5,786 | |||||||||||
Intersegment sales | 595 | 727 | 51 | — | 1,373 | ||||||||||||||||
Total sales | $ | 1,421 | $ | 2,485 | $ | 1,830 | $ | 1,423 | $ | 7,159 | |||||||||||
Profit and loss: | |||||||||||||||||||||
Equity income (loss) | $ | 1 | $ | (9 | ) | $ | (4 | ) | $ | — | $ | (12 | ) | ||||||||
Depreciation, depletion, and amortization | 109 | 135 | 57 | 40 | 341 | ||||||||||||||||
Income taxes | 14 | 1 | 39 | 84 | 138 | ||||||||||||||||
ATOI | 58 | 39 | 81 | 173 | 351 | ||||||||||||||||
Schedule of Segment ATOI to Consolidated Net (Loss) Income Attributable to Alcoa | ' | ||||||||||||||||||||
The following table reconciles total segment ATOI to consolidated net (loss) income attributable to Alcoa: | |||||||||||||||||||||
First quarter ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Total segment ATOI | $ | 325 | $ | 351 | |||||||||||||||||
Unallocated amounts (net of tax): | |||||||||||||||||||||
Impact of LIFO | (7 | ) | (2 | ) | |||||||||||||||||
Interest expense | (78 | ) | (75 | ) | |||||||||||||||||
Noncontrolling interests | 19 | (21 | ) | ||||||||||||||||||
Corporate expense | (67 | ) | (67 | ) | |||||||||||||||||
Restructuring and other charges | (321 | ) | (5 | ) | |||||||||||||||||
Other | (49 | ) | (32 | ) | |||||||||||||||||
Consolidated net (loss) income attributable to Alcoa | $ | (178 | ) | $ | 149 | ||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Reconciliation of Information Used to Compute Basic and Diluted EPS | ' | ||||||||
The information used to compute basic and diluted EPS attributable to Alcoa common shareholders was as follows (shares in millions): | |||||||||
First quarter ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net (loss) income attributable to Alcoa common shareholders | $ | (178 | ) | $ | 149 | ||||
Less: preferred stock dividends declared | 1 | 1 | |||||||
Net (loss) income available to Alcoa common shareholders – basic | (179 | ) | 148 | ||||||
Add: interest expense related to convertible notes | — | 8 | |||||||
Net (loss) income available to Alcoa common shareholders – diluted | $ | (179 | ) | $ | 156 | ||||
Average shares outstanding – basic | 1,101 | 1,069 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | — | 3 | |||||||
Stock and performance awards | — | 8 | |||||||
Convertible notes | — | 89 | |||||||
Average shares outstanding – diluted | 1,101 | 1,169 | |||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||
The components of net periodic benefit cost were as follows: | |||||||||||||||||
Pension benefits | Other postretirement | ||||||||||||||||
benefits | |||||||||||||||||
First quarter ended March 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 41 | $ | 51 | $ | 4 | $ | 4 | |||||||||
Interest cost | 160 | 152 | 29 | 28 | |||||||||||||
Expected return on plan assets | (193 | ) | (198 | ) | — | — | |||||||||||
Recognized net actuarial loss | 97 | 123 | 3 | 9 | |||||||||||||
Amortization of prior service cost (benefit) | 4 | 5 | (5 | ) | (4 | ) | |||||||||||
Settlement* | — | 2 | — | — | |||||||||||||
Net periodic benefit cost | $ | 109 | $ | 135 | $ | 31 | $ | 37 | |||||||||
* | This amount was recorded in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). |
Derivatives_and_Other_Financia1
Derivatives and Other Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Assets | ' | ||||||||||||||||||||||||||||
The fair values and corresponding classifications under the appropriate level of the fair value hierarchy of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet were as follows: | |||||||||||||||||||||||||||||
Asset Derivatives | Level | March 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 2 | $ | 4 | ||||||||||||||||||||||||
Aluminum contracts | 3 | 10 | 9 | ||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 5 | 2 | ||||||||||||||||||||||||||
Interest rate contracts | 2 | 6 | 9 | ||||||||||||||||||||||||||
Other noncurrent assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 3 | 24 | 16 | ||||||||||||||||||||||||||
Energy contracts | 3 | 11 | 6 | ||||||||||||||||||||||||||
Interest rate contracts | 2 | 25 | 23 | ||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 83 | $ | 69 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments*: | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 3 | $ | 133 | $ | 149 | ||||||||||||||||||||||||
Other noncurrent assets: | |||||||||||||||||||||||||||||
Aluminum contracts | 3 | 159 | 175 | ||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 292 | $ | 324 | |||||||||||||||||||||||||
Less margin held**: | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||
Interest rate contracts | 2 | $ | 4 | $ | 3 | ||||||||||||||||||||||||
Total Asset Derivatives | $ | 371 | $ | 390 | |||||||||||||||||||||||||
* | See the “Other” section within Note N for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies. | ||||||||||||||||||||||||||||
** | All margin held is in the form of cash and is valued under a Level 1 technique. The levels that correspond to the margin held in the table above reference the level of the corresponding asset for which it is held. Alcoa elected to net the margin held against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements. | ||||||||||||||||||||||||||||
Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Liabilities | ' | ||||||||||||||||||||||||||||
The fair values and corresponding classifications under the appropriate level of the fair value hierarchy of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet were as follows: | |||||||||||||||||||||||||||||
Liability Derivatives | Level | March 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 41 | $ | 45 | ||||||||||||||||||||||||
Aluminum contracts | 3 | 22 | 23 | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | 13 | 14 | ||||||||||||||||||||||||||
Aluminum contracts | 3 | 362 | 387 | ||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 438 | $ | 469 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments*: | |||||||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 5 | $ | 4 | ||||||||||||||||||||||||
Embedded credit derivative | 3 | 2 | 2 | ||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 4 | 3 | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits: | |||||||||||||||||||||||||||||
Embedded credit derivative | 3 | 18 | 19 | ||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 29 | $ | 28 | |||||||||||||||||||||||||
Less margin posted**: | |||||||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | $ | 21 | $ | 18 | ||||||||||||||||||||||||
Foreign exchange contracts | 1 | 2 | — | ||||||||||||||||||||||||||
Other noncurrent liabilities and deferred credits: | |||||||||||||||||||||||||||||
Aluminum contracts | 1 | 4 | — | ||||||||||||||||||||||||||
Sub-total | $ | 27 | $ | 18 | |||||||||||||||||||||||||
Total Liability Derivatives | $ | 440 | $ | 479 | |||||||||||||||||||||||||
* | See the “Other” section within Note N for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies. | ||||||||||||||||||||||||||||
** | All margin posted is in the form of cash and is valued under a Level 1 technique. The levels that correspond to the margin posted in the table above reference the level of the corresponding liability for which it is posted. Alcoa elected to net the margin posted against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements. | ||||||||||||||||||||||||||||
Gross Amounts of Recognized Derivative Assets and Liabilities and Gross Amounts Offset in Accompanying Consolidated Balance Sheet | ' | ||||||||||||||||||||||||||||
The gross amounts of recognized derivative assets and liabilities and gross amounts offset in the accompanying Consolidated Balance Sheet were as follows: | |||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Gross amounts recognized: | |||||||||||||||||||||||||||||
Aluminum contracts | $ | 49 | $ | 40 | $ | 79 | $ | 81 | |||||||||||||||||||||
Interest rate contracts | 31 | 32 | 4 | 3 | |||||||||||||||||||||||||
$ | 80 | $ | 72 | $ | 83 | $ | 84 | ||||||||||||||||||||||
Gross amounts offset: | |||||||||||||||||||||||||||||
Aluminum contracts* | $ | (47 | ) | $ | (36 | ) | $ | (47 | ) | $ | (36 | ) | |||||||||||||||||
Interest rate contracts** | (4 | ) | (3 | ) | (4 | ) | (3 | ) | |||||||||||||||||||||
$ | (51 | ) | $ | (39 | ) | $ | (51 | ) | $ | (39 | ) | ||||||||||||||||||
Net amounts presented in the Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Aluminum contracts | $ | 2 | $ | 4 | $ | 32 | $ | 45 | |||||||||||||||||||||
Interest rate contracts | 27 | 29 | — | — | |||||||||||||||||||||||||
$ | 29 | $ | 33 | $ | 32 | $ | 45 | ||||||||||||||||||||||
* | The amounts under Assets and Liabilities as of March 31, 2014 include $25 of margin posted with counterparties. The amounts under Assets and Liabilities as of December 31, 2013 include $18 of margin posted from counterparties. | ||||||||||||||||||||||||||||
** | The amounts under Assets and Liabilities as of March 31, 2014 and December 31, 2013 represent margin held from the counterparty. | ||||||||||||||||||||||||||||
Schedule of Derivative Contract Assets and Liabilities Measured and Recognized at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||||||
The following table presents Alcoa’s derivative contract assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy (there were no transfers in or out of Levels 1 and 2 during the periods presented): | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Level 1 | $ | 7 | $ | 6 | |||||||||||||||||||||||||
Level 2 | 31 | 32 | |||||||||||||||||||||||||||
Level 3 | 337 | 355 | |||||||||||||||||||||||||||
Margin held | (4 | ) | (3 | ) | |||||||||||||||||||||||||
Total | $ | 371 | $ | 390 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Level 1 | $ | 63 | $ | 66 | |||||||||||||||||||||||||
Level 2 | — | — | |||||||||||||||||||||||||||
Level 3 | 404 | 431 | |||||||||||||||||||||||||||
Margin posted | (27 | ) | (18 | ) | |||||||||||||||||||||||||
Total | $ | 440 | $ | 479 | |||||||||||||||||||||||||
Schedule of Reconciliation of Activity for Derivative Contracts | ' | ||||||||||||||||||||||||||||
Financial instruments classified as Level 3 in the fair value hierarchy represent derivative contracts in which management has used at least one significant unobservable input in the valuation model. The following tables present a reconciliation of activity for such derivative contracts: | |||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||
First quarter ended March 31, 2014 | Aluminum | Energy | Aluminum | Embedded | |||||||||||||||||||||||||
contracts | contracts | contracts | credit | ||||||||||||||||||||||||||
derivative | |||||||||||||||||||||||||||||
Opening balance – January 1, 2014 | $ | 349 | $ | 6 | $ | 410 | $ | 21 | |||||||||||||||||||||
Total gains or losses (realized and unrealized) included in: | |||||||||||||||||||||||||||||
Sales | — | — | (5 | ) | — | ||||||||||||||||||||||||
Cost of goods sold | (58 | ) | — | — | — | ||||||||||||||||||||||||
Other expenses, net | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
Other comprehensive income | 9 | 5 | (21 | ) | — | ||||||||||||||||||||||||
Purchases, sales, issuances, and settlements* | — | — | — | — | |||||||||||||||||||||||||
Transfers into and/or out of Level 3* | — | — | — | — | |||||||||||||||||||||||||
Foreign currency translation | 27 | — | — | — | |||||||||||||||||||||||||
Closing balance – March 31, 2014 | $ | 326 | $ | 11 | $ | 384 | $ | 20 | |||||||||||||||||||||
Change in unrealized gains or losses included in earnings for derivative contracts held at March 31, 2014: | |||||||||||||||||||||||||||||
Sales | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Cost of goods sold | — | — | — | — | |||||||||||||||||||||||||
Other expenses, net | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||
* | There were no purchases, sales, issuances or settlements of Level 3 financial instruments. Additionally, there were no transfers of financial instruments into or out of Level 3. | ||||||||||||||||||||||||||||
Schedule of Quantitative Information for Level 3 Derivative Contracts | ' | ||||||||||||||||||||||||||||
The following table presents quantitative information for Level 3 derivative contracts: | |||||||||||||||||||||||||||||
Fair value at | Valuation | Unobservable | Range | ||||||||||||||||||||||||||
March 31, | technique | input | ($ in full amounts) | ||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Aluminum contract | $ | — | Discounted cash flow | Interrelationship of future aluminum and oil prices | Aluminum: $1,705 per metric ton in 2014 to $2,066 per metric ton in 2018 | ||||||||||||||||||||||||
Oil: $108 per barrel in 2014 to $93 per barrel in 2018 | |||||||||||||||||||||||||||||
Aluminum contract | 292 | Discounted cash flow | Interrelationship of future aluminum prices, foreign currency exchange rates, and the U.S. consumer price index (CPI) | Aluminum: $1,724 per metric ton in 2014 to $1,958 per metric ton in 2016 | |||||||||||||||||||||||||
Foreign currency: A$1 =0.92 in 2014 to $0.87 in 2016 | |||||||||||||||||||||||||||||
CPI: 1982 base year of 100 and 232 in 2014 to 246 in 2016 | |||||||||||||||||||||||||||||
Aluminum contract | 34 | Discounted cash flow | Interrelationship of LME price to overall energy price | Aluminum: $1,806 per metric ton in 2014 to $2,143 per metric ton in 2019 | |||||||||||||||||||||||||
Energy contracts | 11 | Discounted cash flow | Price of electricity beyond forward curve | $82 per megawatt hour in 2014 to $154 per megawatt hour in 2036 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Aluminum contracts | 384 | Discounted cash flow | Price of aluminum beyond forward curve | $2,401 per metric ton in 2023 to $2,554 per metric ton in 2027 | |||||||||||||||||||||||||
Embedded credit derivative | 20 | Discounted cash flow | Credit spread between Alcoa and counterparty | 0.57% to 1.88% | |||||||||||||||||||||||||
(1.23% median) | |||||||||||||||||||||||||||||
Schedule of Gain or Loss on Hedged Items and Derivative Contracts | ' | ||||||||||||||||||||||||||||
The gain or loss on the hedged items are included in the same line items as the loss or gain on the related derivative contracts as follows (there were no contracts that ceased to qualify as a fair value hedge in any of the periods presented): | |||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
or (Loss) | Recognized in Earnings on Derivatives | ||||||||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||||||||
Earnings on | First quarter ended | ||||||||||||||||||||||||||||
Derivatives | March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts* | Sales | $ | (20 | ) | $ | (71 | ) | ||||||||||||||||||||||
Interest rate contracts | Interest expense | 3 | 3 | ||||||||||||||||||||||||||
Total | $ | (17 | ) | $ | (68 | ) | |||||||||||||||||||||||
Hedged Items in Fair Value Hedging Relationships | Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
or (Loss) | Recognized in Earnings on Hedged Items | ||||||||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||||||||
Earnings on | First quarter ended | ||||||||||||||||||||||||||||
Hedged Items | March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts | Sales | $ | — | $ | 71 | ||||||||||||||||||||||||
Interest rate contracts | Interest expense | (3 | ) | (3 | ) | ||||||||||||||||||||||||
Total | $ | (3 | ) | $ | 68 | ||||||||||||||||||||||||
* | In the first quarter ended March 31, 2014, the $20 loss recognized in earnings represents the ineffective portion of the hedging relationships. | ||||||||||||||||||||||||||||
Schedule of Gains and Losses on Derivative Excluded from Assessment of Effectiveness Recognized in Current Earnings | ' | ||||||||||||||||||||||||||||
Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain or | Amount of Gain or (Loss) | Location of Gain or | Amount of Gain | ||||||||||||||||||||||||
Hedging Relationships | or (Loss) | (Loss) Reclassified | Reclassified from | (Loss) Recognized | or (Loss) | ||||||||||||||||||||||||
Recognized in | from Accumulated | Accumulated OCI into | in Earnings on | Recognized in | |||||||||||||||||||||||||
OCI on | OCI into Earnings | Earnings (Effective Portion)* | Derivatives (Ineffective | Earnings on | |||||||||||||||||||||||||
Derivatives | (Effective | Portion and Amount | Derivatives | ||||||||||||||||||||||||||
(Effective | Portion) | Excluded | (Ineffective | ||||||||||||||||||||||||||
Portion) | from Effectiveness | Portion and Amount | |||||||||||||||||||||||||||
Testing) | Excluded from | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Testing)** | |||||||||||||||||||||||||||||
First quarter | First quarter | First quarter | |||||||||||||||||||||||||||
ended | ended | ended | |||||||||||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Aluminum contracts | $ | 23 | $ | 104 | Sales | $ | (4 | ) | $ | (6 | ) | Other expenses (income), net | $ | — | $ | — | |||||||||||||
Energy contracts | 2 | 2 | Cost of goods sold | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Foreign exchange contracts | 2 | — | Sales | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Interest rate contracts | — | — | Interest expense | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Interest rate contracts | 1 | 1 | Other expenses (income), net | — | — | Other expenses (income), net | — | — | |||||||||||||||||||||
Total | $ | 28 | $ | 107 | $ | (4 | ) | $ | (6 | ) | $ | — | $ | — | |||||||||||||||
* | Assuming market rates remain constant with the rates at March 31, 2014, a loss of $10 is expected to be recognized in earnings over the next 12 months. | ||||||||||||||||||||||||||||
** | For the first quarter ended March 31, 2014, there was no ineffectiveness related to the derivatives in cash flow hedging relationships. For the first quarter ended March 31, 2013, the amount of gain or (loss) recognized in earnings includes an insignificant amount related to the ineffective portion of the hedging relationships. | ||||||||||||||||||||||||||||
Schedule of Outstanding Forward Contracts that were Entered into Hedge Forecasted Transactions | ' | ||||||||||||||||||||||||||||
Alcoa had the following outstanding forward contracts that were entered into to hedge forecasted transactions: | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts (000 metric tons) | 742 | 841 | |||||||||||||||||||||||||||
Energy contracts: | |||||||||||||||||||||||||||||
Electricity (megawatt hours) | 59,409,328 | 59,409,328 | |||||||||||||||||||||||||||
Natural gas (million British thermal units) | 20,440,000 | 19,980,000 | |||||||||||||||||||||||||||
Foreign exchange contracts | $ | 308 | $ | 335 | |||||||||||||||||||||||||
Schedule of Fair Value Gains and Losses on Derivatives Contracts Recorded in Earnings | ' | ||||||||||||||||||||||||||||
Alcoa has certain derivative contracts that do not qualify for hedge accounting treatment and, therefore, the fair value gains and losses on these contracts are recorded in earnings as follows: | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
Recognized in Earnings on Derivatives | |||||||||||||||||||||||||||||
or (Loss) | |||||||||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||||||||
Earnings on | |||||||||||||||||||||||||||||
First quarter ended | |||||||||||||||||||||||||||||
Derivatives | March 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Aluminum contracts | Sales | $ | (5 | ) | $ | (4 | ) | ||||||||||||||||||||||
Aluminum contracts | Other expenses (income), net | — | 22 | ||||||||||||||||||||||||||
Embedded credit derivative | Other expenses (income), net | 1 | (2 | ) | |||||||||||||||||||||||||
Foreign exchange contracts | Other expenses (income), net | (6 | ) | (3 | ) | ||||||||||||||||||||||||
Total | $ | (10 | ) | $ | 13 | ||||||||||||||||||||||||
Schedule of Carrying Values and Fair Values of Other Financial Instruments | ' | ||||||||||||||||||||||||||||
The carrying values and fair values of Alcoa’s other financial instruments were as follows: | |||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||
value | value | value | value | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 665 | $ | 665 | $ | 1,437 | $ | 1,437 | |||||||||||||||||||||
Restricted cash | 24 | 24 | 18 | 18 | |||||||||||||||||||||||||
Noncurrent receivables | 19 | 19 | 19 | 19 | |||||||||||||||||||||||||
Available-for-sale securities | 120 | 120 | 119 | 119 | |||||||||||||||||||||||||
Short-term borrowings | 53 | 53 | 57 | 57 | |||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||
Long-term debt due within one year | 85 | 85 | 655 | 1,040 | |||||||||||||||||||||||||
Long-term debt, less amount due within one year | 7,609 | 8,128 | 7,607 | 7,863 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Component (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension and other postretirement benefits | ' | ' |
Total Other comprehensive income | $77 | $96 |
Foreign currency translation | ' | ' |
Other comprehensive income (loss) | 336 | -100 |
Available-for-sale securities | ' | ' |
Other comprehensive income | ' | 1 |
Cash flow hedges (N) | ' | ' |
Total Other comprehensive income | 34 | 115 |
Alcoa [Member] | ' | ' |
Pension and other postretirement benefits | ' | ' |
Balance at beginning of period | -3,532 | -4,063 |
Unrecognized net actuarial loss and prior service cost/benefit | 17 | 11 |
Tax expense | -3 | -3 |
Total Other comprehensive income before reclassifications, net of tax | 14 | 8 |
Amortization of net actuarial loss and prior service cost/benefit | 98 | 132 |
Tax expense | -35 | -45 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 63 | 87 |
Total Other comprehensive income | 77 | 95 |
Balance at end of period | -3,455 | -3,968 |
Foreign currency translation | ' | ' |
Balance at beginning of period | 179 | 1,147 |
Other comprehensive income (loss) | 249 | -116 |
Balance at end of period | 428 | 1,031 |
Available-for-sale securities | ' | ' |
Balance at beginning of period | 2 | 3 |
Other comprehensive income | ' | 1 |
Balance at end of period | 2 | 4 |
Cash flow hedges (N) | ' | ' |
Balance at beginning of period | -308 | -489 |
Net change from periodic revaluations | 36 | 136 |
Tax expense | -8 | -29 |
Total Other comprehensive income before reclassifications, net of tax | 28 | 107 |
Net amount reclassified to earnings | 5 | 7 |
Tax expense | -1 | -1 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 4 | 6 |
Total Other comprehensive income | 32 | 113 |
Balance at end of period | -276 | -376 |
Alcoa [Member] | Aluminum Contracts [Member] | ' | ' |
Cash flow hedges (N) | ' | ' |
Net amount reclassified to earnings | 5 | 7 |
Noncontrolling Interests [Member] | ' | ' |
Pension and other postretirement benefits | ' | ' |
Balance at beginning of period | -51 | -77 |
Amortization of net actuarial loss and prior service cost/benefit | 1 | 1 |
Tax expense | -1 | ' |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | ' | 1 |
Total Other comprehensive income | ' | 1 |
Balance at end of period | -51 | -76 |
Foreign currency translation | ' | ' |
Balance at beginning of period | -110 | 257 |
Other comprehensive income (loss) | 87 | 16 |
Balance at end of period | -23 | 273 |
Cash flow hedges (N) | ' | ' |
Balance at beginning of period | -2 | -5 |
Net change from periodic revaluations | 3 | 3 |
Tax expense | -1 | -1 |
Total Other comprehensive income before reclassifications, net of tax | 2 | 2 |
Total Other comprehensive income | 2 | 2 |
Balance at end of period | ' | ($3) |
Restructuring_and_Other_Charge2
Restructuring and Other Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
t | Fusina Italy [Member] | Point Henry Smelter [Member] | Primary Metals [Member] | Primary Metals [Member] | Engineered Products and Solutions [Member] | Corporate [Member] | Global Rolled Products [Member] | Alumina [Member] | Layoff Costs [Member] | Layoff Costs [Member] | Layoff Costs [Member] | Other Miscellaneous Items [Member] | Other Miscellaneous Items [Member] | Restructuring Programs Layoffs 2014 [Member] | Restructuring Programs Layoffs 2013 [Member] | Other Exit Costs [Member] | Smelter Curtailments [Member] | Asset Impairment [Member] | Small Layoff Reserves Related to Prior Periods [Member] | Permanent Shutdown and Planned Demolition of Idled Structures [Member] | Operating Supplies [Member] | Asset Retirement Obligations [Member] | Asset Retirement Obligations [Member] | Environmental Remediation [Member] | Environmental Remediation [Member] | Supplier And Customer Contract [Member] | ||
Location | t | t | Employees | Employees | Employees | Employees | Employees | Employees | Primary Metals [Member] | Employees | Employees | Location | ||||||||||||||||
Employees | Employees | |||||||||||||||||||||||||||
MT | ||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | $461 | $7 | ' | ' | ' | ' | ' | ' | ' | ' | $13 | $3 | $133 | $15 | $4 | ' | ' | $336 | $70 | $33 | $6 | ' | ' | $55 | $12 | $42 | $58 | ' |
Restructuring and other charges, after-tax and noncontrolling interests | 274 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 2 | ' | 9 | 3 | ' | ' | 186 | 46 | 26 | 4 | ' | ' | ' | ' | ' | ' | ' |
Number of employees associated with layoff costs | ' | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of U.S. locations permanently shutdown and planned demolition | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees associated with layoff costs | 40 | ' | ' | ' | 1,230 | ' | 110 | 60 | 470 | 90 | ' | ' | ' | ' | ' | ' | ' | ' | 170 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in production - result of market conditions, in metric tons per year | 460,000 | ' | 84,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining smelting capacity subject to review | 62,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional smelting capacity subject to review | 85,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of mills permanently shutdown and planned demolition | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in combined capacity | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees associated with layoff costs | 1,830 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other asset impairment charges | 91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated depreciation | 59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other exit costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123 | ' | 55 | ' | 38 | ' | 30 |
Inventory write-down - permanent shutdown and planned demolition of idled structures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | ' | ' | ' | ' |
Inventory write-down, after-tax and non-controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' |
Additional charges related to shutdown actions | 220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of employees already laid off | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 1,260 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions separated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 1,660 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments made against the layoff reserves | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of cash payments expected to be paid beyond the end of the current annual period | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of cash payments expected to be paid beyond the end of the current annual period | $70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_and_Other_Charge3
Restructuring and Other Charges - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | $461 | $7 |
Operating Segments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | 432 | 6 |
Corporate, Non-Segment [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | 29 | 1 |
Alumina [Member] | Operating Segments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | 7 | ' |
Primary Metals [Member] | Operating Segments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | 331 | ' |
Global Rolled Products [Member] | Operating Segments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | 90 | 3 |
Engineered Products and Solutions [Member] | Operating Segments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and other charges | $4 | $3 |
Restructuring_and_Other_Charge4
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve beginning balance | $138 | $111 | $111 |
Cash payments | -32 | ' | -74 |
Restructuring charges | 276 | ' | 286 |
Other | 134 | ' | 185 |
Restructuring reserve ending balance | 248 | ' | 138 |
Restructuring and other charges | 461 | 7 | ' |
Layoff Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve beginning balance | 96 | 59 | 59 |
Cash payments | -29 | ' | -63 |
Restructuring charges | 146 | ' | 201 |
Other | 5 | ' | 101 |
Restructuring reserve ending balance | 208 | ' | 96 |
Restructuring and other charges | 13 | 3 | ' |
Other Exit Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve beginning balance | 42 | 52 | 52 |
Cash payments | -3 | ' | -11 |
Restructuring charges | 130 | ' | 85 |
Other | 129 | ' | 84 |
Restructuring reserve ending balance | 40 | ' | 42 |
Restructuring and other charges | 336 | ' | ' |
Asset Retirement Obligations [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and other charges | 55 | ' | 12 |
Environmental Remediation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and other charges | 42 | ' | 58 |
Pension Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Other | ' | ' | $92 |
Restructuring_and_Other_Charge5
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligations [Member] | Asset Retirement Obligations [Member] | Environmental Remediation [Member] | Environmental Remediation [Member] | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | $461 | $7 | $55 | $12 | $42 | $58 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventory Components (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $702 | $578 |
Work-in-process | 1,006 | 828 |
Bauxite and alumina | 597 | 581 |
Purchased raw materials | 528 | 474 |
Operating supplies | 234 | 244 |
Inventories, total | $3,067 | $2,705 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Percentage inventories valued on a last in, first out (LIFO) basis | 37.00% | 34.00% |
Total inventories valued on an average-cost basis | $701 | $691 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Alcoa [Member] | ' |
Debt Instrument [Line Items] | ' |
Line of credit facility, borrowing | $620 |
Line of credit facility, repayment | 620 |
Weighted-average interest rate | 1.53% |
Weighted-average maturity days | '49 days |
Revolving Credit Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Number of revolving credit facility agreements | 10 |
Outstanding borrowings | 1,190 |
Revolving credit facility term | '5 years |
Revolving credit facility term start | '2014-02 |
Revolving credit facility term end | '2015-12 |
Revolving Credit Facility [Member] | First Loans Agreement [Member] | ' |
Debt Instrument [Line Items] | ' |
Outstanding borrowings | 150 |
Line of credit facility, expiration date | '2014-02 |
Extended credit facility maturity date | '2015-03 |
Revolving Credit Facility [Member] | Second Loans Agreement [Member] | ' |
Debt Instrument [Line Items] | ' |
Outstanding borrowings | 150 |
Line of credit facility, expiration date | '2014-03 |
Line of credit facility, new agreement date | '2014-04 |
Revolving Credit Facility [Member] | Eleventh Revolving Credit Facility Agreement [Member] | ' |
Debt Instrument [Line Items] | ' |
Outstanding borrowings | 50 |
Line of credit facility, expiration date | '2016-02 |
5.25% Convertible Notes, Due 2014 [Member] | ' |
Debt Instrument [Line Items] | ' |
Principal amount of convertible notes | $575 |
Convertible notes, interest rate | 5.25% |
Convertible notes due date | 15-Mar-14 |
Number of shares, option exercised | 89 |
Conversion rate, numerator | 155.4908 |
Conversion rate, denominator | $1,000 |
Convertible notes, conversion price | $6.43 |
Par value of issued shares | $89 |
Contingencies_and_Commitments_
Contingencies and Commitments - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Jul. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 26, 2012 | Mar. 26, 2012 | Jun. 30, 2010 | Nov. 30, 2006 | Feb. 21, 2013 | Feb. 21, 2013 | Feb. 21, 2013 | Feb. 21, 2013 | Feb. 21, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Nov. 19, 2009 | Nov. 19, 2009 | Jul. 31, 2006 | Dec. 31, 2012 |
Plant | USD ($) | EUR (€) | USD ($) | EUR (€) | t | Curtis v. Alcoa Inc. [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Alcoa Trasformazioni [Member] | Alcoa Trasformazioni [Member] | Alcoa [Member] | Alcoa [Member] | Italian Government [Member] | Italian Government [Member] | Italian Government [Member] | Portovesme [Member] | ||
Installment | Person | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | t | ||||||||
Plant | Plant | ||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retired former employees involved in class action | ' | ' | ' | ' | ' | ' | ' | 13,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trial length, number of days | ' | ' | ' | '8 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management estimate for maximum exposure from class action | ' | ' | ' | ' | $110 | € 85 | ' | ' | ' | ' | ' | $97 | € 76 | ' | ' | ' | ' | ' | ' |
Provision for contract losses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 97 | 76 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years operating under a power supply structure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Charge related to European Commission announcement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 173 | ' | ' |
Number of smelters | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' |
Write-off of receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 14 | ' | ' |
Establishment reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 230 | 159 | ' | ' |
Recovery amount | ' | 375 | 303 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in recovery amount | ' | 65 | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Italian Government | ' | 310 | 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Italian Government, installments amount | ' | 69 | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments, litigation payment | ' | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation reserve | ' | 218 | 159 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Range of reasonable possible loss, minimum | ' | 218 | 159 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of reasonable possible loss, maximum | ' | 417 | 303 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $126 | € 91 | ' | ' | ' | ' |
Amount of curtailment, metric-tons-per-year | ' | ' | ' | ' | ' | ' | 44,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 |
Contingencies_and_Commitments_1
Contingencies and Commitments - Additional Information - 1 (Detail) | 1 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2007 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2007 | Jan. 31, 2007 | Jan. 31, 2007 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | USD ($) | USD ($) | EUR (€) | Minimum [Member] | Maximum [Member] | Recurring Costs of Managing Hazardous Substances and Environmental Programs [Member] | Spanish Government [Member] | Tariffs Granted by Spain [Member] | Tariffs Granted by Spain [Member] | Grasse River [Member] | Massena West NY and Point Henry and Yennora Australia [Member] | Other Sites [Member] | Massena West, NY [Member] | Sherwin, TX site [Member] | Sherwin, TX site [Member] | Sherwin, TX site [Member] | East St. Louis, IL Site [Member] | East St. Louis, IL Site [Member] | East St. Louis, IL Site [Member] | ||
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | USD ($) | Minimum [Member] | Maximum [Member] | ||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years operating under a power supply structure | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Days provided to submit observations and comments to the EC | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, range of possible loss, maximum | ' | ' | ' | $417 | € 303 | ' | ' | ' | ' | $95 | € 70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of cleanup locations | ' | 'More than 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation reserve balance | ' | 565 | 509 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 241 | 34 | ' | ' | 24 | ' | ' |
Remediation reserve balance, classified as a current liability | ' | 73 | 48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation reserve increase | ' | 38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation reserve adjustment | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 9 | ' | ' | ' | ' | ' | ' | ' |
Payments related to remediation expenses applied against the reserve | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in reserves due to effects of foreign currency translation | ' | $15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cost of goods sold | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Planning and design phase period | ' | ' | ' | ' | ' | '2 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual remediation fieldwork period | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Majority of the project funding Period | ' | ' | ' | ' | ' | '2016 | '2020 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | '2015 |
Guarantees, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | '2019 | ' | ' | ' |
Contingencies_and_Commitments_2
Contingencies and Commitments - Additional Information - 2 (Detail) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 36 Months Ended | 3 Months Ended | 12 Months Ended | 31 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 08, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | 31-May-12 | 31-May-12 | Apr. 08, 2013 | Apr. 08, 2013 | Apr. 08, 2013 | Apr. 08, 2013 | Apr. 08, 2013 | Feb. 27, 2014 | Feb. 27, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Feb. 27, 2014 | Feb. 27, 2014 | Dec. 31, 2002 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2004 | Dec. 31, 2004 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | Other Noncurrent Liabilities and Deferred Credits [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | State and Local Jurisdiction [Member] | State and Local Jurisdiction [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Alcoa World Alumina Brasil [Member] | Ligestra [Member] | Ligestra [Member] | Ligestra [Member] | Ligestra [Member] | Ligestra [Member] | Italian Ministry of Environment and Protection of Land and Sea[Member] | Italian Ministry of Environment and Protection of Land and Sea[Member] | Alcoa Aluminio [Member] | Alcoa [Member] | Estreito Project [Member] | Estreito Project [Member] | Estreito Project [Member] | Estreito Project [Member] | Estreito Project [Member] | Fusina [Member] | Baie Comeau [Member] | Mosjoen [Member] | Ma'aden Joint Venture [Member] | Smelting and Rolling Mill Companies [Member] | Smelting and Rolling Mill Companies [Member] | Smelting and Rolling Mill Companies [Member] | Alcoa Joint Venture [Member] | Alcoa Joint Venture [Member] | Alcoa Joint Venture [Member] | Portovesme [Member] | Refining and Mining Company [Member] | Alumina Limited [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | Dampier to Bunbury Natural Gas Pipeline [Member] | |
Agency | USD ($) | USD ($) | USD ($) | BRL | BRL | USD ($) | BRL | USD ($) | BRL | Minimum [Member] | Maximum [Member] | Fixed Assets [Member] | Fixed Assets [Member] | Fixed Assets [Member] | USD ($) | EUR (€) | Minimum [Member] | Maximum [Member] | USD ($) | EUR (€) | t | USD ($) | USD ($) | BRL | USD ($) | BRL | USD ($) | USD ($) | USD ($) | USD ($) | Entity | USD ($) | Other Noncurrent Liabilities and Deferred Credits [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | USD ($) | SAR | USD ($) | USD ($) | USD ($) | USD ($) | AUD | Three-Year Equity Call Plan [Member] | Three-Year Equity Call Plan [Member] | Three-Year Equity Call Plan [Member] | Three-Year Equity Call Plan [Member] | |||||||
Entity | USD ($) | USD ($) | BRL | Minimum [Member] | Maximum [Member] | MWh | MWh | USD ($) | USD ($) | USD ($) | AUD | USD ($) | AUD | |||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation reserve increase (decrease) | $38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,000,000 | $25,000,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of payments and remediation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Soil remediation project, estimated cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for emergency action and natural resource damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs and payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs and payments related to damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disallowed tax credits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000,000 | 220,000,000 | ' | ' | ' | ' | 175,000,000 | 0 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of penalty of the gross disallowed amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value added tax receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,000,000 | 82,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated range of reasonably possible loss, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 155,000,000 | ' | ' | ' | ' | 0 | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Administrative appeal, assessment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total combined assessments | 333,000,000 | 242,000,000 | ' | ' | ' | ' | ' | 55,000,000 | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Metal sold per month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.49% | 25.49% | ' | ' | 25.49% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' |
Assured power from installed capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | 150 | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated project costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,290,000,000 | 5,170,000,000 | ' | 5,170,000,000 | 2,290,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aluminio's share of project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 580,000,000 | 1,320,000,000 | ' | 1,320,000,000 | 580,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment expended on the project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 560,000,000 | 1,270,000,000 | 560,000,000 | 1,270,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest issued as guarantee for smelting and rolling mill companies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74.90% | 25.10% | ' | ' | 25.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of joint venture entities | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital investment | 1,949,000,000 | ' | 1,907,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,515,000,000 | ' | ' | 10,800,000,000 | 40,500,000,000 | ' | ' | 1,992,000,000 | ' | ' | ' | ' | ' | ' | ' |
Amount invested by Alcoa and Aluminum Financing Limited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital investment commitment paid-to-date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 886,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital investment commitment paid in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 967,000,000 | ' | 951,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee issued on behalf of smelting and rolling mill companies | ' | ' | ' | ' | ' | 3,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,133,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | 10,000,000 | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt service requirements, principal | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 121,000,000 | ' | ' | ' | ' | ' | ' | 67,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt service requirements, interest maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' |
Project financing | 240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in joint venture at fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' |
Number of agencies | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of equity investment | 67.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of equity Investment | 67.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial cash investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | 24,000,000 | ' | ' | ' | ' |
Additional contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 141,000,000 | 176,000,000 | 31,000,000 | 31,000,000 | 2,000,000 | 2,000,000 |
Required plan contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 40,000,000 |
Prepayments made under the agreement for future gas transmission services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 327,000,000 | 355,000,000 | 327,000,000 | 355,000,000 |
Alcoa's maximum exposure to loss in projects | ' | ' | ' | $417,000,000 | € 303,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $460,000,000 | 500,000,000 | $460,000,000 | 500,000,000 |
Other_Expenses_Income_Net_Sche
Other Expenses (Income), Net - Schedule of Other Expenses (Income), Net (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income And Expenses [Abstract] | ' | ' |
Equity loss | $38 | $12 |
Interest income | -4 | -4 |
Foreign currency (gains) losses, net | 8 | -6 |
Net gain from asset sales | -27 | -5 |
Net loss (gain) on mark-to-market derivative contracts | 5 | -17 |
Other, net | 5 | -7 |
Other (income) expenses, net | $25 | ($27) |
Segment_and_Geographic_Area_In
Segment and Geographic Area Information - Schedule of Operating Results of Alcoa's Reportable Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | $6,676 | $7,159 |
Equity income (loss) | -38 | -12 |
Depreciation, depletion, and amortization | 319 | 341 |
Income taxes | 154 | 138 |
After-tax operating income (ATOI) | 325 | 351 |
Intersegment Sales [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Intersegment sales | 1,287 | 1,373 |
Third-Party Sales [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Third-party sales | 5,389 | 5,786 |
Alumina [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 1,355 | 1,421 |
Equity income (loss) | -5 | 1 |
Depreciation, depletion, and amortization | 97 | 109 |
Income taxes | 40 | 14 |
After-tax operating income (ATOI) | 92 | 58 |
Alumina [Member] | Intersegment Sales [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Intersegment sales | 510 | 595 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Third-party sales | 845 | 826 |
Primary Metals [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 2,158 | 2,485 |
Equity income (loss) | -28 | -9 |
Depreciation, depletion, and amortization | 124 | 135 |
Income taxes | -11 | 1 |
After-tax operating income (ATOI) | -15 | 39 |
Primary Metals [Member] | Intersegment Sales [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Intersegment sales | 734 | 727 |
Primary Metals [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Third-party sales | 1,424 | 1,758 |
Global Rolled Products [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 1,720 | 1,830 |
Equity income (loss) | -5 | -4 |
Depreciation, depletion, and amortization | 58 | 57 |
Income taxes | 34 | 39 |
After-tax operating income (ATOI) | 59 | 81 |
Global Rolled Products [Member] | Intersegment Sales [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Intersegment sales | 43 | 51 |
Global Rolled Products [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Third-party sales | 1,677 | 1,779 |
Engineered Products and Solutions [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 1,443 | 1,423 |
Depreciation, depletion, and amortization | 40 | 40 |
Income taxes | 91 | 84 |
After-tax operating income (ATOI) | 189 | 173 |
Engineered Products and Solutions [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Third-party sales | $1,443 | $1,423 |
Segment_and_Geographic_Area_In1
Segment and Geographic Area Information - Schedule of Segment ATOI to Consolidated Net (Loss) Income Attributable to Alcoa (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Total segment ATOI | $325 | $351 |
Interest expense | -120 | -115 |
Noncontrolling interests | -19 | 21 |
Consolidated net (loss) income attributable to Alcoa | -178 | 149 |
Unallocated Amounts (Net of Tax) [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Impact of LIFO | -7 | -2 |
Interest expense | -78 | -75 |
Noncontrolling interests | 19 | -21 |
Corporate expense | -67 | -67 |
Restructuring and other charges | -321 | -5 |
Other | ($49) | ($32) |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Information Used to Compute Basic and Diluted EPS (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net (loss) income attributable to Alcoa common shareholders | ($178) | $149 |
Less: preferred stock dividends declared | 1 | 1 |
Net (loss) income available to Alcoa common shareholders - basic | -179 | 148 |
Add: interest expense related to convertible notes | ' | 8 |
Net (loss) income available to Alcoa common shareholders - diluted | ($179) | $156 |
Average shares outstanding - basic | 1,101 | 1,069 |
Stock options | ' | 3 |
Stock and performance awards | ' | 8 |
Convertible notes | ' | 89 |
Average shares outstanding - diluted | 1,101 | 1,169 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Weighted Average number of shares outstanding dilutive effect | ' | 3 |
Number of weighted average outstanding diluted shares | 1,101 | 1,169 |
5.25% Convertible Notes, Due 2014 [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Number of shares, option exercised | 89 | ' |
Number of shares that become outstanding | 89 | ' |
Number of weighted average outstanding shares included in both basic and diluted shares | 23 | ' |
Weighted Average number of shares outstanding dilutive effect | 89 | ' |
Number of weighted average outstanding diluted shares | 66 | ' |
Convertible Notes [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares that would have been included in diluted earnings per share calculation | 66 | ' |
Number of anti-dilutive securities | 66 | ' |
Stock Awards [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares that would have been included in diluted earnings per share calculation | 18 | ' |
Number of anti-dilutive securities | 10 | ' |
Stock Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares that would have been included in diluted earnings per share calculation | 31 | ' |
Number of anti-dilutive securities | 5 | ' |
Weighted average exercise price of options | 14.53 | 12.2 |
Equity Unit Purchase Agreements [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Number of anti-dilutive securities | 10 | 31 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
BusinessTaxProvision | ||
Income Taxes [Line Items] | ' | ' |
Effective tax rate | 28.10% | 27.40% |
U.S federal statutory rate | 35.00% | 35.00% |
Operational losses in certain foreign jurisdictions | $56 | ' |
Number of specific temporary business tax provisions expired during the period | 2 | ' |
Tax provision due to two specific temporary business tax provision that expired in 2011 | 19 | ' |
U.S. [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Discrete income tax benefit | ' | 19 |
Receivables_Additional_Informa
Receivables - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2012 | Mar. 31, 2014 |
Agreement | ||
Schedule Of Financial Receivables [Line Items] | ' | ' |
Number of arrangement with different financial institution to sell customer receivables | ' | 3 |
Net cash funding received in current period | ' | $100 |
Deferred purchase price receivable | 254 | 315 |
Net cash funding received | ' | 310 |
Amount of cash draws under arrangement | ' | 698 |
Amount of cash repayments under arrangement | ' | 388 |
Accounts receivables | ' | 12,064 |
Cash collections | ' | 11,439 |
Minimum [Member] | ' | ' |
Schedule Of Financial Receivables [Line Items] | ' | ' |
Funding of customer receivables sold | ' | 50 |
Maximum [Member] | ' | ' |
Schedule Of Financial Receivables [Line Items] | ' | ' |
Funding of customer receivables sold | ' | $500 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | $41 | $51 |
Interest cost | 160 | 152 |
Expected return on plan assets | -193 | -198 |
Recognized net actuarial loss | 97 | 123 |
Amortization of prior service cost (benefit) | 4 | 5 |
Settlement | ' | 2 |
Net periodic benefit cost | 109 | 135 |
Other Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | 4 | 4 |
Interest cost | 29 | 28 |
Recognized net actuarial loss | 3 | 9 |
Amortization of prior service cost (benefit) | -5 | -4 |
Net periodic benefit cost | $31 | $37 |
Derivatives_and_Other_Financia2
Derivatives and Other Financial Instruments - Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | $371 | $390 | $596 |
Level 1 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 7 | 6 | ' |
Level 3 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 337 | 355 | ' |
Level 2 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 31 | 32 | ' |
Derivatives Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 83 | 69 | ' |
Derivatives Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Aluminum Contracts [Member] | Level 1 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 2 | 4 | ' |
Derivatives Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Aluminum Contracts [Member] | Level 3 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 10 | 9 | ' |
Derivatives Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Contracts [Member] | Level 1 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 5 | 2 | ' |
Derivatives Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Interest Rate Contracts [Member] | Level 2 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 6 | 9 | ' |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Aluminum Contracts [Member] | Level 3 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 24 | 16 | ' |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Interest Rate Contracts [Member] | Level 2 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 25 | 23 | ' |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Energy Contracts [Member] | Level 3 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 11 | 6 | ' |
Derivatives Not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 292 | 324 | ' |
Derivatives Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Aluminum Contracts [Member] | Level 3 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 133 | 149 | ' |
Derivatives Not Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Aluminum Contracts [Member] | Level 3 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | 159 | 175 | ' |
Margin Held [Member] | Prepaid Expenses and Other Current Assets [Member] | Interest Rate Contracts [Member] | Level 2 [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Fair value asset derivatives | $4 | $3 | ' |
Derivatives_and_Other_Financia3
Derivatives and Other Financial Instruments - Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | $440 | $479 |
Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 63 | 66 |
Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 404 | 431 |
Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 438 | 469 |
Derivatives Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Aluminum Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 41 | 45 |
Derivatives Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Aluminum Contracts [Member] | Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 22 | 23 |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | Aluminum Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 13 | 14 |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | Aluminum Contracts [Member] | Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 362 | 387 |
Derivatives Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 29 | 28 |
Derivatives Not Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Aluminum Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 5 | 4 |
Derivatives Not Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Embedded Credit Derivative [Member] | Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 2 | 2 |
Derivatives Not Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Foreign Exchange Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 4 | 3 |
Derivatives Not Designated as Hedging Instruments [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | Embedded Credit Derivative [Member] | Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 18 | 19 |
Margin Posted [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 27 | 18 |
Margin Posted [Member] | Other Current Liabilities [Member] | Aluminum Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 21 | 18 |
Margin Posted [Member] | Other Current Liabilities [Member] | Foreign Exchange Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | 2 | ' |
Margin Posted [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | Aluminum Contracts [Member] | Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Fair value liability derivatives | $4 | ' |
Derivatives_and_Other_Financia4
Derivatives and Other Financial Instruments - Gross Amounts of Recognized Derivative Assets and Liabilities and Gross Amounts Offset in Accompanying Consolidated Balance Sheet (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Gross amounts recognized, assets | $80 | $72 |
Gross amounts offset, assets | -51 | -39 |
Net amount presented in Consolidated Balance Sheet, assets | 29 | 33 |
Gross amounts recognized, liabilities | 83 | 84 |
Gross amounts offset, liabilities | -51 | -39 |
Net amount presented in Consolidated Balance Sheet, liabilities | 32 | 45 |
Aluminum Contracts [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Gross amounts recognized, assets | 49 | 40 |
Gross amounts offset, assets | -47 | -36 |
Net amount presented in Consolidated Balance Sheet, assets | 2 | 4 |
Gross amounts recognized, liabilities | 79 | 81 |
Gross amounts offset, liabilities | -47 | -36 |
Net amount presented in Consolidated Balance Sheet, liabilities | 32 | 45 |
Interest Rate Contracts [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Gross amounts recognized, assets | 31 | 32 |
Gross amounts offset, assets | -4 | -3 |
Net amount presented in Consolidated Balance Sheet, assets | 27 | 29 |
Gross amounts recognized, liabilities | 4 | 3 |
Gross amounts offset, liabilities | -4 | -3 |
Net amount presented in Consolidated Balance Sheet, liabilities | ' | ' |
Derivatives_and_Other_Financia5
Derivatives and Other Financial Instruments - Gross Amounts of Recognized Derivative Assets and Liabilities and Gross Amounts Offset in Accompanying Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting [Abstract] | ' | ' |
Margin on derivative posted with counterparties | $25 | $18 |
Derivatives_and_Other_Financia6
Derivatives and Other Financial Instruments - Schedule of Derivative Contract Assets and Liabilities Measured and Recognized at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Assets: | ' | ' | ' |
Fair value asset derivatives | $371 | $390 | $596 |
Liabilities: | ' | ' | ' |
Fair value liability derivatives | 440 | 479 | ' |
Level 1 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Fair value asset derivatives | 7 | 6 | ' |
Liabilities: | ' | ' | ' |
Fair value liability derivatives | 63 | 66 | ' |
Level 2 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Fair value asset derivatives | 31 | 32 | ' |
Level 3 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Fair value asset derivatives | 337 | 355 | ' |
Liabilities: | ' | ' | ' |
Fair value liability derivatives | 404 | 431 | ' |
Margin Held [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Margin held | -4 | -3 | ' |
Margin Posted [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Margin posted | ($27) | ($18) | ' |
Derivatives_and_Other_Financia7
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Aluminum Contracts [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value measurement, Assets, Beginning balance | $349 |
Fair value measurement, Assets, Sales | ' |
Fair value measurement, Assets, Cost of goods sold | -58 |
Fair value measurement, Assets, Other expenses, net | -1 |
Fair value measurement, Assets, Other comprehensive loss | 9 |
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | ' |
Fair value measurement, Assets, Transfers into and (or) out of Level 3 | ' |
Fair value measurement, Assets, Foreign currency translation | 27 |
Fair value measurement, Assets, Ending balance | 326 |
Fair value measurement, Assets, Sales | ' |
Fair value measurement, Assets, Cost of goods sold | ' |
Fair value measurement, Assets, Other expenses, net | -1 |
Fair value measurement, Liabilities, Beginning balance | 410 |
Fair value measurement, Liabilities, Sales | -5 |
Fair value measurement, Liabilities, Cost of goods sold | ' |
Fair value measurement, Liabilities, Other comprehensive loss | -21 |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | ' |
Fair value measurement, Liabilities, Transfers into and (or) out of Level 3 | ' |
Fair value measurement, Liabilities, Foreign currency translation | ' |
Fair value measurement, Liabilities, Ending balance | 384 |
Fair value measurement, Liabilities, Sales | ' |
Fair value measurement, Liabilities, Cost of goods sold | ' |
Embedded Credit Derivative [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value measurement, Liabilities, Beginning balance | 21 |
Fair value measurement, Liabilities, Cost of goods sold | ' |
Fair value measurement, Liabilities, Other income, net | -1 |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | ' |
Fair value measurement, Liabilities, Transfers into and (or) out of Level 3 | ' |
Fair value measurement, Liabilities, Foreign currency translation | ' |
Fair value measurement, Liabilities, Ending balance | 20 |
Fair value measurement, Liabilities, Sales | ' |
Fair value measurement, Liabilities, Cost of goods sold | ' |
Fair value measurement, Liabilities, Other income, net | -1 |
Energy Contracts [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value measurement, Assets, Beginning balance | 6 |
Fair value measurement, Assets, Sales | ' |
Fair value measurement, Assets, Other comprehensive loss | 5 |
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | ' |
Fair value measurement, Assets, Transfers into and (or) out of Level 3 | ' |
Fair value measurement, Assets, Ending balance | 11 |
Fair value measurement, Assets, Sales | ' |
Fair value measurement, Assets, Cost of goods sold | ' |
Derivatives_and_Other_Financia8
Derivatives and Other Financial Instruments - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | |||||||
In Millions, unless otherwise specified | Jul. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2012 |
Plant | USD ($) | CAD | USD ($) | USD ($) | Forward Contracts [Member] | Forward Contracts [Member] | Level 3 [Member] | Level 3 [Member] | Power Contract One [Member] | Power Contract Two [Member] | |
Contract | t | USD ($) | BRL | USD ($) | USD ($) | ||||||
Contract | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized loss on derivative contracts | ' | ' | ' | ' | ' | ' | ' | $67 | ' | ' | ' |
Other derivative contracts estimated term of quoted market prices, in years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of contracts | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Power contracts maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-14 | 31-Mar-16 |
Number of smelters | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative asset amount | ' | 371 | ' | 390 | 596 | ' | ' | 337 | 355 | ' | ' |
Power purchase period forecasted by derivative instrument | ' | 'Through December 2036 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of natural gas supply contract | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of commodities involved for valuation of supply contract | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of contracts ceased to qualify as fair value hedge | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of aluminum kmt designated as fair value hedges | ' | 347,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative designated as fair value hedge start period | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative designated as fair value hedge end period | ' | '2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt the hedges effectively convert from fixed to floating through 2018 | ' | 200 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate cash flow hedges | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward contract to purchase to mitigate the foreign currency risk related to a Canadian/Brazilian-denominated loan due in 2014 | ' | 53 | 58 | ' | ' | 231 | 543 | ' | ' | ' | ' |
Maturity date of forward contract | ' | ' | ' | ' | ' | 31-Mar-14 | 31-Mar-14 | ' | ' | ' | ' |
Loss recognized on forward contract | ' | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Other_Financia9
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Interrelationship of Future Aluminum and Oil Prices [Member] | Interrelationship of Future Aluminum and Oil Prices [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Price of Electricity Beyond Forward Curve [Member] | Price of Electricity Beyond Forward Curve [Member] | Price of Electricity Beyond Forward Curve [Member] | Price of Aluminum Beyond Forward Curve [Member] | Price of Aluminum Beyond Forward Curve [Member] | Price of Aluminum Beyond Forward Curve [Member] | Credit Spread Between Alcoa and Counterparty [Member] | Credit Spread Between Alcoa and Counterparty [Member] | Credit Spread Between Alcoa and Counterparty [Member] | Credit Spread Between Alcoa and Counterparty [Member] | ||||
Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Energy Contracts [Member] | Energy Contracts [Member] | Energy Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Aluminum Contracts [Member] | Embedded Credit Derivative [Member] | Embedded Credit Derivative [Member] | Embedded Credit Derivative [Member] | Embedded Credit Derivative [Member] | ||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Median [Member] | |||||||||
Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | |||||||||
Index | Index | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Assets, Fair value | $371,000,000 | $390,000,000 | $596,000,000 | ' | ' | $292,000,000 | ' | ' | $34,000,000 | ' | ' | $11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price of aluminum beyond forward curve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,401 | 2,554 | ' | ' | ' | ' |
Derivative Liabilities, Fair value | 440,000,000 | 479,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 384,000,000 | ' | ' | 20,000,000 | ' | ' | ' |
Expected future aluminum prices | ' | ' | ' | 1,705 | 2,066 | ' | 1,724 | 1,958 | ' | 1,806 | 2,143 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity year of future aluminum price | ' | ' | ' | '2014 | '2018 | ' | '2014 | '2016 | ' | '2014 | '2019 | ' | ' | ' | ' | '2023 | '2027 | ' | ' | ' | ' |
Expected future oil prices | ' | ' | ' | 93 | 108 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of credit spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.57% | 1.88% | 1.23% |
Price of electricity beyond forward curve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $82 | $154 | ' | ' | ' | ' | ' | ' | ' |
Maturity year of future oil price | ' | ' | ' | '2018 | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of electricity beyond forward curve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | '2036 | ' | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate | ' | ' | ' | ' | ' | ' | 0.92 | 0.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate expected year | ' | ' | ' | ' | ' | ' | '2014 | '2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consumer price index base year | ' | ' | ' | ' | ' | ' | ' | '1982 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected consumer price index | ' | ' | ' | ' | ' | ' | 232 | 246 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consumer price index base | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected consumer price index, Year | ' | ' | ' | ' | ' | ' | '2014 | '2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Derivatives and Other Financial Instruments - Schedule of Gain or Loss on Hedged Items and Derivative Contracts (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | ($17) | ($68) |
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items | -3 | 68 |
Aluminum Contracts [Member] | Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | -20 | -71 |
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items | ' | 71 |
Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | 3 | 3 |
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items | ($3) | ($3) |
Recovered_Sheet2
Derivatives and Other Financial Instruments - Schedule of Gain or Loss on Hedged Items and Derivative Contracts (Parenthetical) (Detail) (Sales [Member], Aluminum Contracts [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Sales [Member] | Aluminum Contracts [Member] | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' |
Amount of gain/loss recognized in earnings related to the ineffective portion of hedging relationships | $20 |
Recovered_Sheet3
Derivatives and Other Financial Instruments - Schedule of Gains and Losses on Derivative Excluded from Assessment of Effectiveness Recognized in Current Earnings (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $28 | $107 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | -4 | -6 |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' |
Aluminum Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 23 | 104 |
Aluminum Contracts [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' |
Aluminum Contracts [Member] | Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | -4 | -6 |
Energy Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 2 | 2 |
Energy Contracts [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' |
Energy Contracts [Member] | Cost of Goods Sold [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | ' | ' |
Foreign Exchange Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 2 | ' |
Foreign Exchange Contracts [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' |
Foreign Exchange Contracts [Member] | Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | ' | ' |
Interest Rate Contracts [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' |
Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | ' | ' |
Interest Rate Contract 2 [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 1 | 1 |
Interest Rate Contract 2 [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' |
Recovered_Sheet4
Derivatives and Other Financial Instruments - Schedule of Gains and Losses on Derivative Excluded from Assessment of Effectiveness Recognized in Current Earnings (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Offsetting [Abstract] | ' |
Amount of loss expected to be recognized into earnings over the next 12 months | $10 |
Recovered_Sheet5
Derivatives and Other Financial Instruments - Schedule of Outstanding Forward Contracts that were Entered into Hedge Forecasted Transactions (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | t | t |
Aluminum Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Aluminum contracts (000 metric tons) | 742,000 | 841,000 |
Energy Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Electricity (megawatt hours) | 59,409,328 | 59,409,328 |
Natural gas (million British thermal units) | 20,440,000 | 19,980,000 |
Foreign Exchange Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Foreign exchange contracts | 308 | 335 |
Recovered_Sheet6
Derivatives and Other Financial Instruments - Schedule of Fair Value Gains and Losses on Derivatives Contracts Recorded in Earnings (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | ($10) | $13 |
Aluminum Contracts [Member] | Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | -5 | -4 |
Aluminum Contracts [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | ' | 22 |
Embedded Credit Derivative [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | 1 | -2 |
Foreign Exchange Contracts [Member] | Other Expenses (Income), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | ($6) | ($3) |
Recovered_Sheet7
Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Value [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Cash and cash equivalents | $665 | $1,437 |
Restricted cash | 24 | 18 |
Noncurrent receivables | 19 | 19 |
Available-for-sale securities | 120 | 119 |
Short-term borrowings | 53 | 57 |
Commercial paper | ' | ' |
Long-term debt due within one year | 85 | 655 |
Long-term debt, less amount due within one year | 7,609 | 7,607 |
Fair Value [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Cash and cash equivalents | 665 | 1,437 |
Restricted cash | 24 | 18 |
Noncurrent receivables | 19 | 19 |
Available-for-sale securities | 120 | 119 |
Short-term borrowings | 53 | 57 |
Commercial paper | ' | ' |
Long-term debt due within one year | 85 | 1,040 |
Long-term debt, less amount due within one year | $8,128 | $7,863 |